Market Essentials - Cyprus

Cyprus

Market Essentials

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“Cyprus is a good place for UK companies to do business. English is widely spoken and access to decision-makers is relatively straightforward. The personal links are deep and long-standing.”

Peter Millett British High Commissioner to Cyprus

Out of country needn’t mean out of touch.

So, whilst in Cyprus, switch to Cytamobile-Vodafone to access your emails.

Cyprus

Cyprus

Introduction

Cyprus

Useful Contacts

Foreword by the British High Commissioner to Cyprus Cyprus is a good place for UK companies to do business. English is widely spoken and access to decision-makers is relatively straightforward. The personal links are deep and long-standing. Many Cypriots live in the UK and many British expatriates live on the island. Tourism from the UK makes a major contribution to the Cypriot economy. 30% of Cypriot students abroad choose the UK. The Cypriots even drive on the same side of the road and use the same three-pin plugs.

The economy of Cyprus is thriving. The last few years have seen rapid growth, full employment and economic stability.

The main emphasis is on the services sector, tourism, financial services and other business-related services.

Construction, trade and transport are also significant.

Peter Millett

Britain exported £316 million of goods to Cyprus in 2004.

The top five exports were road vehicles, power generating equipment, clothing, electrical machinery and medical and pharmaceutical products. Other areas of opportunity include financial and legal services, environment, healthcare and medical, sports, tourism, food and drink and high technology.

With such strong links and good potential, I warmly welcome this publication which provides more detailed advice to British companies interested in doing business in Cyprus. There are plenty of opportunities for dynamic companies, especially relatively new exporters. The trade and investment section at the British High Commission is keen to help British companies looking to do business in Cyprus. Please feel free to contact David Brown, who leads the trade and investment team. Contact details can be found in the ‘Useful Contacts’ section of this folder.

UK TRADE & INVESTMENT Europe Directorate Kingsgate House 66-74 Victoria Street London SW1E 6SW Tel: 020 7215 4950 Contact: Colin Hosey Email: colin.hosey@uktradeinvest.gov.uk Web: www.uktradeinvest.gov.uk

CYPRUS HIGH COMMISSION 93 Park Street London W1K 7ET Tel: 0870 005 6711 Email: cyphclondon@dial.pipex.com

CYPRUS TRADE CENTRE 1st Floor 31 St George Street London W1S 2FJ Contact: Ioannis Shekeris Tel: 020 7629 6288 Email: cytradecentreuk@btinternet.com

BRITISH HIGH COMMISSION PO Box 21978 Alexander Pallis Street 1587 Nicosia Cyprus Contact: Helen Paphitis or Takouhi Kontou Tel: + 357 22 861 349/343 Email: bhccom@cylink.com.cy Web: www.britain.org.cy

CYPRUS CHAMBER OF COMMERCE AND INDUSTRY PO Box 21455 38 Grivas Dhigenis Avenue 1509 Nicosia Cyprus Contact: Vasilis Rologis, chairman, or Panayiotis Loizides, director-general Tel: + 357 22 669 500 Email: chamber@ccci.org.cy Web: www.ccci.org.cy

CYPRUS TOURIST OFFICE 17 Hanover Street London W1S 1YP Contact: Orestis Rossides Tel: 020 7569 8800 Email: informationcto@btconnect.com Web: www.visitcyprus.org.cy

WHERE IN THE WORLD WILL YOUR NEXT CUSTOMER COME FROM?

Every year we help thousands of companies like yours pinpoint new customers overseas.

As a Government organisation with a unique global network of export experts, we know how important it is to really understand your business.

Cyprus’s location in the Eastern Mediterranean means it is particularly well placed for accessing markets in the wider Middle East region. This has added a further dimension to our traditional relations, providing a familiar, business-friendly base from which British businesses can pursue their business objectives in the entire region.

Whether you are completely new to exporting, or an experienced exporter looking to enter new markets, we offer all the advice, information and practical support you need to make it happen.

