The accelerated growth in Cyprus since COVID, has taken everyone by surprise across all industries which resulted in putting a big toll on infrastructure. Despite the on-going geopolitical factors, there is still growth opportunities in Cyprus – «The Future of Cyprus is Even Better!» George Dokuchaev, one of the panellists from bbf, enthusiastically commented.
This session has ignited an interesting dialogue around the areas of energy, commercial and residential industry, schooling, healthcare, and digitalisation.
The panel was moderated by Spyros Spyrou, Group Managing Director, ASG Group.
The panellists included experts in their industry: Marios Alexandrou, COO of Energyintel, Christos Demetriou, Business Development Director, Imperio, George Dokuchaev, Sales Director, bbf (Prime Property Group), Dmitry Letov, Head of Construction Exness, Simos Simillides, Commercial Director, Pafilia Property Developers and Anastasia Yianni, CEO Cyprus Sotheby’s International Realty.
Spyros Spyrou opened the discussion by sharing an example relating to his own business when many years ago he negotiated a €5 per square meter for his business property and now his landlord has renegotiated the rate to €20 per square metre. He based this cost on the fact that the West side of Limassol was still cheaper than the East side and said that this was a moderate increase. George Dokuchaev agreed with this comment and Spyros Spyrou pointed out that from his example, we can all see that demand is growing faster than the supply.
Spyros Spyrou invited the panellists to share their views and whether this was sustainable. Anastasia Yianni agreed with this statement that we can now see more sustainable demand, thanks to companies such as Exness, who actually bring the end users to the property market. If this continued, then it would be sustainable. Previously she stated, we had lots of demand, however, people did not need the property.
George Dokuchaev added, the Cyprus Nicosia and Limassol offices market had evolved from offshore offices for having a legal address only, and then substance came along and increased the criteria by having a physical office. Now people want to relocate and work from here. It has been like this since 2016 when the government introduced the new incentives for predominantly High-Tech Companies.
Spyros Spyrou also added, the Ukrainian conflict had attracted more people to come to Cyprus. George Dokuchaev pointed out the structure of demand was the same, however, now multiplied. Spyros Spyrou commented that this has driven rents to increase dramatically. Simos Simillides then added that a lot of people outside from this room did not understand, the Real Estate industry developing is not a very agile industry, and to be more specific, the government very rightly introduced the headquartering incentives which in a way was aimed to enhance the FDIs in Cyprus. However, this created an over-demand for office space, accommodation for employees, schooling, and healthcare.
Simos Simillides commented «To build a new development to accommodate all these demands, it usually takes 2 years to conduct studies, submit plans to the authorities and get planning licenses. The industry is now reaping all those inefficiencies in the rest of the government authorities that cannot implement quickly enough the developer requirements to introduce a new product into the market. In a way, we have companies that are calling us to say they want to relocate to Cyprus and bring 100 employees and are asking where they will reside and which school their families can attend. Nobody has the answer for this.»
Christos Demetriou mentioned «Limassol has an organic growth. Basically, population grew the past 5-8 years, and with an intermittent like the pandemic pushed developers to freeze construction, then we had a big inflow of population – the ratio of people coming in and construction are very much tipped to the population growth which contributed to the unbalance now between supply and demand. Of course, on a positive note, indeed this growth has been organic, where you have this population coming here with the purpose of staying permanently and now we are discussing tech, like Exness, and going forward we have many things to see where headquartering is not just limited to Tech companies, we still have not seen energy where we will see many changes there in the near future, and of course other major attractions like golf courses, the “City of Dreams” and other new companies coming to Limassol.» Limassol has been the one city most prepared with upgrading their infrastructure, however, it was not prepared enough, and Simos Simillides agreed. He added that yes, we needed to move faster, and infrastructure was needed in residential and commercial properties, in healthcare, schools, public infrastructure and this took time. Tech moves very fast, and he is confident we are moving towards the right direction.
Spyros Spyrou added «The benefits of Cyprus are big, and we want investment and development to continue and for this to happen we need to solve the issues which create opportunities.» Spyros Spyrou invited Dmitri Letov to provide his views from the user’s point of view. Dmitri went on to say «The past year has seen an increase in IT companies moving to Cyprus and it has changed the face of infrastructure with the lack of schools, lack of accommodation, lack of offices etc. For us and for other IT companies this is a big problem and a problem for Cyprus. Each new person that comes to Cyprus creates a new workplace such as shops etc. The downside which we now see, is that people are moving here without the market being fully prepared. The rental prices and in general real estate prices have increased. The problem now is that rental is no longer affordable especially for people who have been living here including the locals.
Sryros Spyrou commented it is certainly getting more expensive for those wanting to relocate to Cyprus.
Dmitry Letov then continued speaking about a business topic relating to real estate and commented that we should always see the opportunity and not the problem. «We are now implementing a new niche business model to create a a “build to rent” product. The aim is to develop properties specifically for rent not for sale and the way we see it; it will be very beneficial for developers. The increase of companies moving to Cyprus will bring more people to the island to live here. The demand for property will grow, ordinary IT employees cannot afford to buy an apartment, however, they can afford to rent. That is why if we create these affordable apartments, for those who relocate and for local citizens, it basically solves the problem for accommodation. Dmitry Letov made it clear that they were not moving into the development space. Recently they made several transactions with local developers, of hundred units which they bought and are now specifically developed for them. Dmitry Letov added «We are now working on other partnerships, and we truly believe this is a good opportunity for developers. But I need to say, definitely the difference between “build to rent” and “build to sell” for the sake of developers is favourable. When you “build to sell” developers develop the property for sale, and it is quick money. When they “build to rent”, they use the funds by selling as collateral, they get a loan, re-invest, and create a portfolio to enjoy the capital appreciation. Companies like us – other IT companies and institutional funds come to buy-out those portfolios of rental properties to generate business. This model is not common for Cyprus yet, but it works everywhere else. In the European Union the past couple of years, several companies introduced incentives specifically for the rent business. We truly believe it is a great opportunity. Exness wants to develop around 2,000 apartments making it more affordable for everyone to rent.»
Spyros Spyrou recapped «We expect the demand to grow gradually at some pace but expect supply to grow faster, which will make the current challenges easier to face them. Could we say this is a conclusion and everyone disagreed». Simos Simillides commented that supply is very high. Marios Alexandrou also agreed that there is certainly growth. Growth means at the same time, we need infrastructure. Infrastructure includes transportation and in particular energy. Energy demand will grow if population is growing double, so the question here is «Do we have electricity to cover this demand or are we going to have to cover our own demand?» Marios Alexandrou added «I have seen that bbf and Imperio are adding voltaics to their developments, which is excellent news. There is still lots to be done in a sense of clean, green energy in transportation. We have seen more and more electric cars coming into the market – do we have a demand here? Will Tech companies settle for moving into buildings that we have today? Do they need more solar – storage wise? This is a big subject.»
Christos Demetriou, agreed with Marios Alexandrou and added that sustainability is within their core strategy at Imperio and the first question to ask, is “how do we start overcoming creating the potential making Limassol more attractive? «I mention Limassol as this is what the major issue is faced right now. In this case, the biggest driver would be large-scaled developments in a sense of multi-concept, live; work; wellness; enjoyment. There are many benefits in these developments that would also include sustainability. But first, we need to address the demand which is mid-market residential with workspaces. Working from home or hybrid models is already a reality in big number of industries. It is an increasing trend even more so after the pandemic, to create large scale projects which include big residencies and co-working areas and business centres. This model also relieves the traffic congestion, and they make day-to-day commuting much easier. Another important aspect is decentralizing a lot of people, because usually these projects are at the surroundings of the city. So, it will relieve a lot of traffic and it will be easier for public authorities and for infrastructure to be better planned, because you have the opportunity to develop new areas and new infrastructure, taking into consideration sustainability which has multiple benefits both for the owners, users and for the investors and manage the demand issue, if they address the needs of the market.»
