Antonios michaelides speech

 

Address by the Minister of Commerce Industry and Tourism
Mr. Antonios Michaelides,
For the Lebanese Forces Party Business Assembly regional congress “Economic challenges facing the Lebanese Community”

Member of the Parliament of Lebanon, dear Major of Limassol Mme Ziazr,
Excellencies, good friends from Lebanon,
Ladies and Gentlemen,

I am very pleased to be on this podium this evening to address representatives from a wide range of Lebanese companies with special interest in exploring the possibilities of extending their business activities in Cyprus. I also appreciate the initiative of the Lebanese Forces Party, for organizing this regional seminar, here in Limassol.

 

Your choice to hold this seminar in Cyprus underlines our island’s strategic location as a bridge between Europe and the Middle East but also highlights the historically friendly relationship between our two countries. The Cyprus Government maintains excellent relations with Lebanon and its people, a fact highlighted during the recent crisis in your country, when Cyprus gladly and readily extended every possible humanitarian assistance to people in need and volunteered in the effort to reconstruct the country.

Ladies and Gentlemen,
Dear friends,

Cyprus has its doors open to businessmen, from Lebanon and other Middle East Countries, offering numerous attractive benefits and opportunities for companies wishing to establish their businesses in Cyprus or use Cyprus as a hub to access the Eastern Mediterranean and European markets. The relationship of Cyprus and Lebanon is deepening and broadening and that is why we believe that now is the ideal time to built upon the successful bilateral cooperation and go further down by expanding the agenda of engagement.

 

The agreement on the delimitation of the exclusive economic zone between the republic of Cyprus and the republic of Lebanon has been ratified by our House of Representatives and we certainly hope that this agreement will also be ratified soon by the relevant authorities in Lebanon. This agreement will be beneficial to both Countries as we may then proceed to licensing  exploration for hydrocarbons.

Dear friends,
Cyprus, despite its small size, is actively participating in today’s increasingly globalized and integrated international marked for goods services and investments. During the last decade our island has managed to emerge as an outstanding business hub, with world class logistics, finance, communications and transportation. It also offers one of the most inviting environments to work in.

 

Our country is strategically located at the crossroads of three continents. This close proximity to the busy trade routes, coupled with a world-class infrastructure, has developed our island into a major International Business Center. Cyprus is being transformed into an outpost in the Eastern Mediterranean, facilitating partnerships and serving as a springboard for investments in Europe, Africa and Asia.

 

The attractiveness of Cyprus as a business and investment venue is based on a variety of good resources such as:
– The enviable quality of life and its pleasant climate.
– The long-standing relations with Central and Eastern Europe as well the Middle East.
– Macroeconomic Stability and well developed socio-economic infrastructure.
– The low corporation tax at 10%, the lowest in the whole EU.
– The wide network agreements for the avoidance of double taxation.
– The liberal foreign investment policy.
– Stable-pleasant business environment.
– Simple administrative procedures.
– Low company set up and operating costs.
– High quality level of professional services.
– Etc…

 

Cyprus, with the highest university graduates in Europe, has a vibrant free marked on open and stable economy. The Cypriot economy is doing very well, and growing significantly above the EU average, at a rate of 4% while inflation rate is only 2%. Also Unemployment in 2006 dropped from 5%, to 4%.

In 2006, per capita income reached 21000 euros which in purchasing power standards corresponds to 88.9% of the EU average, and is the highest among new member states.

 

The Republic of Cyprus will adopt the Euro on January 1 2008. Reaching the Eurozone milestone will result in further reductions in the cost of doing business in Cyprus, making it even more attractive to international business and multinational companies.

 

Foreign companies can benefit from the numerous tax and other incentives for establishing in Cyprus assembling or manufacturing operations. We also welcome and provide opportunities in the direction of enabling wider participation by investors who can transfer know-how and introduce high technology to our island.

The credibility Cyprus has earned among the international investment community is evident from its foreign direct investment track record. FDI inflows for 2006 were above 1.5 billion US$, continuing an upward trend for the second consecutive year.

 

The amount of direct investments from Lebanon to Cyprus, and Cyprus Investments to Lebanon during the period 2006 is estimated about 21.4 m.€. The Cyprus Government is ready to give its full support and encouragement to any serious cooperation between Cypriot and Lebanese companies.

