Foreign direct investment in Malta increased by €9.5 billion during 2016 when compared to the previous year according to recently published figures. The stock position of inward FDI stood at €161.4 billion at the end of 2016. Although the stock position of inward direct investment increased across all economic sectors, the financial and insurance sector continued to be the main contributor. In line with past trends, the financial and insurance activities represented 98% of total inward FDI at the end of last year. This level of direct investment reflects the cross-border nature of firms operating within the financial and insurance sector, which in turn comprise also the investment activity of special purposes entities.
In terms of stock position, as at December 2016, direct investment abroad by resident entities was recorded at €62.1 billion. Entities offering financial and insurance activities accounted for 99.5% of the total direct investment abroad. During 2016, direct investment flows abroad decreased by €4.9 billion, compared to a fall of €4.7 billion during the previous year. This is mainly attributed to lower claims on direct investors by €5.6 billion.