Anastasia Yianni added that unfortunately this is not just an issue with Limassol. It is also a Pan-Cyprian issue, with the lack of space and infrastructure and even though large scale developments are amazing, in reality not all developers can follow this concept. Anastasia Yianni added «We need to come back with better planning from the authorities. We have examples where we needed more schooling and within months, a temporary structure was created to accommodate the needs, at the same time, we do not have enough foreign teachers and the fact that permits take a long time – due to lack of IT support, the situation becomes very complicated. Our clients do not want to put their kids into the Greek education system so there is a need for better urban authorities planning.»
Simos Simillides added «Cyprus is changing and to take the words from Marios, it is transforming. It has all the advantages to do so, as it is a beautiful destination, crime free. The weather is amazing, the location is great, and it has all those things to enable Cyprus become truly a relocation paradise. But for this transformation to take place, a lot of parallel things need to happen as already mentioned above. Another aspect already mentioned by Dmitry, is the issue of the banking and loans. A few days ago, I was looking at KPMG numbers and it showed in 2022, only 1,100 mortgages were approved, at the same time, the residential industry in Cyprus in 2022 was valued at 3.8Billion Euros so it does not make sense with this low rate of mortgage approvals. Basically, if people do not have the money to pay upfront and the banks are not lending to alleviate this problem then you have an issue all by itself.»
Simos continued «I would also like to add to what Christos mentioned earlier. Large scale developments are one of the ways forward. Just to give you one example from our company. We have Minthis, which is a golf resort in Paphos. As part of the conditions to get the planning and building permits, we had to give back to the community. We had to build a sports centre, 8 tennis courts, soccer courts – something for the community adding to the infrastructure of the area. Yes, I agree with Anastasia not all developers would be able to maintain these large-scale developments, however, the solution the government should give, is to introduce “give back to the community” projects in order to approve large developments.»
Marios Alexandrou added «As we all come from the private sector, the biggest shortage in support we have here in Cyprus is from governmental support. Let’s not hide the situation under the carpet. Everyone here has the responsibility to push the government and IT companies like Exness, could push the government towards digital transformation and this will support getting permits faster.»
George Dokuchaev added to this point « We must be real what the government can do, when we have ups and downs plus -30%. When we look at the statistical data is enormous, last year’s numbers 20-21 plus 30%, tourism -40%, it is very hard for the government to act upon this. It is very swift and changes daily. I want to be the adult here and mention that people are quick to criticise the Cyprus government. We need to look at the other governments in the world. I did my research where I saw a list of government projects such as the financing of fibre where they will spend 200m Euros this year to improve the speed of the internet and according to a study which I found from an American consultant; the speed of the internet increases the price of real estate. Apart from that, the government agreed to open the Casino and we will see a boom in the real estate industry. The best-selling project is located next to the Casino. The government is also financing a motorway to link Palodia to the mountains. Looking into the energy projects, they closed the refinery in Larnaca to create a new neighbourhood which will be people-friendly, and this has changed to real estate of Larnaca, so I think the government is doing a great job.»
Dmitry Letov, agreed with Chris and George’s views and added «If you look from the international experience definitely large-scale development projects allow to create better environments for residents. However, we need to see how to solve the infrastructure and in particular the transport issue. My personal feeling the transport will be a major issue for the next 5 years especially in Limassol as there is no centralised alignment. To solve that we may look at public transport which private sector cannot support. In other cities around the world, people have switched to public transport, scooters, or bicycles etc. It is a combination of measures. For us, the usage of scooters is very efficient.»
Spyros Spyrou also added his expertise and mentioned car sharing was something they developed and tested during the pandemic where they had cars available and then added with Exness presence, this helped his business to scale.
Dmitry Letov, continued by saying that currently legislation does not incentivise and motivate people to use a scooter as there are no dedicated scooter lanes.
Spyros Spyrou then reiterated that Cyprus is changing and transforming « My question is, the private sector is changing even if developers are not ready for large-scale development they will adjust. We have also adjusted the car mobility. He asked the question «Does the government adjust fast enough? As an example, the municipality of Limassol was used to examine applications for smaller residencies, are our authorities ready for this transformation?»
Christos Demetriou, mentioned that in the past 3-4 years there were challenges «I believe we are moving forward, and with this new administration, they will continue making improvements.»
Spyros Spyrou commented «We need two types of changes to allow the country to continue developing, one is to develop its infrastructure and we talked about energy, transportation, mobility, real estate, education, healthcare, and digitalization, and the other is the relationship of the state with the private sector. I want to come back to energy, which is a requirement from the European Union and Cyprus is lacking the investment that it needs to improve. What would be the right framework for private investment in the field?»
Marios Alexandrou commented, that we first needed to see the current situation and then look at what needed to be done to make improvements. «Electricity Authority of Cyprus is the dominant electricity producer for the whole island. We burn fuel to cover 82% of our needs, and the rest is solar plus wind turbines. The demand is growing faster than what we have in place. Meaning the solar project that needs to be developed is very slowly in the development process. The generators which are fuel burning should be phased out. If the government does not react quickly with the licensing etc., we will be facing a problem of energy supply. I am not sure if you have noticed, recently we have had some power cuts. It is small but it gives you an overview what could happen. Spyros Spyrou wanted to understand «Could the government apart from investing in some infrastructure, create some incentives for the private investments in the field that would help phase this issue?»
Marios Alexandrou responded «To be 100% transparent and correct, they do! They have said they would implement a one stop shop to accelerate the process of licensing for energy projects. It is there, it just has not kicked in as yet, however, it is coming. At the same time, the need to provide incentives with the same way that they did with real estate to attract people to invest, needs to be implemented in the renewable energy sector also. We are talking about renewable; we are not talking about anything else. Everyone knows the pace and the way to move forward, is to invest more in renewable energy to cover our needs.»
Spyros Spyrou questioned if major players such as in the real estate and IT industry could be part of the solution to solve the problem? Marios Alexandrou responded by saying yes, they could be part of the solution for sure. «Developing apartments and houses and other buildings that need electricity at the same time, in parallel these investors need to build the renewable energy infrastructure that would cover the demand. There are several solutions to utilise the space when adding solar panels such as parking spaces, shading areas etc. As an example, we recently used a building façade to place the panels and it was more cost-effective to use photovoltaics to create shading than the actual shading structure.»
George Dokuchaev added that it is a very cost-effective solution, and it pays back. Developers are incentivised to use renewable energy to a maximum.
Marios Alexandrou commented to George that incentivised is one thing and another thing is implementing the solutions where your assets are having a much higher value.
George commented that «We are now seeing people coming from places like Germany and the demand is pushing developers to that direction.»
Christos Demetriou added that the market is quite premature with regard to sustainability and there is not much knowledge of what the benefits are, and we needed to inform investors and buyers that besides reducing environmental foot print, the end-users have the benefit of lower energy costs, investors also get a lot of benefits because having invested in a sustainable asset vs conventional asset potentially they get higher yields on one side and higher value of appreciation because this is where the market is moving globally.
