Investors are optimistic about Cyprus’ attractiveness over the coming years but state that there is room for improvement, according to the EY Attractiveness Survey Cyprus 2020 released on Wednesday.
The survey showed that COVID-19 triggered a sharp decline in foreign direct investment projects throughout Europe but despite the pandemic investors feel that Cyprus remains an attractive investment destination.
The survey was conducted by CSA Research between June 5 and 26 by means of telephone interviews with more than 100 decision-makers from foreign companies in 16 countries. It also draws on material from EY European Investment Monitor database.
Investors already established in Cyprus have a much more favourable opinion compared to non-established ones, according to the report.
Almost one in four investors reported that they have plans to establish or expand operations in Cyprus over the next three years. The percentage in the case of established players was doubled (54%).
When asked to identify the type of investment plan they are planning to implement, 28% referred to supply chain and logistics, 24% to sales and marketing offices and 18% to headquartering.
With regards to their views on the business sectors that will drive growth in Cyprus in the coming years, respondents mentioned tourism (48%), followed by financial services and professional services (at 21% each), and real estate and construction (18%).
Quality of life, telecommunications and digital infrastructure, as well as the stable political/social environment top the Mediterranean island’s attractiveness list.
Areas authorities should focus in order to encourage further investments included further support of high tech and innovation, major infrastructure and urban projects and small and medium sized enterprises.
In addition, the majority of respondents said that the country’s attractiveness would further improve in case of a solution to the Cyprus problem, a strong banking sector and a more active stock exchange market.