CyprusProfile talks to Karlos Zangoulos, Managing Partner of BDO, about prospects for the Cyprus economy.
"Much depends on whether 2017 will see a solution to the Cyprus problem. A solution would obviously give a boost to specific industry sectors such as shipping, real estate, construction and tourism as well as a general boost to the economy as a whole.
Failing that, we anticipate growth to be similar to that experienced in 2016 with tourism enjoying another good year and continued foreign investment by companies bringing employees, functions and responsibilities to increase their substance in Cyprus. As well as the non-dom regime these companies are attracted to the Island by the quality of the labour force and the fact that Cyprus offers excellent value for money in terms of quality and depth of supporting professional services. It is important that as employers we continue to invest in our people and ensure that Cyprus remains a competitive jurisdiction from which international businesses can head their operations.
We understand that CySec is currently preparing new legislation that will introduce Registered Alternative Investment Funds and Mini (sub-threshold) Fund Managers. These should give much needed impetus to the fund industry increasing the speed at which funds can be set up and also reducing the administrative costs for smaller funds. Add to this, improving confidence in the banking sector, we have all the prerequisites for significant growth in the Cyprus Fund sector.
In conclusion, many opportunities exist and it’s on us, the professional and business communities, the regulating bodies and the Government, to utilise these to fullest extent possible".
Karlos Zangoulos, Managing Partner of BDO