Numerous stakeholders from the investment sector and the local business community this week highlighted Cyprus’ remarkable progress in the field of investment capital during the 9th International Funds Summit and Expo, jointly organised by the Cyprus Investment Funds Association (CIFA) and Invest Cyprus in Limassol.
During his address at the two-day event, Chief Scientist and head of the Research, Innovation, and Technology Demetris Skourides emphasised the government’s commitment to promoting research, innovation, and technology as fundamental drivers of a thriving and resilient economy.
He underscored that this focus on attracting technology companies to Cyprus was vital for a nation recently upgraded to investment-grade status by international rating agencies.
Skourides noted that Cyprus’ strengths in this endeavour included strong connections with innovative small and medium-sized enterprises, a sector where Cyprus has exhibited top performances in the European Union.
In addition, he mentioned that the country also boasts attractive research systems, robust product development innovation, and innovative business processes.
Furthermore, Cyprus has been ranked 28th out of 132 economies in the latest Global Innovation Index and is ranked second in the North Africa and Middle East region.
This progress, he explained, aligns with the government’s commitment to establish Cyprus as a regional hub for innovation and technology, driven by a long-term strategic plan known as Cyprus Vision 2035.
He stated that the goal is to transform the island into a global innovation powerhouse, supported by digitalisation, making it one of the best places worldwide to live, work, and conduct business.
Skourides also pointed out that the Research and Innovation Foundation is providing the necessary boost to the Cypriot ecosystem through various funding programs and support services aimed at creating and initially developing innovative startups.
These programmes also focus on fast-tracking the development of enterprises that aim to produce innovative products or services for global markets.
“The data speaks for itself. The Research and Innovation Foundation has initiated a new framework for funding programmes for the 2021-2027 period, allocating an additional €150 million for targeted investments in various sectors, such as research, collaboration, knowledge transfer, innovation, infrastructure, and capacity development, as well as internationalization,” he emphasized.
During the inauguration of the summit, Andreas Yiasemides, the President of the Cyprus Investment Funds Association (CIFA), highlighted the event’s objective to provide participants with the knowledge and tools to navigate an increasingly complex environment.
He also noted that despite global challenges, the total assets under management reached €10.7 billion by the end of the second quarter of 2023, marking a notable 175 per cent increase since 2017. The total number of licensed companies has reached 335.
Yiasemides expressed optimism about the increase in the number of licensed companies engaged in activities, rising from 237 to 254 during the same period.
What is more, Yiasemides stated that CIFA has observed a growing trend of capital managers from various geographical regions choosing Cyprus, recognising its significant advantages in this sector.
“Specifically, we have seen increased interest from capital managers in India, the Middle East, and Japan in establishing a presence in Cyprus,” he said.
He also highlighted the fact that many service providers and, more recently, the Global Maritime Fund, which seeks to become the world’s largest maritime fund, have all chosen Cyprus as their base.
Meanwhile, George Karatzias, the Vice Chairman of the Cyprus Securities and Exchange Commission (CySEC), pointed out that during the second quarter of 2023, the number of asset management and collective investment companies reached 334, with assets under management exceeding €10.7 billion.
A total of 162 collective investment organisations invest in Cyprus, either partially or wholly, with their investments totalling slightly over €2.8 billion, more than a quarter of the total assets under management.
“This is a significant percentage compared to other mutual fund jurisdictions,” he emphasised, indicating that nearly 90 per cent of assets under management were invested in securities.
“Just under half of active assets (48.3 per cent) related to private equity investments, with hedge funds representing 9.8 per cent, real estate at 9.3 per cent, and mutual funds accounting for 9.1 per cent of total assets under management,” he added.
Karatzias recalled that, in June of the previous year, the European Securities and Markets Authority published a report analysing the provision of cross-border investment services in 2022, where Cyprus ranked first in Europe. This demonstrated the size of the regulated industries and the responsibility undertaken.
“It is of utmost importance for the Cyprus Securities and Exchange Commission to possess all the tools in its arsenal, both in human resources and technology, to ensure the continuity of its enhanced supervisory powers,” he said.
He further emphasised that the Cyprus Securities and Exchange Commission continues to lead in the most recent European financial legislation, making Cyprus a safe, responsible, and competitive hub for global business activity.
“We remain committed to supporting the responsible and healthy growth of the investment capital and asset management industry in Cyprus,” he concluded.
Elsewhere, Marios Tannousis, the CEO of Cyprus Investment Promotion Agency, known as Invest Cyprus, noted that this year has been characterised by significant variability in the world of investment capital.
“On a global scale, as well as here in Cyprus, we have skillfully navigated the seas of uncertainty, embraced revolutionary and innovative financial products tailored to a continuously evolving regulatory landscape, and turned to strategic changes that have reshaped the industry,” he stated.
Moreover, he emphasised that Cyprus has not remained a passive observer but has contributed constructively to global discussions.
He also reiterated Invest Cyprus’ commitment to the field of Investment Funds and Asset Management, explaining that the present era is not just about economic progress but measurable progress for the planet and its people.
As the CEO of Invest Cyprus noted, sustainability and impact investments are no longer specialised areas of interest but have quickly become an integral part of the mainstream investment ethos.
He also highlighted that Invest Cyprus acknowledges the undeniable potential behind these movements, and as the world turns towards a more sustainable future, the organisation is ready to harness the vast potential of sustainable finance by attracting investments seeking both economic returns and tangible environmental and social benefits.
The 9th International Capital Summit and EXPO concludes on October 24, 2023. What is more, within the framework of the Summit, the 36th annual International Investment Funds Association (IIFA) conference is also hosted in Limassol on October 24-25.
