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ARTICLE · 17 JUNE 2020

Foreign Direct Investment In Malta

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Almost since inception, the European Union ("EU") has been open to foreign investment - essential for economic growth, competitiveness and innovation.

MaltaGovernment, Public Sector
Philip Mifsud
Philip Mifsud
George Bugeja
George Bugeja
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Almost since inception, the European Union ("EU") has been open to foreign investment - essential for economic growth, competitiveness and innovation. The OECD has ranked the EU as having one of the most open investment regimes worldwide and it is a primary destination for foreign direct investment ("FDI"). Naturally, such a reality makes it crucial for the EU to have the means of addressing and guarding against the risks to its security and public order that may accompany such FDI, not least because the EU's major trading partners have already developed such frameworks.

On March 19, 2019, the European Parliament and Council adopted Regulation (EU) 2019/452 (the "Regulation") establishing a comprehensive framework for the screening of FDI into the EU on the grounds of security or public order. Essentially, the screening process requires each Member State to check whether qualifying FDI will have implications on the security and public order of that Member State,

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