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Significant conclusions as to how foreign investors active in Cyprus see the island as well as to the problems they face have emerged from a survey – the second in two years – carried out by the Cyprus Investment Promotion Agency (CIPA). The results of the survey were presented at an event in Nicosia.
The survey was carried out for CIPA by NOVERNA Analytics and Research with the participation of 119 foreign-owned companies active in Cyprus, primarily in shipping, consulting and financial services, energy and another 15 sectors of the economy. The survey’s main aims were to appraise Cyprus as a business centre and investment destination, the extent to which foreign investors are satisfied with Cypriot services, but also to evaluate the Cyprus economy more generally.
Presenting the results of the survey, CIPA Director General, Mr. Charis Papacharalambous said foreign investors had voiced optimism about the course of the economy, recognizing the growth prospects Cyprus offers. They had a positive view of the country’s tax system, the legal environment, the level of professional services and the reliability of the human resources, the quality of life and low rate of crime. They cited lack of confidence in the banking system, long delays in public sector procedures, the delay in decision-making at political level as well as the high cost of life as Cyprus’ main disadvantages.
Moreover, foreign investors consider that Cyprus has room for improvement in forging a national economic/investment strategy and in offering incentives to investors.
As the survey shows, foreign investors are monitoring the changes taking place in the Cyprus economy and wish to see the speediest possible implementation of the planned strategic reforms and the structural changes which aim to make Cyprus more hospitable to foreign investments.
Addressing the event, CIPA chairman Mr. Christodoulos Angastiniotis said: “For CIPA it is essential and extremely important to hear what foreign investors have to tell us. This information, coming as it is from those who have a direct interest, constitutes a very useful tool for better planning and in order to improve.” Referring to the results of the survey, he stressed that “although in the last two years Cyprus has taken substantial steps towards financial consolidation, something which is reflected in foreign investors’ expectations on the economy until 2020, a lot remains to be done. Improving the business climate and dealing with bureaucracy remain the challenges that we must overcome over the next few months.”
