Doing Business in Cyprus (UAE Edition)

DOING BUSINESS C YPRUS
19
UNITED ARAB EMIRATES EDITION
Cyprus and the UAE have a strong partnership in
multiple areas, which sectors are providing the most
investment potential at the moment? How can Cyprus
facilitate more business from the UAE and make itself
even more attractive to investors from the Emirates?
Cyprus and the UAE maintain a structured cooperation, which is now witnessing
a significant expansion in bilateral political and economic ties. Both countries
have signed several bilateral agreements on Avoidance of Double Taxation, Economic
and Technical Cooperation and Reciprocal Promotion and Protection of Investments
(prepared and will be signed soon), whilst also having established in 2020 a Joint
Committee of Cooperation. More recently, a Joint Declaration on the Establishment
of Comprehensive Strategic Partnership, a Memorandum of Understanding on
Cooperation in the field of Maritime Transport, a Memorandum of Understanding
on Cyber Security Cooperation and a Memorandum of Understanding in the Field of
Diplomatic Training, have been signed.
Over the past few years, Cyprus has seen more interest from the United Arab
Emirates in terms of investments in the services sector, which materialised for
example through the award to DP World, a UAE Government entity, of a 25-year
concession to operate the multi-purpose port terminal in Limassol in April 2016.
Overall, Cyprus is also recording high numbers in new company registrations,
foreign businesses relocations and funds and property investments. Cyprus’
competitive advantages lie in a combination of factors that jointly make the island
a unique fund jurisdiction; these are Cyprus’ European status and access to the
European markets, the country’s ability to offer a cost-effective solution and its
geostrategic position. It goes without saying that flexibility, transparency, quality and
efficiency are also vital and essential pillars of the Cyprus fund industry, which fund
managers and investors can benefit from.
On the other hand, Cypriot industrial
products are attracting considerable
interest from UAE companies in the fields
of pharmaceutical, food, agriculture and
building materials.
Forming the bridge between Europe,
Africa and Asia, Cyprus can certainly
serve as an ideal location for United Arab
Emirates’ businesses to establish their
European and regional offices. Cyprus is
IForming the bridge between
Europe, Africa and Asia, Cyprus
can certainly serve as an ideal
location for United Arab Emirates’
businesses to establish their
European and regional offices.
ideally suited for international business due to the numerous benefits it has to offer,
including a simple, modern and transparent tax, legal and regulatory framework, a
broad range of high-quality professional and financial services and high quality of life.