Significant stagnation is observed in the issue of attracting investors for the large developments that the country needs, a stagnation that has been maintained for a long time, however, the crisis in Ukraine seems to exacerbate the effort to find investors.
It is noted that the Association of Large Developments (SMA) which runs the major projects in our country since the beginning of its establishment launched 25 mixed developments, of which a small number of them took place, such as the marina of Limassol and casino. These two investments, which are estimated at several million euros, have added great value to the GDP of Cyprus, while it is noted that the total value of the 25 major development projects amounts to seven billion euros.
Speaking to competent bodies, we were told that things have become even more difficult, since initially the abolition of the investment program for obtaining a Cypriot passport, then the pandemic crisis and sanctions on the Russian market from the West, was a catastrophic triptych for their development. of works. The abolition of trade with the Russian market virtually eliminates any chances of finding investors in that market. Among the SMA projects that remain on paper are golf courses along with luxury housing units, medical centers, but also some tall buildings, the Look at other markets
As a result, the Growth Association, along with other business entities, is turning its attention to other neighboring markets, such as Israel, Egypt and other Arab countries in general. Based on the information we had some time ago, there was a commercial mission of business entities in Egypt, where there were contacts with respective Egyptian entities, for possible investments by Egyptians in Cyprus. It is recalled that Invest Cyprus also made contacts in Israel in the past, while recently a large delegation from Cyprus attended the large international exhibition of Expo in the United Arab Emirates, specifically in Dubai. All these contacts are part of the efforts of the competent business bodies to attract investors for both smaller investments and investments for the development of large projects.
SMA Suggestions
Based on what he said at the recent general assembly of the Association of Large Developments, the president of the association, Andreas Dimitriadis, SMA has already submitted proposals to the Ministry of Interior with the aim of improving and functioning of the existing Permanent Residence Program in Cyprus. More specifically, the memorandum makes suggestions for urban planning regulations, such as the permanence of urban incentives, the increase of the building factor by 20% and the abolition of the minimum useful areas of apartments.
In addition, the suggestions include, among other things, the provision of tax incentives (reduction of VAT and income tax) to further attract foreign companies and the abolition of capital gains taxation.
, urban, tourist and economic incentives that enhance the development of the domestic economy and attract significant and long-term investments on the island. “This is a mutual effort and cooperation of the association with the government, the competent bodies and the political parties”, said among others Mr. Dimitriadis.
As SMA executives have previously pointed out in “P”, the voting of the bill for Investment facilitation, which was approved by the Council of Ministers in 2019 and continues to be pending in the competent parliamentary committee, is also of great importance. “Especially at this time, when things have become quite difficult, the state bureaucracy can not be an additional obstacle. The creation of a Unified Investor Service will help a lot in order to eliminate the obstacle that exists with the bureaucratic procedures “, said in previous statements in the newspaper, the director of the Trade and Digitization Service of the Cyprus Chamber of Commerce and Industry (KEBE). Petsidis.
Finally, SMA officials state that in case the bill is not passed, the fast-track procedures and deadlines provided in the bill should be implemented with other similar administrative regulations within the framework of the existing legislation.
>