Simos Simillides questioned whether Cyprus was still paying fines for not moving faster into the renewable sector and Marios Alexandrou confirmed that Cyprus still paid annually a fine of 300 million Euros.
With regard to investors in this sector, Marios Alexandrou mentioned that majority of investors came from the real estate sector and international funds who wanted to invest in renewable energy here in Cyprus.
Spyros Spyrou asked «What is keeping us behind as a country? Is it infrastructure instability?» Marios Alexandrou responded by saying that the National Grid had inefficiencies, with a need to be developed in a smarter way. «The government can apply for subsidy from the EU to support the development of a faster and more effective grid. I believe investors could take on this initiative, when we are building our solar plants and we provide the storage as well as providing the solution for the grid shifting the energy at the time when it is needed.»
Spyros Spyrou reiterated that part of the solution is investing in energy storage and Marios Alexandrou confirmed it is the main part of the solution.
Spyros Spyrou closed the panel by recapping the main points «The future is bright, the economy is going to continue growing, demand for property and office space will continue and to avoid big problems we also need to invest in infrastructure to not only support the facilities but also to support human capital, transportation, mobility, education, healthcare, and technology.»
Spyros invited the panellists to add their closing comments. Anastasia added «We are all happy to see that people are still coming and Cyprus being a very clever and creative place, no doubt will find solutions, hopefully sooner than later in order to attract those who come to Cyprus to stay permanently. We need to concentrate on Cyprus being a great place to live for the end user.»
Simos Simillides, commented «Cyprus has all the natural advantages to be one of the best destinations for living and other countries with less natural characteristics like ours are advertising, implementing, and reaching out to people. To continue from what Anastasia said, yes there is a growing demand for people to relocate and live here in Cyprus and be part of the community and these people need the infrastructure to support them, make their lives better and that should be one of the major focus not only on the private sector and most importantly on the public sector.
Dmitry Letov agreed with what has been said and added that Cyprus had a potential to become a big IT and Tech hub. What we needed to implement here is a dialogue between the public and private sector, perhaps create a forum where both sides can openly discuss challenges and brainstorm ideas on how various issues can be fixed.
George Dokuchaev added «We need to tackle the issue of immigration, getting passports and visas faster. Last year 20,000 people arrived in Cyprus, and we are seeing a lot of backlogs. The private sector is better at building infrastructure; however, the government needs to take onboard the heavier projects such as building roads, expanding airports etc. In addition, the government needs to start authorising permits faster so developers can keep up with the demand of starting new projects. It is very strange that in 2019 the government authorised more permits than today. The demand now is much higher than then. Also, there is no dialogue as we are dealing with the small guys in the front office. We do not have access to the decision makers, and it would be beneficial for the private sector to develop relationships with them.»
Marios Alexandrou agreed with everyone with emphasis of the importance of developing an open dialogue with the government.
Christos Demetriou fully agreed with everyone and is very optimistic, even though we have a few bumps to overcome along the way.
Spyros Spyrou highlighted, that very clear messages have come up in this panel discussion with urgent challenges that needed to be addressed and with that, he thanked the panellists and everyone for their attendance.
30 мая 2023 года в рамках второго дня международного делового конгресса Best Invest состоялась панельная дискуссия «Инвестиции, релокация и переезд штаб-квартир на Кипр: улучшая деловую и нормативно-правовую среду».
В работе панельной дискуссии, которая открыла первую пленарную сессию под названием «Экономический обзор и перспективы Кипра» второго дня Конгресса, приняли участие: Петр Валов, соучредитель, член правления ассоциации TechIsland, основатель, генеральный директор Exness; Янгос Хаджияннис, член правления Invest Cyprus (кипрское агентство по продвижению инвестиций); генеральный директор кипрской бизнес-школы CIM; Кирьякос Коккинос, генеральный директор Business Insights Consulting, бывший заместитель министра исследований, инноваций и цифровой политики; Мариос Александру, соучредитель, главный операционный директор, EnergyIntel Services.
Модератором панельной дискуссии выступил Филипп Аммерман, управляющий партнер, Navigator Consulting Group.
В своей вступительной презентации Филипп Аммерман представил анализ показателей основных отраслей экономики Кипра, которая в целом демонстрирует рост традиционных важнейших для себя секторов, таких как, например, туризм, постепенно возвращаясь к значениям допандемийного периода. Вместе с тем спикер отметил глобальные риски для роста экономики Кипра в будущем, в том числе политическую нестабильность, последствия санкций, увеличивающееся давление со стороны бюрократических институтов Европейского Союза, продолжающийся рост стоимости жизни на Кипре и другие.
Все участники дискуссии сошлись во мнении, что экономика Кипра диверсифицируется, развиваются высокотехнологичные отрасли, связанные с информационными технологиями, финтехом, и ведущую роль в этом играют компании, избравшие Кипр местом для размещения штаб-квартир, релоцирующие своих сотрудников и развивающие тем самым экономику острова в различных сферах.
Однако несмотря на традиционные преимущества Кипра для релокации текущего бизнеса или открытия нового, предпринимателей и инвесторов волнуют проблемные вопросы, которых становится все больше.
Петр Валов отметил, что Кипр сильно изменился в лучшую сторону за 10 лет. «Компании продолжают перевозить бизнес и сотрудников на Кипр, оказывая большое влияние на социально-экономическое развитие острова. Самой быстрорастущей отраслью за последние годы стали высокотехнологичные компании, однако есть и барьеры. Кипр открыт для Европы, СНГ, но для остального мира он достаточно закрыт. Нашим сотрудникам из Малайзии требуется минимум месяц для получения визы на Кипр. К примеру, важнейшими сдерживающими факторами на сегодняшний день являются высокая стоимость жилья, особенно в Лимассоле, и отсутствие школ. С одной стороны релокация сотрудников становится все менее и менее рентабельной для компании как работодателя, с другой – отсутствие мест в детских садах и школах делает перспективу релокации невыгодной для самих сотрудников. Более 30% сотрудников нашей компании – киприоты, включая тех, которые специально возвращаются из-за рубежа в родную страну для работы у нас», – подчеркнул Петр Валов.
Кирьякос Коккинос отметил, что важнейший шаг на пути к дальнейшему развитию экономики – реформа образования. «Рынок найма персонала за последние годы претерпел большие изменения – работодатели больше не берут на работу только за диплом или ученые степени, но за реальные знания, профессиональные и личные качества. И если мы хотим быть конкурентоспособны и дальше, мы должны реформировать нашу систему образования, начиная со школ, чтобы мы выпускали на рынок не просто молодых людей, получивших какую-то корочку об окончании, но востребованных рынком специалистов, которые нужны компаниям здесь и сейчас», – отметил Кирьякос Коккинос.
Участники дискуссии согласились с тем, что государство должно прикладывать больше усилий для того, чтобы не только создавать привлекательные условия для появления на Кипре все новых компаний, но и для того, чтобы удерживать эти бизнесы, улучшая деловую и нормативно-правовую среду на Кипре, цифровизируя бизнес-инфраструктуру и гармонизируя социальное и общественное пространство для дальнейшего роста экономики и развития Республики.
VII Best Invest Congress прошел 29-30 мая в Лимассоле. Мероприятие проводится с 2015 года и является одной из международных экспертных площадок в сфере инвестиций на Кипре. Best Invest Congress объединяет представителей различных секторов бизнеса, крупных игроков рынка, инвесторов, аналитиков, представителей власти и бизнес-ассоциаций, общественных деятелей и СМИ. В 2023 году ключевые темы Конгресса были объединены под общим названием Business Meets Tech.
