Press Releases

It is my pleasure to address you today on the occasion of the presentation of the first EY attractiveness Report Cyprus for 2020. The report provides an essential, valuable insight on investors’ perceptions on Cyprus as a business and investment destination, which is particularly relevant in the challenging times we are faced with. I therefore extend my warm congratulations to Ernst & Young Cyprus, to Mr Stelios Demetriou and to the whole team behind this study, for their outstanding work.

Today, I am regrettably not able to join you for a live discussion, so allow me to share a few thoughts on the findings of the study, as well as the Government’s efforts, ongoing and planned ones, aimed at increasing the competitiveness of our economy and its attractiveness to investors.

The current year has been a difficult one. The global pandemic has posed enormous challenges on all countries and has radically disrupted life. Governments are required to safeguard public health by adopting extraordinary measures, such as lockdowns, to safeguard public health. As a result, economic activity has declined sharply, affecting also global foreign direct investment flows.

It is therefore imperative to focus on a fast post-Covid recovery.

The findings of the study are encouraging as regards existing investors on the island. This of course does not mean that our Government is complacent. We have always been promoting an ambitious reform agenda and we are committed to continue on the same path, especially in areas such as the judicial and health care systems and sectors such as digital transformation, tourism, research and innovation and green economy.

As regards investors who are not established on the island, the story is somewhat different. The findings clearly indicate the need to swiftly act in this area. In this context, I am pleased to inform you that the Ministry has been developing a Strategy for Economic Diplomacy, which will be launched in early 2021.

The strategy aims at creating value for Cyprus and Cypriot businesses from increased trade, Foreign Direct Investment, innovation and national branding, maximizing the benefits from diplomatic engagement.  Our strategic objectives concern, inter alia, the attraction of Foreign Direct Investment, which maximises value-added for the economy and can trigger innovation spill-overs, the promotion of a coherent and cohesive brand of Cyprus abroad, as well as addressing any misconceptions or lack of awareness about the benefits that our country offers.

In our efforts, we are working hand-in-hand with the major stakeholders of the business and economic ecosystem of Cyprus, in fully utilising the potential of our Diplomatic Missions abroad in promoting our economic interests. It was in this framework, that the Council of Ministers recently decided that the Government be represented in the Cyprus Investment Promotion Agency by the Ministry of Foreign Affairs, fully capitalising on potential synergies.

I am therefore confident, that through our collective efforts we will be able to effectively address the challenges identified in the EY Attractiveness Report and render Cyprus an even more attractive investment destination.

Once more, I thank Ernst & Young for this report and I am looking forward to further discussions with you.

Thank you for your attention.

EH/ECHR