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A Thriving Hub Connecting Businesses and Investors Across the Region

For investors from the GCC, Cyprus serves as a compelling gateway to Europe, offering an ideal platform for expanding operations and accessing newer markets

Cyprus is increasingly being acknowledged as a distinguished hub for international businesses and investors, due to its strategic geographical location and ease of doing business. With robust access to European markets and a positive business climate, Cyprus uniquely positions itself to offer a wealth of opportunities for businesses seeking expansion and for investors in pursuit of prosperity. The range of advantages available in Cyprus can be tailored to meet various business requirements, making it an attractive choice for fostering long-term success and growth.

This recognition continues even in the face of global challenges, economic uncertainties, and regional instability. Cyprus stands out as a beacon of stability and security in the region, providing minimal disruption and ensuring business continuity—key factors that investors and businesses are actively seeking.

In this context, Cyprus is showcasing strong economic indicators that enhance its appeal for both businesses and investors. Inflation is steadily declining to the target rate of two per cent, and unemployment levels are approaching full employment. The country’s GDP continues to demonstrate positive momentum, with projections indicating a growth rate of 3.1 per cent for 2025, outperforming the EU average. Cyprus has also notably regained its ‘A’ investment grade from esteemed rating agencies such as Moody's, Fitch, and S&P Global. Building on its strong economic fundamentals, Cyprus has emerged as a significant player in the global tech ecosystem. In 2023, €4 billion was invested in ICT, with over 800 tech companies now operating in the country, contributing 15 per cent to its GDP.

These developments not only boost investor confidence but also highlight the country's prudent financial management, resilience, and stability in navigating challenges, fostering a positive environment for long-term investment opportunities.

In line with this progress, Invest Cyprus has been actively working to strengthen and broaden its strategic partnerships with key stakeholders in the MENA and GCC regions. A noteworthy outcome of these initiatives has been the enhanced collaboration with the UAE, which has successfully facilitated Dubai Ports' investment in Limassol Port. Furthermore, additional investments are anticipated, and discussions are ongoing in critical sectors such as financial services, wealth management, private equity, technology, energy, tourism, and infrastructure. Investors and businesses looking to capitalize on these opportunities are drawn to several key advantages that make Cyprus a compelling choice within the region, including:

Strategic Location: Cyprus is situated at the crossroads of Europe, Asia, and Africa, acting as a bridge for international trade and business, with access to EU and global markets.

EU Membership: As a full EU member, Cyprus provides seamless access to the EU Single Market, with passporting rights and harmonised legislation.

Supportive Business Environment: The country is committed to fostering a business-friendly environment, with policies that prioritise ease of doing business

Attractive Tax Regime: Cyprus offers a competitive corporate tax rate of 12.5 per cent, the lowest in the EU, and has a robust network of double taxation treaties with over 65 countries.

Highly Educated & Skilled Talent Pool: The country is home to a highly educated and skilled workforce, offering businesses and investors a competitive edge by providing access to top-tier talent.

Cost-Effective Operations: Competitive setup and operational costs, combined with world-class professional services.

Overall, Cyprus presents a unique opportunity with its strategic location, attractive tax incentives, and dynamic innovation ecosystem. For investors from the GCC, it serves as a compelling gateway to Europe, offering an ideal platform for expanding operations and accessing new markets. Invest Cyprus acts as a one-stop shop for international investors, offering guidance throughout every phase of the investment process and onboarding procedure. From the initial inquiry to the successful establishment of a business in Cyprus, the organisation is committed to ensuring a smooth and efficient experience by providing personalised support at each stage.

— Marios Tannousis is CEO of Invest Cyprus, Member of the Board of the European Fund and Asset Management Association (EFAMA), and Co-Founder and member of the Cyprus Investment Funds Association (CIFA).