The Group expects the St George’s Bay project to generate €300 million in revenue over its first two years of operation, adding to the income generated by its established operating business.

The expansion follows a financial year in which the Group invested €123 million in property, plant and equipment, while its total assets increased to €750 million. Cash and cash equivalents stood at €99 million at March 2026, reflecting the Group’s emphasis on financial discipline and liquidity planning during the delivery of major projects.

The established business also continued to improve its profitability, with gross operating profit from existing properties increasing by €5 million over the previous year.

As reported in July, annual revenue grew by 12.2% to €111 million, supported by db Seabank Resort and Spa, db San Antonio Hotel and Spa, a full year’s contribution from Xemxija Bay Hotel and the expansion of the restaurant portfolio, including Aki London.

The inauguration of the 397-room Hard Rock Hotel Malta on 2 September marked a major milestone in the Group’s expansion. Forming part of the St George’s Bay development alongside St George’s Mall and ORA Residences, the hotel adds restaurants, bars, wellness facilities and event spaces to the Group’s hospitality portfolio.

The latest Financial Analysis Summary, published by SD Finance plc, projects Group revenue of €237 million for the financial year ending 31 March 2027, compared with €111 million in the previous year.

The updated outlook reflects the later commencement of operations at St George’s Bay and the timing of residential deliveries, including ORA Tower East. These factors principally explain the revision from the previous forecasts of €378 million in revenue and €181 million in EBITDA for the year ending March 2027.

Explaining the revised timetable, CEO Robert Debono said: “A delay of one or two months can move a residential delivery across our financial year-end, shifting the associated income into the following year. Our revised forecasts reflect that change in timing.”

“Seabank and San Antonio remain very profitable foundations of our business. St George’s Bay builds on that established base and itself brings together several sources of income, including hotel accommodation, restaurants, bars, retail and residential sales,” Debono added.

Alongside the development of its Malta operations, db Group continues to pursue international expansion through its planned Hard Rock development in Ras Al Khaimah.

The post db Group forecasts €104 million EBITDA as St George’s Bay enters operation first appeared on The Malta Business Weekly.

As the first Budget of the new legislature, the Chamber argues that the focus must now move from identifying structural challenges and announcing policy commitments towards establishing credible implementation pathways that deliver tangible outcomes for Gozo.

A number of proposals and objectives advanced by the Chamber in recent years are now reflected, wholly or partly, in the Government’s programme for the new legislature. While this convergence is welcome, it also means that Budget 2027 should focus on translating commitments into clear programmes supported by institutional responsibility, adequate resources, realistic timelines and measurable milestones.

The document identifies eight principal priorities for Budget 2027:

Regionality – undertake an evidence-based assessment of alternative governance models and develop a roadmap for the progressive exercise of an appropriate devolution of responsibilities and powers to a regional autonomous entity.

Mġarr Harbour – finance the expansion and futureproofing of the harbour, aligned with future ferry-fleet requirements.

Logistics Hub – move the Government commitment from concept to implementation, with a defined location, functions, governance, financing and connection with Mġarr Harbour.

Innovation and Enterprise – reposition the Gozo Innovation Hub as the anchor of a wider start-up ecosystem together with designated start-up support measures that will support the development of such eco-system.

Rural Airfield and Air Connectivity – provide a realistic annual capital allocation and commence implementation of the Gozo Rural Airfield project.

Financial and Professional Services – introduce a pilot regular MFSA presence in Gozo and develop a coordinated proposition for attracting substantive operations to Gozo.

Skills and Talent – implement employee upskilling support, align training with Gozo’s economic priorities and develop the Youth4Entrepreneurship into a structured entrepreneurship platform for youth.

Existing Businesses – extend transport assistance, strengthen direct support for digitalisation and productivity, and implement the proposed Valletta facility for Gozobased enterprises.

The Chamber stressed that these priorities are interconnected and should not be pursued as isolated measures. Stronger regional governance, strategic infrastructure, connectivity, logistics, diversification, skills and support for existing businesses must form part of one coherent, place-based development framework for Gozo.

Implementation should also be underpinned by transparent decision-making, clear accountability, objective criteria and effective consultation. The inclusion of many of these measures into the present Government’s manifesto, following also proposals by the Chamber, make these binding steps for the next legislature providing already the strategic direction that needs to be taken.

