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ARTICLE · 18 JUNE 2026

FDI Compliance: A Required Step In Malta’s Public Procurement Process

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Malta's Department of Contracts has issued Circular 07/2026, introducing foreign direct investment screening as a mandatory step in public procurement procedures involving critical activities and third-country investors. This development requires contracting authorities and economic operators to navigate new compliance obligations that bridge investment regulation and procurement law, potentially affecting contract award timelines and bidder eligibility assessments.

MaltaGovernment, Public Sector
Adrian Mallia
Adrian Mallia
Adriana Brincat
Adriana Brincat
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The Department of Contracts (“DOC”) Circular 07/2026 dated 8th May 2026 and subsequent guidance issued on 9 June 2026 have brought Malta’s Foreign Direct Investment (“FDI”) screening regime firmly into the public procurement sphere. While Chapter 620 of the Laws of Malta has been in force since 2020, the latest developments clarify how the regime applies to public contracts and concessions involving activities that may affect security or public order.

For contracting authorities and economic operators alike, the message is clear: FDI screening is no longer merely a corporate or investment law consideration. In certain circumstances, it has become an integral part of the procurement lifecycle.

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