|
28-04-2023 18:27 |
|
Address
by the President of the Republic Mr Nikos Christodoulides at the “INVEST
CYPRUS” Side Event |
|
Friday, 28th April, Delphi,
Greece I am very pleased to welcome you
to this event organized by Invest Cyprus. The Cyprus economy has come a long way in the past few years, and through this journey has proven its resilience. Cyprus has succeeded in recovering and re-establishing itself as an attractive destination for foreign investment, enjoying a highly educated workforce, strategic location, and favorable business environment. Despite the challenges that the
global economy is facing, due to the aftermath of the Covid pandemic and the
ongoing war in Ukraine with the illegal Russian invasion, the Cyprus economy
continues to demonstrate strong growth rates. More specifically, in 2021 and
2022 we experienced 6.6% and 5.6% growth rates respectively, one of the
highest in the EU, while maintaining low unemployment rates. The forecast for
2023 and the years to come are also very positive, lower but still positive. Strong growth rates are the
result of a three-pillar
policy approach: fiscal
discipline with government budget surpluses, consolidation of the banking sector
and promotion of
structural reforms. At the same time, in 2022, we
introduced a Strategy for attracting businesses and talent to the island.
This encompasses the establishment of a Business Facilitation Unit and a
package of tax and other incentives for companies that wish to set up
headquarters or a regional base in Cyprus. Moreover, we have also
developed a long-term strategic plan for the economy –Vision2035– aiming to
promote entrepreneurship and innovation, and attract investment in
high-growth sectors such as tourism, shipping, and energy. The plan also
focuses on human capital and skills development, on Green Growth and Digital
Transformation. All Government strategic
planning is supported
by EU funds, namely the Recovery and Resilience Programme and
the Thalia Programme, covering the period up to 2027. As a result of this
multi-dimensional approach, Cyprus is attracting FDI in finance, shipping, tourism, information and communication,
retail trade,
health, tertiary
education and professional services, in particular head-office activities. As regards the important shipping sector,
Cyprus has a well-developed infrastructure, including modern port facilities,
ship repair yards, and a comprehensive legal and financial services sector
supporting the shipping industry. The country has invested heavily in
expanding and upgrading its port facilities, with the Port of Limassol being
the largest and most important port in the country. The sector benefits from
a competitive tax system, while developing its position in the maritime
technology sector, offering opportunities for investment in areas such as
ship management software, cybersecurity, and drone technology for maritime
surveillance. Cyprus's tourism sector is
one of the fastest-growing in the Mediterranean, attracting millions of
tourists each year. The energy sector is
also growing, with the discovery of significant offshore gas reserves,
presenting opportunities for investment in infrastructure and services. The
Russian invasion in Ukraine has put at the forefront in the EU the need for
energy independence and diversification, and Cyprus can play an important
part in these efforts of the EU. The financial services
sector is also experiencing growth, driven by the implementation of new
regulations and the introduction of new financial products and services. The
government has also launched initiatives to promote fintech, making Cyprus a
regional hub for research and innovation. Our Government took office very
recently in March 2023 and has already set in motion an ambitious Governance
programme with bold reforms, aiming to broaden the productive base of the
economy, fully capitalizing on research and technology and utilizing our
country’s rich human talent. In this respect we fully
endorse the long-term
economic strategy “Vision2035”, setting a roadmap for the
country's development and growth over the next decade. Amongst our highest priorities
is the promotion of a comprehensive tax reform, aiming at the reduction of
administrative burden for tax payers and businesses, while retaining the
system’s attractiveness. As regards the green
transition, we are fully committed to the EU’s Green Deal. We focus
particularly on subsidizing green initiatives and further promoting the use
of Renewable Energy Sources in the country’s energy mix, including through
RES storage infrastructure. We also promote a number of
actions for ensuring a swift digital transition, while enhancing the
country’s capacity in maintaining a favorable business environment, more
simplified and with less red tape. I have mentioned how our
adherence to fiscal discipline and the promotion of structural reforms is
making Cyprus an attractive business and foreign investment destination. There is also another critical
factor and that is Cyprus’s foreign policy. We have worked methodically
during the last years in building strong ties both with countries in the
wider Eastern Mediterranean, the Middle East and the Gulf, as well as with
the United States, where there have been leaps of progress in building a
truly strategic partnership. At the same time, we have worked on enhancing in
tangible terms our relations with important players such as India –that I
plan on visiting with a business delegation in the first half of 2024– and
Japan. I want to take this opportunity
to underline that I am personally committed, the Government is committed in
taking all necessary actions to protect the reputation of Cyprus as a
credible business and investment centre. We are working tirelessly on not
only fully investigating but also establishing a strong supervisory
framework, including the establishment of a fully-fledged National Sanctions Implementation
Unit, with technical support by the UK Government. In recent years, Cyprus has
taken significant steps to enhance its AML regulations and strengthen its
supervisory framework. The government has introduced new legislation and
regulations, increased the number of AML supervisors, and invested in
training and capacity building. Furthermore, the Central Bank of Cyprus has
been actively working to reduce the number of non-resident deposits in
Cypriot banks, particularly those from high-risk jurisdictions. In concluding, I wish to note
once again the significant progress of the Cyprus economy, with strong GDP
growth, improved public finances and declining unemployment rates. The
country offers investors attractive opportunities across several sectors and
a friendly business environment. On my side, I assure you that
the government will continue working tirelessly, in order to create an
enabling environment for businesses to thrive. (RM/NG/SCH) |
