The experts of the first EY Attractiveness Survey Cyprus 2020, which is part of EY’s broader FDI (Foreign direct investment) Attractiveness program, reports that despite the pandemic Cyprus remains attractive as an investment destination in the new environment after COVID-19.

In 2019 it attracted €6 billion of FDI, which is almost 29% of the country’s GDP, while since 2014 more than €35 billion of FDIs have flowed into our country.

According to survey more than one half of the total sample of investors (56%) are optimistic about the next three years. These findings compare favourably with those of other more mature European markets as well as the overall European market, where positive sentiment stands at 39%.

It is worth noting that Cyprus remains strong among established investors – 83% expect significant improvements.

One of the most striking findings of the survey is the persistent differentiation in the responses between established and non-established companies; with the former having a significantly more positive view of Cyprus as an investment destination. A possible explanation is that established investors are de facto more aware of the local environment and its conduciveness to FDI.

Among investors who already have a presence in Cyprus, a leading factor in the country’s attractiveness is the quality of life (99%), while telecommunications and digital infrastructure, as well as political stability and the social environment, follow with 90% each.

Key source countries for these investments included Russia and the wider Commonwealth of Independent States, Middle East and the Gulf, China, Greece, other European countries and, recently, the US.

The sectors that have attracted international investor interest in recent years range from hospitality/ tourism to real estate, infrastructure and shipping, energy, telecommunications and, more recently, financial services and higher education.