 

Although welcoming Investments in all economic sectors, now the spotlight in Cyprus is increasingly on High Technology, knowledge intensive industries. In our 2007 budget and in our three year development plan, we provide for sizeable investments in research and innovation. Our aim is to reach the European Union target level of 3% of the Gross National Product by year 2010, from Government and private sector contributions. To achieve this, we are sponsoring various initiatives including the establishment of a Science Technology Park and other research centers, and attraction to Cyprus high technology units.

 

Recent years have witnessed the development of Cyprus into an international shipping centre for the conduct of maritime activities. The multi-purpose ports of Limassol and Larnaca are the island’s main sea gateways for sea borne cargo and passenger traffic. Cyprus has the tenth largest flag fleet on the high-seas and Shipping injects up to 1.17 billion US$ into the island’s economy each year, translating into 1819 vessels with total gross tonnage of 21.9 million. Our Country ranks among the leading maritime nations and is considered to be one of the world’s largest shipping management centres.

 

Cyprus has also been gradually established as one of the main transit trade centers in the Eastern-Mediterranean. This development is attributed, to the efficient customs formalities, the reliable handling and delivery system and the advanced regional warehouse and distribution centers.

 

Trade, in goods and services, has been the key to overcoming the constraints of a small domestic market. The European Union is Cyprus major trading partner accounting for 65% of total imports and 56% of total exports. The main products exported from Cyprus are pharmaceuticals, fruit and vegetables, cigarettes, foodstuff, clothing, furniture, aluminum and plastic products and cement.

 

The volume of trade between Cyprus and Lebanon during 2006 was around 44 million euros, 19 m Euros were Lebanese imports into Cyprus and 25 m Euros were Cypriot Exports and Re-Exports to Lebanon. Cyprus imports mainly, Petroleum Products, paper, glass, iron and steel, whereas Cyprus exports mainly pharmaceutical products, plastics and dairy products.

 

As regards tourism, in 2006 about 11,400 Lebanese visited Cyprus while 17800 Cypriots visited Lebanon.

Ladies and Gentlemen,

Always an important pillar of the Cyprus economy, the services sector, has surged since the mid-1990s and at present accounts for about 75% of the country’s Gross Domestic Product. The Cyprus Government taking into account the importance of this sector which plays a significant and rapidly expanding-role in the economy of the country has developed a strategy to position Cyprus as an important regional world-class provider of High quality Services to the EU the countries of Eastern and Central Europe to the Middle East and world-wide.

In an increasingly virtual world, being an island is no longer an obstacle to providing services. Professional and business services sector offers a comprehensive range of services from accounting and banking to legal services, IT, business, consulting, design, engineering, shipping and marketing, health care, education and filming.

 

Cyprus has a clear strength in the area of financial services as the “Financial and Services Gateway” in the region, facilitating the exchange of ideas, and offers high quality- value for money services and support among professionals worldwide. Cyprus it’s an attractive corporate and trust environment for international clients.

These in conjunction with the competitive fees charged and the professional attitude of Cypriot service providers account for the transformation of the island into a highly reputable international and reliable business centre.

 

In addition Cyprus now boasts six universities, this gives an excellent opportunity for Lebanese students to choose Cyprus as a place of study. In order to promote our Universities, the Ministry of commerce Industry and Tourism will be organizing a seminar in Lebanon which will provide information about the courses offered by the various educational institutions.

 

Ladies and Gentlemen,

I will conclude, by stressing the following:

My country has seriously taken up the challenge of intensified competition emanating from its accession to the European Union and the worldwide trend towards globalization. As Europe’s eastern outpost, Cyprus, is ideally placed to serve as a regional hub for business with Eastern Mediterranean and Europe and is determined to see this role fulfilled and expanded.

 

The Government of Cyprus is ready to give its full support and encouragement to any serious co-operation between Cypriot companies and companies from Lebanon. Our policy is to create a stimulating environment and the necessary conditions for such cooperation to develop into successful business ventures.

I hope that this seminar will be productive and stimulating especially for the businessmen who I hope will benefit a great deal from it. Let me assure those Investors from Lebanon who are seeking a European bridgehead that they are more than welcome to explore Cyprus and to discover the advantages that it can offer.

Thank you once again for choosing Cyprus for this regional congress and wish do all of you an enjoyable stay in Cyprus.
I wish also from my heart, peace and prosperity to Lebanon and all its people.

Thank you.