Cyprus-UK trade ties can go further

Andrew Cahn, Chief Executive of UK Trade and Investment (UKTI), is confident that there are many ways to deepen and further promote economic and commercial relations between Britain and Cyprus.
Here for the launch of the Cyprus – UK Business Association last week, Cahn met government officials and business leaders and attended a workshop in Limassol on exploring ways to increase business links in the financial and legal services sector.
Cahn, who heads the organisation tasked to promote British exports and attracting foreign direct investments into Britain, said in an interview with the Cyprus News Agency (CNA) that giving further impetus to commercial links between Cyprus and the UK was one of his objectives in visiting the island.
UKTI’s priorities lie in the promotion of British exports in financial services, the creative industries, life sciences, ICT, energy, advance engineering and sustainable technologies.
“I wanted to understand the Cyprus business climate,” Cahn said.
Elaborating on existing commercial ties, he said that Britain is the largest recipient of Cypriot exports. “Our tourists make up more than half of all tourists coming here, a major contribution to your economy. And I wanted to find out by myself how we could deepen those commercial relations.”
Cahn pointed out that relations between the two countries are close because of history and because of the large number of Cypriots living in Britain and the significant number of Britons living or having their second home in Cyprus. Beyond traditional links, these relations could expand in other fields, such as water management, waste water management and desalination.
“I believe that Britain has much expertise to contribute to Cyprus’ development,” adding there is also a lot to be done in the area of developing tourism and real estate.
Commenting on the financial crisis and if these can affect UK – Cyprus business, Cahn stressed: “There is no point in hiding from the fact that the economic conditions are tough, and the financial markets are turbulent. But in those conditions what happens is that there is a flight to safety and quality and the UK economy and the city of London reflect safety and quality.”
Therefore, he said, the UK will prove to be a very effective partner to Cyprus. In such conditions long-term relationships and relationships of trust are of the outmost importance, he added.
On the possible impact of the crisis in real estate sector in Britain and Cyprus, Cahn said the financial crisis has started with the decline in real estate asset value. “That was the trigger point and it is quite clear that housing bubbles in a number of countries have been pricked and that house prices decline, in the US, in Britain, in some continental countries. That is a fact in any healthy market, prices go up and they go down. Housing markets depend on supply and demand. My own belief is that the UK housing market will decline in value but it will not decline too far because the demand continues. In the long run there will continue to be demand from Britain for second homes and some first homes here in Cyprus. What the short implications are is difficult to say.”
Commenting on the prospects of cooperation between the Cyprus Stock Exchange and the London stock market, having in mind that a number of Cypriot companies have sought listing on the Alternative Investment Market (AIM), Cahn said the AIM welcomes listings of Cyprus companies.
“There have been a number of listings and it will be good to see more. Clearly, the present market circumstances are quite challenging to raise capital on a stock market, but that will be a temporary phenomenon and when conditions return to normal, I hope there will be significantly more listings. It is fair to say that the AIM is the market of choice for listings by Cypriot companies,” he said.
Cahn concluded that “the London Stock Exchange and particularly the Alternative Investment Market (AIM) will continue to be a source of capital for local companies.”