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International Investment | 21
Opportunities in
Northern Cyprus
A largely overlooked island has great potential
in a number of areas
by Jonathan Ball
C
yprus is perhaps not the first currency movements and offers excellent and inevitably had its effect on Northern Cyprus to
country to spring to mind when so far largely unexploited opportunities for some degree, until the middle of 2008, the aver-
considering international invest-
ment opportunities. Although the circle6
investment. age economic growth rate ran at an average of 10
The prospects for reaching an accord between to 12 per cent a year (consistent since 2004) –
civil war and subsequent division the Turkish Cypriots and Greek Cypriots look o
of the island are now nearly 35 better than they have ever done and if agree- circle6
ne of the highest in Europe.
Tourism looks set to increase, despite the
years in the past, such conflict ment is reached, this should regenerate the downturn elsewhere in Europe and is predict-
inevitably leaves an element of doubt regarding
the wisdom of financial commitment. But a new circle6
investment potential of the whole island. ed to increase by at least six per cent next year.
A study on the benefits of reunification recent- (The country currently has at least 12 five-star
era certainly appears to be dawning, particularly ly carried out by the PRIO in Norway showed hotels, many B&Bs and is visited by around
in the northern part of the island. that the potential economic benefit of reunifi-
In December a conference was held at the cation is Euros 1.6 billion annually for the circle6
700,000 tourists a year).
The Northern Cyprus Tourist Office expects
London Stock Exchange focusing on the business Cyprus economy across selected sectors. this to hold steady and even increase in the
and financial potential of investing in Northern ( www.prio.nu/cyprus ) near future, as more travellers discover the
Cyprus. The conference was hosted by YAGA, the Northern Cyprus can also claim a strong advantages of the country's competitive holiday
Cyprus Turkish Investment Development Agency underlying growth rate with a buoyant tourist prices and low cost of living, together with its
(a member of the World Association of sector. While the pan-European downturn has perennially sunny climate and natural beauty.
Investment Promotion Agencies) together with
CTCC (the Cyprus Turkish Chamber of
Commerce in the UK).
Cyprus – an ideal location
Northern Cyprus now offers some of the most
competitive business and investment opportuni-
ties in Europe. There are also a wide range of
incentives for investors from overseas and
'fast-track' procedures to get these investments
circle6
started.
The country provides many opportunities to
businesses, with extremely low labour rates
compared with the rest of Europe. It is also
outside the Eurozone, which its southern
neighbour joined this year, though Euros are
freely accepted there. (Its currency is the
Turkish lira). The cost of living there is sub-
stantially cheaper than in most Eurozone
countries. It also offers higher business growth
circle6
rates than many countries in the EU.
Despite, or perhaps because of many years
of trade restrictions, the country has been
largely free from the see-saw swings of recent
www.investmentinternational.com January 2009 Investment International
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