Cyprus at number seven in Top of the Props

The popularity of Cyprus as a destination for overseas property investment has increased according to the July Top of the Props chart published by themovechannel.com and a second survey published by homesoverseas.com

CYPRUS has moved up three places from number 10 to number 7 in the July 2009 Top of the Props chart published by themovechannel.com

The most popular investment destination for British overseas property buyers was the USA, which pushed last month’s number 1, Spain, into second place. These were followed by France and Portugal, in third and fourth places.

Turkey sneaked into fifth place, followed by Italy and Cyprus at six and seven. Rounding off July’s Top of the Props chart was Bulgaria in eighth place, followed by the UAE. Egypt took the final place in the lineup, coming in tenth.

IN A SEPARATE survey, Cyprus has moved up one place to number 8.

Property in Spain has replaced property in Portugal, as the most searched for destination to buy a home abroad based on country page views, and property views, on their website over the past month.

Elsewhere, Greece property has risen from fourth to third, Italy property has fallen a position to fourth, French property is up a place to fifth, Turkey property is down a place to sixth, USA property has gone up from eighth to seventh, Cyprus property is up a place to eighth, Thailand property is down from seventh to ninth, while Egypt property retains tenth spot.

Source: Cyprus Property Buyers

Contract signed for Wind Park in Cyprus

Cyprus is to get its first wind park, one of the biggest in the Eastern Mediterranean, which is expected to be completed by the end of 2010.

The operation of the wind park is a step towards meeting EU objectives relating to energy production from renewable energy sources amounting to 13% by 2020, an official announcement said here today.

The contract for the connection of the first Wind Park, of a total power of 82MW, with the electricity transmission network in Cyprus was signed on July 19 between the transmission system operator of Cyprus and the producer (D.K. Windsupply Ltd), it added.

The wind park will be built by a Danish company in Orites region, in Paphos district, on the west, and will consist of 41 wind turbines of 2,0 MW each.

The European Investment Bank will contribute to the construction with 65 million euro, in addition to a partnership of other international banking institutions.

The announcement noted that the involvement of such major investors and their interest in financing this project demonstrates that the use of wind energy in Cyprus is possible and profitable.

The energy produced by the wind park will be channeled into the transmission network in accordance with the Grant Project of the Ministry of Commerce, Industry and Tourism and will be bought by the Electricity Authority of Cyprus at a price determined in the plan.

Source: Xak.com

Etihad expands services in Cyprus

MIDDLE-EASTERN airline Etihad is expanding in Cyprus by singing a code share agreement with Cyprus Airways.

The company now has three flights a week between Cyprus and the United Arabic Emirates. The airline operates a two-class Airbus A320, carrying around 140 passengers, with availability of 20 business seats and 120 seats in economy class.

Peter Baumgartner, chief commercial officer of Eithad Airways signed the code share MOU with commercial manager of Cyprus Airways Christos Agapiou yesterday in Nicosia during an official ceremony.

The agreement provides the opportunity to Cyprus Airways to use the CY code on Etihad flights between Larnaca and Abu Dhabi. The aim of the code share is to introduce Etihad Airways to the Cypriot market and to increase its presence with cooperation of the island’s national airline.

Source: Cyprus Mail

Cyprus has historic chance to heal the division

The European Commission urged estranged Cypriots Thursday to seize a "historic chance" to reunite their island, split by a conflict spanning decades and troubling Turkey's bid to join the EU.

"The time is now. Do not allow a situation where the younger generation will simply accept the status quo," EU Commission President Jose Manuel Barroso said.

"There is a historic chance now to end this conflict once and for all," he told journalists on a whistle-stop visit to the island, a member of the European Union since 2004.

Cyprus, divided between its ethnic Greek and Turkish Cypriot communities, is a key obstacle in Turkey's chances of joining the European Union.

The Mediterranean island was effectively partitioned in a Turkish invasion in 1974 in response to a brief Greek-inspired coup. Its government-controlled south represents Cyprus in the EU, with the north a breakaway Turkish Cypriot state recognized only by Ankara.

Cyprus's internationally recognized Greek Cypriots say they will never allow Turkey to join the bloc as long as the island is partitioned. Ankara's EU membership talks, which started in October 2005, have been partially frozen because of the situation on the island.

Turkey's progress in membership talks will be assessed later this year.

Greek and Turkish Cypriot community leaders launched peace talks last year, but progress has been slow.

Barroso said the EU Commission was ready to help and support a deal on Cyprus, but said: "We cannot make the deal...it is up to the Cypriots themselves to find a solution.

