Filenews 25 July 2022
Interview with Socrates Ioakim
What happened and is happening after the Russian invasion of Ukraine, significantly affected the global socio-economic scene, so it was inevitable that they would also affect the investment sector, the President of the Association for Large Developments, Andreas Dimitriadis, tells Forbes. As he reveals, there are thoughts of a change of strategy with a shift towards Europe, in order to fill the investment gap left by the flight of Russian and Ukrainian investments.
How many members does the Association include and what valued projects are they currently managing?
The Association of Large Developments was established in 2013, in an effort to draft and organize Cypriot entrepreneurs who manage large developments, for the common benefit of the country. Currently as an Association we have 15 registered members, with 9 of them making up the Board of Directors. The Association is a member of the Cyprus Chamber of Commerce and Industry (CCCI). All our members have implemented or are promoting for implementation some of the largest infrastructure and development projects in Cyprus. Some of them have been completed, some are under construction and others are at the design stage. Our portfolio of members includes large and remarkable enrichment projects such as marinas, golf course developments, the casino, universities, medical centres, rehabilitation centres, technology parks, research centres, large tourist projects and complexes and other developments.
How can someone become a member of the Association?
In order to be able to become a member of the Association, according to a statute, one must develop projects in excess of €50 million. Therefore, in response to your question, the total value of the developments invested or promoted by our members exceeds €8 billion. This demonstrates the great importance that our Association and its members have for the economy and sustainable development of Cyprus: to attract investments, to implement infrastructure and development projects that enhance our tourism product and the country's economy in general, to create jobs and prospects for growth and prosperity.
FLUID THINGS
How much has the pandemic and the Russian invasion of Ukraine affected efforts to find foreign investors?
What has happened and is happening - after the Russian invasion of Ukraine - has had a significant impact on the global socio-economic situation, so it was inevitable that it would also affect the investment sector. At this stage things are still fluid. The Association of Large Developments and its members examine and evaluate the data, mainly whether the investment gap left by the flight and suspension of Russian and Ukrainian investments from Cyprus can be filled. I make no secret of the fact that there are thoughts of a change of strategy, turning to Europe. It is a large market that may make smaller profits, but it carries fewer risks. Due to the situation, the major development projects that were in progress have been significantly affected, but there is interest from investors from other countries, outside Russia, mainly in the field of headquartering and this is an optimistic development.
In other words, are there any companies that want to move their headquarters to Cyprus?
For some time now there has been interest from large companies of countries such as Lebanon and Japan, to move their headquarters or regional offices to Cyprus. They essentially wish to relocate a respectable number of employees to our country, due to more favourable conditions and the strategic position of Cyprus. As an Association we aim to attract such investments for the utilization of the existing large buildings we have.
THE REFLEXES OF THE STATE
How do you judge the reflexes shown by the state with the aim of limiting the impact of the pandemic on the economy and what actions do you think should be taken from now on?
In general, the reflexes of the state were immediate and effective. I make no secret of the fact that we expected to see more targeted measures in terms of attracting foreign investment. We are lagging far behind competition and it is necessary to provide the right incentives through a sound legal framework so that we can once again become an attractive destination for foreign investment. The beginning can be made by looking at everything that the other countries competing with us offer.
IDEAL INVESTOR PROFILE
What is the ideal investor profile in your opinion?
There is no specific investor profile that we are targeting and I believe that such restrictions do not serve anything at the moment at least. What we should be interested in is attracting productive investments with long-term benefits and why not, opportunities for development at regular intervals. Such investments could concern the areas of technology, energy and the provision of high professional services. Cyprus can and should become a business centre. Especially if we take into account the comparative advantages it has over the competition.
What are they?
In addition to being a member country of the European Union, with all that this entails, we have a perfectly trained and skilled human resources, which is multifunctional, an essential skill in our time. Moreover, despite what is happening with Turkey, Cyprus continues to remain a safe country, with low crime rates and good friendly relations with neighbouring states, which prevents extraneous interventions and therefore offers stability.
