Cyprus: Regaining momentum

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1 Cyprus: Regaining momentum Natasa Pilides Director General 14/12/

2 Strong economic performance Cypriot economy expanded faster than EU average in consecutive quarters in positive territory Consecutive upgrades by Credit Rating Agencies Successful return to capital markets at the lowest rates ever (June ) - bond oversubscribed by 4 times with offers reaching 2bn 2.8% GDP Growth (2016) 9.1% increase in FDI (2016) 3.9% GDP growth (Q3 ) 14/12/

3 Strong growth prospects Positive EU Commission macroeconomic forecasts (Autumn ) Growth forecasted to remain robust over 2018 and 2019 GDP growth of around 3+% expected to continue (Moody s, ) 14/12/ Growth rates expected to reach 3.5% in 50% higher than EU average (2.2%) Unemployment expected to be further reduced from 11% to 9.3% by 2019

4 A unique combination of ingredients 1 Access to markets 2 Excellent tax & legal structure 3 Low cost & friendly business environment 4 Access to talent 5 Access to funding 6 High quality of life 14/12/

5 Renewed investor interest 14/12/

6 Key Sectors of interest Touris m Shippin g Real estate Energy 14/12/ Innovation and Start- Ups ICT Financial services and investment funds Regional Headquarterin g

7 Tourism Arrivals (2016) 3.2m +19.8% Revenu es (2016) 2.4m +11.9% Rooms (2015-) +10,000 & 5,000 expecte d 14/12/

8 First Integrated Casino Resort > 500m investment > 6000 new jobs Direct benefits Tourism > tourists per year 800m by % of GDP GDP contribution 14/12/

9 Property market 14/12/ 43% annual increase of total property sales in 2016 (7063 sales) 20% increase of sales in the first 6 months of (3610 in Vs 3012 in 2016) Hotel renovations/ developments/ acquisitions

10 Regional HQ Increase in company registrations (60 until July Vs 62 in 2016) Enhanced presence and activity of multinational companies Mergers & acquisitions of Cypriot companies 7.3% increase in exports of services (2016: 9.2bn Vs 8.6bn in 2015) 33.8% increase in exports of Telecommunications and ICT services 14/12/

11 Investment funds Funds Registrations increased by 18% per annum since Q2 15 asset managers licensed 83% increase of UCITS net assets UCITS: 3rd & AIFs: 2nd largest net asset growth in Europe 14/12/

12 Energy and Shipping Shipping Commercialisation of Limassol Port 60% increase in company registrations & 25% in revenues Energy Industry giants licenced in Cyprus EEZ Regional base for oil & gas ancillary service providers 14/12/

13 Academia meets innovation 860m contribution of higher education (5% of GDP) 9,500 jobs (2.5% of total labour force) State Support and access to EU funds 3 public and 5 private universities Fast-growing Infrastructure and advanced R&I Incubators & accelerators with proven track record Horizon 2020 highest absorption of funds in EU ( 100m so far) 30% of funding goes to SMEs (EU average: 24%) 14/12/

14 Our Mandate Facilitatio n Promotion Advocate Reform Businesses and individuals considering investment into Cyprus have a partner on the ground at all stages of the investment cycle. 14/12/

15 Thank you! 14/12/ Copyright CIPA