Cyprus has said it will support Barroso's re-election bid for a second five-year term for the EU Commission presidency.

Source:Reuters

Cyprus To Have Highest Growth Rate In Europe

Minister of Finance Charilaos Stavrakis said on Friday that Cyprus is expected to have the highest and only positive growth rate in Europe in the year 2009. Commenting the latest projections of the International Monetary Fund (IMF) that Cyprus' growth rate is expected to be 0.3% in the year 2009, Stavrakis said that according to calculations of the Ministry aduring the first quarter of 2009 Cyprus' growth rate will be ''quite satisfactory and close to 2%.''

He furthermore said that ''2010 will be a difficult year'' and assured that the government would be making sure to deal with current financial conditions in order to minimise the cost on the taxpayers and the economy in the years to come.

Speaking after a meeting at the Ministry to brief the private sector on the initialing of an agreement between Cyprus and Russia for the avoidance of double taxation and to discuss the action plan for 2009 for attracting foreign investments, Stavrakis said it was positive that, according to IMF figures, ''Cyprus is expected to have the best performance in the whole of Europe.''

This reaffirms the government's position that the fiscal policy it has been following is the right one, which secures the highest possible growth rate in very adverse external conditions,'' he added. Asked if the slower growth rate increases the state's costs, Stavrakis said ''it creates upward pressure on unemployment and possibly a great deterioration of public finances.''

'This is why we are handling public finances in a very conservative and cautious manner, in an effort to restrict ourselves to focused expenditure,'' he added. Stavrakis said ''2010 will be a difficult year and thus we need to maintain several fiscal ammunition in order to support the real economy,'' adding that ''any expenditure that is not a dire necessity at this moment to support the economy is expenditure that the taxpayer and the citizens will bear in the coming years.''

Source: Financial Mirror

Cyprus Airways Increases Flights To Dubai

Cyprus Airways announced that in summer they would fly to Dubai more frequently, namely three times a week.

Cyprus Airways will connect Larnaca Airport with Dubai with direct flights every Tuesday, Thursday and Saturday. The company also announced that for this air route it offers special low-priced fares starting from 260 euros including all taxes except service fee.

Cyprus Airways is the national airline of Cyprus. It operates scheduled services to over 30 destinations in Europe, the Middle and Near East and the Gulf. The company is listed in the Cyprus Stock Exchange (CSE). The Cyprus government is the majority shareholder.

Cyprus Industrial Turnover Up 8.7% In December 2008

Industrial turnover was strong in December according to the latest figures from the Statistical Service. The industrial turnover index reached 165.7 (base 2000=100), recording an increase of 8.7% compared with December 2007. Industrial production in the same period rose by only 1.9%, however.

For the period January-December 2008 turnover rose by 12.8% compared to the same period of the previous year, while production rose by 2.6%. The index comprises mining and quarrying, manufacturing, electricity, gas and water supply. For manufacturing, the index for December 2008 reached 158.1, recording an increase of 5.3% compared with December 2007.

Source: Financial Mirror

Etihad will fly from Abu Dhabi to Larnaca in Cyprus from June

Good news for travellers, Etihad will be flying to Cyprus three days a week from June.

James Hogan, Etihad Airways’ chief executive, said: “The launch of flights to Larnaca illustrates Etihad’s ambitions to strengthen our European network and we anticipate strong demand for flights which will help open up new commercial and cultural ties between the UAE and Cyprus.”

He added: “The new route also offers excellent connecting opportunities in Abu Dhabi, helping to link Larnaca with Cypriot communities worldwide and our new service this month to Melbourne will benefit greatly with the start-up in June of flights from Cyprus.”

The flights, scheduled to for Wednesday, Friday and Sunday, will also appeal to the UAE community who will be able to visit the attractive island for short weekend breaks.

Source: Time Out Dubai 2 March 2009

PRESS RELEASE: The Grove Spa Resort, Mazotos, Cyprus – Appointment of High Profile Prime Contractor

The Grove Spa Resort, Cyprus – Appointment of General Constructions Company Ltd (GCC) as Prime Contractor

InvestinCyprus.com Developers has appointed the General Constructions Company (GCC) as the prime contractor for its landmark 5 Star mixed-use scheme, The Grove Spa Resort in Mazotos, Cyprus.

GCC was founded in 1947 and is one of the leading construction companies in Cyprus with its head office in Nicosia.

