The fruits of friendship

In an article on yesterday's London Times Michael Knipe writes that as a loyal friend and ally of Libya, Malta is aiming to benefit as Tripoli opens up to the West:

Through good times and bad Libya's most loyal friend has always been Malta. During the decades of international sanctions and global isolation, it was the Mediterranean island 210 miles (350 km) to the north that provided a lifeline to the African state, supplying just about everything down to such basic items as tinned fish and bars of soap.

Today, Malta is hoping that its close ties and intimate understanding of its Arab neighbour will ensure that it also benefits from the opening up of Libya's economy to Western investment and private enterprise. It is presenting itself as the perfect base from which international business with Libya can be conducted. Only a half-hour flight away from Tripoli, its 400,000-strong community shares a common Phoenician ancestry with the Libyans and trading ties between the two have existed for millennia. The Maltese say these links give them an unrivalled understanding of the Libyan mentality and business culture.

In recent years the close ties between the island fortress, once a bulwark of Christianity against the invasion attempts of the Muslim Ottoman empire of which Libya was a part, and Colonel Gaddafi's Islamic Arab republic, have been beyond question. When Malta obtained its independence from Britain in 1964, the first embassy it opened as a sovereign state was in Tripoli. Then, during its years of radical socialist rule under Dom Mintoff, it shared much political philosophy with Libya, where Gaddafi came to power five years later.

Thousands of Maltese live and work in Libya and, in spite of the religious differences, there have been many marriages between the two communities. Now, with Libya reforming its economy, privatising its state-run enterprises and seeking inward investment, business opportunities are abundant and Malta is keen to maintain its pivotal role in facilitating connections.

Some analysts believe that Malta will have to work hard to maintain the role it has enjoyed in Libya's international business dealings, now that Tripoli has resolved its differences with the West. Libya, they say, now wants to deal directly with foreign companies. They, however, cautious of an unfamiliar culture, are still likely to want to use Malta for back-office services, safe havens for families and a secure location for their goods. Malta offers excellent communications and transport links. And for foreign business people struggling with the pitfalls of obscure regulations, or the lack of them, the Maltese knowledge of the local business mentality is still a valuable asset.