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Согласно последним данным Статистической службы, индекс стоимости розничного товарооборота увеличился в марте 2023 года на 10,9% по сравнению с мартом предыдущего года. В том же месяце индекс физического объема розничного товарооборота увеличился на 6,5% по сравнению с аналогичным месяцем предыдущего года.
При этом, по данным Центра экономических исследований Университета Кипра, индекс экономической конъюнктуры в апреле этого года ухудшился на 2,8 пункта по сравнению с мартом, упав до 104,9 единиц. Настроения в розничной торговле немного стабилизировались из-за улучшения текущей ситуации несмотря на значительный пересмотр в сторону понижения оценок продаж на следующий квартал. А вот потребительские настроения в апреле значительно ухудшились. Потребители пересмотрели в сторону понижения свои ожидания относительно будущего финансового положения своих домохозяйств и страны в целом. Намерения в отношении своих расходов были значительно менее оптимистичны в апреле.
Генеральный секретарь Кипрской ассоциации розничной торговли Мариос Антониу заявил изданию StockWatch, что данные Центра экономических исследований никак не отражены на розничном рынке. «Есть движение и потребление. Люди ходят по магазинам и делают покупки. С начала 2023 года мы полностью удовлетворены посещаемостью и продажами во всех секторах розничной торговли, включая одежду и обувь», — сказал он. Оборот магазинов больше всего вырос в Пафосе, Лимассоле и регионе Фамагусты. «Рынок страдает не от сокращения оборотов, а от нехватки персонала. Это наша самая большая проблема», — отметил он.
Прибыль в потребительском секторе удвоилась
Объем депозитов в финансовой системе страны в апреле сократился. Об этом говорят данные, опубликованные Центробанком. Подорожание и рост ставок по кредитам привели к тому, что жители выводят средства со счетов.
Согласно данным ЦБ, общий объем депозитов в апреле 2023 года зафиксировал чистое снижение на 173,3 млн евро, хотя в марте 2023 года было зафиксировано увеличение на 59,8 млн евро. Годовой темп изменений достиг 1,9% по сравнению с 2,6% в марте 2023 года. Остаток депозитов в апреле 2023 года составил 51,6 млрд евро.
Депозиты граждан Кипра сократились на 118,2 млн евро, до суммы в 43,5 млрд евро. В марте фиксировался рост на 47,2 млн евро. Депозиты резидентов третьих стран сократились на 45,2 млн евро. В прошлом месяце имело место увеличение на 9,9 млн евро. Вклады граждан других стран Евросоюза сократились в общей сложности на 9,8 млн евро, хотя в марте показывали увеличение на 2,8 млн евро.
Кредитов также стало меньше
Помимо депозитов наблюдается сокращение и объема кредитов, поскольку неопределенная экономическая ситуация не позволяет привлекать новые кредитные ресурсы. Общий объем кредитования сократился на 130,9 млн евро. В марте 2023 года в этом секторе отмечалось увеличение на 41,9 млн евро. Годовой темп изменений достиг -1,3% по сравнению с -0,5% в марте 2023 года. Общий остаток кредитов в апреле 2023 года — 24,9 млрд евро.
Ипотечные кредиты показали прирост на 3,5%, потребительские кредиты сократились на 0,3%, а бизнес-кредиты — на 2,6%.
Объем необслуживаемых кредитов уменьшился на 60 млн
На Кипре — самый низкий процент по депозитам в еврозоне
Кабинет министров одобрил законопроект Минфина о налоговых льготах предприятиям за энергетическую модернизацию, о продлении срока уплаты налогов до 2 октября и приостановлении еще на год обязанности подавать налоговую декларацию от физических лиц, чей налогооблагаемый доход не превышает 19 500 евро.
В заявлениях для прессы министр финансов Макис Керавнос заявил, что правительство одобрило предложенный его ведомством законопроект, направленный на диверсификацию налога на прибыль.
Для компаний
Теперь компании могут получить налоговый вычет по конкретным капитальным затратам, которые направлены на энергетическую модернизацию и экономию энергии. «Зеленая экономика остается одной из целей правительства. В то же время этот законопроект снижает операционные расходы бизнеса», — сказал Керавнос.
В частности, при повышении энергоэффективности зданий предоставляется скидка в размере 7% вместо 3%, которая действовала до сегодняшнего дня. При инвестициях в механизмы и оборудование, работающее от возобновляемых источников энергии, а также в технические системы повышения энергоэффективности предприятий предоставляется увеличенная скидка в размере 20%. При покупке новых электромобилей коммерческого типа, а также такси и автобусов на электрическом ходу предоставляется вычет в размере 25%. Наконец, расходы, связанные с проведением исследований об энергетической модернизации предприятий, или расходы на выдачу сертификата энергоэффективности вычитаются из налогооблагаемого дохода. «Это важное решение, которое поможет нашему бизнесу модернизироваться с точки зрения расхода энергии, а также приведет к более широкому применению принципа зеленой экономики», — сказал Керавнос.
Для физических лиц
Второе решение Кабинета министров касается продления срока подачи налоговых деклараций за 2022 год. Теперь крайний срок уплаты налога назначен на 2 октября 2023 года. Необходимость в таком продлении возникла, чтобы дать время парламенту принять законопроект, который освободит от налогообложения в 2022 году заработную плату при первом трудоустройстве в Республике Кипр.
Наконец, еще на один год было приостановлено требование к физическим лицам подавать налоговую декларацию при доходе менее 19 500 евро. «Это делается для того, чтобы пока мы внедряем новую налоговую онлайн-платформу, не было бы большого объема налоговых деклараций», — пояснил министр финансов.
Правительство готовит новый закон о компаниях
Онлайн-доходы станут прозрачнее
31 мая возобновилось паромное сообщение между Кипром и Грецией. В этом году судно Daleela будет ходить из Лимассола и Ларнаки.
В течение сезона паром совершит 22 рейса с Кипра в Грецию: 14 раз из Лимассола и восемь раз из Ларнаки. Из Лимассола до Пирея паром будет идти 30 часов, из Ларнаки – 32 часа. Цена билетов будет немного ниже для Ларнаки, так как городской порт собирает меньшую сумму налогов и сборов. Максимальная разница составит 10,12 евро для провоза автомобиля в обе стороны. В среднем цены отличаются на 3-5 евро.
За прошлый сезон паромного сообщения водным путем воспользовались 7412 человек. Из них 50 были лицами с ограниченными возможностями, 1300 — детьми в возрасте 4-12 лет. Было перевезено 2250 транспортных средств: 1920 легковых автомобилей и 330 мотоциклов; а также 300 велосипедов и 205 домашних животных.
Спрос на билеты высок и в этом году. Тем удивительнее вспоминать, что когда в 2018 году начали всерьез обсуждать идею паромных маршрутов, оптимизм в отношении успеха этого проекта был довольно сдержанным. Участники рынка пассажирских перевозок слабо верили, что паром сможет окупиться. Однако для властей это начинание имело скорее символическое значение, поэтому было решено предоставить компании-перевозчику государственную субсидию, чтобы покрыть расходы. Это дало проекту возможность стартовать, а его успех открывает перед Кипром новые перспективы.
