Companies involved in financial intermediation such as banks continued to lead the league table for foreign direct investment last year accounting for almost 85 per cent of money flows to Malta.

Foreign direct investment flows amounted to €792.1 million in 2010, an increase of €250.6 million over the previous year, according to figures released by the National Statistics Office yesterday. This was mainly attributable to an increase of €583.8 million in share capital invested in Malta. On the other hand, re-invested earnings dropped by €106 million when compared to 2009.

Financial intermediation – banks, insurance companies, exchange bureaux and financial institutions – saw its share of foreign direct investment grow to almost 85 per cent from 77 per cent in 2009.

The financial sector accounted for €669.4 million in direct investment flows followed by the hotels and restaurants and real estate sector, which accounted for €58.6 million.

The manufacturing sector, which also includes retail activity and construction, accounted for €38.7 million in foreign direct investment.

Foreign investment accumulated over the years accounted for €12.4 billion at the end of 2010, of which €9.7 billion pertained to the financial intermediation sector.

The NSO also provided information on the amount of money invested abroad by the Maltese. In 2010, this totalled to €66.2 million, a drop of €30.3 million when compared to outflows in 2009.

Financial intermediation also counted for the highest portion of outward investment with the EU being the preferred choice.