2023 Doing Business in Cyprus (UK Edition)

DOING BUSINESS C YPRUS
16
UNITED KINGDOM EDITION
major success story for Cyprus
A has been the maritime sector,
which accounts for around €1 billion in
annual revenue and approximately 7%
of the island’s GDP – and of this figure,
shipmanagement alone accounts for 5%.
Apart from offering shipmanagement
and business services to the industry, the
Cyprus Registry is classified as the third
largest merchant fleet in the European
Union and the 11th largest in the world.
In addition, Cyprus is the EU’s largest
GLOBAL SHIPPING HUB
ICyprus has retained and
strengthened its status as
an attractive investment
gateway to the EU and
other high-growth markets,
as well as a secure base
to tap into opportunities
in the Middle East
shipmanagement centre and amongst
the top three in the world. The sector has seen growth in the past few years and Cyprus
is currently looking at restructuring the commercial shipping sector to strengthen its
competitive edge. Since introducing an advantageous EU-approved tonnage tax system
in 2010, the island has continued to attract increasing numbers of shipping companies
from across the world. The country’s maritime capital, Limassol, is home to some of the
most influential names in shipping today managing around 20% of the world’s thirdparty
managed fleet.
EAST MED ENERGY PLAYER
Apart from the sun and the sea, Cyprus has few natural resources and has been
dependent on oil imports to satisfy its energy demands. However, the substantial
discovery of natural gas and potential oil deposits in Cyprus’ Exclusive Economic Zone
(EEZ) in the Mediterranean Sea is expected to change all this. Exploratory drillings
by global energy giants have confirmed natural gas reserves that could meet Cyprus’
domestic gas demand for over 100 years, and a surplus for export. The hydrocarbons
race in Cyprus’ waters has attracted international energy heavyweights, such as Total,
ENI, Chevron, Kogas, Royal Dutch Shell, and ExxonMobil to explore the island’s waters
for new discoveries and multiple auxiliary services companies have set up to support
these efforts. With 340 days of sunshine to harness, solar energy has also become a
bit of a boom segment for Cyprus recently. The government is placing strong focus
on renewable energy and working towards achieving a zero-carbon economy. The
country’s top-tier universities and research institutes are also playing a pivotal role in
these efforts to create a more sustainable energy mix through innovation in smart tech
and research in ways to battle climate change.
DIVERSIFYING TOURISM
Tourism has been a key driving force of the Cypriot economy for decades, and pre-
Covid the country saw consecutive years of record-breaking numbers of tourist
arrivals and revenue. Although the pandemic temporarily stifled the thriving sector,
tourist arrival figures are rebounding and new projects currently underway are set
to strengthen and diversify Cyprus’ tourism product and encourage more yearround
visitors, a strategy Cyprus is fully committed to. These projects range from the