According to Cyprus Investment Promotion Agency (CIPA), new foreign investment has started to flow into Cyprus. CIPA’s chairman has said that “prospects are now opening up as the country transitions into a new phase, veering towards stability and fiscal consolidation while examining new engines of growth as investors continue to show confidence in our country”.
Angastiniotis pointed out that Cyprus had implemented a series of reforms and measures to boost the economy, mainly by attracting investments through modernized legislation, promotion of development projects, tourism, tax incentives and faster licensing procedures.
Some of the top priorities of the government includes re-engineering of several government departments and procedures which will also improve the investment mechanism. “The government’s efforts are now bearing fruit and have been acknowledged on an international level. The economy is heading in the right direction and due to everyone’s constructive contribution new foreign investment has started to flow into Cyprus,” he noted.
Cyprus’ professional services sector has witnessed an increase in company registration applications, whereas its tourism industry is now seeing a number of investments in the hotel industry, according to the CIPA chairman.
Angastiniotis also said that the real estate sector of Cyprus has seen a year-on-year 23% rise over the last seven months. He attributed this change to the incentive schemes offering citizenship and permanent residency. “The banking sector has possibly seen the biggest ever flow of foreign investment into Cyprus with international investors from various geographic locations being involved in the recapitalization of the country’s biggest banks,” he noted.
The hydrocarbon industry in Cyprus is also attracting the attention of global leaders like Schlumberger and Halliburton, according to CIPA. “Naturally, the discovery of natural gas reserves in Cyprus’ Exclusive Economic Zone creates immense prospects for investment and cooperation in the energy field, having already created a new impetus to encourage opportunities for cooperation between Cypriot and foreign enterprises. As such, the country appears destined to play a vital and strategic role as the energy hub of the Eastern Mediterranean which in turn opens up further opportunities for a number of correlated sectors such as shipping, another very important and successful sector of our economy with proven resilience,” said Angastiniotis.
On the topic of foreign investments, Angastiniotis noted that “important foreign direct investments are expected following the government’s decision to license an integrated casino resort that will also enhance and enrich the country’s tourism product, as well as through the decision to privatize a number of state-owned entities performing commercial operations.”
Source: www.financialmirror.com