Growth and Development of Cyprus: Investment Opportunities and Business Prospects

The island of Cyprus is located within the Eastern Mediterranean and is the third largest
and third most populous island in the Mediterranean. The island has now come way far in terms
of growth and development. It has been capturing the interest of the overseas market in terms of
investment opportunities. The increase in the investment phase has been observed since the era
of 2017. The major investors were mainly from the region of US, Asia, Russia and the Middle
East.
The island has been able to sustain its growth in terms of the credit standing capability because
of the constant upgrades as brought in by the international credit rating agency.
Some of the critical facts like that of recapitalisation of the major proportion of the banks, issue
of the bond rise to over €3 billion within the international markets, also a frequent number of big
scale projects together they all have contributed towards the development of the island Cyprus.
The island is now addressed as a top foreign direct investment (FDI) destination. According to
the various research held in the phase of 2014, the inflow of FDI has risen to about € 232
million, whereas the net outflow from Cyprus amounted to 954.
The island comprises mostly of the real estate projects on a large scale basis. Some the
key factors for enhancing the development of the island Cyprus is luxury marinas, infrastructure
to carry on tourism business activities, along with capabilities for business generation within the
energy sector. It is now addressed as one of the popular holiday destination, tourist hot-spot and
a pleasing destination to carry out business activities on an international basis.
The island is, on the other hand, making use of the modern legislative, innovation within the
development projects, diversifying tourists, formulation of the tax structure, and many other
fringe benefits using a tax structure that has been introduced to raise capital. Additional benefits

stand for the achievement of a stable and secure EU environment. The island also serves as a
base point for clients within the wider eastern Mediterranean region.
For example, H&M in Cyprus, they make use of the economic concept and theories such
as the economies of scale concept. The production level is the same in comparison to that of the
region of Sweden. The local territory based retailers and shops will not be able to bring in
competition because the advantage that stays in the company’s favour will be huge because of
the qualitative advantage that the island at present scenario processes. The huge capital generated
by the island activities can be utilised for the products development, marketing skills
and international connection.
The geographical advantage of the island Cyprus is one of the primary
factors for the growth within the country’s destiny and prosperity. The international
market appreciated the entrance of the island within the EU in 2004, and within the Eurozone in
2008. The island was respected as much of the investor and business firm believes that the island
has the potential for a number of business prospects.
Some of the major demonstrations of business process outsourcing in the era of 2017 is, Sykes
Enterprises which choose the island Cyprus from among the various 20 other competing
jurisdictions as its base. High-tech and entertainment start-up Whipper, also established its global
headquarters in Limassol in 2017, adding more weight to the growing start-up culture in Cyprus.
One of the primary reason why the supermarket chain Lidl has been relied upon the
Greenfield investment as their entry market strategy because of the future scope that stays in
favour of the island. The supermarket chain Lidl possess competitive advantage by cutting down
the additional costs such as customer services, ‘art-of-state’ shop designs and additional features.