GCC has constructed many prestigious projects in Cyprus, including: The Annabelle 5 Star Hotel in Paphos, Ayia Napa Water Park, IKEA, and The Embassy of The People’s Republic of China to name a few. The company has also undertaken large projects for the Cyprus government and UK Ministry of Defence. Further, the company has successfully operated in Saudi Arabia for over 30 years and is now establishing a strong presence in Bahrain.

The motto of GCC is “Quality First” and the company this week celebrates its 62^nd year of delivering quality construction projects.

Commenting on the appointment of GCC, Stephanie Fairhurst, Managing Director of InvestinCyprus.com Developers said,

“ The appointment of GCC as our main contractor shows our commitment to delivering a top quality resort by employing only the very best professionals for this outstanding project. GCC has a strong reputation for excellence and professionalism and we are delighted to be working together.”

Phase 1 of the build of The Grove Spa Resort was completed at Christmas before the purchase of an additional plot of land to add further facilities to the scheme. The revised plans have now been approved by the authorities and Phase 2 of the construction begins this week.

InvestinCyprus.com Developers Director Dominic Farrell says:

“We couldn’t refuse the opportunity to purchase an additional plot of land adjacent to the scheme and buyers have been extremely pleased with the extra value the enhanced facilities have provided.”

Mr Farrell continues, “Testament to the appeal of The Grove Spa Resort is that, even in the present climate, we still have strong interest from buyers and continue to make sales, despite having sold 80% of the scheme before we started construction.”

The Grove Spa Resort, Cyprus is due for completion in 2010.

Notes for Editors:

The Grove Spa Resort in Mazotos, Cyprus is a 5 star mixed-use scheme due for completion in 2010.
In addition to 128 residential units, there is a restaurant, supermarket, on-site rental and resale office, concierge service, health spa, gymnasium, dance studio, hydrotherapy pool, 3 outdoor pools, tennis court, sports TV room, children’s play area and secure underground parking and storage units.

There has been worldwide interest in this project with buyers from UK, Ireland, Cyprus, Hong Kong, Poland, Malaysia, Dubai, Bahrain, Sweden, Italy, India, South Africa, Singapore and Azerbaijan.

For further information and interviews please contact Dominic Farrell on +44 (0) 151 244 5432

14 New Golf Courses For Cyprus: It's Official

The Cyprus government has finally approved the creation of 14 new golf courses, which will bring the total number on the island to 17. The decision was finalised at a cabinet meeting last Thursday (5th February 2009).

Government Spokesman Stefanos Stefanou said the actual decision had been taken by the previous government.

“It was taken for the purpose of strengthening the tourism product in Cyprus and boosting economic activity,” he said.

Dominic Farrell, director of InvestinCyprus.com Developers, the company behind the much acclaimed Grove Spa Resort in Mazotos says:

“This is excellent news for homebuyers and investors alike and will provide a substantial boost to rental demand, re-sales and economic activity in general. Additionally, seasonality will be reduced in areas surrounding courses as the winter months in Cyprus are ideal for playing golf. Combined with the increase in low cost flights from airlines such as easyJet, we will see a sharp increase in visitors to the island. Owners of high quality properties with all-year-round facilities will benefit most.”

For an article by Jet-to-Let Magazine on the benefits of investing near golf courses click here

"Putt" Your Trust In Cyprus

Cyprus has long been an island that has offered Britons everything they like to get from a holiday destination - sandy beaches, blue seas, a long and hot summertime, friendly locals who can speak English and of course, plentiful golf courses.

And it seems that the former British colony may soon have more of the latter to offer, with the news that plans to build 14 new golf courses have been proposed. The effect such development will have on tourists is clear as it is unlikely that any keen golfer will not enjoy being tested by a fresh set of holes, but how could such a move impact upon the decisions of property developers?

According to Paul Collins, the property editor at BuyAssociation.co.uk, an increase in golfing opportunities should provide a boost to the property market in the area. "Whenever leisure facilities like golf courses go in, it does tend to give a bit of fresh impetus to the property market. There have always been golf courses in Cyprus and it has always been a popular reason for people going over there," he said. Mr Collins added that some of the courses on offer are "of a very high standard".

Furthermore, it is not just property developments in the locality of the proposed golf courses that will see the positive effect of their arrival, Mr Collins noted. He stated that due to the size of the island, it is probable that the new leisure facilities will profit the entire community.

"The whole island will probably benefit from this. It's not a massive island and it is quite easy to get around, so there are plenty of places that can benefit from this. People don't necessarily want to live right next door to the attractions," he commented.