The post Mgarr Harbour expansion is necessary, Gozo Business Chamber says in pre-budget document first appeared on The Malta Business Weekly.

While several sectors experienced a moderation in growth, the Central Bank noted that the overall picture remains one of resilience, supported by strong consumer confidence, a robust labour market, healthy tourism activity and relatively stable conditions in the property market.

The Bank’s Business Conditions Index showed that annual growth in business activity during June was slightly below its historical average. However, this was largely attributed to timing effects related to tax revenue rather than a broad-based slowdown in economic performance.

Manufacturing and retail trade both registered slower growth during May, while services production eased in April. Nevertheless, activity in all three sectors remained above their respective long-term averages, suggesting that underlying economic conditions continue to be favourable.

Tourism continued to stand out as one of the strongest performing sectors, recording sustained growth during May and providing continued support to the wider economy.

One of the report’s most encouraging findings was the sharp improvement in consumer sentiment. Confidence among consumers rose significantly during June, reaching levels close to historic highs. At the same time, expectations regarding unemployment declined further, falling below their historical average and reflecting continued optimism about labour market conditions.

The labour market itself remained exceptionally strong. Malta’s unemployment rate stood unchanged at 3.5% in June compared with the previous month, although marginally higher than the exceptionally low level recorded during the same period last year.

Inflationary pressures also continued to ease. Annual inflation based on the Harmonised Index of Consumer Prices (HICP) declined from 2.1% in May to 2.0% in June, placing Malta comfortably below the euro area average, where energy prices continued to exert upward pressure on inflation. Core inflation, which excludes food and energy, stood at 2.2% and likewise remained below the euro area figure.

Meanwhile, the Retail Price Index (RPI) showed inflation easing further to 2.5% during June, reinforcing signs that price pressures are gradually moderating.

The property market continued to display resilience despite mixed signals. On the supply side, approved permits for residential developments increased compared with the same month last year, while commercial building permits declined. Demand indicators presented a mixed picture, with residential promise-of-sale agreements falling year-on-year during June, although final deeds of sale increased, suggesting that completed transactions remain healthy.

On the public finance front, the Consolidated Fund recorded a deficit in May, contrasting with a surplus during the corresponding month in 2025. The Central Bank attributed this primarily to the timing of income tax receipts together with increased capital expenditure by government.

Financial conditions also remained broadly supportive. The annual growth rate of deposits held by Maltese residents accelerated during May, while credit growth remained broadly unchanged from April, indicating continued stability in household and business financing.

Overall, the Central Bank’s latest assessment suggests that while the pace of economic expansion has moderated, Malta’s economy continues to demonstrate solid underlying fundamentals. Strong consumer confidence, resilient employment, easing inflation and sustained tourism activity continue to underpin economic performance, even as certain sectors return to more sustainable growth rates.

The post Malta’s economy holds firm despite slower momentum, CBM says first appeared on The Malta Business Weekly.

The review examined the frameworks and controls adopted by banks to identify, assess and mitigate these risks, which the regulator described as significant and constantly evolving threats to the integrity of the financial system.

In its letter, the MFSA highlighted a number of supervisory observations, examples of good industry practice and areas where further improvements are expected. The exercise builds on a similar review carried out in 2025 among financial institutions and crypto-asset service providers.

The authority noted that recent reports by the Financial Action Task Force (FATF) point to increasing links between traditional financing methods and emerging digital technologies, as well as growing sophistication among those seeking to evade sanctions and proliferation financing controls.

Against this backdrop, the MFSA said credit institutions must maintain robust and adaptable systems capable of effectively addressing terrorist financing, proliferation financing and sanctions-evasion risks.

Among its key observations, the regulator found that banks generally demonstrated strong alignment with Malta’s National Risk Assessment. It said institutions should continue incorporating both national and supranational risk assessments into their business-wide and jurisdictional risk frameworks.

The authority also stressed the importance of giving terrorist financing, proliferation financing and sanctions-evasion risks distinct consideration within internal risk-management systems, while continuing to apply proportionate and risk-based measures to prevent breaches or circumvention of restrictive measures.

The use of artificial intelligence was another area highlighted in the review. The MFSA said institutions deploying or considering AI solutions should have a clear understanding of how such systems operate, including their limitations, and should maintain comprehensive audit trails of alerts and decisions.

The regulator also underscored the need for ongoing, role-specific training programmes, particularly for employees working in higher-risk areas.

