IT companies are relocating to the island. But is the country prepared for this influx of new businesses and people? And what does the government have to do in order not to miss this big chance to become a New Tech Industry hot destination?
These were the main questions asked during the second session of the Best Invest Congress held in Limassol in October.
The session, entitled «Cyprus: a Fast Growing Global Tech Hub», brought together expat business leaders already established on the island and local business community experts. It consisted of two-panel discussions and was organised in collaboration with TechIsland, the non-profit IT association established in 2021 charged with turning Cyprus into a world-class destination for world-class IT talent.
The discussion was moderated by Tasos Yiasemides, Head of GCMS services of the KPMG. The panel included Alexey Gubarev, Co-Founder of Palta, Stylianos Lambrou, Co-Founder of Reflect; Petr Valov, CEO, Exness; Yannis Matsis, Managing Director of MUFG Investor Services.
Cyprus is more popular than before
«Cyprus can be the Singapore of the Mediterranean,» declared Petr Valov, founder of Exness, one of the world’s most successful online brokerage companies, headquartered in Cyprus.
He cited the island's great location at the «crossroads of three continents», noting that it is already considered to rank high among IT destinations, albeit «not as popular as for example London, but much more popular than a couple of years ago».
The many advantages offered by the country make it worthwhile for IT experts to consider relocating to the island, he said, while conceding that there are also some disadvantages.
«Rents are expensive, there are not enough private schools,» Valov allowed.
Half a billion per year
Given that all these professional newcomers to the island spend up to half a billion a year, a «constant quality income for Cyprus, coming from abroad and spent locally», it is important for the government to look to further infrastructure development, he argued.
Palta’s co-founder Gubarev agreed. «Thousands of new apartments have to be built on this island and at least three-to-four new schools. Right now, Limassol is already full – there is no accommodation, no offices, and no space in schools here. Paphos is also full and Nicosia is filling in. Soon the only place left will be Larnaca,» he indicated.
Others agreed, urging better cooperation between the government and the IT companies. «The government needs to understand better what has to be done to satisfy their needs to attract them to Cyprus, Reflect's Lambrou said. It was up to the government and the IT companies concerned «to work together for the future of Cyprus,» he said.
Japanese research favored Cyprus
Matsis, the Head of the Cyprus office of MUFG Investor Services [the global asset servicing arm of Mitsubishi UFJ Financial Group] sounded a bit more optimistic. His company chose Cyprus as the location for its office in the EU time zone having investigated various other options in Europe.
"The Japanese are long-term thinkers and they chose Cyprus because it did offer the best quality of life”, he remarked.
Ticking off the pluses of Cyprus as a business hub, Matsis listed the beneficial corporate tax rate, low-income tax, the relative ease of hiring non-EU nationals, the affordable cost of doing business, the lowest cost of living outside Greece plus the fact that English is widely spoken.
MUFG's expertise is in financial services, he said, acknowledging the island's wealth of talent in the financial services sector, whereas "IT is not yet firmly in the local culture.” MUFG employees, he added, had noticed how within the last year rental costs had gone up and how schooling presented "a big problem”.
