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President Highlights Crucial Role of Foreign Investment in Cyprus’ Economic Advancement

economic growth foreign investment

President Nikos Christodoulides highlighted the crucial role of foreign investment in Cyprus’ economic advancement, emphasizing the government’s strategic vision for a resilient, competitive economy focused on green and digital transformations. Recognizing foreign investors as key partners, the President outlined three core pillars of economic policy, stressing the importance of structural reforms and strengthening international relationships to drive sustainable economic progress and long-term prosperity.

What is the role of foreign investment in Cyprus’ economic advancement?

Foreign investment plays a crucial role in Cyprus’ economic advancement by fostering innovation, driving sustainable progress, and unlocking new opportunities. The government views investors as key partners in achieving a resilient, competitive economy focused on green and digital transformations, as outlined in the ‘Vision 2035’ strategy.

Economic Growth and Foreign Investment

In a recent address at the 12th Invest Cyprus International Investment Awards in Nicosia, President Nikos Christodoulides praised foreign investors for their significant contributions to Cyprus’ economic growth. Emphasizing the government’s view of these investors as key partners, Christodoulides pointed out their integral role in unlocking new opportunities that foster innovation and drive sustainable economic progress.

The President expressed a clear objective for the future: to cultivate a resilient, thriving economy marked by high levels of competitiveness, ease of doing business, and a strong focus on sustainability. This vision aligns with the global trend towards green and digital transformations and places Cyprus on a path toward long-term prosperity.

The Three Pillars of Economic Policy

President Christodoulides outlined the government’s economic policy, which is founded on three core pillars. The first pillar is the commitment to a stable macroeconomic environment underpinned by responsible fiscal policy. Such stability is crucial, allowing the government the agility to respond to external economic shocks with corrective measures.

Preparations for next year’s budget are underway, with in-depth discussions slated to ensure alignment with the government’s strategic priorities. The second pillar focuses on the financial sector’s stability, which has been bolstered by a strengthened foreclosure framework. This move is pivotal in reducing non-performing loans and attracting fresh capital, thereby fostering a robust macroeconomic climate conducive to business activities.

Vision 2035 and Structural Reforms

The third pillar is the continuous implementation of structural reforms, which are part of the long-term ‘Vision 2035’ strategy. Vision 2035 lays the groundwork for a transformative shift toward a green and digitally advanced Cyprus, enhancing the nation’s competitiveness through strategic reforms and policies.

Several initiatives demonstrate the government’s commitment to this vision. These include streamlining the tax system to reduce administrative burdens, adopting new spatial policies for renewable energy sources, and introducing a strategic projects law to expedite licensing processes. These efforts have significantly boosted Cyprus’ economic performance, as evidenced by upgrades from major international rating agencies and the successful issue of a €1 billion seven-year bond.

Strengthening International Relationships

The president also stressed the importance of direct communication with foreign investors and cited recent flagship events that led to a revised strategy for attracting business and talent. This proactive engagement ensures that policies not only have a tangible impact but also resonate with market needs.

In enhancing Cyprus’ global business profile, the president mentioned the strategic initiatives like the Amalthea Cyprus maritime corridor and the strengthening of partnerships with key countries, including the USA, the UK, Gulf countries, and India. A strategic dialogue with the USA, established in Washington DC, marked a milestone in Cyprus’ foreign policy, reinforcing the island’s status as a pillar of security in the Eastern Mediterranean.

An international branding campaign has been launched to further promote Cyprus as a prime business and investment location. The president extended an invitation to investors to become ambassadors for Cyprus, showcasing the nation’s opportunities and advantages on the world stage.

Recognition of Contributions and Looking Ahead

PwC Cyprus played a central role in the 12th Invest Cyprus International Investment Awards, emphasizing the event as a foremost platform for honoring significant foreign investments in Cyprus. Recognizing international companies and investors who have contributed to the Cypriot economy underlines the value placed on these collaborations.

MHV/Invel Real Estate, among others, received accolades for their impact and dedication to Cyprus’ development. The CEO of PwC Cyprus, Philippos Soseilos, alongside government officials, celebrated these achievements and commented on the economic strength of Cyprus, outlining key areas for future focus, such as sustainable approaches and bridging perception gaps in the business environment.

This ceremony not only honored the past contributions of foreign investors but also set the stage for a continued partnership in driving Cyprus’ economic resilience and growth, with the collective aim of establishing Cyprus as a beacon of stability, innovation, and leadership internationally.

How does the government view foreign investors in Cyprus?

The government views foreign investors as key partners in achieving a resilient, competitive economy focused on green and digital transformations. They are recognized for their significant contributions to economic growth and are considered integral in unlocking new opportunities that foster innovation and drive sustainable economic progress.

What are the three core pillars of the government’s economic policy in Cyprus?

The government’s economic policy in Cyprus is founded on three core pillars. The first pillar is the commitment to a stable macroeconomic environment underpinned by responsible fiscal policy. The second pillar focuses on the financial sector’s stability, with a strengthened foreclosure framework to reduce non-performing loans and attract fresh capital. The third pillar emphasizes continuous implementation of structural reforms in line with the long-term ‘Vision 2035’ strategy for a green and digitally advanced Cyprus.

How is Cyprus strengthening its international relationships for economic advancement?

Cyprus is strengthening its international relationships for economic advancement through direct communication with foreign investors and strategic partnerships with key countries like the USA, the UK, Gulf countries, and India. Initiatives like the Amalthea Cyprus maritime corridor and a strategic dialogue with the USA have reinforced Cyprus’ global business profile. An international branding campaign has also been launched to promote Cyprus as a prime business and investment location.

What recent event celebrated significant foreign investments in Cyprus and highlighted future focus areas?

The 12th Invest Cyprus International Investment Awards celebrated significant foreign investments in Cyprus, recognizing companies like MHV/Invel Real Estate for their contributions to the Cypriot economy. The event emphasized the importance of sustainable approaches and bridging perception gaps in the business environment for future focus. This ceremony set the stage for continued partnership in driving Cyprus’ economic resilience and growth, with the goal of establishing Cyprus as a beacon of stability, innovation, and leadership internationally.

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