2020 Cyprus Country Report

Manufacturing & Industry
Sector Profile
MODERNISING
MANUFACTURING
The manufacturing and industry sector in Cyprus is looking
to the future with a strong focus on digital transformation
and better access to export markets. With the support
of government-backed initiatives and new tax incentives
to attract foreign direct investment, the country is
determined to create a more high-tech economy.
KEY
contacts
Cyprus has a new vision to transform
manufacturing and industry and to
bring this sector on par with its other
star-performers like tourism and
professional services. The goal is to
develop more high-value-added and
innovative products and services that
will contribute to the competitiveness
of Cyprus – and increase productivity by strengthening
the industrial ecosystem and investing in
sustainability, innovation, digitalisation, infrastructure
and skills. This ambitious new strategy
is set to better connect traditional industry and
manufacturing with other sectors and to transform
Cyprus into a more tech-driven economy.
The country has a solid foundation on which
to build on as it already has many comparative
advantages in place. The island has one of the EU’s
lowest corporate tax rates at 12.5%, double taxation
treaties with 65 countries across the globe,
a highly educated workforce and a sophisticated
transport and logistics infrastructure. Cyprus is
also an attractive and affordable base for manufacturers
in Europe and beyond, providing high
connectivity to supply existing and emerging
markets. As the EU and eurozone’s most eastern
member, Cyprus’ geostrategic location provides
a competitive edge for producers in the Middle
East, Africa and Asia to access the European
Union’s 500 million consumers.
Ministry of Energy,
Commerce and Industry
www.mcit.gov.cy
Cyprus Chamber of
Commerce and Industry
www.ccci.org.cy
Cyprus Employers and
Industrialists Federation (OEB)
www.oeb.org.cy
Cyprus Association of
Research and Development
Pharmaceutical
Companies (KEFEA)
www.kefea.org.cy
112 Country Report CYPRUS 2020