Large-scale developments have seen increased growth over the past year. Andreas Demetriades, President of the Association of Large Investment Projects, shares his views on Cyprus' regulatory framework for large invesmtnet projects, how Cyprus can attract more international investors, and the importance of sustainability to ensure the sector's healthy and sustainable future.
What are the main regulatory or administrative reforms that Cyprus needs to adopt so as to accelerate the implementation of large investment projects?
Cyprus must adopt a new and modern development model. To achieve this, emphasis should be placed on e-governance, the green transition, the modernisation of the tax system, the decentralisation of public services, the extension of public service operating hours, the acceleration of the permit process, the swift administration of justice and the effective resolution of the shortage of both skilled and unskilled labour. As an Association, we have proposed the establishment of a Deputy Ministry of Development & Competitiveness, which would host a Unified Investor Service for Strategic Investments as well as a One-Stop Service. This would significantly and decisively improve the business environment and such initiatives would strengthen Cyprus’ position as a modern regional business hub and an attractive investment and tourism destination.
How is the country positioning itself to attract international investors amid growing regional competition for large-scale projects?
Cyprus benefits from a strategic geographic location and a competitive tax system. It also has a well-developed business and banking sector, a skilled workforce and a stable legal framework. In addition, new and dynamic sectors are emerging – healthcare, higher education, energy, technology, innovation and more. Furthermore, Cyprus’ anticipated membership of the Schengen Area is expected to become a strong driver of growth, enhancing the openness of the economy, expanding opportunities for strategic partnerships and improving the investment climate. What is required now is a comprehensive strategy that promotes sustainable development, focusing on economic diplomacy and the strengthening of high-value-added services.
To what extent are sustainability and ESG principles now integrated into the planning of major development projects in Cyprus?
Environmental sustainability is a necessity, as it aims to improve the quality of life while ensuring a healthy and sustainable future. Although Cyprus still has progress to make in achieving the UN Sustainable Development Goals and ESG criteria, the Association’s 16 member companies operate fully in line with the principles of the green transition and sustainable growth. The major projects being developed are based on environmental studies and include elements such as photovoltaic parks, green spaces and water treatment plants. By adopting and integrating green practices, large-scale developments not only minimise their environmental footprint but also contribute to Cyprus’ ecological advancement. They play a key role in transforming the country into a greener, more competitive low-emission economy – one that is capable of managing its natural resources sustainably and efficiently while achieving energy self-sufficiency.
This article was published in the October issue of GOLD magazine. Click here to view it.
