Malta in Review: The Business Stories That Mattered in 2025

The following stories capture Malta's remarkable trajectory in 2025, a year that saw the island nation solidify its position as Europe's fastest-growing economy whilst achieving breakthrough milestones across financial services, technology, and foreign investment. From the International Monetary Fund’s (IMF) projection that Malta will lead EU growth through 2030, to STMicroelectronics' historic manufacturing expansion and a €30 million EU injection for startups, these developments showcase an economy firing on all cylinders. 

Malta to Remain Fastest Growing Economy in the EU

The IMF projects that Malta will maintain the EU's highest economic growth through 2030 at 4% annually, nearly four times the eurozone average of 1.1%. Malta's economy demonstrated remarkable resilience, driven by robust tourism and professional services, with GDP per capita converging with EU averages. This sustained outperformance reinforces Malta's position as Europe's most dynamic small economy, attracting continued foreign investment and talent.

Malta to Introduce Sukuk Framework

The country is positioning itself as an emerging Islamic finance player with the MFSA developing a dedicated Sukuk regulatory framework, expected to launch by Q1 2026. The initiative builds on Malta’s financial infrastructure, English law foundation, and skilled workforce to attract international market participants. The framework includes disclosure requirements for Shariah advisers, opening new opportunities for entrepreneurs and investors seeking EU market access through compliant structures. 

Malta Leads the Way on Cyber Security

The Malta Financial Services Authority’s (MFSA) Cyber Finance Summit 2025 brought together over 500 international experts from European Central Bank (ECB), Bank of England, Reserve Bank of India, and leading technology firms to strengthen digital operational resilience. The two-day summit took place on 15 and 16 October, exploring six key themes including DORA implementation, ICT third-party risk, and AI innovation. The event enabled Malta to position itself as a leading hub for cybersecurity dialogue, demonstrating commitment to protecting financial systems amid growing interconnected threats.

Malta Seen as Prime Investment Destination 

Nearly four in five foreign investors view Malta as a prime investment destination, reflecting strong confidence in the jurisdiction's business environment and regulatory framework. Malta achieved the highest climb in the Greenfield FDI Performance Index, demonstrating remarkable improvement in attracting foreign direct investment. Financial services account for 98.2% of inward FDI, while Malta's agility, EU membership, and skilled workforce continue attracting international businesses seeking European market access.

FinanceMalta Conference

The 18th annual FinanceMalta Conference attracted record delegate numbers and sponsors, showcasing Malta's financial services evolution. The event highlighted strong economic fundamentals, talented workforce, and innovation commitment whilst addressing family offices, AI in fintech, and aircraft leasing opportunities. The conference reinforced collaboration between industry, regulators, and government as essential for raising the sector's contribution from €2 billion toward doubling by 2035. 

STMicroelectronics makes Biggest Investment

STMicroelectronics confirmed expansion of its Smart Factory in Malta, marking the largest single investment in the country's history. The announcement came during the Global Semiconductor Conference Malta 2025, which unveiled the company's first humanoid robot for semiconductor manufacturing. The €8 million Malta Semiconductor Competence Centre reinforces Malta's growing role in Europe's semiconductor ecosystem, providing advanced training facilities and research capabilities for the next generation of engineers.

Malta’s Startup Ecosystem is Thriving

Malta secured a €30 million boost through the European Institute of Innovation and Technology's (EIT) Regional Innovation Booster pilot launching in 2026. Malta retained fourth place in Europe for innovative startups according to the 2024 Startup Nations Standard Report. The country’s Startup Finance Scheme has approved 66 projects since 2020, mobilising €30 million and creating 145+ jobs, whilst venture capital funding surged 1,230% during the year, positioning Malta as an emerging EU innovation hub.