Foreword by the Cypriot High Commissioner to the United Kingdom It is a great pleasure to contribute to this Market Essentials folder promoting trade and business between Cyprus and the UK. Relations between our two countries are long standing and wide ranging. There are more than 300,000 Cypriots living in the UK, thousands of Cypriot students have studied in British Universities and there is an ever growing number of British expatriates living in Cyprus. These relations, starting at the grass roots level, have helped to forge a commercial environment that is full of opportunity for both Cypriot and British businesses.

Petros Eftyechiou

Cyprus’s location in the Eastern Mediterranean means it is particularly well placed for accessing markets in the wider Middle East region. This has added a further dimension to our traditional relations, providing a familiar, businessfriendly base from which British businesses can pursue their business objectives in the entire region. Furthermore, Cyprus’s excellent relations with its Middle Eastern and North African neighbours also offer opportunities to Cyprus-established companies, or joint ventures, to access EU funds through the EU’s Neighbourhood Programmes.

The existing volumes of trade between Cyprus and the UK, the 1.3 million British tourists visiting Cyprus in 2005

and the fact that almost 20% of the population of Cyprus visited the UK during the same period, are indicative of the existing levels of cooperation which undoubtedly have the potential and scope for further enhancement.

To find out more about putting our expertise to work for your business, call:

English is widely spoken; Cypriot government and business institutions, as well as the legal system, are along the same lines as those in the UK and English is the “lingua franca” of the business community.

+44 (0)20 7215 8000 www.uktradeinvest.gov.uk

Perhaps the greatest asset of Cyprus, though, is its people.

Cyprus ranks third in the world in university graduates per head, offering the foreign investor a rich pool of knowledge and expertise of the highest quality. The fact that the Cypriot economy is doing so well is largely down to the hard work and quality of this labour force - a source of strength from which foreign investors can also benefit.

The High Commission of the Republic of Cyprus in London is ready to offer all the advice, support and expertise we can to support British firms considering doing business in or through Cyprus. Please do not hesitate to contact us.

© May 2006 - InterTrade Media Limited. All rights reserved.

Photos courtesy of: Cyprus Tourist Office and the agency Dreamstime.com

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of InterTrade Media Limited. The views expressed in this publication are not necessarily those of the promoters involved. Whilst every effort has been made to ensure that the information in this publication is accurate, InterTrade Media Limited cannot accept any liability for loss or damage arising from facts, errors or omissions. Readers should undertake the usual commercial checks before entering into business arrangements.

InterTrade Media Limited UK, Tel: + 44 161 613 5872, Fax: + 44 161 333 5353, E-mail: info@intertrademedia.com

Cyprus

Introduction

Cyprus

Useful Contacts

Foreword by the British High Commissioner to Cyprus Cyprus is a good place for UK companies to do business. English is widely spoken and access to decision-makers is relatively straightforward. The personal links are deep and long-standing. Many Cypriots live in the UK and many British expatriates live on the island. Tourism from the UK makes a major contribution to the Cypriot economy. 30% of Cypriot students abroad choose the UK. The Cypriots even drive on the same side of the road and use the same three-pin plugs.

The economy of Cyprus is thriving. The last few years have seen rapid growth, full employment and economic stability.

The main emphasis is on the services sector, tourism, financial services and other business-related services.

Construction, trade and transport are also significant.

Peter Millett

Britain exported £316 million of goods to Cyprus in 2004.

The top five exports were road vehicles, power generating equipment, clothing, electrical machinery and medical and pharmaceutical products. Other areas of opportunity include financial and legal services, environment, healthcare and medical, sports, tourism, food and drink and high technology.

With such strong links and good potential, I warmly welcome this publication which provides more detailed advice to British companies interested in doing business in Cyprus. There are plenty of opportunities for dynamic companies, especially relatively new exporters. The trade and investment section at the British High Commission is keen to help British companies looking to do business in Cyprus. Please feel free to contact David Brown, who leads the trade and investment team. Contact details can be found in the ‘Useful Contacts’ section of this folder.

