The government is focused on attracting new foreign direct investments and improving Cyprus’ investment and business environment said President of the Republic, Nikos Christodoulides, at his opening speech on Wednesday at the EY Cyprus Attractiveness Forum 2024 in Limassol, noting that on Thursday the new Digital Citizen app is being launched.

The President noted that events like this, along with the EY Attractiveness Reports, serve as vital tools for governments and businesses alike, since they provide deep insights into foreign direct investment trends and investor sentiment, helping understand the evolving global landscape.

"By identifying key drivers of economic competitiveness and highlighting emerging opportunities, these initiatives empower us to formulate policies that attract investments, create jobs, and promote sustainable growth. Furthermore, they foster creative dialogue between the public and private sectors, thus creating a shared vision for progress", he said, adding that he has reviewed an early summary of the 2024 EY report and its conclusions are taken into account in the government's strategic planning.

Cyprus has been experiencing a steady and significant increase in Foreign Direct Investment, the President said, noting that in 2023 alone, more than €3.5 billion were invested in the country, in key sectors such as ICT, professional services, renewable energy, agritech, tourism, light manufacturing, and education.

At the same time, President Christodoulides said that an increased diversification in the origins of these investments is observed, since countries like the United Kingdom, the United States, Ireland, Israel, and Lebanon have notably expanded their participation, reflecting the growing international confidence in Cyprus as a prime investment destination.

"Cyprus is also on a remarkable economic trajectory", said the President. In 2024, Cyprus is projected to achieve the third-highest growth rate in the eurozone, at 3.8%, while inflation is expected to decline to 2%, down from 3.5% last year. "Our fiscal performance is equally robust, with a surplus forecast of around 4%. We have also achieved the EU’s largest reduction in public debt between the first and second quarters of 2024, bringing it to 69% of GDP and our target is to reduce it below 60% of GDP by 2026", he added.

The President stressed that Moody’s upgrade on Cyprus’ credit rating to A3, the highest level since 2011 was a "a particularly significant milestone". The recent upgrades are a resounding vote of confidence in the government's policies and the resilience of our economy, he said, adding that "we feel proud of the upward trajectory of our economy", especially since this is happening amidst two wars and while the economies of big traditionally strong EU member states face significant challenges. "It is clear that responsible policies, rationality and fiscal responsibility deliver results", he noted.

"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", he said.

President Christodoulides highlighted that one of the primary challenges for Europe and Cyprus in attracting investments, as identified in EY's survey, is the growing regulatory burden. To address this, he said that the government is prioritizing and advancing the digital transformation of the country, aiming to streamline processes and enhance competitiveness. "We are eliminating bureaucracy through digitization, enabling electronic submission of all applications, and saving time for businesses and citizens alike", he said.

He added that Cyprus has already seen remarkable progress in digital governance, achieving a 16.3% improvement, far exceeding the EU average. He reminded that on Thursday the launch of the new Digital Citizen mobile app is taking place, a new platform enabling the electronic issuance and secure storage of official documents such as ID cards and driver's licenses. "This app represents a significant step towards streamlining administrative processes and enhancing convenience for our citizens", he added.

Similarly, the President noted that Cyprus is strengthening its reputation as strong innovator, as highlighted by the European Innovation Scoreboard. This achievement reflects the significant potential of Cyprus' research and innovation ecosystem, with the country standing out as the only country in Southern Europe to attain this distinction.

However, and as stated in EY's report, the President said that energy costs remain a pressing challenge across Europe and a central focus for Cyprus. To tackle this, the government's energy policy is anchored in three strategic pillars: the introduction of natural gas, the expansion of renewable energy sources coupled with energy efficiency measures, and the establishment of electricity interconnections. "These policies are designed to enhance energy security, promote sustainability, and lower costs for households and businesses", he highlighted.

Furthermore, he announced that early in 2025, the government will be presenting a comprehensive expert’s tax reform proposal. The goal is to streamline Cyprus' already competitive tax system and introduce incentives to attract both productive investments in target sectors and facilitate the green and digital transitions.

Regarding combating financial crime and complying to international standards, President Christodoulides said that the government has taken significant steps, like working with partners such as the US and the UK, improving mechanisms to counter illicit financing and enforce sanctions. "We are also in the process of establishing in 2025 a Single Supervisory Authority for administrative service providers and a National Sanctions Implementation Unit to enhance transparency and accountability", he added.

Last but not least, the President said that the government is launching a dynamic re-branding campaign for Cyprus at the beginning of next year, aiming to enhance the country’s global image, attract high-value investments, and position Cyprus as a business hub of innovation, sustainability, and opportunity.