Почти все билеты распроданы
«Публика с энтузиазмом восприняла морское пассажирское сообщение Кипр-Греция, интерес превзошел все ожидания», — сказала изданию StockWatch глава Подминистерства шипинга Марина Хаджиманоли. По ее словам, с 11 апреля, первого дня продажи билетов в этом году, был забронирован 7021 пассажирский билет и 2150 билетов на транспортные средства. Хаджиманоли прогнозирует, что к середине июля все билеты будут распроданы.
Она напоминает, что Подминистерство шипинга придавало большое символическое значение возобновлению морского пассажирского сообщения Кипр-Греция спустя 21 год после его отмены. Однако польза для экономики оказалась более, чем символической. Паромные рейсы создали новый сегмент туристического рынка – это путешественники, которые хотят прибыть на Кипр или, наоборот, с Кипра на континент на своих транспортных средствах.
Субсидия гарантирует низкие цены
Согласно контракту между подминистерством и подрядчиком Scandro Holding Ltd, государственная субсидия составляет максимум 5,2 млн евро ежегодно в течение трех лет эксплуатации морского пассажирского сообщения Кипр-Греция с правом продления контракта еще на три года. Для субсидирования паромного сообщения за счет государственных ресурсов Республика Кипр получила одобрение Генерального директората по вопросам конкуренции Европейской комиссии. Государственная субсидия выплачивается непосредственно перевозчику, осуществляющему морское пассажирское сообщение, для покрытия его эксплуатационных расходов в соответствии с правилами ЕС об услугах, представляющих общий экономический интерес. Это помогает поддерживать тарифы на низком уровне. В контракте прописана максимальная цена билетов для пассажиров, для провоза транспортных средств и для детей в возрасте до 12 лет.
«Мы надеемся, что после окончания субсидируемого обслуживания возникнет интерес со стороны отрасли, так что морское сообщение между Кипром и Грецией будет продолжаться беспрепятственно и станет толчком для открытия паромных рейсов с Кипра в другие страны в ближайшем будущем», — сказала Хаджиманоли.
Выгоден ли Кипру круизный турист?
Паромное сообщение будет улучшено
Невзаимозаменяемые токены (non-fungible tokens, NFT) коренным образом изменили процедуру установления права собственности на цифровые или физические объекты. Хотя сама технология появилась еще в 2017 году, лишь недавно NFT стали пользоваться огромной популярностью. Так, только в 2021 году объем продаж NFT составил 25 млн долларов. В рынок NFT инвестируются крупные суммы, а значит потенциальным покупателям необходимо разбираться в приобретаемом продукте, и с вытекающими из этих приобретений правами. Эта статья раскроет тему закона об интеллектуальной собственности, в частности, об авторских правах и торговых марках, а также то, как эти законы связаны с NFT.
Что такое NFT?
Прежде чем обсуждать права на рынке NFT, важно понять, что такое NFT и как работает эта технология. NFT представляют собой уникальные цифровые объекты, содержащие неповторимый идентификационный код, реплику которого сделать невозможно. Такие объекты существуют в блокчейн-платформах, поддерживающих технологию NFT, например, в Ethereum, и по блокчейну можно установить подлинность токена и идентифицировать его обладателя. В виде токена могут быть представлены самые разные цифровые и физические объекты, например, произведения искусства, музыка и даже документы на право земельной собственности. Для создания или продажи NFT пользователь должен иметь криптокошелек, содержащий некоторую сумму в криптовалюте. Сделки проводятся на маркетплейсах NFT, таких как OpenSea.
Криптовалюта и NFT: в чем разница
Важно разобраться в разнице между криптовалютой и NFT. Говоря просто, криптовалюта – это владение долей в виртуальной сети. Криптовалюта состоит из взаимозаменяемых единиц. Одна единица криптовалюты, например, биткойн, ничем не отличается от другой единицы той же криптовалюты, они одинаковы. В отличие от них, NFT представляют собой уникальные цифровые объекты, они невзаимозаменяемы. NFT состоит из уникального идентификатора токена, сохраненного в смарт-контракте, который регулирует такие аспекты, как подтверждение факта владения NFT и управление переводами NFT. Комбинация идентификатора токена и адреса кода смарт-контракта уникальна, поэтому каждый NFT неповторим и невзаимозаменяем.
Смарт-контракты
NFT создаются с помощью смарт-контрактов, вступающих в силу немедленно по заключении, положения которых, касающиеся покупателя и продавца, включаются напрямую в строки кода. Эти контракты в виде программного кода содержат данные о сторонах сделки, ее условиях, определяют характеристики объекта сделки, правила владения. Также смарт-контракты могут способствовать автоматической выплате роялти после продажи работы, позволяя создателю получать прибыль и после исполнения сделки купли-продажи. После заключения смарт-контракт сохраняется в блокчейне, благодаря чему условия NFT прозрачны, их достоверность можно легко проверить. Имеют ли смарт-контракты исковую силу на Кипре – пока неясно, в связи с отсутствием соответствующих решений суда и правового регулирования в сфере криптовалюты. Закон 2021 года о технологии децентрализованного реестра данных (The Distributed Ledger Technology Law) включает в себя положения о смарт-контрактах, их способности выступать в качестве доказательства и применимом законодательстве. Хотя этот закон пока еще не принят, он может служить руководством в вопросах, связанных с блокчейном и смарт-контрактами.
NFT и авторские права
На данный момент на Кипре и в ЕС нет законов, регулирующих NFT и авторские права, поэтому последующий анализ основывается на общих принципах применения законов об авторском праве. Защита авторских прав на Кипре регулируется законом «Об авторском праве и смежных правах» 1976 года (Copyright and Related Rights Law) и поправками к нему; его положения соответствуют законам ЕС в данной сфере.
Авторские права на Кипре присваиваются автоматически, без каких-либо процедур по регистрации, оригинальным авторским произведениям включая литературные, художественные и музыкальные работы, компьютерные программы и базы данных. Это происходит в момент, когда произведения появляются в материальном виде: на бумаге, в виде аудиозаписи или любой другой электронной записи. Автор обладает, в числе других прав, исключительными правами на воспроизведение и распространение своего произведения и на его публичный показ.
Понятие права интеллектуальной собственности часто воспринимают неправильно. Многие думают, что обладание физическим или цифровым объектом само по себе гарантирует авторские права, но это далеко не так.
В реальном мире, когда кто-то покупает физическое художественное произведение, то авторские права остаются за его создателем, если в условиях продажи не указано иначе. Тот же принцип применим и к NFT. Хотя NFT часто связаны с цифровыми объектами, например с изображениями, они являются электронными свидетельствами о праве собственности на эти объекты, а не самими объектами. Покупатели NFT зачастую ошибочно полагают, что приобрели само произведение, связанное с NFT, а также все авторские права. Однако, в большинстве случаев, они покупают метаданные данного произведения, право держать NFT в своем цифровом кошельке и право перепродать его.
Права, получаемые с приобретением NFT зависят также от лицензионного соглашения, которое может либо быть включено в смарт-контракт или в условия конкретного NFT-проекта, либо быть частью отдельного договора между автором самого произведения и владельцем NFT.
Главная проблема с авторским правом и NFT заключается в вероятности незаконного распространения произведений, защищенных авторским правом. К примеру, есть NFT цифрового художественного произведения, которое защищено авторским правом. Если кто-то создаст точную копию этого цифрового произведения без соответствующего разрешения, то это будет нарушением авторских прав. Также нарушением будет и само создание NFT какого-либо произведения, защищенного авторским правом, без согласия на то правообладателя.