UK TRADE & INVESTMENT Europe Directorate Kingsgate House 66-74 Victoria Street London SW1E 6SW Tel: 020 7215 4950 Contact: Colin Hosey Email: colin.hosey@uktradeinvest.gov.uk Web: www.uktradeinvest.gov.uk

CYPRUS HIGH COMMISSION 93 Park Street London W1K 7ET Tel: 0870 005 6711 Email: cyphclondon@dial.pipex.com

CYPRUS TRADE CENTRE 1st Floor 31 St George Street London W1S 2FJ Contact: Ioannis Shekeris Tel: 020 7629 6288 Email: cytradecentreuk@btinternet.com

BRITISH HIGH COMMISSION PO Box 21978 Alexander Pallis Street 1587 Nicosia Cyprus Contact: Helen Paphitis or Takouhi Kontou Tel: + 357 22 861 349/343 Email: bhccom@cylink.com.cy Web: www.britain.org.cy

CYPRUS CHAMBER OF COMMERCE AND INDUSTRY PO Box 21455 38 Grivas Dhigenis Avenue 1509 Nicosia Cyprus Contact: Vasilis Rologis, chairman, or Panayiotis Loizides, director-general Tel: + 357 22 669 500 Email: chamber@ccci.org.cy Web: www.ccci.org.cy

CYPRUS TOURIST OFFICE 17 Hanover Street London W1S 1YP Contact: Orestis Rossides Tel: 020 7569 8800 Email: informationcto@btconnect.com Web: www.visitcyprus.org.cy

WHERE IN THE WORLD WILL YOUR NEXT CUSTOMER COME FROM?

Every year we help thousands of companies like yours pinpoint new customers overseas.

As a Government organisation with a unique global network of export experts, we know how important it is to really understand your business.

Cyprus’s location in the Eastern Mediterranean means it is particularly well placed for accessing markets in the wider Middle East region. This has added a further dimension to our traditional relations, providing a familiar, business-friendly base from which British businesses can pursue their business objectives in the entire region.

Whether you are completely new to exporting, or an experienced exporter looking to enter new markets, we offer all the advice, information and practical support you need to make it happen.

Foreword by the Cypriot High Commissioner to the United Kingdom It is a great pleasure to contribute to this Market Essentials folder promoting trade and business between Cyprus and the UK. Relations between our two countries are long standing and wide ranging. There are more than 300,000 Cypriots living in the UK, thousands of Cypriot students have studied in British Universities and there is an ever growing number of British expatriates living in Cyprus. These relations, starting at the grass roots level, have helped to forge a commercial environment that is full of opportunity for both Cypriot and British businesses.

Petros Eftyechiou

Cyprus’s location in the Eastern Mediterranean means it is particularly well placed for accessing markets in the wider Middle East region. This has added a further dimension to our traditional relations, providing a familiar, businessfriendly base from which British businesses can pursue their business objectives in the entire region. Furthermore, Cyprus’s excellent relations with its Middle Eastern and North African neighbours also offer opportunities to Cyprus-established companies, or joint ventures, to access EU funds through the EU’s Neighbourhood Programmes.

The existing volumes of trade between Cyprus and the UK, the 1.3 million British tourists visiting Cyprus in 2005

and the fact that almost 20% of the population of Cyprus visited the UK during the same period, are indicative of the existing levels of cooperation which undoubtedly have the potential and scope for further enhancement.

To find out more about putting our expertise to work for your business, call:

English is widely spoken; Cypriot government and business institutions, as well as the legal system, are along the same lines as those in the UK and English is the “lingua franca” of the business community.

+44 (0)20 7215 8000 www.uktradeinvest.gov.uk

Perhaps the greatest asset of Cyprus, though, is its people.

Cyprus ranks third in the world in university graduates per head, offering the foreign investor a rich pool of knowledge and expertise of the highest quality. The fact that the Cypriot economy is doing so well is largely down to the hard work and quality of this labour force - a source of strength from which foreign investors can also benefit.

The High Commission of the Republic of Cyprus in London is ready to offer all the advice, support and expertise we can to support British firms considering doing business in or through Cyprus. Please do not hesitate to contact us.

© May 2006 - InterTrade Media Limited. All rights reserved.

