The GSD’s Shadow Minister for Business remarks on the Business & OFT Annual Report misrepresent both the facts and the broader picture.

Property Data

It is true that property transactions fell from 638 in 2023 to 344 in 2024. However, this slowdown reflects wider global and regional market conditions, including:

1. Consistent year-on-year increases in property sale prices per sqm, reported by Real Estate Agents. These increases follow the pandemic, increased buyers affected by the Gibraltar–Spain Tax Treaty, and periods without large-scale private development completions.

2. Higher interest rates, making mortgages more expensive.

3. Prospective buyers waiting for the conclusion of Treaty negotiations, with the report itself noting that the real estate sector anticipates a “modest recovery in buyer enquiries” in 2025.

4. The figures cannot be attributed to the property tax introduction, as this reporting period predates the tax.

These factors are outside the Government’s control. Crucially, publishing reliable data is far better than providing none at all. Even in a slower year, Gibraltar still recorded hundreds of millions of pounds in property sales, showing genuine liquidity in the market.

As a small jurisdiction, Gibraltar’s property sector is naturally more prone to cyclical swings. The market now picking up is a sign of positive outlook on the Treaty.

Inspections

Mr Sacarello also highlighted a drop in consumer protection inspections without context.

• The previous year’s inspection numbers were unusually high due to a one-off campaign targeting vape sellers.

• This year, the OFT prioritised foreign unlicensed and unregistered businesses, investigated real complaints, transitioned into the new Fair Trading Act, and settled into its new premises. This work is consistently highlighted as important by the GFSB and the Chamber.

• From 1 April 2025 to date, over 20 inspections have already been carried out, with a price display inspection campaign scheduled for later this year.

• Compliance is now also delivered digitally. The OFT conducts hundreds of online licensing checks each year. These digital checks allow for faster, broader, and more efficient monitoring.

Despite fewer complaints and a temporary reduction in inspections during the legislative transition, investigations increased from 59 to 71, demonstrating targeted and timely enforcement.

Reporting Period and Source of Data

• Real estate data comes from annual returns submitted by licensed Real Estate Agents covering the 2024 calendar year.

• All other data in the report is from OFT records and relates to the HMGoG calendar (1 April 2024 to 31 March 2025).

Business Modernisation

The Department for Business, which now encompasses the OFT, has modernised significantly by:

• Introducing digital business registration certificates

• Launching the Europort Start-Up Hub

• Digitising and expanding the Gibraltar Enterprise Scheme

• Successfully adopting AI tools to assist with consumer complaints and digitising the complaint form

• Supporting business development measures, including hosting an international business conference in London to promote Gibraltar businesses abroad

A record 1,114 business licence applications, including 794 new licences, were reported. This demonstrates entrepreneurial energy and confidence, combined with streamlined processes and greater support for start-ups.

Momentum is about tackling challenges head-on while building for the future. The OFT Annual Report shows a department modernising, enforcing strategically, and supporting businesses at every stage.

The Minister for Business, the Hon Gemma Arias-Vasquez, said:

“This Report shows a Department that is modernising, enforcing in a targeted manner, and supporting entrepreneurs at every stage. While Mr Sacarello prefers to focus on negativity, the reality is that we are delivering reforms that make a difference, from record business licence applications to digitisation, AI adoption, and the launch of Gibraltar’s Start-Up Hub. I am grateful to the dedicated team at the Department for Business and OFT for driving forward this work during a period of transition. Our focus is not on political point-scoring, but on strengthening confidence and creating opportunity for Gibraltar’s business community.”