2020 Cyprus Country Report
The 2020 Cyprus Country Report features in-depth articles on the economy, foreign direct investment, international trade and headquartering as well as detailed sector profiles and insights from Cyprus’ 100 most influential political, economic and business leaders shaping the future of their country and its industries.
The 2020 Cyprus Country Report features in-depth articles on the economy, foreign direct investment, international trade and headquartering as well as detailed sector profiles and insights from Cyprus’ 100 most influential political, economic and business leaders shaping the future of their country and its industries.
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GROWING APPEAL<br />
<strong>Cyprus</strong> has proven its consistent appeal as an<br />
attractive international shipping hub with the<br />
arrival of new shipping companies and businesses<br />
offering shipping related services – underlining<br />
the local industry’s enhanced competitiveness,<br />
stability and growth opportunities. The<br />
number of <strong>Cyprus</strong>-based companies has grown<br />
by 33% over the last two years. A prime example<br />
of this was the recent arrival of a new P&I Club,<br />
Steamship Mutual Underwriting Association<br />
(Europe) Limited, which has decided to underwrite<br />
all of its European business through its<br />
Cypriot entity. Also British shipping firm P&O<br />
Ferries decided to register its English Channel<br />
operating fleet under the <strong>Cyprus</strong> flag to take advantage<br />
of the benefits and security it provides.<br />
CORONA FACTOR<br />
Global shipping was one of the first sectors hit<br />
by the Coronavirus pandemic, as the majority of<br />
world trade is done with China and other Asian<br />
countries. Shipping companies were faced with<br />
difficult challenges in crewing and crew changes,<br />
approaching ports and implementing measures<br />
Our ultimate goal is to<br />
maintain and further<br />
enhance the competitive<br />
edge in shipping. In this<br />
context we are working<br />
towards the formulation of<br />
a comprehensive long-term<br />
national strategy for <strong>Cyprus</strong><br />
Shipping, with vision and<br />
long-term objectives for<br />
the next two decades. We<br />
are also working on ways to<br />
provide further incentives<br />
to the shipping industry<br />
in its effort to meet the<br />
sustainability challenges<br />
and to cope with green and<br />
digital transformation of<br />
the sector. <strong>Cyprus</strong> is an<br />
established international<br />
maritime centre. This<br />
positive outlook in the<br />
global shipping world<br />
was a result of <strong>Cyprus</strong>’<br />
strategic focus on shipping<br />
as a key sector of the<br />
economy. Providing top<br />
quality services is our<br />
highest priority and will<br />
be enhanced further<br />
through the continuous<br />
updating, simplification<br />
and modernization of<br />
procedures. The unique<br />
set of competitive<br />
advantages together with<br />
the excellent shipping<br />
know-how, coupled with<br />
the customer-oriented 24/7<br />
service provided by the<br />
Shipping Deputy Ministry<br />
are the foundations of the<br />
<strong>Cyprus</strong> maritime cluster<br />
which will assist us to face<br />
the current challenges.<br />
Vassilios Demetriades<br />
Shipping Deputy Minister<br />
to minimise exposure. With around 90% of<br />
global trade transported by commercial shipping,<br />
which moves food, energy and raw materials,<br />
as well as manufactured goods, components<br />
and vital medical supplies, it is crucial to keep<br />
supply chains going and the world’s ports open<br />
for commercial ships.<br />
The <strong>Cyprus</strong> shipping industry directly<br />
employs up to 60,000 seafarers from around the<br />
world and around 9,000 personnel onshore, more<br />
than half of whom are Cypriot graduates, attracted<br />
to the sector because of its professionalism<br />
and high salaries. With such a large number<br />
of crew on vessels facing the dangers<br />
of the Covid-19 virus, <strong>Cyprus</strong><br />
also joined a global appeal to<br />
G20 leaders to facilitate crew<br />
changes and safeguard access<br />
to healthcare for these ‘unseen<br />
heroes’ and key workers of<br />
world trade.<br />
Although the financial<br />
impact of the pandemic is<br />
unavoidable, throughout this<br />
crisis the <strong>Cyprus</strong> Shipping Deputy<br />
Ministry (SDM) has remained fully operational,<br />
providing high-quality services and 24/7 support<br />
without any disruption to ensure all ships registered<br />
under the <strong>Cyprus</strong> flag will continue to<br />
operate in the most efficient way possible.<br />
ESTABLISHED MARITIME HUB<br />
A seafaring nation since antiquity, <strong>Cyprus</strong> began<br />
building its modern shipping industry in the<br />
early 1960s when it established its shipping registry<br />
and introduced legislation providing ship<br />
managers and owners with a competitive tax environment.<br />
Among the country’s other evident<br />
advantages are its strategic location at the crossroads<br />
of maritime transport lines between East<br />
and West, low operating costs, a highly educated,<br />
multilingual workforce and its sophisticated professional<br />
services industry. <strong>Cyprus</strong> is also signatory<br />
to all major international maritime conventions<br />
and has bilateral cooperation agreements<br />
with 25 countries, among them leading suppliers<br />
of labour. In 2019, <strong>Cyprus</strong>’ merchant fleet had<br />
1,734 ships with 24.6 million gross tonnage, the<br />
number of companies increased from 168 in 2017<br />
to 220 in 2019, with the number of shipmanagement<br />
operators rising to 50, placing <strong>Cyprus</strong> at the<br />
top of this category in the EU.<br />
The formidable <strong>Cyprus</strong> shipping industry<br />
has flourished without any state investment, although<br />
it enjoys strong state support. <strong>Cyprus</strong>’<br />
two dynamic shipping associations – the <strong>Cyprus</strong><br />
Shipping Chamber (CSC) and the <strong>Cyprus</strong> Union<br />
of Shipowners (CUS) – work closely with the<br />
Sector Profile<br />
<strong>Country</strong> <strong>Report</strong> CYPRUS <strong>2020</strong> 117