2020 Cyprus Country Report

Interview
Interconnectors. The Ministry also plans to
create a One-Stop Centre for commercial renewable
energy projects, as well as to facilitate
the construction of the projects proposed in the
framework of our last two funding schemes – 222
commercial RES projects in total. In addition,
we are funding households and businesses for
Energy Efficiency and the installation of photovoltaics
and other RES systems for net-metering,
net-billing and self-consumption.
Cyprus has a longstanding
reputation as a solid
international business
centre and its professional
services sector has become
a key economic pillar.
How can Cyprus sharpen
its competitive edge and
ensure this sector sees
further sustainable growth
and diversification?
Professional services have been the backbone
of Cyprus’ economic model for decades and,
consequently, key to maintaining our country’s
position as a competitive investment destination
and international business centre. With
their high level of expertise and qualifications,
Cypriot lawyers, accountants, auditors and other
specialists, provide value-for-money, top quality
services, to many businesses within a range of
fast-growing economic areas, including the hospitality
industry, shipping and shipmanagement,
finance and investment funds.
The professional services sector itself consistently
shows strong growth each year, building on
the island’s many comparative advantages that
include, inter alia, a business-friendly environment,
a legal system closely aligned to English
common law, strong protection for investment
and intellectual property, incentives for investment
in start-ups and tailor-made provisions for
industries such as shipping, investment funds
and filming. As an EU and Eurozone member,
Cyprus also offers investors preferential access to
markets in Europe, the Middle East, North Africa
and Asia.
The Cyprus Government is committed to
safeguarding and further enhancing the Cypriot
business environment, by facilitating large investment
projects, offering incentives for tourist
development in specific areas of the island and,
as I have mentioned earlier, by moving forward
with our decision to set up a dedicated business
service centre at our Ministry, to actively support
entrepreneurship.
Cyprus’ handling of the
Covid-19 outbreak has
been hailed a success,
but the pandemic has
undoubtedly had an
impact on the global
economy. What are
your expectations for
Cyprus and its economy
in 2020-2021, and what
message would you
like to convey to the
international community?
A huge part of our government’s successful management
of the pandemic has to do with the
targeted budgetary measures promptly taken
to support workers, businesses and vulnerable
groups of the population. Α comprehensive,
three-phase, Economy Support Programme of
almost €3 billion, one of the largest of its kind at
European level, is currently being implemented,
benefiting an estimated total of 190,000 citizens,
26,000 businesses and 22,000 self-employed
persons.
As such, not only does Cyprus remain a relatively
safe destination for travel, but we have also
been very effective in minimising the pandemic’s
impact on our economy, despite the initial
lockdown and the ongoing restrictive measures.
According to the Ministry of Finance’s estimates,
2020 will close with a 7% drop in GDP,
whereas 2021 should mark a return to normality,
with an expected 6% GDP growth rate.
In conclusion, my message to the international
community is that all the conditions and
factors that make Cyprus an attractive investment
and business jurisdiction are still in place
and are constantly being upgraded. Moreover, the
Republic’s government, in dealing with the 2020
health crisis, has ensured that the island stays on
course for a positive outlook, proving, once more,
our hands-on approach to supporting businesses
and the economy. Certainly, excellent investment
opportunities exist in both new and existing
areas, notably in energy, shipping, investment
funds, tourism and hospitality, innovation and
start-ups, real estate, filming and education. n
Discover more at www.cyprusprofile.com
Α comprehensive,
three-phase,
Economy Support
Programme of
almost €3 billion,
one of the largest
of its kind at
European level,
is currently being
implemented.
44 Country Report CYPRUS 2020