Foreign business contributes a lot for the economy like
the foreign banks. Since entry into the EU Cyprus has received a lot of
foreign investment ranging from restaurants to hotel complexes to commodity
shops. Invisible trade businesses which are foreign insurance companies
and investment fund companies also contribute as much as simple shops
or complexes. International Banking in Cyprus has risen since entry into
the EU which contributes to the GDP of Cyprus. Foreign banks in Cyprus
contribute duties and tax to the economy. This attracts foreign investors
to come and open business.
Off shore companies in Cyprus contribute a fair bit with the main one
being shipping. Ship companies from all over the world use Cyprus as a
shipping base because of the location in between three continents and
being close to the Suez Canal which links the Indian Ocean with the Med.
Cyprus has the sixth biggest fleet of flag carrier ships in the world.
Cyprus is seen as a stepping stone between the EU and the East being the
closet member to the Middle East. This is the reason why investments from
China, India and ex-soviet countries have started. Ex-soviet countries
put their money in Cyprus because of their unstable relations with Russia.
There are plans that the EU is making Cyprus a political centre of the Middle East and further East like the ones in Brussels, Strasbourg and Luxembourg. This is because of a lot of Eastern European entries and Cyprus being the closets to the EU Eastern border.
Exporting commodity ranges from food, cement, pipes (copper), clothes and pharmaceuticals.
Tourism is the most vital of Cyprus’s economy. In
contributes at least 10% of the GDP and in the last few years it has brought
in just over 1 billion sterling pounds each year. Over 2.4 million tourists
visit Cyprus every year with the majority coming from the UK and other
places such as Germany, Israel, Greece, Russia, Sweden and since the EU
entry Poland and Bulgaria.
References
(About Cyprus) pgs 132 to 177.
Published by Press and Information Office, Republic of Cyprus 2004
