Doing Business in Cyprus (UAE Edition)
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
DOING BUSINESS C YPRUS<br />
16<br />
UNITED ARAB EMIRATES EDITION<br />
FDI APPEAL<br />
<strong>Cyprus</strong>’ FDI appeal has been on an upward trajectory thanks to a robust economy.<br />
Real GDP growth averaged 4.6% <strong>in</strong> 2015-19 and <strong>in</strong> 2021 the economy showed<br />
strong performance with 5.5% growth, rega<strong>in</strong><strong>in</strong>g lost ground from the height of the<br />
Covid-19 pandemic. For the last several years, <strong>Cyprus</strong> has been a hive of activity with<br />
several notable projects already implemented or <strong>in</strong> the pipel<strong>in</strong>e, strengthen<strong>in</strong>g the<br />
country’s image and appeal. Foreign <strong>in</strong>vestment flows have been significant. In the<br />
ten-year period 2011-2020, cumulative net FDI reached €22.2 billion. This <strong>in</strong>vestment<br />
was driven by equity, with the shipp<strong>in</strong>g/shipp<strong>in</strong>g f<strong>in</strong>ance and real estate sectors<br />
play<strong>in</strong>g a significant role, while <strong>in</strong>vestment <strong>in</strong> communications is now also beg<strong>in</strong>n<strong>in</strong>g<br />
to ga<strong>in</strong> importance. Ongo<strong>in</strong>g improvements <strong>in</strong> the macroeconomic and f<strong>in</strong>ancial<br />
environment have also revived <strong>in</strong>ternational <strong>in</strong>terest <strong>in</strong> around 30 major development<br />
projects on the island. Investment opportunities <strong>in</strong> <strong>Cyprus</strong>’ large-scale projects span<br />
various sectors, <strong>in</strong>clud<strong>in</strong>g high-value tourism and hous<strong>in</strong>g developments, projects with<br />
a special focus on golf courses and luxury mar<strong>in</strong>as, as well as education, energy, and<br />
more recently the <strong>in</strong>ternational film sector. The growth performance of <strong>Cyprus</strong> over<br />
the last five years has been exceptional and even exceeded <strong>in</strong>ternational expectations,<br />
while successive credit rat<strong>in</strong>g upgrades and new <strong>in</strong>centives have attracted billions <strong>in</strong><br />
foreign <strong>in</strong>vestment s<strong>in</strong>ce 2015, with significant <strong>in</strong>flows from the US, Asia, Russia and the<br />
Middle East. <strong>Cyprus</strong>’ liberalised Foreign Direct Investment Policy, both for EU citizens<br />
and <strong>in</strong>vestors from third countries, along with its favourable tax regime makes it one of<br />
the most attractive centres for FDI <strong>in</strong> Europe.<br />
Parklane Limassol<br />
A DIVERSIFIED FUTURE<br />
Offer<strong>in</strong>g a professional yet relaxed atmosphere that makes do<strong>in</strong>g bus<strong>in</strong>ess<br />
pleasurable as well as profitable, <strong>Cyprus</strong>’ Mediterranean lifestyle coexists happily<br />
with a cutt<strong>in</strong>g-edge <strong>in</strong>ternational bus<strong>in</strong>ess hub, allow<strong>in</strong>g <strong>in</strong>vestors to enjoy the best of<br />
both worlds: a safe and comfortable environment for family life and a sophisticated<br />
<strong>in</strong>frastructure from which to grow and develop bus<strong>in</strong>ess. <strong>Cyprus</strong> comb<strong>in</strong>es numerous<br />
advantages as a bus<strong>in</strong>ess base with its EU-approved tax regime, competitive 12.5%<br />
corporate tax rate and tax breaks for high earners, its pro-bus<strong>in</strong>ess government<br />
and highly skilled workforce – as well as promis<strong>in</strong>g growth and development across<br />
numerous economic sectors. With <strong>Cyprus</strong>’ prospects on the rise, the country has all the<br />
right elements firmly <strong>in</strong> place to strengthen its reputation as an <strong>in</strong>ternational centre of<br />
bus<strong>in</strong>ess excellence <strong>in</strong> one of Europe’s most <strong>in</strong>terest<strong>in</strong>g <strong>in</strong>vestment locations. n