Filenews 5 July 2021 - by Theano Thiopoulou
2020 may have been the worst year for tourist arrivals with losses of more than 80% and 2021 has so far been just as bad, but during the same period there have been developments which have also served positively as a counterweight to the effects of the pandemic. At the same time, they helped to reduce the economic recession with 5.1% recession in 2020, while the rest of the Mediterranean economies recorded an average recession of 8.5%.
In the midst of a pandemic, it has been found that Cyprus is not only a tourist destination, but also a destination, capable of attracting foreign technology companies to establish a base on our island, as well as foreign Investment Funds for registration and management in the Cypriot jurisdiction.
The restrictive measures of the last 15 months have pushed the Cyprus Investment Promotion Agency (Invest Cyprus) to immediately transfer all its promotional actions digitally, with the aim of highlighting abroad the advantages of the country as an investment destination and international business and financial centre. "In collaboration with specialized companies abroad we ensured the continuous presence in international media, conducted geographically targeted campaigns on social media and organized more than 100 international online conferences and targeted updates in major international markets. In these efforts we work closely with the respective professional and business associations, the Cyprus Investment Funds Association and the Cyprus Tech Association, as well as other private sector bodies," President of the Invest Cyprus Promotion Committee, Spyros Vassiliou, told "F".
With regard to investment funds, the promotional actions brought an immediate response to the initial shock of the pandemic and from mid-2020 onwards, they returned to an upward trend culminating in the latest data published by the Securities and Exchange Commission, according to which the assets under management of the funds reached record levels of €9.8 billion. euro. "The increase in funds that choose to be licensed by the Cypriot supervisory authority creates significant multiplier benefits for the professional services sector and enhances the country's image abroad as a multi-purpose financial centre. At the same time, the conditions for claiming part of the nearly €10 billion pie from the local market are also being created as a form of alternative financing of their activities", the CEO of Invest Cyprus and Vice-President of the Cyprus Investment Funds Association (CIFA), Giorgos Kampanellas, told "F".
With regard to the descent of technology companies in Cyprus, developments in recent months have been stormy with at least seven companies implementing plans to build a base on the island or strengthen their existing presence by creating hundreds of new jobs. According to a study conducted by Ernest & Young on behalf of Invest Cyprus, the impact of the sector on the Cypriot economy is €1.5 billion. More than 12,000 skilled and well-paid jobs have already been created. "The recent amendment we have promoted in relation to the employment of workers from third countries in a total of 20 professions in the ICT sector has had a direct impact and reinforced our country's proposal as a destination for technology companies," explained G. Campanellas.
Both the attraction of international technology companies and Investment Funds are long-term priorities of Invest Cyprus in its role as a state-owned investment attractor. "We are trying with the resources we have to place Cyprus on the international map of investment destinations. We believe that we have achieved this to a great extent with the existing instruments at our disposal, despite the intense competition of other investment destinations with much more resources and instruments," added G. Kampanellas.
