Ronald Attard: Cyprus remains an attractive destination for foreign direct investments

The EY Attractiveness Forum 2024, held on 4 December in Limassol, highlighted the international investment community's perception of Cyprus as an attractive investment destination while addressing the challenges and opportunities shaping the country's economic future.

The event brought together key stakeholders, including investors, government officials, and business leaders.

Address by President of the Republic

President Nikos Christodoulides opened the event, emphasising the critical role of foreign direct investments (FDI) in achieving sustainable growth. He also highlighted ongoing efforts to streamline bureaucratic processes through digital reform, stating: "Cyprus' ability to quickly adapt to changing global conditions has been a key factor in maintaining healthy FDI inflows to support economic growth.”

He added, “By continuously addressing investor concerns and enhancing our FDI attractiveness, we can ensure Cyprus remains a prime destination for Foreign Direct Investments. We are all part of this collective journey, and Cyprus' success depends on our ability to collaborate, innovate, and adapt to change."

Key findings of the EY Attractiveness Survey

Stelios Demetriou, Partner and Leader of the Strategy and Transactions Services at EY Cyprus, presented the findings of the EY Attractiveness Survey, highlighting investors' views that, given the current geopolitical climate, Cyprus offers significant investment opportunities.

Key advantages identified included:

• Corporate taxation
• Quality of life
• Availability of investment opportunities
• Stable political environment

However, areas for improvement were also noted, such as workforce skill shortages, relatively high labour costs, bureaucratic processes, limited access to financing and digital infrastructure.

Addressing these challenges is essential for enhancing Cyprus' global investment appeal, said Demetriou.

Highlights from panel discussions

The forum's panel discussions provided deeper insights into the country's opportunities and challenges

The first panel was moderated by Stelios Demetriou, with participants George Papanastasiou, Minister of Energy, Commerce, and Industry; Irini Piki, Deputy Minister to the President; Christodoulos Patsalides, Governor of the Central Bank of Cyprus; and Evgenios Evgeniou, Chairman of Invest Cyprus.

Discussions focused on reducing energy costs, introducing innovative financing mechanisms, streamlining and digitising bureaucratic processes, and expanding infrastructure projects to position Cyprus as a strategic investment hub.

Panel 2 focused on Research and Development, and was moderated by George Tziortzis, with participants Nicodemos Damianou, Deputy Minister of Research, Innovation, and Digital Policy; Kyriakos Kokkinos, former Deputy Minister of Research, Innovation, and Technology; and Mohammed J. Sear, Partner, Consulting Services, EY MENA.

The discussion emphasised the role of R&D in attracting FDI, stressing the importance of investing in digital infrastructure and fostering innovation to drive economic growth.

Panel 3, on Tax Policy, was moderated by Simos Simou, and participants included Christiana Erotokritou, MP and Chair of the Parliamentary Committee on Finance and Budget; George Syrichas, Economic Research Center, University of Cyprus; and Philippos Raptopoulos, Partner and Leader of Tax and Legal Services, EY Cyprus.

The panel focused on evolving Cyprus’ tax framework, simplifying administrative processes, maintaining tax competitiveness, and reducing regulatory burdens.

The fourth and final tackeled Workforce Skills and Migration. It was moderated by Panagiotis Thrasyvoulou and the participants were Kostas Hadjipandelis, Director General, Ministry of Labor and Social Insurance; Marios Tsiakkis, Secretary General, Cyprus Chamber of Commerce and Industry; Maria Theodorou, Director, HR Department, Federation of Employers and Industrialists (OEB); and Dimitris Nisiotis, Chairman, Cyprus IT Enterprises Association (CITEA).

The panel addressed aligning workforce skills with industry needs, discussing migration reforms, modernizing education, and building a sustainable labor force.

In his closing remarks, Ronald Attard, Country Managing Partner of EY Cyprus, underscored the need for public-private collaboration to promote innovation and enhance competitiveness. He concluded with an optimistic note on Cyprus' FDI trajectory:

The event concluded with a networking reception, fostering dialogue on future collaboration opportunities.