Press Releases

It is a great pleasure to welcome you all in Cyprus and a great honour to be hosting this year’s EFAMA Annual General Meeting. By choosing Cyprus as the location for its most important annual event, EFAMA actively shows its support to the development of the Cyprus investment funds industry, a promising sector which has witnessed impressive growth both in European and global level. It would be an omission not to extend my sincerest thanks and congratulations to the Cyprus Investment Funds Association and its Chairman, Mr Angelos Gregoriades, for their hard and proactive work in expanding Cyprus’ funds industry in terms of size, reputation and attractiveness and strengthening our country’s position in the international fund jurisdictions arena.

A long journey towards the vision of establishing Cyprus as a modern and attractive investment fund and asset management centre of excellence, has brought about formidable results. A collective effort of CIFA and the rest of the local industry, and the Cyprus Securities and Exchange Commission, and a series of reforms upgrading the country’s framework governing the operation of investment funds have fostered Cyprus’ appeal as a powerful investment funds jurisdiction within the EU, manifested in the growing number of internationally recognised fund service providers established in Cyprus. As an attractive domicile and servicing centre for both AIFs (Alternative Investment Funds) and UCITS (Undertakings of Collective Investment in Transferable Securities), Cyprus now has a fully EU compliant and business friendly regime that strikes a balance between freedom of operation for the asset manager and protection of the investor.

Cyprus is fast becoming one of the top emerging investment fund centres in Europe in the light of its continuous efforts to enhance its legislative and regulatory regime, backed up by a strong network of financial and professional service providers, offering high quality services at highly competitive prices. Low operating costs, a simple and effective legal system based on the Common Law and an attractive tax framework offering one of the lowest corporate tax rates in the EU and access to an extended network of 62 Double Tax Treaties and a range of incentives for both companies and individuals, contribute greatly to Cyprus’ increased competitiveness in relation to other EU jurisdictions. Cyprus’ geostrategic position between three continents renders our country an ideal investment gateway to the EU, as well as a portal for investment outside the EU. Cyprus provides extensive access to all major West and East markets, while providing a factor of stability in the turbulent region of the Eastern Mediterranean. The Cypriot banking system has been recapitalised, restructured and modernised, and is now operating on a much healthier basis. Cypriot financial institutions have been very diligent in advancing their corporate governance policies and have vigorously stepped up their efforts to combat negative phenomena. Last but not least, one of our most important assets, our high quality intellectual capital, which, in combination with all the above, ease of doing business and an enviable quality of life in a safe, multicultural and beautiful environment, make Cyprus an ideal place not only to do business but also to live.

Cyprus has historically been an attractive investment destination. However, following unsettling times, the promotion of structural reforms, sound finances and fiscal consolidation have been instrumental in regaining the trust of international investors. Recording a growth rate of 3,9% in 2017 and securing consecutive upgrades by credit rating agencies, Cyprus is on a positive track of robust economic growth, with forecasts showing a sustainable 3% rate in the coming years. We are determined to continue our efforts with the same rigour and decisiveness to ensure macroeconomic stability, sustainable growth and a business and investment-friendly environment which will not only result in the further development of the funds industry, but also in the provision of additional financial tools for investment across a wide range of key economic sectors in Cyprus.

Our plan is to continuously improve the country’s business environment so as to reinforce the position of Cyprus as a competitive, innovative, stable and fully transparent destination for business and investment. Developments such as the Capital Market Union, which we strongly support as a facilitating factor of the cross-border operation of investment funds and the improvement of the European passport system function for all types of investment funds, as well as the upcoming Brexit, give new impetus to the already fast-growing investment funds industry and require careful consideration. Acknowledging the importance of credible regulation and supervision, as well as effective cooperation between the Government and the wider public sector with the private sector, we will continue to work closely with and provide our full political support to the industry and the Regulator to create the necessary circumstances which will lead to the strengthening of Cyprus’ position as a stable, reliable, fully transparent and attractive EU domicile for investment funds. This highly important sector, which has the potential to contribute significantly to real economic growth, has our full political support.

Once again, I would like to thank EFAMA for casting a highly appreciated vote of confidence in Cyprus and wish you all productive discussions and a wonderful stay in our island.

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(RM/MG/SCH)