"The public sector needs to proceed with the digitisation of its services, reduce bureaucracy and significant delays while the justice system must also undergo a series of reforms to become more flexible and faster in decision-making," suggests Andreas Petsas, CEO of Eurobank Cyprus, comenting on the practical changes Cyprus should make to be more compelling to the next wave of international investors.
Speaking to GOLD magazine on the occasion of the Invest Cyprus International Investment Awards, of which Eurobank was an Elite Sponsor, Petsas also delves into the importance of Cyprus’ strategic location in attracting investment and shares his opinion on what sectors could be further developed to encourage significant overseas interest.
From your point of view, which sectors remain underleveraged in terms of attracting meaningful foreign investment?
Technology is often the obvious suspect – not because our country necessarily lacks innovation or undervalues this sector but because the international pace of technological advancement is accelerating rapidly. To close the gap with other competitors, greater efforts and collaborations from both the public and private sectors are essential. A characteristic example of such collaboration are the initiatives undertaken by our Group to facilitate investments by prominent groups from India in the technology sector, such as the first agentic AI voice platform establishing its headquarters in Cyprus and the recently inaugurated AI Experience Centre in Nicosia. Such investments with substance and expertise in technology assist all economic sectors that may now be relatively undeveloped in that aspect.
In practical terms, what changes – regulatory, structural, or narrative – could make Cyprus more compelling to the next wave of investors?
Cyprus is an attractive destination for foreign investors due to its geostrategic position, stable legal and taxation system, Double Tax Treaties, the island’s security the high educational level of its residents, as well as the ease of employee relocation. At the same time, for some years now, the state and the competent authorities are making systematic efforts to attract foreign investments to the island by providing incentives and other benefits.
These efforts have had a positive impact, but greater emphasis should be placed on making infrastructure changes. The public sector needs to proceed with the digitisation of its services, reduce bureaucracy and significant delays while the justice system must also undergo a series of reforms to become more flexible and faster in decision-making. Moreover, greater speed is required in offering the relevant permits that will enable foreign investors to invest and relocate in our country.
As Elite Sponsor of the Invest Cyprus International Investment Awards for so many years, what does Eurobank gain from this key contribution?
Foreign investment is key for boosting the competitiveness of the Cyprus economy and the development of local society – two goals that are completely aligned with Eurobank’s broader strategy. Within this framework, we have supported the International Investment Awards for 12 consecutive years, aiming to honour foreign investors who have trusted our country and substantially contributed to the consistent efforts to establish Cyprus as an attractive destination for foreign investments.
The International Investment Awards have become an established event, fostering productive discussions among foreign investors and key stakeholders of the Cyprus economy, especially this year, when developments in our region have highlighted our country’s strategic location and our economy’s momentum. The prospects offered by the India-Middle East- Europe Economic Corridor (IMEC) are expected to generate new opportunities and give rise to emerging sectors. We will need to keep focused on these prospects and turn strong investment interest into tangible results.
This year’s award-winners span a broad range of sectors – technology, gaming, telecoms, real estate, banking and retail. What does this growing diversity signal about Cyprus’ economic trajectory?
Attracting foreign investment in a broad range of sectors reflects the positive trajectory and prospects of the Cyprus economy, which is currently at investment-grade status. In the financial sector, Eurobank Group has invested more than €1.3 billion over the last few years, acquiring Hellenic Bank and trusting Cyprus’ significant potential to become a financial services hub and a gateway to the EU for businesses from abroad. This is the biggest direct investment to ever take place in Cyprus and represents a great example of the efforts made for opening up new markets.
The significant investments taking place at the same time in other sectors, such as technology, healthcare and hospitality contribute to innovation, leading to knowledge and expertise transfer, creating new jobs and more opportunities. These investments highlight our country’s significant prospects and its highly qualified human resources across a broad range of sectors. This, particularly against the backdrop of a rapidly changing environment and periods of crisis and political instability, shields our economy and ensures business stability, without creating dependence on a single sector.
This interview first appeared in the July edition of GOLD magazine. Click here to view it.
