- An impressive lineup of speakers discussed the results of the EY Attractiveness Survey Cyprus 2022
- appears as Cyprus An attractive destination for investors – 53% expect attractiveness to improve over the next three years
- Telecom/digital infrastructure, standard of living and corporate taxation are seen as major attractive features
- Technology, sustainability and efficiency are key factors influencing investment decisions in Europe
- EY presented a broad set of recommendations including eight key areas of priority to strengthen FDI attraction
The Cyprus Attractiveness Forum: Investment RealizationHosted by EY in collaboration with the Cyprus Chamber of Commerce and Industry, took place on Tuesday, 25 Octoberm At the Parklane Hotel in Limassol. The event brings together government leaders, CEOs, CFOs, entrepreneurs, investors and advisors from Cyprus and abroad to discuss the results of the Cyprus Attractiveness Survey 2022 and the future of investment and business in Cyprus.
Welcomed by the participants Ronald AttardCountry Managing Partner, EY Cyprus and Malta, Strategy and Transaction Leader for the CESA region and Andres DemetriodesVice President, Cyprus Chamber of Commerce and Industry.
EY presents the results of the attractiveness survey Cyprus 2022 Stelios DemetriouPartner, Head of Strategy and Transaction Services, EY Cyprus, with live commentary from Konstantinos Petrides, Minister of Finance of the Republic of Cyprus.
According to the survey, although planned FDI activity in Cyprus, at 29%, is lower than in the rest of Europe, investors are optimistic about Cyprus’ potential for attractiveness in the short-term future, with 53% of respondents expecting improvement over the next three years.
The most attractive areas for investment in Cyprus are supply chain and logistics operations (35%), followed by sales and marketing offices and operations (24%), and headquarters (14%). Notably, manufacturing activity (7%) is mentioned for the first time.
Investors consider telecommunications and digital infrastructure, Cyprus’ standard of living and favorable corporate taxation as the most prominent features of the country’s attractiveness, while the entrepreneurial and start-up culture, support systems and subsidies from public authorities and the level of labor costs. Considered less attractive.
Investors’ perception is that Cyprus should focus its efforts on keeping pace with technological and other developments, supporting high-tech industries and innovation, as well as allowing regulation for investment in manufacturing projects.
The survey confirms that the broader geopolitical situation in Cyprus casts its shadow on companies’ decisions to invest in the country. As in the 2020 survey, nearly half of the investors surveyed rendered the above a “critical” (12%) or a “very important” (33%) factor.
Based on the results of the survey, EY presented a number of recommendations aimed at improving the attractiveness of Cyprus, centered on eight pillars:
- Maintain focus Digital economy By investing more in digital infrastructure, supporting digital skilling/re-skilling of the workforce, further digitization of government services, actively promoting digital culture and general public acceptance.
- Helping to match skills To meet current and future employment needs, encourage the development of new and specialized higher education institutions and promote active collaboration between industry and academia.
- establish a Entrepreneurial ecosystem Where start-ups and SMEs can develop sustainably. Simplifying processes, improving transparency and information sharing, fully transitioning to e-government, facilitating alternative funding and providing incentives for R&D and innovation.
- Accelerating efforts to establish Cyprus as a regional Technology and Innovation Centre, joining forces with relevant stakeholders to improve incentives and subsequently create a comprehensive ecosystem to support the ICT sector and its growth. Collaboration between the public and private sectors to ensure effective access to the global technology community and effective communication of Cyprus’ competitive advantage.
- effort diversity Supporting the transformation of traditional sectors (such as tourism, professional services and shipping), as well as transforming the economy into dynamic new sectors, including supply chains and logistics, energy, education and health.
- supports its efforts Economic services The sector can regain its health, become more agile, gain efficiency and focus on financing innovative and sustainable projects.
- hug DurabilityCreates appropriate culture, develops necessary skills, establishes regulatory framework and facilitates learning and information sharing.
- Capital on recent Geopolitical development Leveraging our EU membership, strategic location, and other competitive advantages in the region, with the overarching goal of achieving a key regional role in areas such as energy and supply chains.
Panel Discussion’Cyprus as an attractive investment destinationwas moderated by Stelios DemetriouPartner, Head of Strategy and Transaction Services, EY Cyprus, with participation Savas Perdios, Deputy Minister of Tourism, George Campanelas, CEO, Invest Cyprus, Yanis Matsis, Managing Director, Head of Cyprus, MUFG Investor Services and Eliza LivadiouFinance Director and Board Member, Bank of Cyprus.
