Throughout the years Malta has always resulted to be the centre for trade in the Mediterranean. Its geo strategic position renders it unique for international trade. This position has led to Malta also developing as a geopolitical country. In fact Malta has been in various historical moments the location of reconciliation between cultures and nations.
Malta has kept its identity in this sense and today various cultures and religions respect each other on the island. This facilitates international business whereby Europeans, Arabs and Americans find Malta as the ideal platform to perform business.
This culture and mentality is reflected also in its international political relations. Malta currently has 48 Double Taxation Agreements (DTAs)which is a significant portfolio of DTAs. Significant are the ones with Libya as Malta is the only European Union Member state that has such an agreement. In fact Malta is constantly used by Libyan investors to penetrate the European Market and vice versa by Europeans to tap into the opportunities offered by Libya.
Islamic Finance in Malta
The discussion on Islamic Finance in Malta originated by the Financial Services Sector in Malta following a number of queries from Islamic Financial Institutions on the potential of Malta acting as an Islamic Financial Services Centre. The discussion was spearheaded by the Malta Institute of Management, the Malta Union of Bank Employees and the Malta Employers Association.
Apart from the aforementioned geostrategic position Malta has the advantage that it has one regulator which is in constant discussion with the financial services industry. This ensures that Malta is constantly at the forefront in the developments within the financial services sector. In fact, following a period of discussions, the Malta Financial Services Authority (MFSA) has published a consultation document on “Islamic Finance in Malta – Banking and Securities”. This document had the aim to analyse the necessary changes required in the Malta Legislation in order that Islamic finance is not discouraged but possibly encouraged in Malta. Another consultation document is expected shortly on Takaful and Sukuk.
The Financial Services Industry including the social partners have provided the MFSA with their feedback and comments on Islamic Finance in Malta. Government is expected to shortly make the necessary changes in the Maltese Legislation.
With the existent legislation, Malta offers substantial opportunities for Islamic Financial Institutions as its current legislation puts IFIs at a level playing field with the conventional institutions as it is further elaborated hereunder. Further changes will allow even more Islamic Finance Transactions.
Thanks: Reuben M Buttigieg
Malta has kept its identity in this sense and today various cultures and religions respect each other on the island. This facilitates international business whereby Europeans, Arabs and Americans find Malta as the ideal platform to perform business.
This culture and mentality is reflected also in its international political relations. Malta currently has 48 Double Taxation Agreements (DTAs)which is a significant portfolio of DTAs. Significant are the ones with Libya as Malta is the only European Union Member state that has such an agreement. In fact Malta is constantly used by Libyan investors to penetrate the European Market and vice versa by Europeans to tap into the opportunities offered by Libya.
Islamic Finance in Malta
The discussion on Islamic Finance in Malta originated by the Financial Services Sector in Malta following a number of queries from Islamic Financial Institutions on the potential of Malta acting as an Islamic Financial Services Centre. The discussion was spearheaded by the Malta Institute of Management, the Malta Union of Bank Employees and the Malta Employers Association.
Apart from the aforementioned geostrategic position Malta has the advantage that it has one regulator which is in constant discussion with the financial services industry. This ensures that Malta is constantly at the forefront in the developments within the financial services sector. In fact, following a period of discussions, the Malta Financial Services Authority (MFSA) has published a consultation document on “Islamic Finance in Malta – Banking and Securities”. This document had the aim to analyse the necessary changes required in the Malta Legislation in order that Islamic finance is not discouraged but possibly encouraged in Malta. Another consultation document is expected shortly on Takaful and Sukuk.
The Financial Services Industry including the social partners have provided the MFSA with their feedback and comments on Islamic Finance in Malta. Government is expected to shortly make the necessary changes in the Maltese Legislation.
With the existent legislation, Malta offers substantial opportunities for Islamic Financial Institutions as its current legislation puts IFIs at a level playing field with the conventional institutions as it is further elaborated hereunder. Further changes will allow even more Islamic Finance Transactions.
Thanks: Reuben M Buttigieg
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