Evgeniou, the Chairman of Invest Cyprus, provides insights into Foreign Direct Investment (FDI) in Cyprus, the agency’s initiatives to elevate the country’s global standing, and its strategic vision for 2025 and beyond.
A Milestone Achievement: Cyprus’ Credit Rating Upgrades
With recent upgrades by Moody’s and Fitch to an A rating, Cyprus’ economic and fiscal credibility has reached new heights. President Christodoulides emphasized this as evidence of the nation’s reliability as an investment hub. According to Evgeniou, these upgrades convey a robust message to international investors, highlighting Cyprus’ stable and competitive environment. They reinforce the government’s dedication to sustainable growth and reform, fostering increased investor confidence. Invest Cyprus, he adds, plays a vital role in this success, with Fitch and Moody’s recognizing the positive impacts of FDI and the contributions of international firms relocating to Cyprus.
A Thriving Investment Landscape
The year 2023 marked a breakthrough for Cyprus, achieving €3.2 billion in FDI—a 129% surge compared to 2022—and creating 2,500 jobs. Ranking second in the EU for FDI per capita and among the top 10 globally, Cyprus continues to attract global attention. Early 2024 data reflects continued growth, with 750 new jobs created in just the first quarter.
This success stems from strategic measures aimed at attracting specialized companies and professionals. The influx of tech firms and regional headquarters has birthed an ecosystem of over 800 tech companies, collectively contributing approximately €4 billion—13% of GDP—to the economy. Eurostat data shows the ICT sector’s direct contribution as 9% of GDP. Noteworthy greenfield projects include a €50 million bottling facility at Ypsonas and AUB Mediterraneo’s establishment in Paphos.
Strengthening the Startup Ecosystem
Invest Cyprus collaborates with the Research and Innovation Foundation (RIF) to support startup growth through initiatives like the PRE-SEED program. Additionally, the Digital Nomad Visa program has bolstered Cyprus’ appeal as an innovation hub. Partnerships with the Deputy Ministry of Research, Innovation & Digital Policy and international businesses further enhance the digital ecosystem. A recent MoU with TechIsland aims to create a sustainable, integrated tech ecosystem in Cyprus.
Key Investment Drivers
Investors weigh several factors when choosing Cyprus, including its regulatory framework, legal and taxation systems, quality of life, and safety. Cyprus’ strategic location, serving as a gateway to the EU and nearby regions, also plays a pivotal role. Greenfield investors particularly value the time-to-market, scale, and potential returns on their investments.
Overcoming Challenges and Enhancing Competitiveness
To solidify its position as a prime investment destination, Cyprus must streamline processes, improve transparency, and reduce bureaucratic hurdles. Evgeniou points to the EY Attractiveness Survey, which recommends refining Cyprus’ image, enhancing talent acquisition, and fostering innovation through public-private collaborations. Existing investors are critical to Cyprus’ growth, and Invest Cyprus ensures they receive continuous support through dedicated after-care services and government engagement.
The Project Bank Initiative
The Project Bank, developed in partnership with the private sector, is a matchmaking tool that connects investors with vetted opportunities in Cyprus. Sectors represented include technology, financial services, healthcare, real estate, and hospitality. Key projects facilitated through this platform include the Engino STEM Toy Plant and the GreenH2CY sustainable hydrogen initiative.
Vision 2035: A Global Hub for Business
Aligned with Vision 2035, Invest Cyprus aspires to position the country as a premier destination for living, working, and conducting business. In 2023 alone, the agency participated in 65 international events, held over 700 one-on-one meetings, and launched campaigns in 19 markets. Significant agreements, such as those with Invest Parana and Invest Mina, highlight Cyprus’ growing international reach. Strengthened ties with India and initiatives in the U.S. further expand the country’s investment potential.
Strengthening U.S.-Cyprus Relations
Deepening ties with the U.S., including President Christodoulides’ White House visit and strategic dialogues, have enhanced Cyprus’ investment appeal. Evgeniou emphasizes the importance of updating the 1984 double tax treaty to align with modern business needs and exploring Cyprus’ inclusion in the U.S. Visa Waiver Program.
Looking Ahead to 2025 and Beyond
Invest Cyprus aims to reposition the country’s global narrative, reflecting its progress and aspirations. The agency’s priorities include attracting investments in green and digital projects, collaborating to minimize red tape, and supporting larger-scale, sustainable initiatives. By 2026, Cyprus seeks to solidify its status as a hub for high-tech, innovation, and financial services.
This interview originally appeared in the December edition of GOLD magazine.
Source: inbusinessnews.reporter.com.cy.