Stelios Demetriou commented: “The second edition of our survey clearly shows that Cyprus is on the right track to strengthen its competitive position. Against a backdrop of global uncertainty and volatility, participants’ responses showed significant improvement over 2020 and optimism about the future. However, we need to remember that, in today’s fiercely competitive environment, our European partners are all striving to attract investment and are also making significant progress. With this in mind, we can now exploit the insights gained through this survey to explore next steps to improve Cyprus’ FDI attractiveness.“
After discussing the results of the survey, the HEUS Ambassador in Cyprus, Judith Garber, He gave a keynote speech in which he referred to Cyprus as a ‘natural center of innovation’ and said that it was ‘great to see the results of the EY Attractiveness Survey Cyprus 2022’.
Antonis Oikonomo The Public Sector Director for Microsoft Greece, Cyprus and Malta proceeded with a speech ‘Good practice and impact of digital innovation’.
The second panel discussion focused on ‘The Role of Innovation and Digital in Driving Attraction’. It was moderated by George CousisWith the participation of the Executive Director and Chief Technology and Operations Officer, Bank of Cyprus Kyriakos KokinosDeputy Minister of Research, Innovation and Digital Policy of the Republic of Cyprus, Dr. Nicholas MastroiannopoulosChief Scientist for Research and Innovation of the Republic of Cyprus, Andreas NucleusCEO, CYTA and Maria Markido GeorgiadouManaging Director, Cypress Seeds.
This is followed by a message from Mrs. Anita Demetriou, President of the House of Representatives of the Republic of Cyprus and an insightful talk Famke KrumbmüllerEY EMEIA Leader, Geostrategic Business Group, who ‘The growing importance of geopolitics for business leaders. During his speech, Phamke emphasized that ‘we are going through a fundamental structural change that creates both risks and opportunities that businesses must assess’.
The third round table discussion focused on ‘Developing a sustainable growth model for Cyprus. It was moderated by Nick NicolauWith the participation of partners, Assurance, EY Cyprus George LakotripisFormer Energy, Commerce and Industry Minister, Theodosius A. TsiolasPermanent Secretary, Directorate General for European Programmes, Coordination and Development (RRF), Andreas AssiotisVice Chairman of the National Economic and Competitiveness Council of Cyprus and Chairman of the Steering Committee on the Country’s Long Term Economic Strategy and Irene ZorgallaHead of Economic Diplomacy, Ministry of Foreign Affairs.
Christos Paschalides, Senior Economic Adviser/Member of the European Commission Recovery and Resilience Task Force, Delivered a keynote speech on EU perspectives and priorities.
Finally, a fourth panel discussion, moderated by Panayiotis ThrasyvoulouPartner and Head of People Advisory Services, EY Cyprus,Reshaping education and reshaping its future work’joined Yannis MourogidesDirector General, Cyprus Human Resources Development Authority (HRDA), Marios D. SiakkisSecretary General Cyprus Chamber of Commerce and Industry, Maria TheodoroHead and Professor of Human Resources at the Cyprus Employers and Industrialists Federation (OEB) Eleni StavruMSc HRM Director, University of Cyprus.
Ronald Attard, Country Managing Partner, EY Cyprus, in his closing remarks, outlined the findings and recommendations of the survey while emphasizing the important contributions of the participants. Mr Attard noted: “Cyprus emerges as an attractive destination, with A significant improvement over our 2020 survey and growing optimism that the country’s attractiveness will further improve over the next three years. We have identified broad areas where we need to focus our efforts and improve, But there is no doubt in my mind that technology, sustainability and efficiency are the areas where investors will focus in the coming years. Foreign investment is a unique tool and prerequisite for the transformation of our economy, opening up new dynamic sectors, creating wealth and employment and subsequently setting Cyprus on a sustainable growth path. With this in mind, EY is committed to establishing the Cyprus Attractiveness Forum as a flagship event that will regularly assess Cyprus’s progress in attracting FDI, identify and analyze emerging trends, exchange insights and ideas and help formulate proposals together that will put Cyprus at the forefront. At the forefront of investor interest.“
Read the full EY Attractiveness Survey Cyprus 2022 EY Attractiveness Survey Cyprus 2022 | EY – Cyprus.