In the coming weeks, the Cyprus government plans to introduce a comprehensive “strategic plan” aimed at attracting foreign investment while seeking input from local business leaders on enhancing the economy’s competitiveness. This announcement came from Energy, Commerce, and Industry Minister George Papanastasiou during an event at the finance ministry, which was attended by industrialists and entrepreneurs.
A key component of the strategy involves establishing a centralised organisation to streamline and fast-track the application process for foreign investors. Highlighting inefficiencies, Papanastasiou noted, “We face delays in issuing permits, and we need to resolve these bottlenecks.”
The government defines foreign direct investment as any instance where a foreign investor holds more than 10% of the share capital in a Cypriot enterprise, signifying a long-term commitment to the local economy.
In addition to the foreign investment plan, the minister revealed that a policy document and an action plan to enhance the competitiveness and international orientation of Cypriot businesses are in development. Both documents are expected to be finalised by the end of February, after which they will be submitted for cabinet approval.
Papanastasiou encouraged business leaders to provide constructive feedback during this period, emphasizing the importance of practical and measurable actions. “We must focus on key issues hindering our industry and collaborate to find solutions,” he stated.
One of the proposed initiatives includes diversifying products under a “Cyprus made” brand as part of a larger rebranding effort to improve market competitiveness. The minister also urged local entrepreneurs to adopt a more outward-looking approach.
Challenges facing the Cypriot economy include high energy and labor costs, bureaucratic delays, and a reliance on imported raw materials. Papanastasiou stressed that addressing these issues could significantly boost competitiveness.
The minister also called on universities to place greater emphasis on applied and field sciences to address the shortage of skilled technicians. “Europe, and Cyprus in particular, is experiencing a lack of technicians, with fewer young people interested in these trades,” he said.
Despite these challenges, Cyprus remains attractive due to its widespread English proficiency, skilled scientists, common law system, and favorable tax regime.
Source: Cyprus Mail