Interview with Dr. George Vella, President of Malta

03 Jul Interview with Dr. George Vella, President of Malta

Cooperative links between Malta and UAE are intensifying, as the two countries celebrate half a century of mutually beneficial bilateral relations this year.

Malta recently marked the 50th anniversary of diplomatic relations between itself and UAE, and you made an official visit to that country in June. Could you describe the current state of bilateral relations between the two countries and explain how they are developing?

I made my third visit to the Emirates this year and we had been discussing it for quite some time, as we were fully aware that 2023 marked the 50th anniversary of relations between our two countries. Over the years, it has become evident that the relations between our countries have grown stronger, with an increase in the frequency of visits made by high-ranking officials.

Notably, last April witnessed a significant visit to UAE by Malta’s Minister for Foreign and European Affairs and Trade, during which several Memoranda of Understanding were signed. That was of great importance. My visit can be seen as the culmination of the recent trend of intensifying relations between Malta and UAE. Going forward, we aim to explore future possibilities regarding which sectors are most suitable for opening up between us for maximum benefit.

I’m truly grateful for the warm reception I received from His Highness Sheikh Mohammed bin Rashid Al Maktoum. Our meeting wasn’t only focused on practical matters, but also delved into philosophical discussions about the direction our countries are heading in. We explored the current global situation, particularly with regards to the ongoing war in Ukraine, rising prices, inflation and migration. Furthermore, His Highness expressed his ideas about the future of UAE, taking into account its rapidly growing population and the challenge of providing necessities such as water. We dedicated a substantial amount of time to these discussions, allowing me to gain insight into his concerns and his vision for the future.

Can you provide us with a brief overview of the breadth of relations between Malta and UAE?

Our bilateral relations typically revolve around trade, cooperation and the application of democratic principles when making decisions. Of great significance is our focus on areas such as trade, tourism and investment prospects in our respective countries. Maltese investments in UAE and UAE investments in Malta are key aspects.

In addition, there are overarching wider issues. Currently, the most pressing of these is undoubtedly climate change, which UAE holds deep concern for and it is organizing COP28 later this year to address this matter. I recently had the opportunity to meet the UAE Minister in charge of the environment in Geneva at the United Nations. We had a discussion regarding COP28 and I’m well aware that extensive preparations are underway, not only for the event to result in commitments, but also for crucial decisions to be taken regarding necessary actions.

Global warming is becoming increasingly alarming, which necessitates urgent action to prevent further exacerbation of the current situation. Countries like Gulf nations are already experiencing significant temperature rises and scarcity of vital resources such as water, which relies heavily on reverse osmosis, adds to the urgency. Organizing COP28 provides an opportunity for UAE to demonstrate its genuine concern for the future, aligned with the rest of the world.

Malta and UAE also share other challenges, which His Highness and I discussed in our meeting, such as migration. While Malta may not have migrants coming from UAE, as a country located in the heart of the Mediterranean we are directly affected by the migration flow coming from Africa towards Europe. This is a matter of significant concern for us and we face additional problems related to human trafficking, illicit drug trafficking and similar issues.

In light of the sustainability challenges faced by countries globally — especially in Africa with regard to environmental and developmental issues — do you agree with President Macron’s proposal to reassess the activities of some international institutions? 

I’m not an expert in finance or economics, but I’m aware that the issue of debt in certain countries has consistently emerged in recent years. It’s widely acknowledged that some nations will never be able to fully repay their debts and it’s common to hear experts suggest that, without debt forgiveness, these countries will struggle to make progress. It’s crucial to seriously consider any measures that can help alleviate the issues and problems faced by these nations, including poverty and vulnerability to negative environmental factors.

I’m not qualified to determine whether specific countries should or shouldn’t be included, but it’s important to acknowledge that, when nations seek intervention from institutions such as the IMF, there are conditions attached to the loans provided. A recent example is Tunisia, a country in close proximity to Malta, which is seeking a significant loan from the IMF. However, it’s anticipated that the conditions tied to the loan may worsen the situation before improvements are seen. This is a concern for many countries, as they recognize that, while they may need to turn to the IMF for financial assistance to overcome their problems, implementing the regulations associated with a loan can be challenging. It’s important to note that this discussion primarily refers to one international financial institution, not all of them.

We should approach the situation of these countries with greater care and consideration. If President Macron’s statements align with these sentiments, I would agree with him, as many countries are trapped in a cycle of increasing debts that they’ll never be able to fully repay.

A formal trade agreement between the European Union and the Gulf Cooperation Council has yet to be established. What is Malta’s position on this?

Malta is one of 27 countries in the EU, which means we have a voice, but it’s important to acknowledge that our voice is not the only one. Nevertheless, successive Maltese governments have consistently supported efforts to facilitate trade between the Gulf countries and the EU.

