Cyprus shoots up foreign investment index

Cyprus has welcomed the 50-place jump on the Greenfield FDI Performance Index, which measures countries’ foreign direct investment attractiveness.

It is ranked 18, going up by 50 places compared to 2020 in attracting foreign direct investment, moving out of the lower half of the list.

The island’s leap from 68 in the Greenfield FDI Performance Index “is of great importance in the volatile international environment we live in today,” said Finance Minister Constantinos Petrides.

The FDI Performance Index ranks countries according to the foreign direct investment they attract in proportion to the size of their economy. This performance is also reflected in the strong recovery of 5.5% GDP growth in 2021.

Cyprus also ranks among the 10 top countries which stand out for the recovery of investments following the pandemic.

Greenfield said direct investments in Cyprus show a 150% increase in the first half of 2022 compared to the same period in 2019.

Also noteworthy is the increase in investments in software and IT, showing a 600% increase in 2022 compared to 2019.

Petrides argued the island’s success is due to the government policies and the implementation of a new strategic development model dubbed “Vision for 2035”.

In comments to the Financial Mirror, George Campanellas, the CEOP of Invest Cyprus, the island’s authority tasked with wooing foreign investment, said the jump on the index showcases the country’s ability to attract funds.

He noted that this resulted from stakeholders pulling together to develop the island into a destination for international technology companies and the attraction of investment into big-ticket greenfield projects, generating horizontal benefits to the economy.

Following the demise of the Cyprus Citizenship for Investment scheme, authorities have turned their attention to big tech and fintech companies to relocate.

The island’s strategy, including tax incentives, has drawn many firms to Cyprus, transforming the IT sector into a key pillar of economic growth, said Campanellas.