Cyprus open to business from Middle East

Cyprus has its doors open to businessmen from Lebanon and other Middle East countries, offering numerous attractive benefits and opportunities for companies wishing to establish their businesses in Cyprus or use Cyprus as a hub to access the Eastern Mediterranean and European markets.
“Our county is strategically located at the crossroads of three continents. This close proximity to the busy trade routes, coupled with world-class infrastructure, has developed our island into a major international business centre”, Cyprus Minister of Commerce Industry and Tourism, Antonis Michaelides said during his address at the Lebanese Forces Party Business Assembly Regional Congress, entitled “Economic challenges facing the Lebanese Community” that took place in the coastal town of Limassol, Cyprus.
The Congress was attended by representatives from a wide range of Lebanese companies with special interest in exploring the possibilities of extending their business activities in Cyprus.
In his speech the Minister noted that the attractiveness of Cyprus as a business and investment venue is based on a variety of good reasons, such as the enviable quality of life and its pleasant climate, the long-standing relations with Central and Eastern Europe as well the Middle East, the macroeconomic stability and well developed socio-economic infrastructure, the low corporation tax at 10%, “the lowest in the whole EU”, and the wide network-more than 40-agreements for the avoidance of double taxation.
“Foreign companies can benefit from the numerous tax and other incentives for establishing in Cyprus assembling or manufacturing operations. We also welcome and provide opportunities in the direction of enabling wider participation by investors who can transfer know-how and introduce high technology to our island”, he said.
Emphasizing the fact that Cyprus has the highest percentage of university graduates in Europe, he said that the Cypriot economy is doing very well and growing significantly above the EU average, at a rate of 4% while inflation rate is only 2%, and unemployment in 2006, dropped from 5%, to 4%.
He said the credibility of Cyprus as an international investment centre is evident in its foreign direct investment track (FDI) record, adding that FDI inflows for 2006 were above 1.5 billion US dollars, continuing an upward trend for the second consecutive year.
Michaelides said that direct investment from Lebanon in Cyprus and Cyprus investment in Lebanon in 2006 is estimated at 21.4 m. euro, while the volume of trade between Cyprus and Lebanon in was around 44 million euro, from which 19 million euro were Lebanese imports into Cyprus and 25 million euro were Cypriot exports and re-exports to Lebanon.
Regarding imports – exports volumes, he said that Cyprus imports mainly petroleum products, paper, glass, iron and steel and exports mainly pharmaceutical products, plastics and dairy products.
As regards tourism, in 2006 about 11,400 Lebanese visited Cyprus while 17,800 Cypriots visited Lebanon.
“The government of Cyprus is ready to give its full support and encouragement to any serious co-operation between Cypriot companies and companies from Lebanon. Our policy is to create a stimulating environment and the necessary conditions for such cooperation to develop into successful business ventures”, he stressed.
The Minister also referred to the agreement on the delimitation of the exclusive economic zone between the Republic of Cyprus and the Republic of Lebanon which has been ratified by the Cyprus House of Representatives and is due to be ratified soon by the relevant authorities in Lebanon.
“This agreement will be beneficial to both countries as we may then proceed to licensing offshore exploration for hydrocarbons”, he concluded.