Чтобы защитить свои права, создатели NFT должны убедиться, что у них есть надлежащие права на использование объекта NFT, защищенного авторским правом. Кроме того, в процессе продажи NFT стоит составить лицензионное соглашение. Оно позволит покупателю пользоваться цифровым контентом определенным образом и защитит права автора.
Покупателям нужно убедиться, что они не нарушают прав автора произведения. При покупке важно внимательно прочитать соответствующие условия, чтобы понимать содержание прав, получаемых с приобретением NFT, включая наличие или отсутствие факта передачи авторских прав на само произведение.
Панос Иоанну
Юрист в Panos Ioannou Legal Consultants
www.pioannou.com
Продолжение по ссылке.
Кипр и Китай решили налаживать сотрудничество в сфере туризма. В повестке, среди прочего, открытие прямого авиасообщения между двумя странами. Об этом сообщает Бюро прессы и информации Республики Кипр.
Глава Подминистерства туризма Костас Кумис встретился с заместителем министра культуры и туризма КНР Ли Цюнем. Это был первый визит китайского чиновника в туристическое ведомство. Ли Цюня сопровождал посол КНР на Кипре Лю Яньтао и небольшая делегация.
В ходе беседы было решено провести онлайн-конференцию между двумя ведомствами, она пройдет во второй половине июля. Сотрудничество продолжится подписанием меморандума о взаимопонимании. Костас Кумис рассказал о преимуществах Кипра как туристического направления и подчеркнул необходимость развития прямого авиасообщения между двумя странами. Он также предложил включить образовательный туризм в повестку будущих обсуждений, в программу онлайн-конференции и в меморандум о взаимопонимании, сделав особый акцент на усилиях Кипра стать направлением для тех, кто заинтересован в изучении иностранных языков. Второй важный аспект взаимоотношений — спортивный туризм, так как в прошлом команды из Китая посещали Кипр для тренировок. Кумис добавил, что было бы чрезвычайно полезно составить план продвижения гастрономии обеих стран, и пригласил своего китайского коллегу принять участие в ежегодной туристической выставке, проводимой на Кипре.
В своих заявлениях для СМИ после встречи Кумис отметил, что «визит заместителя министра стал большой честью для его ведомства и прекрасной возможностью обсудить возможность более тесного сотрудничества с Китайской Народной Республикой в сфере туризма». Со своей стороны, Ли Цюнь подчеркнул дружественную атмосферу, которая царила на протяжении всей встречи. «Мы едины в том, что Кипр и Китай — страны с долгой историей. Культурные особенности и обычаи наших стран — очень важный туристический ресурс, который может помочь привлечь посетителей с обоих сторон».
Заместитель министра культуры и туризма КНР поблагодарил своего кипрского коллегу за гостеприимство и пригласил его посетить Китай.
Турпоток: догнать и перегнать 2019
Кипрский туристический продукт: не солнцем единым
Following the economic impact of the current geopolitical issues in Ukraine and the severed relationships between Cyprus and Russia, Cyprus is now in need to attract investments from new markets, and one of these markets is MENA.
Insightful views were shared in this panel, moderated by Marios Demetriades, Financial Services Professional, former Minister of Transport, Communications and Works.
Marios Demetriades introduced the first panellist, Georges Chehwane, who is a successful businessman in the space of Real Estate Development in Cyprus, Lebanon, UAE, Bahrain, and Greece. Mr Demetriades asked Mr Chehwane whether he believed we can attract new business from the MENA region following the impact from COVID; the abolition of the citizenship program; and most recently following the Russian sanctions and with the closing of bank accounts affecting those who did not have a business established here in Cyprus.
Georges Chehwane started by clarifying “There are two regions in MENA - the Middle East and North Africa. We are all aware not many people visit Cyprus from North Africa and from Egypt, which sits between the Middle East and North Africa. For the Arab World in the Middle East, we have two categories. We have Levant - Lebanon, Syria, Jordan and Iraq and the Gulf region which consists of Saudi Arabia, United Arab Emirates, Kuwait, and Oman”.
Georges Chehwane pointed out that Cyprus had the best relationship with strong investment interest from Levant countries and in particular from Lebanon. The reason being is its proximity to Cyprus. He reminded everyone that the flight from Beirut to Cyprus only took 25 minutes. Speaking of Israel, Mr Chehwane indicated that this is a stand-alone market, where Cyprus has seen, the past couple of years, an influx of investments from Israelis.
There are three reasons behind the attraction to invest in Real Estate from Levant region. The first one being relates to permanent residency. Although, it is not as attractive as Greece and Portugal who are part of the Schengen scheme, we had a lot of people from Lebanon, Egypt, Iraq, and Jordan investing here to acquire the permanent residency, however, with the new regulation, we will see less people investing here. People have pointed out to us they preferred to invest in Greece - with as little as €250k as they were able to get the “Golden Visa”.
In Cyprus, some are interested in getting residency; some people arrive due to political problems in their countries and Cyprus is a welcoming nation and of course, the weather plays a big part in their decision making where to establish themselves.
We have a lot of clients buying properties for investment purposes to get a good return. To date, rental returns range between 5-8% and on some occasions 10% mainly from short-term rentals. This is very attractive for investment! There are also companies that would like to establish their headquarters here in Cyprus and this of course, increases the demand for residential properties. Mr Chehwane pointed out “ In Larnaca, there are 200 Real Estate companies of which 160 are Lebanese. We mainly see Lebanese investing in development, purchasing 5-10 units for rental purposes or purchase buildings to set up their headquarters”.
Mr Chehwane continued to say “In terms of transaction numbers, the higher investment from the Arab countries takes place in Larnaca, with 20,000 units sold the past 6 years and 3-4k in Limassol with less in Nicosia, Agia Napa and Paphos. In terms of volume, Limassol has the highest number because of the average price of purchasing a property, is three times more expensive than Larnaca. Then comes Protaras, Agia Napa, Nicosia and Paphos. Nicosia is mainly attractive due to schools”.
Mr Chehwane’s belief is if Cyprus does not become a member of the Schengen system, Cyprus will see more and more investors choosing Greece as their destination.
In addition, he added that another main problem is with the issuing of residency visas. “As we all know, the fast-track system is no longer working efficiently and nowadays, it takes 7 months to 1 year to get a residency. Since COVID, the system has been backlogged and some people are still waiting to receive their residency in 2019, which is unacceptable. The other problem people are facing, which is also an international problem, is the challenge not being able to open a new bank account, due to the stringent compliance and regulations now in place.”
Georges Chehwane believes, there is no other market here in Cyprus right now to replace the loss of the Russian market. This will certainly affect the region of Limassol. He went on to share an example “ From the 160 units we recently sold, 120 units were purchased from Russians”.
Marios Demetriades thanked Mr Chehwane for his views and informed the delegates, that Cyprus is expected to enter the Schengen Agreement by end of this year and then invited Farah Shammas, Managing Director St Raphael Resort and Marina to share her views.
Mrs Shammas informed the delegates that her family were one of the first foreign investors here in Cyprus who came in the late 70’s, from the MENA region. Mr Demetriades asked Farah Shammas, whether she believed, with the loss of the Russian market, if the MENA region could replace that loss. If yes, to give her views how to tap into that market.
Mrs Shammas pointed out “All of Cyprus has been massively affected from the Ukraine geopolitical problems and there is no fast recovery from that, as we have been heavily dependent on both the Russian and Ukrainian markets.”
