Malta was strategically well-positioned to act as the “Bahrain in the Mediterranean”, participants at an international meeting on Islamic finance agreed.

As such, Islamic finance institutions would be able to use Malta to reach and penetrate EU and north African markets .

The five-day meeting was organised by the Malta Institute of Management in collaboration with the Malta Union of Bank Employees and the Malta Employers Association.

The first session concentrated on an overview of Islamic finance and its potential in Europe and the Mediterranean. The other four days addressed different pillars of Islamic finance, including insurance, banking, funds and sukuk and Islamic capital markets.

The main advantages that were identified with regards to Malta’s potential as a centre for Islamic Finance in the Mediterranean included its geographical position and its extensive network of double taxation treaties, including with Libya.

Malta was also the first jurisdiction considering a centre for Islamic finance in the Mediterranean; it was a reputable financial services location; it had a reputable regime in terms of banking, funds and insurance; and it had a huge potential for special purpose vehicles.

The country also had trust and trustees legislation; it was able to provide customised solutions; it was considered the 10th safest country to invest in by the World Economic forum and it had excellent relations with all EU and north African countries.

The meeting saw the Malta formula as a potential vehicle to assist Muslim communities and investors get the alternative financing they required. The opportunity of Borzamed as a Mediterranean platform for Islamic capital markets was also discussed.