ECOMMBX CEO/MD: Adjust to make the most of Cyprus’ foreign investment surge

Recommending the island adjust to the winds of change Michael C.G. Charalambides, CEO/MD of ECOMMBX, discusses why domestic policies should be adjusted to get the most out of the surge in foreign investment in Cyprus and stresses the importance of strengthening ties with the West in the current geopolitical climate. ECOMMBX was a Gold Sponsor of the recent 11th Invest Cyprus International Investment Awards.

What motivated ECOMMBX to become a sponsor of the Invest Cyprus International Investment Awards? To what extent have they contributed to the overall investment landscape in Cyprus?

It’s not motivation that drives our support for the Invest Cyprus Awards, but rather the fact that they represent recognition of the ongoing achievements of our country and its services. We are a relative newcomer to the finance industry in the region, and we appreciate positive recognition. Therefore, this should go both ways; we support and give back recognition to any well-deserved effort, such as the Invest Cyprus International Investment Awards hosted by GOLD.

How has foreign investment in Cyprus changed over the last five years?

There has been a radical change during the past decade, for Cyprus and the world as a whole! Nothing is what it used to be and nothing is going to be the same again. Global politics is shifting and though the widely held belief is that it’s “the same war and struggles under new management,” I beg to differ. We are witnessing the making of our modern history in a decaying post-industrial era. Cyprus will not be left untouched, though I do believe that it will remain safe and prosper, provided that we remain unified.

The majority of foreign companies relocating to Cyprus in recent years operate within the tech industry – this is reflected in the industry’s growth, which now contributes to some 13% of Cyprus’ GDP. How has this significant growth affected the Electric Money Institutions (EMI) sector?

Statistically, most foreign businesses relocating to Cyprus are IT and tech companies but their services are not necessarily rendered or deployed locally. We are experiencing extensive workforce and headquartering activities, which are, however, making a relatively low contribution to the country’s market dynamics, technical expertise and infrastructure. Most of the changes that we see here affect taxation and the property market, and they have led to improved workforce conditions, including salaries, benefits and competitive packages. Therefore, I would redirect this question to ask whether there has been any significant overall impact on the island’s infrastructure as a whole rather than just on the EMI sector.

From a policy standpoint, what changes would you like to see that would make Cyprus a more attractive destination for foreign companies?

Cyprus is a small country and a relatively insignificant military ally to anyone but our strategic geolocation and political system are of great significance. As a local population, we sometimes take our clichéd geopolitical pitch for granted but it goes much further than that. Our civilization has prospered for thousands of years and it will continue to do so. Despite our rich historical background, as a people, we still hold strong primordial sentiments and rely heavily on trial and error for strategic deployment. As for our economic and policy sails, we need to keep adjusting them according to the winds of change, focusing on the Western tides. I would also say that our domestic policies and strategies should be adjusted to utilise the rich pool of knowledge that is now based in Cyprus, encouraging companies to share their expertise to improve the government infrastructure, contribute to technical advancements and enrich Cyprus’ population with international tech knowledge. Above all, their contribution to public projects should be ensured through a focus on the “Build, Operate, Transfer” (BOT) model.

This interview first appeared in the July edition of GOLD magazine. Click here to view it.