Mideast war could force people to transfer wealth from Gulf to Malta: Minister

The Gulf might not recover from the Mideast war if the conflict persists, and high-net-worth families might move their wealth from the region to Malta, the finance minister told parliament on Monday.

Clyde Caruana explained that Malta could be one of the countries on the radar of wealthy people who are not looking to move to a tax haven, but rather to a reputable jurisdiction where people can manage their wealth in peace. 

He said measures such as the Family Offices Initiative could incentivise people to move their wealth to the island and administer it from here. 

The initiative is a fiscal framework by the Malta Financial Services Authority and Malta Financial Services Advisory Council aimed at high-net-worth families who want to establish what is known as Single Family Offices.

Addressing the same parliament session on Monday, the prime minister and the leader of the Opposition also referred to the ongoing war in the Middle East. 

Robert Abela referred to a scheduled Brussels meeting on March 19, where he called for prompt action by the EU to curb inflation within the energy sector amid geopolitical tensions caused by the conflict. 

Addressing fellow European leaders, Abela said that the consolidation of the Single Market should ensure a positive impact that is felt by all of the states' citizens and businesses. This includes countries in the periphery that are not physically connected to the mainland, such as Malta. 

During that meeting, Abela had also flagged the issue of the abandoned Russian tanker currently drifting in the Mediterranean.

Where is the Russian tanker?

Providing an update about the tanker's whereabouts, the prime minister said the vessel had drifted further away from Malta, in Tunisia's direction.

It was now closer to the Libyan coast, but it was still drifting.

The prime minister said he had urged Brussels to establish a process that would allow immediate action when faced with such incidents that were complicated not only because of the cargo the vessel was carrying, but also because of the imposed sanctions. 

Such accidents raised questions about ecological and navigation risks as well as the security of the surrounding countries, he said, noting that while the island was prepared for any eventuality, he was not happy that a permanent solution had not yet been found. 

Opposition to support government

Reacting to Abela's ministerial statement, PN's leader Alex Borg noted that the war, which had killed hundreds of civilians, was escalating into an economic war.

In such circumstances, the Opposition was putting aside partisanship and supporting the government. Such unity between both sides of the House could provide peace of mind for the people, he said.

Borg reiterated the EU's call for de-escalation from all sides and urged respect for international law. He also urged Iran to stop attacking its neighbours and expressed solidarity with Cyprus, an EU member state. 

He noted that during an EPP summit he attended last week, he had also referred to the hit Arctic Metagaz, noting that just as Malta had helped its European colleagues when in need, the EU should resolve such circumstances and deal with any danger in the Mediterranean.