In addition, Cyprus was ranked 29th in the United Nations 2005 Human Development Index.
Considering other socio-economic indicators such as the excellent housing conditions,
pollution free environment, and low crime rate, one may conclude that the quality of life,
standard of living and economic performance, position Cyprus favourably
among the rest of the EU member states.
for further info: http://hdr.undp.org
Furthermore, it should be noted that based on the March 2006
Cost of Living survey of Mercer Human Resource Consulting LLC,
Limassol was ranked as one of the least expensive cities globally.
The survey compared the average cost of living between 144 cities globally
and Limassol was ranked 118th.
The success of Cyprus in the economic sphere is attributed, among other factors,
to the adoption of a market-oriented economic system,
the pursuance of sound macroeconomic policies,
as well as the existence of a dynamic and flexible entrepreneurial community
and a highly educated labour force. Moreover, the economy has benefited from
the close cooperation between the public sector and its social partners.
"...first of all you need the basics, which I believe Cyprus already has
and this is why the country has come as far as it has.
I refer of course to the high quality of legal, accounting,
financial and other professional services available."
Chris Koufaris - President of the Cyprus International Businesses Association
The basic characteristics of the Cyprus economy are the dominant role
of the private sector in production, the small size of the domestic market,
as well as its open character. Cyprus’ major imports are raw materials,
consumer and capital goods, transport equipment and fuel, while major exports
are pharmaceutical products, clothing, cement, cigarettes, paper products,
plastics, potatoes, citrus fruit, wines, and furniture.
The services sector is considered as the backbone of the Cyprus economy,
accounting for about 76,7% of GDP in 2005. This reflects the gradual evolution
of the economy from an exporter of minerals (mainly copper and asbestos)
and agricultural products during 1960-73, to an exporter of manufactured products
(mainly clothing) at the end of the 1970s, and finally to an international business
and service centre from the mid 1980s - today.
There are currently approximately 30 foreign banks and over
1200 International Business Companies (IBCs) with fully-fledged offices in Cyprus.
The successful integration of the latest technology into the economy,
the constant improvement of the island's infrastructure
and the high quality of the Cypriot labour force, have turned Cyprus into a centre
of international business, contributing significantly to the economic growth
of the broader region.
IBCs have played a central role in the development of Cyprus as a world class business centre.
The international business community has long maintained its confidence in Cyprus,
building a strong presence in the country's economy. The community's interests
are represented by the Cyprus International Businesses Association (CIBA).
for further info: www.ciba-cy.org
Professional Services
The development of the commercial infrastructure in Cyprus is mainly attributed to
the rapidly expanding role of the professional services sector.
The sector supports every aspect of modern business from accounting,
legal services, banking and international business services through to information technology,
business consulting, education, engineering, healthcare, marketing and filming.
From its unique location, the Cypriot professional services sector combines
a global perspective with a diverse spectrum of high-demand services.
The comprehensive range of services
and the professional attitude of Cypriot service providers account
for the transformation of the island into a highly reputable international business centre.
for further info: www.cyprus-prof-serve.com
"Supported by robust productivity and employment growth, Cyprus'
real GDP growth was among the highest in the EU over the last decade."
Council of the European Union, Council Opinion on
the updated Convergence Programme of Cyprus - March 2006
Tourism
Tourism is a vital industry and an important economic driver.
The island hosts more than 2,4 million tourists per year
generating revenue of more than €1,7 billion and making a contribution to GDP of about 15%.
The long-term tourism development strategy on which Cyprus has embarked,
offers multiple opportunities for investment; the establishment of cooperation networks
and partnerships; and the exchange of knowledge and expertise with other countries.
The attraction of investment, including the promotion of joint ventures between Cyprus
and foreign enterprises, is an explicitly-stated government objective.
The Cypriot tourism industry is a dynamic, forward-looking industry eager
to cooperate with its other parties, in order to ensure its sustainable development.
for further info: www.visitcyprus.biz
Shipping
The Cyprus' Registry is among the 10 leading merchant fleets of the world with 1.819 vessels
corresponding to a total gross tonnage of 21,9 million. No one can deny that the island
is now established as one of the leading maritime centres. More than 45 shipmanagement
companies and marine-related foreign enterprises conduct their international activities
in the country, and most of the largest shipmanagement companies in the world have established
fully-fledged offices on the island.
The accession of Cyprus to the European Union has undoubtedly had a considerable impact,
both in terms of quality and quantity on the structure of the community fleet.
In terms of tonnage, Cyprus accounts for 16% of the EU fleet, thus enhancing considerably
the market share of the European fleet in international sea transport.
Cyprus is an attractive location for the establishment of shipmanagement companies
and companies with shipping related activities. The geographical position of the island,
its accession to the main international maritime conventions,
as well as the generous tax incentives and the extensive network
of bilateral agreements in merchant shipping, have enabled Cyprus
to become an ideal shipping centre.
for further info: www.shipping.gov.cy
"Amdocs has experienced a tremendous growth in its European customer base and Cyprus
is a central transportation intersection for travelling within, as well as outside Europe.
" - Amdocs Development Limited
Technology and R&D
Special emphasis has been placed during the recent years in promoting Cyprus as
a regional research and development centre and in attracting investments for the development
of high-tech products and services. Several initiatives contribute to these efforts
such as the incubating programme that has been introduced for the creation of new high-tech enterprises,
as well as the projected launching of a Cyprus Technology Park.
Information technology is a vital element of any modern business centre and Cyprus
has embraced high-tech on a major scale. Many of the world's leading IT-based companies
have chosen Cyprus as their base for expansion in the region,
while an efficient island-wide IT network has also been established.
Cyprus has key competences that enable it to attract investments in the high-tech industry.
The industry is supported by a highly educated and flexible workforce.
Based on a Eurostat study (1/2006), out of all the EU member states,
Cyprus demonstrates the highest increase of employment in the high-tech knowledge
intensive services during the last 5 years. In particular, for the period 1999-2004
employment in 'Knowledge Intensive Services' increased by 6,1% (EU avg. 2,6%),
while employment in high-tech related services increased by 12,7% (EU avg. 2,9%).
Cyprus' economic performance reflects the skilful exploitation of its competitive advantages,
stemming from the island's convenient geographical position,
the favourable business climate and fiscal policy,
stable macroeconomic environment, the highly educated labour force
in conjunction with the comparatively competitive remuneration of graduates,
and the development of the necessary infrastructure.
The strong performance of the Cyprus economy is confirmed
by positive ratings from a number of international agencies.
for further info: www.fitchratings.com
www.moodys.com
www.standardandpoors.com
Cyprus' economic prospects mark favourably given the country's proven ability
to effectively exploit its competitive advantages and the high degree of real
and nominal convergence to meet the eurozone targets.
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