A 36-year-old man is under arrest on suspicion of drug trafficking.
The arrest was made in Triq Doublet, Marsa, after the police monitored a house following a tip-off.
The man, a Somali, was seen emerging from the house, handing packets to some people and receiving payment.
He was arrested in a nearby street, searched and found in possession of suspected cannabis and cash. A man who was with him was found in possession of cannabis which he had allegedly just bought from the suspect.
A search of the suspect's house yielded suspected cannabis and cocaine and drug-related items.
Magistrate Anthony Agius Bonniċi is holding an inquiry.
The suspect is due to be arraigned later on Tuesday.