Government of Malta and TECOM Investments sign agreement on SmartCity@Malta

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The Heads of Agreement were signed at the Ministry for Investment, Industry and Information Technology in Valletta, Malta by Austin Gatt, Minister of IT and Investments, Government of Malta and Ahmad Bin Byat, CEO of TECOM Investments.

The signing of the agreement will be followed by further detailed discussions on a final agreement that is expected to be reached by the summer of 2006. The agreement sets out the obligations of the Government of Malta and TECOM Investments in the development and operation of SmartCity@Malta.

SmartCity@Malta will transform the current Ricasoli Industrial Estate in Malta into a state-of-the-art ICT and media Park modelled on Dubai Internet City and Dubai Media City. TECOM will invest an estimated Lm110 million (US$ 308 million) in the project, making it the largest ever foreign investment initiative to be undertaken in the ICT sector in Malta. The project is expected to generate 5,600 jobs in the knowledge-based sector. The first deliverables from the investment are expected by 2008.

The new Malta facility, the first European outpost for Dubai Internet City and Dubai Media City, is expected to provide global players with an ideal base for their European operations.

According to the Agreement, a company to be registered in Malta in the coming months will develop and operate SmartCity@Malta. The Government of Malta has agreed to make available the land for the project in exchange for 9% equity in the investment, an annual ground rent and a return from the significant investment to be made in public spaces by the company operating SmartCity@Malta.

The project will be jointly developed and managed by TECOM along with Dubai International Properties, the international real estate investment and development arm of Dubai Holding. Dubai International Properties (DIP) has the mission of sharing Dubai's evolutionary real estate achievements in property development with the world and becoming the UAE's gateway for international real estate investment and development.

The agreement is the culmination of discussions between the Maltese Ministry for Investment, Industry and Information Technology and TECOM Investments, which started in April 2005. This project will contribute to Malta's efforts to develop into a leading regional ICT hub. Malta aims to use this opportunity to regenerate its infrastructure as well as create jobs in the south of Malta as part of its drive to transform the southern part of the island into a regional services hub.

Ahmad Bin Byat, CEO of TECOM Investments, said at the signing,

'We have not picked Malta as our partner in our European project out of some hunch. We have considered alternatives and conducted extensive market research. We have decided on Malta because we view Dubai and Malta as being very similar in terms of strategic location, size, connectivity, access to key markets and high tourism dependence, which resulted in a natural affinity between the two.'

'Now that we have made our choice, the real work starts. Delivering SmartCity@Malta will not be an easy task. It will require enormous commitment and effort from both sides. On the basis of the work we have done together so far, we think we can look forward to a successful and prosperous business relationship with Malta.'

The Maltese Minister of IT and Investments Austin Gatt said, 'We are looking at creating 5,600 jobs today in a business sector that barely existed in our country a decade ago. We have created the opportunity for our young people to obtain well-paid jobs and a high standard of living right here in Malta.'

The SmartCity@Malta project aims to create a cluster of knowledge-based companies who will be able to operate efficiently and cost-effectively in a business friendly environment. The project will feature a host of facilities aimed at attracting knowledge-based companies.