Remarks by Minister of Communications, Mr. T. Mitsopoulos,
at the
signature of a Memorandum of Cooperation
between Cyprus and Egypt
Ladies and
gentlemen,
It is a great pleasure to be here with you today with
the opportunity of the signature of the Memorandum of Cooperation between the
Larnaka Chamber of Commerce and Industry and the Cairo Chamber of Commerce,
which will definitely mark the beginning of a new era in the cooperation of our
two countries. Cyprus and Egypt share long-standing ties of friendship, trust
and mutual respect. To this end, the signature of the Memorandum of Cooperation
between the two Chambers highlights the importance that Cyprus attaches to the
further strengthening of the bilateral relations with the neighbouring
country.
Perennial goal of our national policy is the further
exploitation of Cyprus’ competitive advantages in order to stimulate the
economic activity through the attraction of foreign investments and establish
Cyprus as a regional service center. Our competitive advantages include Cyprus’
preferential geographical location at the crossroads of Europe, Asia and Africa,
the highly educated, qualified and multilingual workforce, the favourable tax
system, the low 12.5% corporate tax rate, the extensive network of Double Tax
Treaties – that includes Egypt, the excellent professional and financial
services and the harmonized with the European standards regulatory framework.
Furthermore, the discovery of natural gas reserves within Cyprus’ Exclusive
Economic Zone creates excellent prospects for investments and cooperation
between Cypriot and foreign businesses in the energy sector and auxiliary
services.
It is important to stress at this point that, despite
the economic difficulties, Cyprus still retains its strategic advantages and is
committed to enhance them even further, as part of our wider efforts to
restructure and revitalize our economy, in order to remain a reliable partner to
all entrepreneurs and investors interested in expanding their operations to our
island. In this context, and in order to encourage foreign investments, the
Cyprus’ Government has taken measures that include:
· Additional tax deduction from taxable corporate income of up to 25%
for each additional worker that will be employed,
· Reduction of the amount of time required to issue planning
permissions, and
· Broadening of the range of permitted land development in off-limit
areas for large projects.
Additionally, the Government has proceeded to the
adjustment of
· the building coefficients for large commercial and office
developments, which have been increased significantly, and will be increased
further for large-scale projects in certain tourist zones and areas available
for golf courses,
· permits for joint tourist developments, such as condo hotels will be
soon granted, and
· the licensing of casino operation will be
provided.
Moreover, in order to further facilitate foreign
investments, the Government has proceeded to the adjustment of the residency and
citizenship requirements such that:
(a) Third country nationals have the opportunity to
acquire a permanent residency permit with the purchase of a private home and
certain deposits in a local bank.
(b) Non-EU residents can acquire the Cypriot nationality
with:
· Investments in a state company and in Research and Technology
fund,
· Various options of direct investments,
· Bank deposits in a local bank of a specific magnitude, or with
· Defined payments of income tax or VAT.
It is worth noting however that these measures will soon
be further adjusted downwards aiming to render Cyprus an even more attractive
destination for permanent residence.
Ladies and
Gentlemen,
Cyprus considers Egypt as an excellent partner in the
region and aims at even closer and deeper bilateral relations. The strengthening
of our bilateral relations will have positive effects in terms of enhancing the
economic development and prosperity in our countries. Having said that, the
signature of a unitization agreement between Cyprus and Egypt on the joint
exploitation of hydrocarbon reserves on the median line between the two
countries’ respective Exclusive Economic Zones, is indicative of the excellent
relations between our two countries and sets the foundations for commercial
exploitation of the hydrocarbon reserves found in areas that cross the two
countries’ Exclusive Economic Zones.
The signature of the Memorandum of Cooperation between
the Larnaka Chamber of Commerce and Industry and the Cairo Chamber of Commerce
therefore, is a major step forward in our efforts to further promote
cooperation, aiming to enhance growth and prosperity in our countries. The
agreement will pave the way for closer links between the two Chambers, aiming at
promoting cooperation in all sectors of the economy.
At this point, allow me to reiterate Cyprus’ unequivocal
support to the quest of the Egyptian people for democracy and stability, and the
wish that the Egyptian people will successfully embark on a transition towards
peace and prosperity.
In closing, I would like to assure you that our
Government is committed to facilitating cooperation between our Countries and
our businesspeople and will do its utmost towards this direction. I would like
to congratulate both the Larnaka Chamber of Commerce and Industry and the Cairo
Chamber of Commerce for this important initiative and wish them all the best in
their future endeavors.
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