Dubai To Invest US$300 Million In Malta SmartCity

by Robert Lee, Tax-News.com, London

25 April 2007

The Government of Malta and SmartCity, a joint venture between TECOM Investments and Sama Dubai, have signed the final agreements to establish SmartCity Malta, a state-of-the-art ICT and media business community.

The agreement was signed at a ceremony on Monday by Austin Gatt, Minister for Investment, Industry and Information Technology of Malta and Ahmad bin Byat, Executive Chairman of TECOM Investments. Also present were Farhan Faraidooni, Executive Chairman of Sama Dubai, and Abdullatif Almulla, Chief Executive Officer of TECOM Investments and Fareed Abdulrahman, Executive Director of SmartCity.

SmartCity Malta will transform the Ricasoli Industrial Estate in Malta into a state-of-the-art ICT and Media business community based on the successful models of Dubai Internet City and Dubai Media City.

“Malta was our choice for this project as it is very similar to Dubai in several respects," explained Ahmad bin Byat, Executive Chairman of TECOM Investments. "In terms of strategic location, size, connectivity, access to key markets, and high tourism orientation - both Malta and Dubai share a natural affinity.”

Ahmad bin Byat added: “The real work starts now. Delivering SmartCity Malta will require enormous commitment and effort from both sides. Based on the strong relationship we have established throughout our discussions, we are confident we can create a successful business relationship with Malta.”

Minister Austin Gatt stated that the project would transform Malta into “a centre for world-class activities providing top-notch career paths and well-paid jobs to our people, without any compromise with the high quality of the Mediterranean lifestyle".

"This is not limited to ICT specialists though certainly they are an important element of this,” he added.

Minister Gatt also remarked on the regeneration of Ricasoli and neighbouring towns in the southern area of Malta’s Grand Harbour. “The towns around Ricasoli will be making a huge leap forward in the few years ahead of us,” said the Minister.

The Malta facility will be the first European outpost for SmartCity. It is expected that global players, a number of which have already demonstrated significant interest in the project, will be able to focus their European operations and business through SmartCity Malta.

Farhan Faraidooni, Executive Chairman of Sama Dubai, noted: “Malta, with its promising economic prospects, provides an excellent environment for this groundbreaking project. The complimentary fit of TECOM and Sama Dubai along with the expertise of our local partners will ensure the creation of the world class project, ‘SmartCity Malta’, in accordance with the best global standards of quality and technology.”

Under the terms of the agreement, the Government of Malta has agreed to make available nearly 358,000 sq. m. of land to develop the knowledge-based township.

SmartCity Malta will attract an investment of at least US$300 million, making this project the largest foreign investment initiative in the ICT sector in Malta. It is projected to generate 4% growth in the Maltese job market.

The project will provide a substantial boost to Malta’s construction, hospitality, maritime, services and retail sectors. At today’s prices SmartCity Malta is expected by 2014 to be making an annual contribution of some EUR534 million (US$725 million) to Malta’s GDP. This makes SmartCity Malta the single greatest new contributor to Malta’s economy ever to have been secured through foreign direct investment.

According to the government, over an eight year period, SmartCity Malta will create 5,600 jobs with the possibility of increasing to more than 7,000, apart from the several hundred jobs created in the economy as a multiplier effect of the project. In addition to new jobs in Malta’s knowledge-industry, SmartCity Malta will bring about new employment opportunities in areas of administration, hospitality, retail, maintenance, security and logistics among others. The project is the largest job-creator under one roof in Malta’s history.

When completed, the Ricasoli area will feature a state-of-the-art ICT and Media Business Park, tourism accommodation, entertainment areas, shops and a freely accessible recreational area taking up around one-third of the surface area of SmartCity Malta. This will transform this industrial area into a new attraction featuring attractive architecture and landscaping features.

A subsidiary of Dubai Holding, TECOM Investments started with the aim of developing the knowledge-based economy in Dubai. TECOM first launched its telecom operations in 2000 with what was the Gulf region's first commercial deployment of converged services over a single IP network, offering a range of corporate and residential services, including IP triple play (TV, telephony and broadband internet). TECOM recently announced the acquisition of a 35% stake in Tunisie Telecom. TECOM's other telecom investments include a Axiom, the largest mobile distributor in the Middle East, and Interoute, a next generation IP network connecting together most countries in Europe.

Sama Dubai is a private international real estate investment and development company wholly owned by Dubai Holding. The firm is active across several segments of the real estate development sector, including tower buildings (under the ‘Dubai Towers’ brand), large scale resorts (under the ‘Salam’ brand), business developments and mega malls.

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