The MFSA encouraged credit institutions to review the findings alongside existing guidance issued by both the authority and the Financial Intelligence Analysis Unit (FIAU), with a view to strengthening their compliance frameworks and maintaining alignment with regulatory expectations.

The authority said insights gathered during the exercise may help shape its future supervisory approach to financial crime compliance.

The post MFSA issues guidance to banks on terrorism financing and sanctions risks first appeared on The Malta Business Weekly.

Data released by NSO on Wednesday showed that 1,157 final deeds of sale relating to residential property were registered during the month of May 2026, representing a decrease of 45 deeds of sale, or 3.7%, when compared to May 2025.

Despite the decline in the number of transactions, the total value of these deeds reached €342.3 million, an increase of 2.5% over the corresponding month last year.

The NSO also reported a fall in residential property demand indicators, with 1,316 promise of sale agreements registered in May.

This represented a decrease of 61 agreements, or 4.4%, compared with the same period in 2025. However, the total value of these agreements rose sharply to €604 million, marking a year-on-year increase of 29.2%, the NSO said.

According to NSO, individual buyers remained the dominant participants in the residential property market. Of the 1,157 during May, 1,053, or 91%, involved individual buyers or households. Companies accounted for virtually all of the remaining transactions

The value of deeds involving households amounted to €282.3 million, representing 82.5% of the total value of all final deeds registered during the month.

Similarly, households accounted for the vast majority of promise of sale agreements. The NSO reported that 1,177 agreements, or 89.4% of the total registered in May, involved individual prospective buyers, while the remainder primarily involved companies.

The locality recording the highest number of residential property sales was St Paul’s Bay, with 98 final deeds of sale registered during the month. Birkirkara followed 68 deeds, while Marsascala recorded 51 transactions.

The same localities also topped the list for promise of sale agreements. St Paul’s Bay registered 88 agreements, followed by Birkirkara with 70 and Marsascala with 50.

The NSO data also provided insight into the types of properties changing hands. A total of 1,261 properties were transacted through the 1,157 final deeds registered during May, reflecting the fact that a single deed can include more than one property.

Apartments remained the most commonly transacted property type, accounting for 466 properties, or 37% of the total. Garages were the second most popular category, with 294 transactions representing 23.3% of all properties sold.

Looking at broader trends during the year, residential property sales have generally remained above the levels recorded during the first five months of 2025.

Between January and May 2026, a total of 5,689 final deeds of sale were registered, compared with 5,395 during the corresponding period last year.

Sales activity showed strong growth during the opening months of 2026, with 1,136 deeds recorded in January, 1,101 in February and 1,146 in March. April also registered a year-on-year increase, reaching 1,149 deeds compared with 1,050 in April 2025.

May was therefore the first month this year to register a decline when compared with the corresponding month of the previous year.

The NSO noted that the residential property transactions featured in the release are not limited to purchases made by households and may involve other economic agents. Furthermore, a single final deed of sale or promise of sale agreement can cover multiple properties.

The statistics are compiled using registrations with the Malta Tax and Customs Administration and are based on the date on which deeds and agreements are officially registered.

The NSO also said that the figures remain subject to revision should updates to the source data become available.

The post Residential property sales fall 3.7% in May 2026 – NSO first appeared on The Malta Business Weekly.

The design-led brand was selected through an open call for bids. Tribe emerged as the ideal hotel to complement the broader vision for SkyParks, strengthening its appeal as a modern lifestyle destination in the south of Malta.

The hotel’s 98 guest rooms will feature high-speed connectivity and smart technology, complemented by meeting and conference facilities, a restaurant, a heated indoor pool and spa, and a rooftop pool with panoramic views. Hotel amenities have been thoughtfully designed to cater for business travellers seeking a productive stay without missing out on the experience.

Tribe will be operated by Claret Group, representing a strategic step in strengthening their growing hospitality portfolio in Malta and their second franchised partnership with Accor.

“We are excited to be collaborating with Malta International Airport on this milestone project. This as a unique opportunity to serve a rapidly growing niche, driven by increasing passenger traffic and demand for high-quality accommodation for transit travellers, short business stays, and those seeking the added convenience of staying close to the airport for early departures. The hotel’s amenities and proximity to the airport, further reinforce its position as a strategic hub for both business and leisure travellers,” said Sean LeGault, Chief Executive Officer of Claret Group.

