Malta has emerged as one of the top performers in the European Union, ranking fourth in terms of value added by foreign-controlled enterprises.

These businesses accounted for a significant 24% of the total value added in the EU’s business producers’ market in 2022, showcasing their outsized impact on the economy despite making up only 1% of market producer enterprises.

Leading the EU rankings were Ireland, where foreign-controlled enterprises contributed 71% of the country’s value added, followed by Luxembourg at 55% and Slovakia at 52%.

Malta’s strong showing places it alongside these leaders, reflecting its strategic appeal to foreign investors. In contrast, larger economies like France (16%), Germany, and Italy (both 17%) reported much lower contributions from foreign-controlled enterprises.

Foreign-controlled enterprises also play a notable role in employment across the EU, accounting for 15% of all jobs.

Luxembourg led this metric with 44% of its workforce employed by foreign-controlled entities, followed by Poland at 34% and Slovakia at 28%. In Malta, these enterprises similarly support a significant portion of the workforce, further underscoring their economic importance.

Meanwhile, Greece, Cyprus, and Italy recorded the lowest shares, with foreign-controlled enterprises accounting for 7%, 9%, and 10% of jobs, respectively.

Shifts in geopolitical dynamics have also shaped the landscape of foreign-controlled enterprises.

In 2022, the number of enterprises controlled by Russian institutional units dropped by 11%, resulting in a 30% decline in employment and a 24% drop in value added compared to the previous year.

Conversely, enterprises controlled by Ukrainian institutional units showed resilience, with an 8% increase in the number of enterprises, a 6% rise in employment, and a 12% boost in value added.

What do you make of these numbers?