There has been ongoing discussion about establishing a free trade area with Gulf countries but, unfortunately, this hasn’t materialized yet and I can’t accurately predict what will transpire in the long run. The EU has a complex structure and economic cooperation agreements often require a substantial amount of time. However, from Malta’s perspective, any government would be in favor of facilitating trade between the two blocs. The EU is already one of the most important trading blocs for UAE, second only to China, and considering the rapid population growth and substantial investments taking place in Dubai and Abu Dhabi, it’s difficult to comprehend why reaching an agreement would be significantly delayed.

Nonetheless, I lack the expertise to pass judgment on the matter, fully aware that numerous considerations come into play when contemplating a cooperation agreement between the EU and any other country or bloc. The prudent approach UAE is taking involves not relying solely on the relationship between the EU and the GCC, but striving to establish bilateral agreements.

You were Malta’s Minister for Foreign Affairs between 1996 and 1998, and again from 2013 to 2017. Could you provide some insights into Malta’s bilateral relations with other GCC countries?

The government of Malta is responsible for formulating policies and determining the course of action to strengthen and deepen bilateral relations. The relationships between Malta and the countries in the Gulf region have been excellent for many years: in the 1970s, for example, Malta benefited from the Kuwaiti Fund and the Abu Dhabi Fund for Development.

Having said that, the Malta of the 1970s and 1980s is a far cry from what it is today. Fortunately, we’ve made progress, and our economy is robust and performing well. There are strong and positive relations between Malta and every country in the Gulf, including Saudi Arabia, Oman, Qatar and Kuwait. The relations we have with UAE reflect the same level of deep connection that we aim to have with all the other countries, without making any distinctions, and we’re eager to move forward.

As a matter of fact, we were deeply concerned and saddened when there were conflicts among the Gulf countries. We have always held the belief that such differences should be resolved diplomatically and peacefully, recognizing that the strength of the Gulf countries lies in their unity. The more they’re united and work together, the more influential and effective they become as an economic and political force on a global scale.

During my tenure as Malta’s Foreign Minister, our relations with the Gulf countries were excellent. We consistently sought to foster bilateral relations with each and every country, as well as to establish bilateral relations between Malta and the GCC.

One noteworthy recent development is the Abraham Accords, which is a positive step. We hope that it will be utilized in the best interests of all parties involved in the Middle East.

As Malta’s Head of State, what aspects of your country make you most proud and why?

What fills me with pride is the gradual progress we’ve made over the years, despite differences and varying policies of successive governments. This progress has ultimately culminated in our current achievements: Malta is a democratic state, a member of the EU and a sovereign nation. We took our first step towards independence in 1964 and became a republic in 1974. It’s remarkable that we’ve accomplished all of this within a relatively short period of time, without any civil strife. Instead, important decisions, such as our membership of the EU, were made through democratic discussions involving practically everyone. This demonstrates that our system has evolved through our embrace of democracy.

Additionally, we’re fortunate to have a resilient, well-educated and intelligent population. The government continuously strives to prepare our citizens for the challenges that lie ahead, recognizing the importance of equipping them with the necessary skills and knowledge. It’s remarkable to consider that Malta, with its mere 330 square kilometers and lack of natural resources, has managed to overcome these challenges. Throughout our history, we’ve demonstrated our adaptability to various circumstances.

Despite our small size, we always strive to excel and surpass expectations. Presently, we proudly hold a two-year seat on the United Nations Security Council and, in the past few months, we’ve already showcased our effectiveness, proving that we can contribute as significantly as any larger nation.

We continuously look towards the future, aiming to enhance our economy, while also being mindful of preserving the environment. We exercise caution to ensure that economic development does not come at the expense of our natural surroundings. Balancing these priorities can be challenging, particularly given our limited territorial size. Nevertheless, we navigate this path while upholding democratic principles. We engage in discussions, encounter problems and experience differences of opinion. Ultimately, it is the will of the people that prevails. Whether a political party is in government or opposition, we all respect and adhere to the decisions made by the people.

To gain a clear understanding of our economy, it is important to acknowledge the historical context. Prior to gaining independence, our challenge was lack of resources and industry. However, the decision to address this issue was made by the people, considering the local circumstances. We initially focused on labour-intensive industries, despite their limited economic returns, as a means to improve our economy. Over time, labour-intensive industries were phased out and we transitioned to more advanced industries and services, including tourism and banking, and we have embraced new sectors such as i-gaming and information technology. Presently, our economy is shifting towards higher-quality production and industries that contribute significantly to economic growth.

Tourism is one of the oldest and most enduring sectors in Malta, but it’s also complicated and presents challenges. How is Malta addressing these?

Tourism poses significant challenges as it requires us to maintain a continuous and appealing experience for visitors. This entails taking care of various aspects of the nation and not just the environment, because the overall ambiance of the country, including its stability and security, play a crucial role in attracting tourists. Visitors choose a destination based on their perception of a stable and secure environment, alongside the natural surroundings. Therefore, we prioritize and ensure stability, security and a positive overall experience to sustain tourism as an attractive sector.