“We are confident in Claret Group’s ability to deliver a successful operation. Their proven track record in the local hospitality industry, combined with the hotel’s unique location, offering access to on-site amenities, the wider SkyParks complex and a growing airport, make this a first for the Maltese Islands. We look forward to handing over the hotel building to Claret Group in the last quarter of 2026,” said Thomas Abela Gatt, General Manager of SkyParks Business Centre.

In addition to the business hotel, the SkyParks 2 development will include two blocks offering flexible office space, co-working areas, retail and F&B outlets, as well as an underground car park. Designed to accommodate a range of business needs and sizes, the office spaces will be available in a variety of configurations. This expanded offering further strengthens the one-stop-shop concept that has defined the SkyParks brand since its inception in 2012, supporting a business community set to grow by around 2,000 occupants with the new development.

The post Tribe Hotel to launch in 2027 as part of Skyparks 2 development first appeared on The Malta Business Weekly.

The supplies tender for the Design, Supply, and Installation of a 245kV 1x250MVA Auto-Transformer, alongside 1x120MVAr and 1x240MVAr Variable Shunt Reactors, has now commenced at the BEST manufacturing plant in Turkey. This transition ensures that the essential assets required for the successful operation of the second interconnector remain on track for delivery. 

The €20.2 million contract is being delivered by the local contractor AG Installations, working in close collaboration with their supplier, BEST.  

“We’re pushing forward with the implementation of our energy strategy, delivering projects that matter. We’re making significant investments in our distribution infrastructure, accelerating renewable energy growth, leading the way on battery storage, and progressing on the development of the second interconnector. Together, these initiatives will strengthen our energy security and transform our energy mix by unlocking more renewable energy opportunities.” Minister Dr. Miriam Dalli said.

Inġ. Ismail D’Amato, Chief Executive Officer of Interconnect Malta, emphasized the significance of this phase: “The commencement of manufacturing of the reactors and transformer marks an important milestone in the implementation of IC2. These components are not merely infrastructure; they are the pillars that ensure grid stability and voltage control, without which energy cannot be transmitted through the interconnector. Through its supervision, Interconnect Malta is supporting the delivery of a strategic asset designed to achieve high levels of reliability for the national network. ” 

These specific components, namely, the auto transformer and variable shunt reactors, are required for voltage regulation and reactive power control. Their integration is essential for maintaining the overall stability of the national grid and ensuring the safe, efficient transfer of electricity between Malta and Sicily. 

The Second Interconnector serves as a cornerstone of the Government’s energy strategy, designed to double Malta’s interconnection capacity and significantly enhance security of supply.  

By reducing reliance on local fossil-fuel generation and facilitating the integration of large-scale renewable energy, IC2 is pivotal to the nation’s green transition. This strategic investment is co-financed by the European Union under the European Regional Development Fund (ERDF), reflecting a shared commitment to strengthening Malta’s energy resilience and sustainability within the European market. 

The post Manufacturing commences on critical infrastructure for second Malta–Sicily Interconnector first appeared on The Malta Business Weekly.

The increase reported under Malta Government Stocks (€1,291.4 million) was the main contributor to the rise in debt. Higher debt was also reported under Treasury Bills (€81.7 million), Foreign Loans (€77.7 million) and Euro coins issued in the name of the Treasury (€3.8 million). This increase in debt was partially offset by a drop in the 62+ Malta Government Savings Bond (€38.5 million). Moreover, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €23.5 million.

At the end of the same month, the Government’s Consolidated Fund reported a deficit of €18.0 million.

Between January and July 2025, Recurrent Revenue amounted to €4,103.2 million, €13.7 million higher than the figure reported a year earlier. The largest increases were recorded under Social Security (€98.4 million), Customs and Excise Duties (€33.7 million) and Licenses, Taxes and Fines (€24.7 million). On the other hand, lower revenue was recorded under Grants (€101.2 million), Value Added Tax (€44.3 million) and Income Tax (€21.6 million).

Total expenditure from January to July 2025 stood at €4,621.1 million, €592.0 million higher than the previous year.

During the reference period, Recurrent Expenditure totalled €4,009.3 million, an increase of €472.3 million compared to the €3,537.0 million reported the year prior. The main contributor to this increase was an €218.1 million rise reported under Programmes and Initiatives. Further increases were also recorded under Personal Emoluments (€117.0 million), Contributions to Government Entities (€95.4 million) and Operational and Maintenance Expenses (€41.8 million).

