• There is a healthy optimism among investors about Cyprus’ attractiveness as a foreign investment destination

The EY Attractiveness Forum 2024, held on 4 December in Limassol, showcased the perception of the international investment community of Cyprus' investment appeal, while addressing the challenges and opportunities shaping its economic future. The event brought together influential stakeholders, including investors, government officials, and business leaders.

Opening Remarks by the President of Cyprus

In his opening remarks, the President of the Republic of Cyprus, Mr. Nikos Christodoulides, emphasized the critical role of foreign direct investment (FDI) in achieving sustainable growth. He highlighted ongoing efforts to streamlining bureaucratic processes through digital transformation, stating:

“We remain focused on improving Cyprus’ investment and business environment. Our long-term strategy, Vision 2035, is a blueprint for sustainable economic growth. It emphasises attracting productive investments in the green and digital transitions, fostering a knowledge-based economy, and implementing structural reforms, and of course implementing each and every milestone of our national Recovery and Resilience Fund.”

EY Attractiveness Survey Highlights

Mr. Stelios Demetriou, Partner and Leader of the Strategy and Transactions Services at EY Cyprus presented findings from the EY Attractiveness Survey, showcasing the investors’ sentiment that under the current geopolitical environment, Cyprus presents an opportunity for investment. Key advantages highlighted include corporate tax, quality of life, availability of investment opportunities, stable political environment.

The survey also identified areas for improvement, such as lack of labour skills, relatively high labour costs, bureaucratic processes, access to financing, and digital infrastructure. Addressing these challenges is key to strengthening Cyprus' global investment appeal.

Key Panel Discussions

The forum’s panel discussions provided deeper insights into the country's opportunities and challenges. The first panel on foreign direct investments, moderated by Mr. Stelios Demetriou, Partner and Leader of the Strategy and Transactions Services at EY Cyprus, featured Mr. Giorgos Papanastasiou, Minister of Energy, Commerce, and Industry, Ms. Irene Piki, Deputy Minister to the President, Mr. Christodoulos Patsalides, Governor of the Central Bank of Cyprus, and Mr. Evgenios Evgeniou, Chairman of Invest Cyprus. The discussion revolved around reducing energy costs, introducing innovative funding mechanisms, simplifying and digitalizing administrative procedures and expanding infrastructure projects to position Cyprus as a strategic investment hub.

The second panel, moderated by Mr. George Tziortzis, Partner and Leader of Consulting Services at EY Cyprus, included Mr. Nicodemos Damianou, Deputy Minister of Research, Innovation, and Digital Policy, Mr. Kyriacos Kokkinos, Former Deputy Minister for Research, Innovation, and Technology, and Mohammed J Sear, Partner, Consulting Services, EY MENA. This panel focused on the role of research and development in attracting foreign direct investment, emphasizing the need to invest in digital infrastructure and foster innovation-driven economic growth.

The third panel, led by Mr. Simos Simou, Director & Green Tax Transformation and Controversy Leader at EY Law Cyprus, brought together Ms. Christiana Erotokritou, Member of Parliament and Chairwoman of the Financial and Budget Parliamentary Committee, Mr. George Syrichas, Economics Research Centre of the University of Cyprus - Cyprus Tax Reform Project Manager, and Mr. Philippos Raptopoulos, Partner and Leader of Tax and Legal Services at EY Cyprus. The discussion addressed the evolution of Cyprus’ tax framework, focusing on simplifying administrative processes, maintaining tax competitiveness, and reducing regulatory burdens.

The fourth panel, moderated by Mr. Panayiotis Thrasyvoulou, Partner and Leader of People Consulting and Immigration Services, featured Mr. Costas Hadjipanayiotou, General Manager at the Ministry of Labour and Social Insurance, Mr. Marios Tsiakkis, Secretary General of the Cyprus Chamber of Commerce and Industry, Ms Maria Theodorou , Director, Human Resources Department, Cyprus Employers and Industrialists Federation (OEB), and Mr. Demetris Nissiotis, President of the Cyprus Information Technology Enterprises Association (CITEA). This session tackled the critical issue of aligning skills supply with industry demands, discussing immigration reforms, education modernization, and creating a sustainable workforce pipeline.

Closing Remarks

In his closing remarks, Mr. Ronald Attard, Country Managing Partner of EY Cyprus, emphasized the need for public-private collaboration to drive innovation and boost competitiveness, concluding that there is a growing optimism among investors community that Cyprus’ FDI is on a positive trajectory. Referring on our country’s dynamic, he mentioned: ‘Cyprus’ ability to adapt quickly to changing global dynamics has been a key factor in maintaining a healthy influx of FDI capital to support economic growth. By continuing to address investor concerns and enhancing our FDI appeal, we can ensure that Cyprus remains an attractive destination for foreign direct investment. We are all part of this collective journey, and the success of Cyprus depends on our ability to work together, to innovate, and to embrace change.’

The event concluded with a networking reception, fostering dialogue on future opportunities for collaboration.