Nicosia: Cyprus continues to be viewed positively as a destination for foreign direct investment, according to a survey, while investors identify significant challenges relating to energy costs, access to financing, bureaucracy, connectivity and the availability of skilled human resources.
According to Cyprus News Agency, 83% of investors consider Cyprus an attractive destination for foreign direct investment, while 62% of survey participants plan to expand their operations on the island over the next 12 months. The findings were presented at the EY Cyprus forum 'Cyprus Future Realized: Bridge. Accelerate. Grow', which discussed the prospects of the Cypriot economy and the country's position on the international investment map amid heightened geopolitical and economic uncertainty.
Presenting the results of the EY Attractiveness Survey, Andreas Anastasiou, Partner, Strategy and Transactions Services at EY Cyprus, highlighted that Cyprus's tax regime tops the list of factors enhancing the country's attractiveness, receiving a positive assessment from 90% of participants. This is followed by quality of life and political and social stability, while Cyprus's EU membership, the quality of its professional services, and its legal system are also viewed positively.
Anastasiou noted that energy costs have, for the first time, ranked so high among the factors viewed negatively, with 50% of participants identifying them as a key weakness. Access to financing and bureaucracy also feature prominently as challenges. Geopolitical tensions, cited by 74% of respondents, pose the greatest risk to Cyprus's future attractiveness, followed by limited connectivity, reputational challenges, increased regulatory burden, labor shortages, and volatility in energy prices.
Irene Georgalla, Director of the Office of the Deputy Minister to the President, highlighted Cyprus's role in foreign policy, noting that investors are factoring geopolitical risk into their decisions but continue to choose Cyprus. She emphasized the country's EU membership combined with strong relationships across the Eastern Mediterranean and efforts to turn geography into a platform for cooperation and regional connectivity.
Invest Cyprus CEO, Marios Tannousis, pointed out that foreign investors require greater guidance and clear information due to unfamiliarity with the Cypriot environment. Clarity, predictability, and faster time-to-market are key elements investors are looking for, with a need for clear requirements, specific timelines, and systematic communication with authorities.
Former Portuguese Secretary of State for European Affairs, Bruno Ma§es, described the changing international economic and geopolitical environment as 'metamorphic', highlighting the constant transformation and the rise of China and India. He argued that governments and businesses must understand they are now operating in a world that is no longer fixed but is constantly being 'built and rebuilt'.
