Malta Pushes AI, E-Sports and Innovation in Bid for High-Tech Economic Future
Malta is seeking to position itself as a regional centre for artificial intelligence, innovation and advanced digital industries under a new economic vision presented by Prime Minister Robert Abela, with the government outlining a series of measures aimed at modernising the country’s economy over the next five years.
Among the flagship proposals announced during Labour Party policy presentations was a plan to transform Malta into one of Europe’s leading countries in the use of artificial intelligence by businesses. According to Abela, the strategy is intended to help local industries adapt to rapidly changing global markets increasingly shaped by automation, cybersecurity and digital technologies.
To support that transition, the government is proposing a 60% tax credit for companies investing in AI systems, automation and digitalisation projects.
Businesses engaged in research and innovation activities would also qualify for a 175% tax deduction on eligible expenditure, while investments related to cybersecurity and advanced digital infrastructure would benefit from accelerated depreciation over two years.
Abela said the incentives are designed to strengthen competitiveness across Maltese industries while encouraging long-term investment in technology and innovation.
The proposals also include the creation of a new Innovation Hub aimed at attracting companies operating in sectors such as renewable energy, pharmaceuticals, med-tech, food technology, additive manufacturing, smart manufacturing and microelectronics.
At the same time, the government wants to expand Malta’s role within the digital entertainment sector. According to figures presented by the Prime Minister, eight new projects linked to digital entertainment and e-sports are expected to be facilitated over the next two years, generating approximately €60 million in investment and around 1,300 new jobs.
Abela said the sector could register close to a 10% increase in career opportunities, particularly for Maltese and Gozitan youths entering technology and digital media industries.
Part of the strategy includes plans for a dedicated e-sports centre equipped to host international tournaments and competitive events, which the government described as the next stage in the evolution of Malta’s digital entertainment industry.
Another key measure announced by Abela is the proposed introduction of a Malta e-Residency programme. The initiative would allow foreign entrepreneurs and startups to establish companies digitally in Malta, complete administrative procedures online and access government services remotely.
The Prime Minister said the scheme is intended to reinforce Malta’s reputation as a regulated and credible business jurisdiction within the European Union while attracting international investment and entrepreneurial activity.
Alongside the technology-focused measures, the government outlined broader economic targets for the coming years. Malta is aiming for an average real economic growth rate of 4% over the next five years while seeking to rank among the top five eurozone countries in GDP per capita.
The government also intends to maintain unemployment at around 3%, one of the lowest rates in the eurozone, while improving Malta’s standing in the European Innovation Scoreboard.
The cultural sector also forms part of the wider strategy. Labour is proposing a cash rebate scheme for local artists under which creatives could receive reimbursement of up to 10% on qualifying expenses, capped at €50,000.
Abela said the measure is intended to support the growth of Malta’s creative industries and encourage further investment in arts and culture as part of broader efforts to improve the quality of life.
The proposals collectively signal a wider push by the government to diversify Malta’s economy beyond traditional sectors and strengthen its position in innovation, technology and high-value industries
