The Government has said that the GSD’s Shadow Minister for Business remarks on the Business & OFT Annual Report “misrepresent both the facts and the broader picture.”

A statement continued: 

“PROPERTY DATA 

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

“These factors include: 

1. Consistent year on year increases in property sale prices per sqm, as widely reported by Real Estate Agents. These increases are in response to the pandemic, increased buyers impacted by the Gibraltar-Spain Tax Treaty, and periods without large-scale private development completions.
2. Higher interest rates, meaning that mortgages are more expensive; and
3. Prospective buyers waiting 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 Real Estate numbers cannot be related to the property tax introduction as this reporting period predates the introduction of the property tax. Mr Sacarello should know this.

“These factors are well beyond the Government’s control. 

“Crucially, publishing reliable data is far better than providing no data at all. Even in a slower year, Gibraltar still recorded hundreds of millions of pounds in property sales. That demonstrates genuine liquidity: buyers know that if they purchase property in Gibraltar, there will be an active market to sell into. 

“As a small jurisdiction, Gibraltar’s property sector is naturally more prone to cyclical swings. Anyone working in property or construction understands that the industry is cyclical, though this seems to have escaped Mr Sacarello, who appears not to grasp even basic local business principles. 

“The market picking up is a sign of the market’s positive outlook on the Treaty. 

INSPECTIONS 

“Mr Sacarello also highlights the drop in consumer protection inspections without context. Inspection numbers were unusually high in the previous reporting year due to a one-off campaign targeting vape sellers. In contrast, this year the OFT prioritised resources where they mattered most by focusing on foreign unlicensed and unregistered businesses, investigating real complaints, transitioning in to the new Fair Trading Act and settling in to their new premises. This is a matter which is of extreme importance to retailers and is consistently highlighted by both the GFSB and the Chamber. From 1 April 2025 to date, there have been a total of over 20 inspections with a price display inspection campaign scheduled for later this year. 

“Compliance is now being delivered digitally. Instead of relying solely on physical visits, the OFT carries out hundreds of online licensing checks each year. These digital checks, while not reflected in traditional inspection figures, allow for faster, broader and more efficient monitoring of compliance. 

“Despite fewer complaints and a temporary reduction in inspections during the legislative transition, the number of investigations increased from 59 to 71 during the reporting period. This demonstrates the Government’s commitment to targeted and timely enforcement rather than ad- hoc volume for its own sake. 

REPORTING PERIOD AND SOURCE OF DATA 

“The data relating to real estate is generated from licensed Real Estate Agents who submit an annual return. The returns cover the 2024 calendar year. Real estate agents are given a short window to submit their returns, which are then compiled by the OFT. 

“All data in the report save for real estate data, is generated from OFT records. This data relates to the HMGoG calendar. For the latest Report, this runs from 1 April 2024 to 31 March 2025. 

BUSINESS 

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

• Introducing digital business registration certificates (the digitisation of the business registration process is well underway).
• Launching the Europort Start-Up Hub.
• Digitising and expanding the Gibraltar Enterprise Scheme.
• Successfully adopting AI by building custom GPT tools to assist staff with consumer complaints and digitising the consumer complaint form.
• Supporting business development measures, including the hosting of 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 shows clear entrepreneurial energy. Combined with streamlined processes and greater support for start-ups, this demonstrates real delivery in strengthening Gibraltar’s business environment. 

“Momentum is not about ignoring challenges, but about tackling them head on while building for the future. The OFT Annual Report shows a department modernising, enforcing strategically, and supporting businesses at every stage. 

“Mr Sacarello may prefer negativity and taking aim, but this Government remains focused on delivery, innovation, and creating confidence for Gibraltar’s business community. This Government is committed to working with businesses to ensure their issues are heard.”

The Minister for Business, 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."