The sponsors of the 12th Cyprus International Invest Awards talk FDI

The four sponsors of the 12th Cyprus International Invest Awards, which were hosted in July by GOLD magazine and organised by Invest Cyprus, relay their views on the current investment climate and suggest ways to broaden the FDI corridor to Cyprus.

Philippos Soseilos, PwC Cyprus

Philippos Soseilos, CEO and Chairman of PwC Cyprus, explains the importance of creating more opportunities for foreign investors, focusing on technology and green initiatives, promoting sustainable practices and fostering an entrepreneurial ecosystem for the benefit of the entire island.

How do you view the current investment climate in Cyprus, particularly in your industry? What opportunities do you foresee for foreign investors looking to enter or expand in Cyprus?

Cyprus has attracted significant foreign investment in recent years. This year is especially significant since, after several years – and thanks to the continuous efforts of the public and private sectors and, of course, Invest Cyprus – our country is one step away from its return to the international rating agencies’ “A” scale. We need to continue strengthening our technology and scientific infrastructure, facilitate business operations, enhance financing solutions, enrich our regulatory framework and foster the necessary culture shift in order to create even more opportunities for foreign investors.

To broaden the FDI corridor to Cyprus, what changes do you think would yield the best results?

As an economy, we are at an inflection point and undergoing a clear market re-orientation. As a member of the EU, with clear advantages for a wide range of non-EU investors, our potential as a country for international relevance and growth is tremendous. In order to fulfil that potential, we need to think and act as ‘team Cyprus’, applying an ecosystem mindset and implementing actions through a systemic approach. Most of our problems are self-inflicted. Horizontal solutions should be proactively developed to address, for example, the housing, education and mobility needs that will be created by attracting more businesses and specialized talent to Cyprus. As per Vision 2035, we should focus more on technology and green initiatives, promoting sustainable practices and investments, and establish innovation hubs and incubators to attract startups and foster an entrepreneurial ecosystem for the benefit of the entire island.

Antonis Antoniou, Eurobank Cyprus

Antonis Antoniou, General Manager Wealth Management & Global Markets at Eurobank Cyprus, analyses the value of foreign investment in Cyprus and how it enhances the island’s reputation and business status.

How do you view the current investment climate in Cyprus, particularly in your industry? What opportunities do you foresee for foreign investors looking to enter or expand in Cyprus?

In recent years, many international companies have relocated their operations and staff to Cyprus, with significant activity in the medical, education, tourism, shipping, investment funds, energy, and notably, the information and communication technology (ICT) sector. Major multinational ICT companies have moved to Cyprus, contributing over €3 billion (9.4%) to the economy in 2023 and diversifying it beyond traditional sectors like tourism and shipping. The Cypriot banking sector is undergoing a digital transformation to meet the needs of ICT companies and their staff. The European Commission’s DG REFORM supports Cyprus’ Vision 2035 strategy, which aims to make the island a business and commercial hub and a leader in sustainability and high-tech innovation. Ranked 28th in the 2023 Global Innovation Index, Cyprus offers an ideal business environment, thanks to its strategic location, pro-business policies, tech-savvy talent, low operating costs and attractive incentives, making it a prime destination for tech multinationals.

To broaden the FDI corridor to Cyprus, what changes do you think would yield the best results?

Enhancing Cyprus’ attractiveness for foreign direct investment requires regulatory reforms, infrastructure improvements and marketing initiatives. Key steps include streamlining business registration and licensing, increasing tax incentives and modernizing both physical and digital infrastructure. This involves digitising government services, improving digital skills through vocational training, and updating government IT systems. Implementing modern ESG practices, such as sustainable development and energy efficiency and accelerating electric mobility are also crucial. Additionally, strengthening the banking sector and improving access to finance, along with showcasing political and economic stability, will boost investor confidence.

Fotini Tsikkou, ECOMMBX

ECOMMBX COO Fotini Tsikkou explains how sponsoring the Invest Cyprus International Investment Awards aligns with the company’s vision of supporting fintech innovation and helping drive further growth in Cyprus’ buzzing investment climate.

How do you view the current investment climate in Cyprus, particularly in your industry? What opportunities do you foresee for foreign investors looking to enter or expand in Cyprus?

The investment climate in Cyprus is buzzing with potential, especially in fintech. With its strategic location, robust regulatory framework and tech-savvy workforce, Cyprus offers fertile ground for fintech innovation. Foreign investors can tap into the burgeoning market, leverage local expertise and benefit from Cyprus’ pro-business policies. Opportunities abound in digital banking, blockchain technologies and financial services modernisation. The country’s commitment to technological advancement and regulatory support creates a favourable environment for investors to innovate and grow in.

To broaden the FDI corridor to Cyprus, what changes do you think would yield the best results?

Streamlining regulatory processes and enhancing digital infrastructure are crucial. By creating a more transparent and efficient regulatory environment, we can attract more Foreign Direct Investment (FDI). Investing in cutting-edge technology infrastructure will make Cyprus more appealing to global investors. Additionally, fostering a culture of innovation through incentives and support for startups and innovative companies can drive further growth and solidify Cyprus’ position as a leading investment destination. Enhancing connectivity, offering tax incentives and ensuring a skilled workforce are also essential steps toward attracting and retaining foreign investments.

Costas Charitou, Lanitis Group

Lanitis Group CEO Costas Charitou explains how the Group’s values and ideals align perfectly with the ample support that it is ready to provide to the island’s FDI ecosystem.

How do you view the current investment climate in Cyprus, particularly in your industry? What opportunities do you foresee for foreign investors looking to enter or expand in Cyprus?

We believe that the current investment climate in Cyprus is very positive. This is demonstrated by the amount and size of foreign investment in Cyprus made in the last few years (and which continues today). This positive investment environment is promoted through opportunities offered to prospective investors in an extended portfolio of investment fields. These include traditional business sectors, such as real estate, hospitality & leisure, tourism and shipping, as well as new sectors that are rapidly growing, mainly through direct investment by foreign companies, such as technology, startups, renewable energy, education and healthcare. In particular, the broader technology sector has been developing at such a fast pace that it has successfully transformed Cyprus into a regional technology hub.

To broaden the FDI corridor to Cyprus, what changes do you think would yield the best results?

First and foremost, we need to fight government bureaucracy, improve the speed of response for approving the licenses and permits required to do business in Cyprus, simplify procedures for FDI from both a legal and tax perspective, and improve the efficiency of our judicial system, mostly as regards the timing and speed of decisions taken. Initiatives such as the headquartering policy introduced by the Government in recent years, including the relevant incentives offered, are a step in the right direction. We should further enhance the attractive climate of investor confidence that has been created for FDI in Cyprus through solid, transparent, long-term policies and targeted incentives, as well as improvements to the country’s infrastructure such as new private schools and hospitals, which will make the business and family life of foreign investors more simple, safe and easy, without discouraging their efforts with complex, time-consuming bureaucratic procedures and policies.

(This article first appeared in the July issue of GOLD magazine. To view it, click here)