Evgenios Evgeniou: How Cyprus will continue to stay competitive in the global FDI market

Evgenios Evgeniou, Chairman of Invest Cyprus, talks about the vital importance of financial and human capital in staying competitive in the global Foreign Direct Investment (FDI) market and highlights how public and private synergies help the agency support foreign investors.

Invest Cyprus recently organised the 11th International Invest Cyprus Investment Awards.

Why does Invest Cyprus keep organising the International Investment Awards? What is the importance of rewarding the companies that invest in the island?

The International Investment Awards are a gesture of appreciation to foreign investors for their vote of confidence in Cyprus and their contribution to the country’s economy. It is also an opportunity to showcase these successes to prospective investors interested in Cyprus. Investors already in Cyprus are our best ambassadors abroad and we at Invest Cyprus see them as partners in our effort to make Cyprus an attractive investment destination and business hub.

What is your vision for the foreign investment scene in Cyprus?

Our strategy focuses on three priority pillars: First, attracting highly specialised companies and talent in priority industries such as technology, pharmaceuticals, research and innovation. Second, greenfield investments in renewable energy, digital infrastructure, healthcare, education, and tourism. And third, the regulated financial services sector, with a main focus on financial services, asset management, fintech and investment funds. These pillars are aligned with Government’s long-term economic strategy (“Vision 2035”) which aims to transform Cyprus into a model country to live, work and do business in. At Invest Cyprus, we are proud that Cyprus has maintained its position as one of the leading overachievers in the 2023 Greenfield FDI Performance Index, ranking 4th in Emerging Europe and 11th globally, as announced this month by fDi Intelligence, the leading global foreign direct investment publication, providing an up-to-date review of global investment activity. Internationally, Foreign Direct Investment (FDI) is a very competitive market and, in Cyprus, we should be intensifying our efforts to attract new businesses and investments that will create additional jobs and add value to our economy. In this effort, adequate financial and human resources are vital, in view of the intense international competition.

Which synergies between the public and private sectors have proven the most effective when it comes to offering initiatives to international companies to relocate to Cyprus?

Cooperation between the public and private sectors to approach foreign businesses effectively is essential. By joining forces, we become more effective in our overall effort. Improving our country’s competitiveness, reputation and brand are vitally important in attracting investment. We are constantly monitoring global competition, reviewing our FDI framework and adopting effective incentives. The implementation of relevant reforms is equally important, including those in the Cyprus Recovery and Resilience Plan. We are working closely with all government departments that deal with investors, primarily the Business Facilitation Unit of the Ministry of Energy, Commerce & Industry, the Civil Registry and Migration Department of the Ministry of Interior, monitoring and regulatory bodies such as the Cyprus Securities & Exchange Commission (CySEC) and the Central Bank of Cyprus, as well as other local government and municipal bodies. We also maintain excellent relations and collaborations with the Cyprus Chamber of Commerce & Industry (CCCI) and the Employers and Industrialists Federation (OEB) and professional organizations such as the Institute of Certified Public Accountants of Cyprus (ICPAC), the Cyprus Bar Association (CBA) and the Cyprus Investment Funds Association (CIFA), among others. At international level, Invest Cyprus is a full member and is represented on the Board of the World Association of Investment Promotion Agencies (WAIPA) as well as the Euro Mediterranean Investment Network (ANIMA), and recently became a full member of the World Association of Private Public Partnerships (WAPPP). All the above excellent relations and representations help us offer our services with best practices in an efficient manner to foreign investors.

What patterns/trends have you observed in the last decade with regard to investment in Cyprus?

There has been a significant change. Cyprus has introduced a new strategy for attracting foreign companies and skilled talent to Cyprus. The strategy mainly focuses on high-tech, shipping, pharmaceutical, innovation and research & development companies. Indeed, this has been very successful. With coordinated actions with the private sector, we as a country have managed to create a new technology cluster. Beyond this, the focus is on investments in renewable energy, digital infrastructure, healthcare, education, tourism and the regulated financial services sector, with a priority focus on asset management, fintech and investment funds. In terms of markets, we focus on the Middle East, Israel, Europe and the US.

What are the most important benefits of enriching the corporate context of the island and encouraging international companies to establish headquarters and offices? What does it mean for the local business ecosystem?

A very recent independent report estimates the total impact – direct and indirect – of the new technology sector on the economy of Cyprus (as of the end of 2022) at more than €4.6 billion, making it the highest sector in terms of contribution to the country’s GDP. Also, the total number of jobs created -- direct and indirect -- in the sector exceeds 36,000. This is the result of the implementation of the national strategy for attracting highly specialised companies and talent. Beyond the contribution to GDP and job creation, the establishment of new business clusters drives diversification and enhances the resilience of the economy, facilitating knowledge transfer to the country.

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