Photos courtesy of: Cyprus Tourist Office and the agency Dreamstime.com

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of InterTrade Media Limited. The views expressed in this publication are not necessarily those of the promoters involved. Whilst every effort has been made to ensure that the information in this publication is accurate, InterTrade Media Limited cannot accept any liability for loss or damage arising from facts, errors or omissions. Readers should undertake the usual commercial checks before entering into business arrangements.

InterTrade Media Limited UK, Tel: + 44 161 613 5872, Fax: + 44 161 333 5353, E-mail: info@intertrademedia.com

Cyprus

Introduction

Cyprus

Useful Contacts

Foreword by the British High Commissioner to Cyprus Cyprus is a good place for UK companies to do business. English is widely spoken and access to decision-makers is relatively straightforward. The personal links are deep and long-standing. Many Cypriots live in the UK and many British expatriates live on the island. Tourism from the UK makes a major contribution to the Cypriot economy. 30% of Cypriot students abroad choose the UK. The Cypriots even drive on the same side of the road and use the same three-pin plugs.

The economy of Cyprus is thriving. The last few years have seen rapid growth, full employment and economic stability.

The main emphasis is on the services sector, tourism, financial services and other business-related services.

Construction, trade and transport are also significant.

Peter Millett

Britain exported £316 million of goods to Cyprus in 2004.

The top five exports were road vehicles, power generating equipment, clothing, electrical machinery and medical and pharmaceutical products. Other areas of opportunity include financial and legal services, environment, healthcare and medical, sports, tourism, food and drink and high technology.

With such strong links and good potential, I warmly welcome this publication which provides more detailed advice to British companies interested in doing business in Cyprus. There are plenty of opportunities for dynamic companies, especially relatively new exporters. The trade and investment section at the British High Commission is keen to help British companies looking to do business in Cyprus. Please feel free to contact David Brown, who leads the trade and investment team. Contact details can be found in the ‘Useful Contacts’ section of this folder.

UK TRADE & INVESTMENT Europe Directorate Kingsgate House 66-74 Victoria Street London SW1E 6SW Tel: 020 7215 4950 Contact: Colin Hosey Email: colin.hosey@uktradeinvest.gov.uk Web: www.uktradeinvest.gov.uk

CYPRUS HIGH COMMISSION 93 Park Street London W1K 7ET Tel: 0870 005 6711 Email: cyphclondon@dial.pipex.com

CYPRUS TRADE CENTRE 1st Floor 31 St George Street London W1S 2FJ Contact: Ioannis Shekeris Tel: 020 7629 6288 Email: cytradecentreuk@btinternet.com

BRITISH HIGH COMMISSION PO Box 21978 Alexander Pallis Street 1587 Nicosia Cyprus Contact: Helen Paphitis or Takouhi Kontou Tel: + 357 22 861 349/343 Email: bhccom@cylink.com.cy Web: www.britain.org.cy

CYPRUS CHAMBER OF COMMERCE AND INDUSTRY PO Box 21455 38 Grivas Dhigenis Avenue 1509 Nicosia Cyprus Contact: Vasilis Rologis, chairman, or Panayiotis Loizides, director-general Tel: + 357 22 669 500 Email: chamber@ccci.org.cy Web: www.ccci.org.cy

CYPRUS TOURIST OFFICE 17 Hanover Street London W1S 1YP Contact: Orestis Rossides Tel: 020 7569 8800 Email: informationcto@btconnect.com Web: www.visitcyprus.org.cy

WHERE IN THE WORLD WILL YOUR NEXT CUSTOMER COME FROM?

Every year we help thousands of companies like yours pinpoint new customers overseas.

As a Government organisation with a unique global network of export experts, we know how important it is to really understand your business.

Cyprus’s location in the Eastern Mediterranean means it is particularly well placed for accessing markets in the wider Middle East region. This has added a further dimension to our traditional relations, providing a familiar, business-friendly base from which British businesses can pursue their business objectives in the entire region.

Whether you are completely new to exporting, or an experienced exporter looking to enter new markets, we offer all the advice, information and practical support you need to make it happen.

