Address by the President of the Republic Mr Nicos
Anastasiades
at the dinner with Abu Dhabi state officials and
businessmen
It is a distinct
pleasure and honour to be at tonight’s dinner presentation on investment
opportunities in Cyprus, organized by Logicom Group company, with the support of
the Embassy of Cyprus in Abu Dhabi.
I would like to
thank you for your presence here tonight, which demonstrates the traditionally
close relations between the two countries and their respective business
communities, and the mutual aspiration to enhance and further establish a solid
and mutually beneficial economic partnership.
Cyprus and the
United Arab Emirates’s traditional bonds of friendship are based on mutual trust
and respect. This official visit is certainly timely, and demonstrates the
importance my Government, and I personally, attach to concretely upgrading these
ties. We are here to deepen and broaden our cooperation, particularly in the
economic field.
Towards this end I
am accompanied by my Minister of Finance, the Minister of Energy, Commerce,
Industry and Tourism and my Deputy Minister. Moreover, a dynamic and sizeable
delegation of businessmen from both Cyprus and the United Arab Emirates will
participate on Wednesday in a Cyprus-United Arab Emirates business forum in
Dubai, with the aim to explore business opportunities and cooperation
prospects.
Cyprus, as you are
well aware, is a full EU Member State enjoying all the benefits that EU
membership offers. It offers access to the European market as well as the
certainty and credibility of the EU regulatory system. Cyprus may be a small
country but the current transition in the economy offers a wealth of
opportunities for growth and investment in an array of sectors such as energy,
banks, shipping, tourism, stock exchange, large scale development projects as
well as education and health.
Cyprus is
succeeding in steadily overcoming the difficulties following the Eurogroup’s
decision in March of last year. Key sectors of the economy, including tourism,
shipping and business services, have proved to be significantly more resilient
than originally expected. With determination, hard work, with the resilience and
perseverance that characterises the Cypriot people, leaps of progress have been
achieved. This is confirmed by three very positive reviews by the Troika.
Additionally, the Cyprus economy received its first upgrade in November by
Standard & Poor’s following three years of successive downgrades, whereas
the forecast for a quick recovery and return to growth as early as 2015 is
supported by Troika’s own predictions. The IMF has underlined that Cyprus’
reform programme is on track while EU has praised Cyprus for how it addressed
the economic crisis and now refers to Cyprus as a model of economic
recovery.
We have improved
supervision and oversight of our financial sector, which constitute very
important factors contributing to the stabilization of our banking system. As a
result, capital controls imposed following last year’s Eurogroup, are gradually
being lifted according to an agreed roadmap, leading soon to their full
abolition. Let me emphasize that fresh money is not subject to capital
restrictions.
Cyprus offers a
competitive tax system and a low 12.5% corporate tax rate, an extensive network
of Double Tax Treaties, including with the United Arab Emirates. Additionally,
it offers excellent professional and financial services, an enhanced regulatory
framework, a strategic geographic location, a highly developed infrastructure, a
variety of investment incentive schemes and a highly educated, qualified and
multilingual workforce.
At the heart of the
Government’s strategy for economic recovery is the pursuance of Foreign Direct
Investment, and to this end all steps are taken to ensure that a more effective
and business-friendly environment is facilitated to every extent possible. A
series of facilitative measures have been adopted by the Government in this
regard.
The Government is
strongly committed to further enhance Cyprus’s strategic advantages, as part of
the wider effort to restructure and revitalise the economy and the banking
system, ensuring that Cyprus is a reliable partner to entrepreneurs and
investors interested in expanding their operations to Cyprus and using it as a
base to gain preferential access to key markets, including in Europe, Russia and
Asia.
The Government has
embarked on a privatisations plan, which covers a wide range of the State-owned
entities performing commercial operations for over 1.4 bullion euros. The
portfolio of businesses which are being considered for privatisation have the
relevant profile to render them potentially attractive to international
investors such as funds based in the United Arab Emirates. Cyprus could be the
EU passport to banking, telecommunications and air transport.
The discovery of
natural gas reserves within Cyprus’ Exclusive Economic Zone creates remarkable
prospects for investment and co-operation in the energy sector and auxiliary
services and has created a new impetus in encouraging opportunities for
cooperation between Cypriot and foreign businesses.
Cyprus remains a
superb tourist destination and it is my Government’s priority to enrich and
diversify our touristic product for Cyprus to be a year-round destination. It is
worth mentioning that through coordinated actions we achieved to close 2013 with
an overall increase in tourists of more than 9%.
Ladies and
Gentlemen,
Cyprus is succeeding. Doing business is a priority. My Government,
and I personally, are committed and determined to further facilitate and enhance
cooperation between our countries, and our businesspeople, in every way
possible.
Allow me to once again thank all those who were directly involved in
organizing tonight’s event. I hope that during the course of this evening a
number of joint business initiatives and ventures will be identified, opening up
many new avenues of cooperation.
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