Farah Shammas added that during the conflict in Lebanon, many Lebanese moved to Cyprus, however, when this ended, they moved back disgruntled. She pointed out that those days, Cyprus was a bit xenophobic, however, nowadays is a different story. Cyprus and in particular Limassol, has become cosmopolitan.
Moving to tourism, Farah Shammas pointed out that arrivals were still on level with 2016 and the recovery since COVID, has been outstanding. This year, she feels the second quarter will be a bit challenging. At St. Raphael they have experienced double figures from the MENA region, considering all the problems in the region.
Mrs Shammas then went on to say that to improve attracting more people from MENA, connectivity must be addressed as a matter of urgency, in addition to Cyprus entering the Schengen Agreement scheme. Connectivity is key! “It is a shame when the conflict started in Lebanon Cyprus did not act on this, otherwise, we would have been in a different situation today. Previously we used to have daily flights from Paris and mainly Lebanese used this connection - Cyprus used to be a major hub in this region. Now that the Casino is opening, it will certainly attract more arrivals from MENA, especially, as we have upgraded our facilities to be more luxurious which is what people from MENA are expecting when choosing a destination, and this is positive news for us. People want to come and see the shows; the clubs and the restaurants and we now have this on offer. The sun and sea are not important factors to attract people from this region. Although, Cyprus has its luxuries, it is still value for money, another positive attraction.
Ms Shammas added her final comment “We also need to address the visa process. Especially with the Jordanian market where it is challenging for them to apply for visas. The tour operators are not confident selling flights when half of their customers will be denied entry. Coming back to the question, whether Cyprus can replace the Russian market, my answer is definitely no. However, I feel optimistic we will continue getting more business from the MENA region.”
Marios Demetriades commented on the big issue of visa applications “Part of the issue is with the European Union, as we cannot make bilateral deals because the EU is taking more control of the agreements between EU members and 3rd party countries.”
Marios Demetriades then introduced Yacine Bougrassa, Founder, BKMS, who is from Algeria and now residing in Cyprus. Mr Demetriades was curious to find out that as Cyprus does not have strong relationships with North Africa, whether we should develop a relationship and if yes, what actions should we take, to achieve this.
Yacine Bougrassa commented on this matter, by mentioning when he moved to Cyprus 22 years ago, whilst working for Société Générale, it took him time to fully understand the complexity of the region and alerted the audience to the fact that many people travelling to Cyprus, they either talk about travelling to the Greek side or the occupied area. They do not understand there are different governments in place. French people do not understand the difference between the North part and the South part of the island. Mr Bougrassa pointed out “This is telling us, we are lacking of something, in terms of projecting Cyprus to some countries. 22 years later, I am very happy living here as it offers a lot of facilities and peace when it comes to business. I will say from North Africa and the French perspective, Cyprus offers much more than many countries, maybe now less than previously. For example, to set up a company in Greece and Dubai, it takes 24 hours. In Cyprus, it takes weeks or months! We certainly need to modernise the structure here to bypass unions and streamline processes. This is the first issue that Cyprus needs to tackle.” Mr Bougrassa went on to say “Following Georges comment earlier, North Africa is not further away than let’s say Dubai. Tunisia is 2.5hrs flight from Cyprus. Going back to numbers, North Africa has more than 100million people, with GDP 20 times more than Cyprus, of course being ex-French colony, you can find many international people residing there. When we look at the issue of visa/residency in Europe, it is becoming more challenging to apply than 20-30 years ago. We also need to consider the fact that they are highly educated people and a very good reason to tap into this market. Certainly, as Farah mentioned earlier, connectivity is a big problem, and we lost a lot of business since Cyprus Airways and Cobalt stopped operating. Cyprus should now think of tax incentives to attract companies, maybe offer tax holidays 5-10 years so Cyprus can establish themselves as a sub-hub for MENA in the region.
Mrs Shammas commented “More open sky agreement needs to be set up and this is a discussion point that must be addressed”.
Mr Bougrassa then went on to say that Cyprus lacks vision, perseverance and understanding of North Africa. “ North Africans have always been fond of Cyprus, since the Makarios years, where he built strong relationships there. I believe North Africa is now ready to cooperate with the Cyprus government and develop these relationships further. I will add, we have at least 8 MOUs between Tunisia and Cyprus and Algeria and Cyprus in the draws rectified by both parties.”
Mr Bougrassa commented that recently when he travelled to African countries such as Tanzania and Kenya, he was most impressed how fast they were moving to modernising their countries. “Rwanda is becoming a start-up country and our friends in Belgium are investing in stock there, so why not focus on creating something here in Cyprus?”. Mr Bougrassa closed his remarks, by saying that there is a lot of competition in MENA, where Dubai is taking the lead, however, if Cyprus re-evaluated their offering and value-adds, he felt confident that Cyprus could develop stronger relationships with North Africa and attracted investments.
Marios Demetriades thanked Mr Bougrassa for his feedback and went on to introduce the next panellist, Baha’a Armouti, Managing Partner, AL Armouti, Jordan, who is a lawyer specializing in trade agreements. Mr Demetriades added that Mr Armouti, had an interesting contribution to give us generally about doing business with MENA with more specialization with the Gulf region.
The question Mr Demetriades asked, is whether Cyprus could be used as an incentive for doing business between the Gulf region and Europe utilizing Cyprus.
Mr Armouti commented “The potential has been very high between MENA and Cyprus, however, there is awareness problems of the rights under obligations these countries have, under the bigger umbrella of the World Trade Organisation. In my experience as a lawyer, specializing in international trade, I would say, facilitating trade means to the facilitation investment, therefore Cyprus and MENA countries both share same economic systems, which is free market economy. MENA countries, GCC countries and Jordan vis-a-vis Cyprus are W2 members and members of World Trade Organisation and what WTO did, despite controversies, achieved a milestone and unified legislations in all member countries including Cyprus and MENA countries which means they all know the principles, trading rules and investment rules in this region. What WTO provided is predictability which is needed for any trade business wishing to export their product or services into other markets. Therefore, these are the opportunities we have here. Also, the WTO agreements which are the “mother” trading legislations even in Cyprus and MENA countries, means the laws are similar and the aim of these agreements is to remove any technical barrier that may face exportation of products of services into other markets. The problem is many businesses have no awareness of these advantages and opportunities. I believe that problem of awareness cannot only be resolved by the government, it is also the responsibility to spread awareness from the private sector, for example via business associations and Chamber of Commerce. Closing, I always bring the example of a relationship between Jordan and Cyprus. In the 70’s, there was a Jordanian investment in Jordan that was built by Cypriot expertise. A company was built called “The Cypriot Tile”. It is now a leading manufacturing tiles company in Jordan that supports also major players in MENA region, exporting to Saudi Arabia and the UAE.”
Mr Demetrides then introduced the final panellist who is from the Financial Services sector, Jad Wakil, Founder and Executive Director, Mouflon Investment Fund. Mr Dimitriades commented and asked the question to Mr Wakil “ It has always been a target and an objective to develop Cyprus as a Financial Services hub, however, the reality is far from it as it is difficult to compare Cyprus with other regions like Dubai and Ireland. We are behind in the sense of infrastructure and reputation. I am wondering whether you believe Cyprus could be used from businesspeople in the MENA region for utilising Cyprus structures to make investments in the region?”.