Foreword by the Cypriot High Commissioner to the United Kingdom It is a great pleasure to contribute to this Market Essentials folder promoting trade and business between Cyprus and the UK. Relations between our two countries are long standing and wide ranging. There are more than 300,000 Cypriots living in the UK, thousands of Cypriot students have studied in British Universities and there is an ever growing number of British expatriates living in Cyprus. These relations, starting at the grass roots level, have helped to forge a commercial environment that is full of opportunity for both Cypriot and British businesses.

Petros Eftyechiou

Cyprus’s location in the Eastern Mediterranean means it is particularly well placed for accessing markets in the wider Middle East region. This has added a further dimension to our traditional relations, providing a familiar, businessfriendly base from which British businesses can pursue their business objectives in the entire region. Furthermore, Cyprus’s excellent relations with its Middle Eastern and North African neighbours also offer opportunities to Cyprus-established companies, or joint ventures, to access EU funds through the EU’s Neighbourhood Programmes.

The existing volumes of trade between Cyprus and the UK, the 1.3 million British tourists visiting Cyprus in 2005

and the fact that almost 20% of the population of Cyprus visited the UK during the same period, are indicative of the existing levels of cooperation which undoubtedly have the potential and scope for further enhancement.

To find out more about putting our expertise to work for your business, call:

English is widely spoken; Cypriot government and business institutions, as well as the legal system, are along the same lines as those in the UK and English is the “lingua franca” of the business community.

+44 (0)20 7215 8000 www.uktradeinvest.gov.uk

Perhaps the greatest asset of Cyprus, though, is its people.

Cyprus ranks third in the world in university graduates per head, offering the foreign investor a rich pool of knowledge and expertise of the highest quality. The fact that the Cypriot economy is doing so well is largely down to the hard work and quality of this labour force - a source of strength from which foreign investors can also benefit.

The High Commission of the Republic of Cyprus in London is ready to offer all the advice, support and expertise we can to support British firms considering doing business in or through Cyprus. Please do not hesitate to contact us.

© May 2006 - InterTrade Media Limited. All rights reserved.

Photos courtesy of: Cyprus Tourist Office and the agency Dreamstime.com

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of InterTrade Media Limited. The views expressed in this publication are not necessarily those of the promoters involved. Whilst every effort has been made to ensure that the information in this publication is accurate, InterTrade Media Limited cannot accept any liability for loss or damage arising from facts, errors or omissions. Readers should undertake the usual commercial checks before entering into business arrangements.

InterTrade Media Limited UK, Tel: + 44 161 613 5872, Fax: + 44 161 333 5353, E-mail: info@intertrademedia.com

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Page 1

Introduction

Cyprus

Welcome Message from the President of the Cyprus Chamber of Commerce & Industry Since ancient times, Cyprus’ position at the crossroads of Europe and Africa, together with the entrepreneurial dynamism of its people, have made the island a key European business conduit, promoting trade and cooperation with the wider region.

Its accession to the EU in 2004 confirmed Cyprus’ position as an important player in European and global trade and reaffirmed its potential as a rapidly developing market.

Moreover, it has further consolidated its position as a trade bridge linking Europe with the Middle East and North Africa and beyond.

Manthos Mavrommatis

Its economy is healthy and growing. With the Gove r n m e n t ’s decision to join the EMU and the Eurozone on 1st January 2008, the country is working hard to make sure the economy is aligned with the relevant EU conve r g e n c e policies and criteria.

The economic growth rate in 2005 is expected to be 4%, a healthy improvement over 2004 (3.8%) and certainly over 2003 (1.9%). The projection for 2006 is 4.2%. Inflation in 2005 and 2004 fell to 2.5%, from 4.1% in 2003, with high crude oil prices the only impediment to a further reduction.

The forecast for 2006 is a steady 2.5% and fiscal deficit and public debt are also decreasing. This economic stability has attracted higher than ever investment levels and 2005 was a record year. The inclusion of the Cyprus pound in the E xchange Ra te Mechanism II, the antechamber to full

membership of the Euro, was seen as confirmation of the country’s progress.

The Cyprus Chamber of Commerce (CCCI) & Industry has always been proactive in promoting the business interests of its members. At a domestic level, it worked hard to help prepare the Cypriot business community for harmonisation with EU directives, regulations and requirements. At a European level, it defended and advanced Cypriot interests in business, professional and other EU bodies.