And if this news is not enough to tempt overseas property buyers to investigate the options in Cyprus, hard data from Statistical Office of the European Communities might do the trick. It released figures last year that suggest population growth in Cyprus will be the strongest over the next half a century, compared to the other 25 countries in the European Union. It said that the number of people living on the island will swell by 66 per cent, growing to 1.12 million by 2035 and to 1.32 million in 2060. This is despite the fact that the overall population of the EU will gradually decline over the same period by 2.1 per cent.

Overseas property investors who 'putt' their trust in Cyprus now, may well find they land on a small patch of green surrounded by the rough.

Source: Assetz News

Dominic Farrell

Cyprus Inflation Falls to 1.1 Per Cent

NICOSIA, Feb 5 (Reuters) - Cyprus's consumer price inflation eased to 1.1 percent year on year in January from 2.1 percent in December, the statistics department said on Thursday.

On a monthly basis, the consumer price index (CPI) decreased by 2.34 percent to 107.76 units. The fall was primarily due to decreases in the prices of clothing and footwear, and a reduction in the cost of fuel and electricity bills.

Source: Reuters

Dominic Farrell

Bank of Cyprus Profits Increase by 4% in 2008

Bank of Cyprus Group profit after tax for 2008 increased by 4% to EUR506 mln compared to EUR485 mln in 2007, beating analyst expectations ranging from EUR 460 to 506 mln, but short of its target of EUR 540 mln. The results, which correspond to a very satisfactory return on equity (25%) include gains of about EUR90 mln which primarily represent profit from transactions for hedging foreign exchange risk.

The Group’s total loans for 2008 reached EUR 25.1 bln, recording an increase of 29% compared to 2007. The Group’s total loans in Cyprus and Greece recorded annual increases of 25% and 22% respectively.

The Group’s total deposits reached EUR 27.9 bln compared to EUR 25.2 bln in 2007, recording an increase of 11%. The Group’s total deposits in Cyprus and Greece recorded annual increases of 1% and 19% respectively.

The strong liquidity of the Group, with a loans to deposits ratio of 90%, and its minimal reliance on wholesale funding (13%) provide a strong competitive advantage for the Group, particularly under the current adverse conditions prevailing in global money markets.

Despite the dynamic expansion of the Group’s operations the quality of the loan portfolio continued to improve, with the non performing loans ratio decreasing to 3.7% compared to 3.8% at 31 December 2007.
The provision charge was contained at 0.4% (2007: 0.3%) of total loans, reflecting both the good quality of the loan portfolio of the Group and the very satisfactory level of accumulated provisions which include an accumulated collective provision amounting to 1% of total loans.

The Group’s capital adequacy ratio as per Basel II requirements is estimated at 11.3% and the tier 1 ratio at 7.3%.

Uniastrum Bank

On 31 October 2008 Bank of Cyprus completed the acquisition of an 80% interest in Uniastrum Bank in Russia. Uniastrum Bank is accounted for as a subsidiary from the date of acquisition.

Uniastrum’s net profit for the year 2008 reached EUR 16 mln (RUB602 mln) and its contribution to the total profits of the Group for 2008 amounted to EUR 5 mln, as only the last two months of its 2008 profits were consolidated. At the end of the year Uniastrum’s loans reached EUR 875 mln (RUB 36,1 bln), recording an annual increase of 2%. At the end of 2008, Uniastrum’s capital adequacy ratio stood at 17% in accordance with the rules of the Central Bank of Russia, which can support the immediate expansion of the loan portfolio.

Particularly encouraging is the development of Uniastrum’s liquidity, with its deposits reaching EUR 890 mln (RUB 36.8bln), at 31 December 2008, recording a decrease of 4% from 31 December 2007. Compared to 31 October 2008, deposits recorded an increase of 9%, highlighting the increasing confidence of Uniastrum’s customers since its acquisition by Bank of Cyprus. Uniastrum’s loan to deposits ratio stands at 98%.

2009 forecast

Bank of Cyprus forecast that 2009 net profit will range between EUR 300 mln to EUR 400 mln, with the Group having made an adjustment for higher provisions. The Group expects a positive contribution from all the new markets where it operates with the profit of Uniastrum Bank for the year 2009 expected to reach about EUR25 mln.

Source: Financial Mirror

Dominic Farrell

The Grove Spa Resort, Cyprus - Meet The Team

In a series of "Meet the Team" blog postings, we intend to introduce you to the professional team behind the InvestInCyprus.com Developers' 5 star scheme, The Grove Spa Resort in Mazotos.

