Malta Sets Ambitious Goal to Become Europe's Most AI-Friendly Nation

Prime Minister Robert Abela has outlined his government's vision to transform Malta into the most "AI-friendly" country in Europe, positioning the Mediterranean island as a leading destination for AI investment and innovation.

Speaking during the Office of the Prime Minister budget estimates debate in parliament, Abela emphasised that Malta's economic progress now enables the country to selectively choose foreign investment that aligns with its strategic Vision 2050. He stressed that Malta wants to offer strong incentives and a clear framework to attract alternative investment vehicles, digital economy investors and foreign capital in cutting-edge sectors.

"Before 2013, whenever we had an investment coming in from abroad or even locally, we welcomed it. Today it's completely different. This country has advanced so much that we now need new targets and support that is fresh and different," Abela stated, highlighting how Malta can now prioritise investments aligned with its long-term economic strategy.

The government's Vision 2050 is built on four pillars: achieving an economic growth rate of 5% per year, transforming the public service, creating a resilient country with a modern educational system, and maximising use of land and sea resources. Investment in AI and digital innovation forms a crucial component of this ambitious framework.

Malta has already made significant strides in embracing artificial intelligence. The Malta Financial Services Authority (MFSA) has been at the forefront of integrating AI technology to streamline operations and enhance regulatory efficiency, demonstrating how the Malta Digital Innovation Authority and regulatory bodies are working together to create an enabling environment for AI startups Malta.

With fiscal incentives introduced in the 2026 Budget specifically targeting technology and innovation sectors, the government is creating attractive conditions for AI startups and international tech investors. This Malta AI Policy approach reflects the island's commitment to becoming a European hub for artificial intelligence, combining regulatory agility with strategic investment in digital infrastructure.

The initiative positions Malta as a competitive destination for AI companies seeking a supportive regulatory environment and access to European markets.