The CCCI has long been an ardent promoter of the potential of Cyprus as regional business centre. With this in mind, it organises seminars and business meetings in major centres across Europe. Furthermore, it has opened its services to overseas businesses seeking commercial opportunities in Cyprus or who are looking to use Cyprus as a base for broader commercial activity.

In this era of globalisation, Cyprus’ potential as a successful commercial partner has never been greater. It promises a warm welcome to businesses from the EU and elsewhere for mutual commercial development on a grand scale.

The Republic of Cyprus became a member of the EU in May 2004. It is also a member of the United Nations and UN Agencies, the Council of Europe, the Commonwealth, the Organisation for Security and Cooperation in Europe and many other international organisations.

Traditional Clay Pots (Photographer: Paul Morley)

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Country Profile

Cyprus

Geography With an area of more than 3,500 square miles (5632 km), Cyprus is the third largest island in the Mediterranean, after Sicily and Sardinia.

A rugged 400 mile (640 km) coastline is serrated and rocky, with broad, sandy beaches. The 100-mile-long (160-km) Kyrenia mountain range runs parallel to the northern coast and is the southernmost range of the great Alpine-Himalayan chain in the eastern Mediterranean.

The Troodos Mountains in the south and southwest stretch eastward about 50 miles (80 km) from near the island's west coast. The range's summit, Mount Olympus (also called Mount Troodos), reaches an elevation of 6,401 feet (1,951 metres) and is the island's highest point.

Between the two ranges is the Mesaoria Plain (the name means ‘between mountains’), which is flat and low-lying and extends from Morphou Bay in the west to Famagusta Bay in the east. The plain is the principal cerealgrowing area on the island. Roughly in its centre is the capital city of Nicosia.

Cyprus has an intense Mediterranean climate, with a typically strongly marked seasonal rhythm. Hot, dry summers (June to September) and rainy winters (November to March) are separated by short autumn and spring seasons (October and April to May) of rapid change.

Cyprus is a republic with a presidential system of government. Under the 1960 constitution, executive power rests with the President, elected by universal suffrage for a five-year term. The President exercises executive power through a Xxxxxxxxxxxxxxxxxxxxx council of ministers appointed by him. Should members of parliament be appointed as government ministers they have to resign their seat.

Harbour in the South (Photographer: Heike Mirabella)

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Market Opportunities

Cyprus

Introducing Cyprus Cyprus’s pivotal position at the far eastern end of the Mediterranean, at the crossroads of Europe, Africa and Asia, has given it an important strategic role for over ten millennia.

The island acquired its Greek character after colonisation by Mycenaean Greeks between the 13th and 11th centuries BC. Greek language and culture prevailed throughout the centuries despite Cyprus coming under the rule of various powers, including Romans, Byzantines, English crusaders, Franks, Venetians, Ottoman Turks and the British. Cyprus eventually gained its independence in 1960.

Since the 1960s, the business base of Cyprus has been transformed into a modern economy, with efficient services, expanding industrial and agricultural sectors and advanced transport and communications infrastructure.

Tourism and other private services are the main contributors to GDP growth. The increasing significance of the offshore financial sector is reflected in its major contribution to GDP growth. Economic reforms include abolishing the interest rate ceiling, granting the central bank legal independence, capital account liberalisation without jeopardising domestic and external stability, and reform of the tax system.

Cyprus is renowned for its traditional Halloumi cheese, which has been made from a traditional recipe, passed on from generation to generation for many centuries. Halloumi, made from a mixture of goats’ or sheep milk and cows’ milk, is a registered trademark certified by the European Union.

Funds for Further Development Between 2004 and 2006, Cyprus will receive €498.8 million (US$560 million) from the EU, including money for agriculture, infrastructure modernisation and regional aid.

Cyprus’s GDP growth of 1.9% in 2003 was generated by domestic demand, in particular from public and private consumption and the investment demand for construction works. Growth in 2004 rose to approximately 3.7% with inflation decreasing to around 3%.

The fiscal deficit for 2003, which was more than 6% of GDP, reflected the large increase in public expenditure, together with the lower increase in public revenue.

