NEWS | Wednesday, 14 January 2009

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SmartCity Dubai, the investors behind the eponymous project in Ricasoli, have increased capitalisation of their Malta investment by €31 million, instead of lending the company the money to build SmartCity Malta.
As established in the original agreement, government shares in this project were raised accordingly in order to keep the government’s overall ownership at 9%. The government’s extra shares were also financed by SmartCity Dubai.
SmartCity Dubai’s decision to increase its Malta investment stands in sharp contrast to global business trends in the current economic crisis, with investors steering clear of any risk-taking, a well as often reducing their overseas investments and reneging on capital commitments undertaken before the recession began to be felt.
Investments Minister Austin Gatt yesterday thanked Smart City Dubai for its decision to strengthen the company it owns in conjunction with the Maltese government, and for its efforts to offer a credible option to the international investors it plans to attract to Malta.
“This is an important signal to the global investment community. While other countries are suffering the effects of the economic recession, Malta has realistic prospects of economic growth, as well as international partners who believes in malta’s potential, and are investing heavily in its future,” Dr Gatt said yesterday. “There is no doubt that Malta is not cut off from the global economic reality, and that this is not a serene time for our economic. But when, it times like this, we can effectively reaffirm excellent prospects for our country, and investor confidence in what the Maltese worker has to offer, we can rightly take courage and look forward to brighter economic times ahead.”

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