SmartCity's capital base strengthened by €31 million

SmartCity Dubai has capitalised SmartCity Malta with €31 million instead of lending it the money to build the city.

The Infrastructure and IT Ministry has welcomed the move, adding that SmartCity (Malta) Ltd is now being provided with a strong capital base even before commencing commercial activities. The ministry pointed out that, as had been agreed when the original deal was struck, the government's shares in SmartCity (Malta) increased to make sure it retains a nine per cent shareholding in the company. The additional shares were paid for by SmartCity Dubai, the ministry added.

The ministry also said that SmartCity Dubai's decision confirms the investors' confidence in the project, adding that the decision is even more significant considering the prevailing global financial situation.

"While other countries are suffering from economic recession, Malta has credible prospects of economic growth and has international associates who believe in Malta's prospects and are seriously investing in its future," the ministry said.