The Government of Malta and Tecom Investments of Dubai have announced that they have signed the Heads of Agreement which pave the way and define the operational framework for the establishment of SmartCity@Malta.

The signing of the Heads of Agreement paves the way for further detailed discussions on a Final Agreement that is expected to be reached by the summer of 2006. The Heads of Agreement, which are a mutually binding instrument, set out the responsibilities and obligations of the Government and of Tecom Investments, in the development and operation of SmartCity@Malta.

SmartCity@Malta will transform the current Ricasoli Industrial Estate into a state-of-the-art ICT and Media Park on the models of Dubai Internet City and Dubai Media City devised, owned and operated by Tecom Investments.

On its part, Tecom will be investing an estimated Lm110 million, making this project the largest ever foreign investment initiative in the ICT sector ever to be undertaken in Malta generating 5,600 jobs concentrated in the private sector in the knowledge-based environment.

The Heads of Agreement stipulates how the project expected to create the number of jobs on an annual basis up to reaching the 5,600 level. In fact, the first deliverables from this investment can however be expected by 2008.

The new Malta facility will be the first European outpost for Dubai Internet City and Dubai Media City and it is expected that global players will be able to focus their European operations and business through SmartCity@Malta.

The Heads of Agreement stipulate that a company, which will be registered in Malta in the coming months, will be developing and operating SmartCity@Malta.

On its part, the Government of Malta has agreed to make available the land in exchange of 9% equity in the investment, an annual ground rent and a return through the significant investment in the public spaces to be made by the company operating SmartCity@Malta. Since the commercial detail of the agreement will be subject to further negotiations, the parties agreed not to disclose this detail before the Final Agreement is submitted to Parliament for its consideration.

The Heads of Agreement stipulate also that all public areas at SmartCity@Malta – over a third of the footprint of the development – as well as the Ricasoli foreshore will remain entirely accessible to the public.

Tecom Investments are the originators, developers and operators of the ‘Dubai Internet City’ which groups together over 700 tenant ICT companies: the world’s largest managed entity for ICT. Tecom are also the originators, developers and operators of ‘Dubai Media City’ (grouping together over 1000 tenant companies) and the ‘Knowledge Village’ which houses 260 European, American and Regional educational institutions. Tecom Investments continue their rapid program of growth during 2005/2006 when they incorporated the new ‘Dubai Studio City’, Dubiotech-the Biotech initiative and secured progress in the new ‘Dubai Outsource Zone’.

The new SmartCity@Malta will include a new full-fledged ICT and Media Smart City on the models developed by the same organisation in Dubai. This project will also be accompanied by new state-of-the-art use of the environment of the site with the development of a hotel, a lodging area and other activities to help attract knowledge-based operations to the site. This is expected to create a cluster environment and also service tenants in the site in a cost-effective and efficient manner.

Mr Ahmad Bin Byat, Chairman and CEO of Tecom Investments, said at the signing “that we have not picked Malta as our partner in our European project out of some hunch. We have considered alternatives and we have done our homework which has included extensive market research. We have decided on Malta because we view Dubai and Malta as being very similar in many respects, in terms of strategic location, size, connectivity, access to key markets, high tourism dependence etc which resulted in a natural level of affinity.

“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 experience of the work we have done together to come this far, we think we can look forward to a successful and prosperous business relationship [with Malta].”

Please contact Muscat Azzopardi and Associates for more information about SmartCity@Malta