The main developments in the Programmes and Initiatives category involved higher outlays towards Social security benefits (€91.9 million), Church schools (€21.7 million) and Energy support measures (€16.5 million).

The interest component of the public debt servicing costs totalled €168.1 million, an increase of €20.4 million when compared to the previous year.

By the end of July 2025, Government’s capital spending amounted to €443.8 million, €99.3 million higher than the comparative period in 2024. Higher outlay was, among others, reported towards the Development of a second electricity interconnector (€73.5 million), the RePowerEU initiative (€18.7 million) and Investment incentives (€14.9 million).

The difference between total revenue and expenditure resulted in a deficit of €518.0 million being reported in the Government’s Consolidated Fund at the end of July 2025, in comparison to a €60.3 million surplus registered by the close of July 2024. This difference mirrors an increase in total Recurrent Revenue (€13.7 million), coupled with a higher rise in total expenditure, which consists of Recurrent Expenditure (€472.3 million), Interest (€20.4 million) and Capital Expenditure (€99.3 million).

The post Government debt surpasses €11 billion – NSO first appeared on The Malta Business Weekly.

Thanks to the Foundation’s sponsorship, a multi-disciplinary team from Palermo – including archivist Dr Francesca di Pasquale, communications specialist Dr Floriana Giallombardo, and conservator Dr Sophie Bonetti – will travel to Malta to share their knowledge and experience. They will join other professionals who, through their work or research, have explored connections between Malta and Sicily, offering a programme of talks and discussions on archival science, conservation, community engagement, and the cultural and historical ties between the two islands.

“The HSBC Malta Foundation has long supported the preservation and promotion of Malta’s documentary heritage,” said Geoffrey Fichte, Chairperson of the HSBC Malta Foundation. “We are delighted to once again support the Notarial Archives Foundation in its mission to safeguard and share the rich historical records in its care. This symposium marks an important step in building cross-border partnerships that can elevate archival standards on both sides of the channel.”

Dr Joan Abela, President of the Notarial Archives Foundation, expressed gratitude for the continued support. “This symposium would not be possible without the HSBC Malta Foundation, whose ongoing commitment and support has been instrumental in aiding our mission. We are thrilled to welcome our colleagues from Palermo, alongside other professionals with a shared interest in the heritage of Malta and Sicily, to provide a platform for learning and collaboration that is open to a wide audience in the heritage sector.”

The event is expected to welcome over 150 attendees and will be open to the public.

For more information and to book, visit this registration form.

The post HSBC Malta Foundation supports collaborative symposium linking Maltese and Sicilian Archival Communities first appeared on The Malta Business Weekly.

Micaela Catania and Monica Abela are the winners of a 4-night package for two, which includes return flights to Barcelona, 5-star hotel accommodation, and the once-in-a-lifetime premium hospitality experience. The presentation was attended by BOV Chief Personal & Wealth Officer, Simon Azzopardi, Chris Degabriele, Head of BOV eBanking Channels and Daniel Magrin, Head of BOV Marketing & Product Lifecycle Management.

The campaign is part of an ongoing drive from Bank of Valletta to incentivise cashless migration amongst its customers. Earlier this year, another similar campaign to encourage card payments was held during the Carnival weekend, while another initiative is currently underway till the end of June, rewarding 60 customers monthly for withdrawing less than €300 cash in any given month and by making at least one retail transaction using a BOV Debit or Credit Card.

Whilst congratulating the winners, Simon Azzopardi thanked Visa for partnering with the Bank to offer another great opportunity to customers. “Thanks to our ongoing collaboration with Visa we continue to facilitate fast and secure payments through innovative card and digital wallet solutions. Our customers today can use these solutions to help them make payments in the most efficient way possible. This initiative allows us to reward BOV Card users with a unique and thrilling experience, unmatched in the local market. This opportunity to attend one of the most prestigious sporting events in the motorsport international arena is a clear demonstration of BOV’s commitment to the proliferation of digital payments on both local and international level.” Mr Azzopardi concluded by encouraging card users to continue to make use of BOV’s extensive range of payment services and promised more rewarding experiences for BOV clients.

The post Two BOV VISA cardholders make their way to Barcelona first appeared on The Malta Business Weekly.