One sure way of restoring growth, after two years of economic slowdown, is the promotion of trade and business with countries that are interested in buying Malta's products and services. The high-level trade mission led by the Prime Minister that visited four Gulf states between Saturday and yesterday was well conceived and timed. It can build bridges with important business partners as, indeed, the first indications promise.
An important stage of this visit was in Bahrain where Foreign Minister Tonio Borg held talks on economic cooperation and an investment guarantee agreement. The Maltese delegation also discussed tourism, education and aviation issues with their counterparts. Investment flows to countries where governments guarantee the rights of investors will be protected from arbitrary state decisions.
Talks leading to the signing of such investment guarantee agreements, as well as the easing of visa restrictions, should help to promote more trade between Malta and the Gulf states.
The visit to Abu Dhabi was another important landmark of the tour. When Prime Minister Lawrence Gonzi addressed the Round Table Business Forum held with the Abu Dhabi Chamber of Commerce he delivered a very important message that Malta "is open for business for any investors from the Gulf who want to use our country as a gateway to the vast EU market".
Malta's success in niche industries, like those of pharmaceuticals and aircraft maintenance, prove that we have what it takes to guarantee success to investors who are prepared to consider Malta's size as a strength rather than a weakness. As the Prime Minister rightly pointed out, "Malta can cater for emerging economic niches and technology through flexibility and adaptability".
The appeal by Sheikha Lubna al Qasimi Minister for Foreign Trade of the United Arab Emirates, for Maltese businesses to explore areas of opportunities in the UAE is also very relevant. Maltese entrepreneurs need to look increasingly beyond our shores to expand their businesses. Abu Dhabi has, over the past few decades, made formidable efforts to diversify its economic activities beyond the obvious oil exploration industries. Healthcare, education and information and communications technology are fertile areas for investment for Maltese companies that have a business vision that goes beyond our shores.
In the visit to Bahrain, Finance Minister Tonio Fenech also signed a double taxation agreement, which, hopefully, will lead to new opportunities for reciprocal trade in the financial services sectors of Bahrain and Malta. Both countries have seen a phenomenal growth in this important area despite the global economic slowdown in the last two years. It now seems that the attractiveness of the North African market may create the synergies that will bring benefits to the financial services industry in the two relatively small countries.
Political diplomacy is increasingly being used to promote business between sovereign states that may seem too far apart geographically but that are really quite close economically.
The first seeds of political and business diplomacy between Malta and the Gulf states were sown in 1974 and may not have given the fruit they had the potential to yield. But this latest visit by the Prime Minister could well reverse this trend and ensure that, from now on, the Gulf states and Malta find new ways of business cooperation.
The hard work in implementing business agreements starts when the travelling is over.