Abela unveils AI-driven economic vision with tax incentives, gaming investment, innovation targets

Prime Minister Robert Abela on Friday unveiled a series of economic proposals aimed at positioning Malta among the leading economies and innovation hubs in Europe, as the Labour Party continued to roll out its proposals ahead of the 2026 general election.

Speaking as part of Labour’s electoral campaign, Abela said the country had “ambitious but realistic” economic targets for the coming years, centred on sustained economic growth, low unemployment and increased investment in technology and innovation.

Among the key targets announced was an average real economic growth rate of 4% over the next five years, while Malta would also seek to place among the top five eurozone countries in terms of GDP per capita.

The Prime Minister said the government also wanted Malta to retain one of the lowest unemployment rates in the eurozone, at around 3%, while pushing the country higher in the European Innovation Scoreboard rankings.

Abela said another major objective was for Malta to become one of the leading countries in Europe in the use of artificial intelligence by businesses.

To support this transition, Labour proposed a 60% tax credit for companies investing in digitalisation, automation and AI systems. Businesses investing in research and innovation would also benefit from a 175% tax deduction on related expenditure.

The proposals also include accelerated depreciation over two years for investments in AI, digitalisation, automation and cybersecurity.

Abela said the measures were intended to help Maltese industries become more competitive and future-oriented in an increasingly technology-driven global economy.

The Prime Minister also announced plans for a Malta e-Residency scheme that would allow foreign entrepreneurs to establish companies digitally in Malta, carry out administrative obligations online and access digital services remotely.

He described the initiative as a way of strengthening Malta’s position as a “regulated and credible” base within the European Union for international businesses and startups.

Labour is also proposing further investment in the gaming sector, with plans to facilitate eight new gaming projects over the next two years. According to the proposals, these projects would involve €60 million in investment and create around 1,300 new jobs.

Abela said the sector could register a near 10% increase in careers, adding that the government wanted these opportunities to benefit Maltese and Gozitan youths.

The Prime Minister also pledged the creation of a dedicated e-sports centre equipped with gaming facilities capable of hosting tournaments and competitive events, describing it as a “natural evolution” for Malta’s gaming industry.

Another proposal involves the establishment of an Innovation Hub intended to host businesses operating in sectors such as renewable energy, food technology, pharmaceuticals, smart manufacturing, additive manufacturing, med-tech and microelectronics.

In the cultural sector, Labour is proposing a new cash rebate scheme for local artists. Under the proposal, artists would be eligible for a 10% reimbursement on expenses up to a maximum of €50,000.

Abela said the measure would support the growth of Malta’s creative industries while improving quality of life through greater investment in culture and the arts.

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