SmartCity Dubai has injected a direct investment of €35 million in SmartCity Malta, where the construction work “is moving at a faster pace than originally projected”.

The increase was approved by SmartCity Malta shareholders this week, bringing up the capital base to €66 million, according to a company statement.

This direct investment by SmartCity Dubai does not involve any borrowing or other external financing.

The Maltese board of directors also approved the budget for 2012, which includes the proposed expenditure of €25 million for the completion of the project.

SmartCity Malta CEO Fareed Abdulrahman said part of this investment will be used for the development of Phase 2, which includes completion of two office buildings, two retail complexes, the lagoon and the steps, and for marketing initiatives both locally and overseas.

Once the two buildings are completed, the office space will increase by more than 18,000 square metres.

Infrastructure Minister Austin Gatt said it was obvious that through this project, Malta had found the way to face up to economic changes and to restore its positive performance on a global level.

“Through its partnership with SmartCity Malta, the government ensured that a huge investment has been made in the best working environment in our region without placing the financial burden on the public,” he said.

Malta was building a new town in the south which would become an important destination for investment and “it is indeed a pity that many do not realise the constant work and worth of SmartCity Malta,” Dr Gatt added.