Mr Wakil commented that the Financial Services industry is one of the pillars that Cyprus counts on to improve investments, in addition to tourism and real estate. Mr Wakil went on to share his personal story and how he ended up living here in Cyprus “My father-in-law came to Cyprus in the 70’s from Lebanon to establish a bank here, and he stayed on until 2000. When the situation back in Lebanon became difficult 5-6 years ago, we decided to come to Cyprus and explore opportunities. We ended up creating a structure under CySec (Cyprus Securities and Exchange Commission), which regulates Financial Services companies here in Cyprus and we started operating from that. The main benefit from this, is Cyprus being part of the EU. Having learned that Cyprus will become a member of the Schengen Agreement, in terms of legislation, it was Cyprus’s greatest move to become an EU member. Simply, because it has taken the EU regulation and implemented this into Cyprus law particularly for Financial Services. How does this help Cyprus? You can create a structure here which is basically the same structure you can do EU-wide. The advantages of Cyprus, other than getting the legal benefits, UK common law, the regulation itself, will help you to establish a fund in a more cost-effective way, than Luxemburg as an example, where costs for setting up a fund are sky high. On the other hand, whilst structuring a fund here in Cyprus in the morning, you can enjoy the fine weather and sea in the afternoon.
Mr Wakil added “In terms of Real Estate, Georges knows the pricing in Cyprus is more attractive despite the increases everywhere else”.
Mr Wakil also commented on the fact that due to the issue of connectivity; the banking reputation from 2013; the scandal of the “Golden Passport” scheme and the Russian impact, it has not only affected tourism and real estate, but it has also affected the Financial Services industry here in Cyprus. Mr Wakil pointed out “Most of assets under management in Cyprus, at the end of day, belong to Russian HNW individuals, so we are all facing the same issue following the loss of that market. The question here is “How do we now attract assets from other markets to replace the Russian market?”.
Mr Wakil agreed with the other panellists, that connectivity challenges is a valid issue in addition to the reputation problem and the knowledge and understanding what Cyprus can offer to future investors. “We are talking about jurisdiction and underlying structures that you can create out of Cyprus”.
Mr Wakil commented that UAE has several jurisdictions and regulations as they compete amongst each other, and Cyprus’s uniformed regulation is EU-wide and that is the first area of interest. The second point we need to be aware, is that nobody is going to replace the HNW individual from Russia and maybe Ukraine, who come in to create a structure to manage 100m under one structure for one individual.
Mr Wakil added “It is going to be very challenging to achieve that. We cannot compete with the huge funds in Dubai or Abu Dhabi. The market we need to attract is from small family offices to mulit-investment strategy type of structures and these people will come to Cyprus to benefit from all the positive advantages I mentioned. In addition, they will get the benefit to trade within Europe which is a key point. In Cyprus you are at the gateway to Europe, there are passport rights, and this means you can go and operate from many other jurisdictions within Europe. You can have the structures here but invest somewhere else and you can attract your investors from the entirety in Europe. I call this “Diamond in the Rough”, and people do not really know about this which is a main point. People need to understand the product that Cyprus is offering. We need to showcase the various areas whether it is within Financial Services, Real Estate or Tourism, however, we need to resolve the issues first and work in parallel. For example, if we attract people to invest in the Cyprus market and cannot issue visas or support them to open bank accounts and transfer their money efficiently and without any red tape, then this will deter people looking into Cyprus as an investment destination.
Jad Wakil closed with the remarks “ To leave on a positive note, there is a good story in Cyprus and just like every other country, it has its problems, however, I do believe if developed correctly to replace the loss from the Russian market, Cyprus will have the capability of attracting a wide range of potential MENA partners that would establish themselves here”.
Marios Demetriades then invited all panellists to give their final conclusions. “The future in Cyprus is bright and due to its proximity to MENA, our tourism industry will be looking for better days” Farah Shammas commented. Georges pointed out that “Cyprus will need to tackle its bureaucracy and the government needs to make a study to identify where the next potential market will come from and promote opportunities in the right way” Yacine Bougrassa added “Nowadays most of the capital is in the hands of wealthy people living in authoritarian regime, that is a fact so the logic will say we have to strategically start from there. To do this, we must present a complete disadvantage and we are talking about Schengen residency. In Greece I see tremendous improvement since they had the program of the “Golden Visa”. If Cyprus tomorrow has this kind of capability advantage and improve connectivity with good marketing, then it will make it easier to attract new investments with the aim to also attract people to reside here”.
Baha’a Armouti pointed out “By utilizing the free trade agreement, Cyprus should also take advantage, in addition to real estate and tourism, to move into industries such as agriculture to help them find new markets. I think major exports from Cyprus now go to the EU and why not explore the MENA market and, the GCC countries market. The opportunities are there and let’s not forget the association agreement. Cyprus has an attractive advantage with the free customs and duty regulations, for GCC countries to set up industries here and to export to the EU and visa-versa.
Jad Wakil commented “Cyprus must make it easier for people to come to Cyprus, especially from the MENA region and address the immigration and banking issues by removing the hurdles. I agree with Farah that Cyprus has become more cosmopolitan, however, with connectivity, they can make it easier for people who have moved here, to go back to their countries when feeling homesick and return to Cyprus. Cyprus has the tools but needs to put the puzzle together”.
Marios Demetriades closed the session by saying the one fundamental aspect that is missing here in Cyprus is focus! “We have been talking for many years attracting business from the MENA region - I have not heard anyone mentioning Algeria, Tunisia, and Morocco, which is a shame – and once we fix the kind of problems we are experiencing here, that would make this region more attractive. However, to achieve this, Cyprus needs to put its focal point on developing a clear strategic plan for the region. As an example, with the support of CIBA, host small sessions focusing entirely on this region and invite the same panellists as we here today to share their views.”
Both Marios Demetriades and Natalia Kardash thanked everyone for participating in this insightful discussion.
Photo: Successful Business
Некоммерческая организация TechIsland объявила о запуске Школы стартапов ― серии инновационных семинаров, призванных расширить возможности начинающих предпринимателей на Кипре.
Эта новаторская инициатива предлагает возможности для обучения и сотрудничества, говорится в заявлении TechIsland. Первый семинар состоится 9 июня в 16:00 в Лимассоле и будет посвящен теме того, как построить надежную стратегию компании и создать свой бренд. В качестве докладчиков выступят Константин Заполянский, старший директор по инвестициям компании Zubr Capital, и Дарья Ксензова, бренд-менеджер той же компании.
«TechIsland привержен своей миссии позиционировать Кипр как технологический хаб, и поэтому мы очень рады предложить эту возможность стартапам на острове. Эти мероприятия предоставят уникальные практические знания, возможность для нетворкинга и шанс пообщаться с другими новаторами», ― сказал генеральный директор TechIsland Мариос Йоргудис.
Основатель и генеральный директор Zubr Capital Олег Хусаенов сказал, что, инвестируя в технологические компании в течение десяти лет, они стали свидетелями того, как несколько стартапов превратились в единорогов*. «Сейчас благодаря TechIsland на Кипре формируется уникальное сообщество технологических фирм. При наличии правильных компетенций и инвестиций эти предприятия могут стать успешными на мировом уровне», ― сказал предприниматель, выразив уверенность, что инициатива TechIsland принесет свои плоды и позиционирует Кипр как место притяжения талантов.
Участие в семинаре бесплатное. Заинтересованные участники должны зарегистрироваться по ссылке https://bit.ly/3WsJxGE
*Компания-единорог (от англ. Unicorn company) — компания-стартап, получившая рыночную оценку стоимости в размере свыше 1 миллиарда долларов США.
6 навыков эффективного лидера в эпоху перемен
Сектор технологий: самые быстрорастущие компании
