CYPRUSCOUNTRY REPORT <strong>2022</strong> INSIGHT Minister of Energy, Commerce and Industry Natasa Pilides What are your expectations for the economic sectors in your Ministry’s Portfolio for <strong>2022</strong> - <strong>2023</strong>? <strong>Cyprus</strong> has evolved through the years into a modern and cosmopolitan business centre, through coordinated efforts of the private and public sectors. The Ministry of Energy, Commerce and Industry has a vital role in formulating the policies and reforms that enhance the country’s position as an ideal trade and energy hub in the eastern Mediterranean landscape, as well as an ideal location for companies to do business in sectors such as technology, shipping, pharmaceuticals and financial services. 42
CYPRUSCOUNTRY REPORT <strong>2022</strong> The mission of the Ministry is to implement our integrated strategy for the transition to a green and circular economy, through a mixture of targeted policies and measures intended to promote energy efficiency, a smart and environmentally friendly industry, the enhancement of commerce and exports and the sustainable development of our hydrocarbon and RES resources. To this end, our National Energy and Climate Plan (NECP), which provides a detailed roadmap until 2030, is based on European values and strategies and, most importantly, the EU Green Deal that calls for climate neutrality by 2050. Inter alia, <strong>Cyprus</strong>’ NECP provides for the introduction of green taxation, the liberalisation of the electricity market, the facilitation of energy renovations in buildings, the acceleration of electric mobility, the connection of the electricity grids of <strong>Cyprus</strong>, Crete and Israel and the operation of a one-stop-centre to simplify and accelerate the permitting procedures for renewable energy projects. In addition, it includes energy efficiency and renewable energy investments targeting households, businesses, municipalities, the wider public sector and non-governmental organisations. An important part of <strong>Cyprus</strong>’ energy strategy is our hydrocarbons sector, with the discovery of significant natural gas reserves in the Exclusive Economic Zone of the Republic; this calls for the optimum and sustainable development of the hydrocarbon resources of <strong>Cyprus</strong>, in order to contribute towards maximising the relevant revenues and boosting the country’s economy, as well as contributing to the energy sources of EU countries. The establishment and IThe development of the gas industry in <strong>Cyprus</strong> establishment and has, in fact, attracted significant FDI to development of the gas industry the island, which will hopefully generate the expected fiscal benefits and create in <strong>Cyprus</strong> has, in fact, attracted substantial job opportunities throughout significant FDI to the island. the entire industry chain. Another sector offering great opportunities for investment, is <strong>Cyprus</strong>’ industry. In order to tackle both the green and digital transition, as well as the sharp increases and volatility of energy prices and inflation, we are fully utilising the EU’s Recovery and Resilience Facility and the European Investment and Structural Funds, for the implementation of a series of measures targeting, for instance, digitalisation of activities and a circular economy model. In this framework, we are optimistic that we can strengthen the sector’s resilience and improve its competitiveness, increasing further its contribution to GDP for the period <strong>2022</strong>-<strong>2023</strong>, from around 9% where it stands now. True to its business-orientated culture and constantly seeking to facilitate the ease of doing business on the island, the Republic of <strong>Cyprus</strong> has launched, in <strong>2022</strong>, the Business Facilitation Unit (BFU), through which business set-up, licensing and permitting is fast-tracked. The fast-growing number of registrations of foreign companies carried out by the BFU during <strong>2022</strong> – over 1,200 in the first 10 months of the year, indicate the successful implementation of the Government’s new strategy for attracting international businesses and talent. Moreover, as the existing investment policy has been radically reviewed and simplified, a series of policy measures have been adopted, such as improved tax incentives and introduction of the digital nomad visa, which have encouraged many companies to establish and scale their presence in <strong>Cyprus</strong>. The trend of foreign companies’ registrations in the BFU clearly shows that most are operating in the information and technology sector, as well in professional services. The increase is expected to continue, contributing to <strong>Cyprus</strong>’ economic growth and generating sustainable development in many areas of our economy and society. n 43
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