articles | 30 September 2022

Investment funds put €2.5 billion in Cypriot economy

The Cyprus Investment Funds Association (CIFA) on Wednesday held an event focusing on the latest developments in Cyprus’ investment funds sector, spearheaded by the association’s president and board of directors.

“The investment funds sector is on an upward trajectory and has developed at a rapid pace in recent years,” the association said.

In addition, Cyprus’ total Assets Under Management (AuM) have risen from €6.3 billion in 2018 to €11.1 billion in the first quarter of 2022, according to the latest data from the Cyprus Securities and Exchange Commission (CySEC).

The association stressed that Cyprus has the potential and capacity to become a regional investment funds hub, particularly for hubs that wish to take advantage of the investment opportunities in both Europe, the wider Eastern Mediterranean region, as well as the Middle East.

Crucially, funds’ investments in the Cypriot economy to date have exceeded €2.5 billion and are spread across various sectors of the economy, including shipping and maritime ventures, renewable energy projects, the education sector, technology, and the real estate market.

Extensive reference was also made to the challenges created in the sector, including the pandemic crisis, the wider effects of the war in Ukraine, soaring inflation, as well as the prevailing uncertainty in global markets.

The latest figures from the European Fund and Asset Management Association (EFAMA) clearly reflect the impact of these challenges on the international investment fund sector, with a global asset decline of 5.5% being recorded during the second quarter of 2022.

“As CIFA, we believe that, despite the uncertainty and lack of stability that we have experienced in recent years, the sector in Cyprus presented good reflexes, showed resilience, and continued to develop with steady steps at all levels,” CIFA president Andreas Yiasemides said.

“The benefits of the growth and development of the investment funds sector are many, with the Cypriot economy attracting many new investments, government revenues increasing, and new, well-paid jobs being created, while the traditional model of the professional services sector, and the economy in general, are being diversified,” he added.

Meanwhile, the president of the national investment promotion agency Invest Cyprus Evgenios Evgeniou said that “the development of the investment funds sector acquires particular importance and value if we place it in this context of efforts made to build a new, and above all, sustainable growth model of the Cypriot economy”.

Source: Cyprus Mail

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