Yachts (Photographer: Sydney Maria Stanislas)

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Market Opportunities

Cyprus

Economic Overview A large number of British firms are represented in Cyprus through agents or franchisees.

The Cypriot business community is accustomed to doing business with the UK and shares a similar business culture. There are no specific restrictions in trade between the two countries and the recent accession of Cyprus into the EU has eased trading conditions even further.

There is substantial local production of drinks, sweets, dairy and meat products as well as extensive imports of almost all types of food products.

Most Cypriot manufacturing units meet the HCCP and ISO approved standards.

The Cyprus market is competitive and local manufacturers must deal with constraints with regard to the importation of raw materials, high labour and production costs.

Cyprus joined the ERM-II exchange rate mechanism on May 2nd, 2005. Taking into account the measures contained in the convergence programme prepared by the Cypriot Government, Cyprus is expected to be able to join the Eurozone

by January 1st, 2008.

An International Business Centre The attraction of foreign direct investment, including the promotion of joint ventures – especially technology-based initiatives – between Cypriot and foreign enterprises, has always been a major objective of government policy.

In particular, the government has proceeded with the liberalisation and simplification of foreign investment rules.

The ceiling on interest rates was abolished in 2001 and money markets have continued to function efficiently. This development has proceeded in tandem with the liberalisation of capital movements by the Central Bank of Cyprus.

Additionally, direct investments in Cyprus by residents of EU member states and Cypriot residents in the EU have been liberalised, blocked accounts abolished and medium and long term borrowing by Cypriot residents in foreign currencies is now unrestricted.

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Market Opportunities

Cyprus

Tourism Cyprus is one of the main holiday destinations of the Mediterranean, making tourism the most important sector of the economy.

Cyprus typically receives around three million tourists per year, half of whom come from Britain. These visitors enjoy local food but they also appreciate ‘Anglicised’ products and services, such as British-style pubs and bars serving familiar brands.

Overall, most tourists come from Europe (95%). As well as UK visitors, other important tourist markets for Cyprus are the Scandinavian countries, Germany, Russia and the countries of the former USSR, Switzerland, Greece and Holland. There is also an influx of tourists from the Middle East, the Gulf and Israel.

The Cyprus Tourism Organisation’s policy is to ensure the island offers a high quality product through the creation of new infrastructural projects such as marinas, parks, camping and excursion sites, nature trails, sports facilities and tourist pavilions. The organisation aims to limit the building rate of new tourist units and up-grade existing ones.

The only large wild animal in Cyprus is the agrino, a species of wild sheep related to the mouflon of the western Mediterranean. It is under strict protection in a small forested area of the Troodos range. Green and loggerhead turtles, which are also protected by law, breed on the beaches along the coast.

Clothing and Textiles EU membership is expected to herald a raft of fresh opportunities in the clothing and textiles sector in Cyprus.

The main competitors in the market are designer brands from Italy, France, the USA and the UK. Franchises from the UK, Spain and other countries are also present.

Cyprus is quickly responding to the needs of the European market, with Cypriot companies striving to offer the expertise and flexibility needed to handle large and small orders, branded and buyer’s own label clothes.

There are opportunities for franchisees to trade on the island as well as for exporters of specialised products. The country is increasingly establishing itself as a serious contender in high street culture and in recent years the government-backed Fashion Resource Centre was created to promote the Cyprus fashion market.

Blue Jeans (Photographer: Charles Taylor)

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Specialist Publisher of Business Information Guides Covering Key British Export Markets

Forthcoming publications will include: Russia

Hong Kong

Singapore

Canada

India

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For further information please contact: Jonathan Hibbert, Operations Manager InterTrade Media Limited Ashbourne House 334 Wellington Road North Stockport Cheshire SK4 5DA England, UK Tel: +44 (0) 161 282 4525 Fax: +44 (0) 161 282 4522 E-mail: jonathan.hibbert@intertrademedia.com

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Market Opportunities

Cyprus

Food and Drink Largely as a result of Cypriots’ improved standards of living and wider exposure to international cuisine through travel abroad, there is growing demand for gourmet as well as ethnic food.

