The Association of Large Investment Projects has renewed its call for establishing a dedicated Deputy Ministry for Development and Competitiveness. In a statement to President Nikos Christodoulides, association president Andreas Demetriades emphasized the need for a coherent national strategy centered on healthy, sustainable development and well-defined incentives.
Driving Job Creation And Economic Resilience
Addressing stakeholders at the association’s general assembly, Demetriades asserted that large-scale projects not only create jobs but also strengthen the social fabric and secure Cyprus’ future. The deputy ministry would be tasked with bolstering competitiveness, attracting high-quality investments, and coordinating much-needed reforms—from streamlining licensing processes and digitalizing services to establishing a one-stop shop for investors.
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Accelerating Reforms And Simplifying Approvals
The proposed body would oversee targeted licensing for strategic projects, thereby accelerating the development process in measurable ways. This aligns with a broader vision to position Cyprus as a regional business hub, attracting investments in high-end healthcare, higher education, technology, IT, tourism, shipping, green energy, and modern infrastructure.
Showcasing A Portfolio Of Impactful Developments
Demetriades highlighted that the 16 association members manage the island’s largest developments, attracting consistent foreign interest with an €8 billion portfolio spanning marinas, casinos, golf courses, universities, medical centers, research parks, and expansive tourist projects. Such initiatives have not only upgraded Cyprus’ investment and tourism landscape but have also supported thousands of jobs and improved living standards.
Policy Initiatives And Institutional Enhancements
In discussing long-term priorities, Demetriades stressed the importance of continual improvements in the business environment. He cited the recent cost of living allowance (CoLA) agreement as a demonstration of institutional maturity among the state, employers, and unions—a success that reinforces stability and predictability. As Cyprus prepares to assume the EU Council Presidency, these policy improvements are critical for handling weighty European dossiers, including the multiannual financial framework, competitiveness, defense, and security.
Addressing Housing And Infrastructure Challenges
Despite the progress, significant challenges remain. Demetriades underscored the pressing need to address housing shortages and expand educational infrastructure. He recommended targeted incentives, such as increasing building coefficients in selected areas and employing VAT mechanisms for investments in rental properties, to meet the rising demand for affordable housing.
Energy Strategy, Schengen Accession And Local Governance
High energy costs demand a robust, long-term national strategy, which includes improving natural gas supply, accelerating storage system deployment, and constructing critical infrastructure to enhance security and sufficiency. Additionally, accession to the Schengen Area would expand Cyprus’ economic reach and enhance its credibility among international investors.
Collaboration To Overcome Institutional Hurdles
Speakers representing key institutions, including Andreas Tsouloftas conveying President Stavros Stavrou’s message and Constantinos Yiorkadjis from the Nicosia EOA, stressed the importance of multi-level cooperation. They outlined measures such as digitizing permit processes and creating dedicated development services to address longstanding obstacles like bureaucracy, slow licensing, and manpower shortages. Local authorities, especially in sectors like water supply and sewage management, play an essential role in facilitating development and mitigating infrastructure constraints.
A Pivotal Moment For Cyprus
Despite global uncertainty, the resilient Cypriot economy continues to attract quality foreign investment. As institutional reforms progress and strategic incentives are implemented, large-scale developments are poised to sustain and further elevate Cyprus’ competitive edge. Through an integrated approach and strong public-private collaboration, Cyprus is well-positioned to emerge as a pillar of stability, modern governance, and sustainable growth in the region.
