PwC Cyprus CEO: Foreign investment is becoming an increasingly significant component

According to Philippos Soseilos, CEO of PwC Cyprus, Cyprus is a favourable investment centre due to its strategic location, attractive lifestyle and well-established business infrastructure. However, he stresses that the country’s reputation must be safeguarded if it is to continue being seen as a safe haven for credible, high-quality investments.

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

At PwC Cyprus, we acknowledge that foreign investment is becoming an increasingly significant component in the effort to achieve long-term and sustainable economic growth in Cyprus and fulfil its Vision 2035 goal to be one of the world’s best countries to live, work and do business in. Recognising and rewarding organisations and individuals that have trusted and invested in Cyprus is of the utmost importance and it contributes towards enhancing our brand as an investment destination and motivating other investors to consider the country as an investment option. We have supported the Invest Cyprus International Investment Awards for 10 consecutive years now, thus demonstrating the great importance that PwC Cyprus places on the role of foreign investment as the driving force to create new jobs, strengthen the competitive advantages of the country and achieve economic growth.

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

Cyprus has been attracting foreign investment due to its favourable business environment, strategic location, well-developed legal framework, vibrant lifestyle and European Union membership. Key sectors traditionally receiving foreign investment in Cyprus include tourism, real estate, finance and shipping. More recently, major investments were recorded in sectors such as education, health, renewables and technology. In addition, a further strategic shift has occurred over the past few years: Several international companies have expanded their operations in Cyprus, developed strong substance, relocated qualified personnel and developed fully fledged local operations. New structures are being set up in various fields, from startups to international conglomerates. We live in an era of accelerated mega-trends and attracting investments that will help the country follow international developments is a crucial element for the future. Attracting international investors of the calibre of those that have received Invest Cyprus International Investment Awards over the years is paramount.

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

Cyprus has been on a positive trajectory over the past few years as an international business and investment centre. Beyond our geostrategic location, we have been successfully leveraging the high quality of services on offer, the business-friendly environment, our outward-looking approach and the availability of experienced and talented people, amongst other factors. Yet, there is significant work that needs to be done to address the many challenges and enable our country to become even more attractive. Such challenges include the bureaucracy and red tape that exists when establishing a business in Cyprus, the insufficient digitalisation of public service procedures, inadequate schooling options, poor air connectivity, a lack of affordable housing and the need for a facilitative visa regime for all family members wishing to relocate to Cyprus.

How do you expect the foreign investment scene in Cyprus to change if the war in Ukraine continues indefinitely? What is the role of Cyprus’ professional services sector in this?

As Cyprus has shifted away from Russia-related investments, there is a clear emergence of investment activity from Israel and the Western markets, and a very promising prospect of investments from the Middle East and India. The primary objective is to enhance Cyprus’ reputation as an international business centre and as a gateway for investment into the European Union. We must safeguard the fact that Cyprus is recognized as a high-quality, credible business centre. To achieve this, the entire ecosystem of professional services organisations and other stakeholders in Cyprus must come together with a shared vision in an aligned and determined way to raise the quality and sustainability of the sector. The professional services sector in Cyprus has historically been a significant contributor to the country’s economy and should take the lead again in helping the economy adjust and rebalance towards new revenue streams, primarily from Western markets. Our outward-looking nature, the high quality of our talent pool and the small size of our economy provide Cyprus with the necessary agility to bounce back.

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