What improvements and changes have to be made to transform Cyprus «into Singapore of the Mediterranean»? Petr Valov CEO of Exness mentioned this term (introduced by Cyprus president George Vassiliou in the 80s) during the discussion of BEST INVEST Congress. Four panelists shared their opinions.
Challenges, risks, and strategy
Marios Demetriades, former minister of transport, communications, and public works told participants that the government had been addressing some of the issues and admitted that much more needs to be done. (Panelists were discussing the challenges as lack of residential properties and offices, high rent, lack of schools, and no local supply of tech talents).
Opportunities had been identified as they emerged from the crises Cyprus has had to face within recent years, he said, and must now be exploited and built upon. «The private sector can solve many of the issues but first the government needs to come up with the right strategy.»
Yangos Hadjiyannis, Board Member of Invest Cyprus was of a similar mind, saying that the authorities need to pay close attention to the companies’ concerns. «Bureaucracy hinders development, » he opined. «We have to step up our game. We have to listen to investors. We all need to work together and have a clear vision of how we can do better.»
The gaming industry and a new role of investment funds
Angelos Paphitis, the founder of AGP Law Firm, said that while the private sector is doing its best, the onus was on the government to adapt and transform. He called on the state «to invest more into the system and change its ways», noting that the already massive gaming industry would triple in a few years. «Gaming companies are interested in coming to Cyprus but are we prepared to welcome them?», he asked. Properly developed, it is a growth market, he declared, but even now with the foundations set up, «much more has to be done.»
Andreas Athinodorou, Board Member of the Cyprus Investment Funds Association concurred, «We have to be ready [for it], and we have months, not years. We have to train people, improve banking, change regulations, provide accommodation… I don’t want Cyprus to be again too little too late,» he cautioned. Following the comments of the previous panelist, Andreas pointed out that gaming, currently a 200 billion euro industry, is expected to grow to 600 billion. This might be a good market for Cyprus. Answering the question about the new role of the Fund Sector in the emerging Digital Economy – in Cyprus and globally, Athinodorou reminded that there is a massive number of startups and IT tech companies each individually with a high risk of success/failure. Investors are better off investing in this new world via a vehicle that evaluates correctly and pulls risk together to maximise the return.