Moreover, an increasingly ‘Western’ lifestyle translates into greater demand for prepared or convenience foods. Cypriots have also become more aware of health and fitness and there is an increased requirement for low fat and organic products.

As Cypriot food manufacturing units are relatively small, they are looking into different alternatives to boost growth. One sector expected to see rapid expansion is private labelling, with a demand for factories that can produce as well as label goods.

Greek Cypriots are mainly Eastern Orthodox Christians who belong to the Church of Cyprus. Under the Ottoman Empire, the archbishop of the Church of Cyprus was made responsible for the secular as well as the religious behaviour of the Orthodox community and given the title ethnarch. There are also Sunnite Muslims, Maronites, Armenians, Roman Catholics and Anglicans on the island.

Visiting Cyprus UK and EU passport holders do not need a visa to visit Cyprus.

Citizens of other countries do.

Travel regulations are liable to alteration and it is advisable to gain up to date information from the Cyprus High Commission or any recognised travel agent. Similarly, the latest official travel advice concerning Cyprus is available from the Foreign & Commonwealth Office.

If you intend continuing your journey to other countries, it is advisable to obtain any necessary visas before leaving Britain. You may have difficulty obtaining them at short notice in Cyprus – particularly for countries with no diplomatic or consular representation on the island.

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Key Facts Full Country Name: The Republic of Cyprus.

Capital city: Nicosia (Lefkosia), population 195,000.

Other main centres: Limassol, Larnaca, Paphos.

Population: 780,000 (2004 estimate).

GDP: €12,402 million (2004).

Language: Greek; Turkish; English is widely spoken.

Dialling code from UK: + 357.

Government: Presidential Republic. The President serves a five year term and exercises executive power through a Council of M i n i s ters appointed by him. The Legislature comprises of one 80 member House of Re p r e s e n t a t i ves, elected for a five - ye a r term, although 24 seats reserved for Turkish Cypriot MPs are currently vacant.

Weights and measures: Cyprus has now converted to the metric system completely. The donum is sometimes referred to as the Cyprus acre, but is, in fact, slightly less than one third of the British acre.

Currency: Cyprus pound (CYP) = 100 cents. 1 CYP = £1.18 (April 2005).

GDP per capita: €19,550 (2004 estimate), purchasing power parity.

Cyprus

Public holidays 1Jan New Year’s Day 6 Jan Epiphany 25 Mar Greek Independence Day 1 Apr EOKA Day 1 May May Day 15 Aug Assumption of the Blessed Virgin Mary 1 Oct Cyprus Independence Day 28 Oct Ochi Day 25 Dec Christmas Day 26 Dec 2nd Day of Christmas Economic composition by sector (2003): Agriculture 4.1% Industry 20.3% Services 75.6% Workforce by sector (2003): Services 75.6% Industry 19.4% Agriculture 4.9% Main trading partners: UK, Greece, France, Russia,Germany, Italy.

Since 1974 the island has been divided with the Turkish Cypriot community in the area of the Republic of Cyprus not under the Government's control north of the UN buffer zone, and the Greek Cypriots in the area under the effective control of the internationally recognized Government of the Republic of Cyprus. All data in this report - unless otherwise stated - refers to the Government controlled area.

Cyprus

Market Essentials

Attached to your email? www.cytamobile-vodafone.com

“Cyprus is a good place for UK companies to do business. English is widely spoken and access to decision-makers is relatively straightforward. The personal links are deep and long-standing.”

Peter Millett British High Commissioner to Cyprus

Out of country needn’t mean out of touch.

So, whilst in Cyprus, switch to Cytamobile-Vodafone to access your emails.

Cyprus

Cyprus

Market Essentials

Attached to your email? www.cytamobile-vodafone.com

“Cyprus is a good place for UK companies to do business. English is widely spoken and access to decision-makers is relatively straightforward. The personal links are deep and long-standing.”

Peter Millett British High Commissioner to Cyprus

Out of country needn’t mean out of touch.

So, whilst in Cyprus, switch to Cytamobile-Vodafone to access your emails.

Cyprus