We have assembled the best possible professional advisers who are the leaders in their field. As all buyers know the developers, Dominic Farrell and Stephanie Fairhurst, you will not necessarily meet the team during the construction. So here we are:

First up is the Architect and Civil Engineer seen here on site. Further information about these two key professionals will be posted tomorrow.

Dominic Farrell

TheMoveChannel Investigates Disneyland In Larnaca

Disneyland of the Mediterranean (in Larnaca)

Last week, it was announced that Russian investors have applied for planning permission to build a brand new Disney resort in Cyprus, which would be the largest ever single investment made on the island -

TheMoveChannel investigates what this would mean for the tourism and property markets in the country...

Who would have thought that Mickey and Minnie would ever make an appearance in Cyprus?

Following the Russian based Boema Group's announcement that it wishes to develop the leased state land near the UN buffer zone around the Larnaca - Famagusta border, this could become a reality.

The conglomerate had originally chosen Serbia as the ideal location for some Disney magic but Cyprus was eventually decided upon after its political stability, EU membership and year round sunshine were highlighted.

The state owned land lies between Turkish and Cypriot lines and the Russian Government are hoping that building the resort there will help to merge the Turkish and Cypriot communities.

"This £754 million project will be the largest investment in our country to be made with foreign investment capital," said Cypriot Minister of Finance, Mr. Charilaos Stavrakis.

The park is seeking to gain the reputation of being the ‘EuroDisney of the Mediterranean' and the rides in the theme park will be inspired by Greek mythology and Cypriot history, such as a daily performance of the naval Battle of Salamis.

A reconstruction of the ancient Kourion Amphitheatre, the Penatadaktylos mountain range and the Baths of Aphrodite will also be wowing visitors. If the park does go ahead, its gates are due to open in 2012, when Cyprus will receive the six-month presidency of the European Union.

What does it mean for tourism and investors?

Anything Disney related is bound to create a lot of hype and a project of this scale on an island like Cyprus cannot fail to have a large impact on both the tourism and investment sectors.

The island's economy relies heavily on tourism and the Cypriot Government thus takes the job of boosting visitor numbers very seriously. Millions of pounds have already been ploughed into improving infrastructure and transport to make access easier and make the island more appealing to overseas visitors.

Larnaca International Airport has been upgraded and future developments of the marina and port are also in the pipeline.

The Government has also recently announced plans to increase the number of golf courses on the island from three to fourteen in an effort to boost numbers.

It is estimated that the new Disney resort will create 3,000 new jobs and become an extremely valuable tourist attraction, drawing attention from holidaymakers and investors who had not previously considered Cyprus.

The resort also aims to attract more than half million tourists per year with high buying power from Russia and other countries of the former Eastern block.

If you own a property in the area or are considering investing in one, the capital growth for the future looks strong and the massively increased tourist numbers should have a positive effect on rental income.

Source: TheMoveChannel

Dominic Farrell

Cyprus Reunification Would Genrate Euro 9 Billion In Investment Expenditure

NICOSIA (AFP)--A reunited Cyprus would cost EUR9 billion, with international donors having to plug a EUR1-billion shortfall to fund a settlement, according to a study released Thursday.

In the independent report published by the local branch of the International Peace Research Institute in Oslo, three Cyprus-based economists focus on the investment needed to implement any peace deal.

"If you look at it rationally, there are ways of financing a solution without the country going bust," said Fiona Mullen co-author of "Reconstructing a Reunited Cyprus."

"Cyprus has lots of sources of finance. It's in the euro zone and has a stable economy. Even in the current global environment, there are plenty of sources to finance a solution," she added.

The report calculates that Cyprus could also receive an additional EUR600 million euros in non-refundable grants from Brussels if re-defined as two statistical regions.

This amount is not included in the estimated total borrowing requirement of EUR9 billion.

Public and private investment is put at around EUR7.2 billion for new housing, renovation and infrastructure projects in moves to unify the road, electricity and communication networks.

The report includes a rough estimate on property compensation based on paying back interest on bonds, although much will depend on any final settlement.

Most of the refinancing would come from Greek, Turkish and Cyprus banks as well as the European Investment Bank, but the shortfall would depend on the "willingness of the international community," the report says.

Source:  Dow Jones Newswires

Dominic Farrell

Closer Ties between Cyprus And City Of London

IAN LUDER, Lord Mayor of the City of London yesterday described his visit to Cyprus as “as a tremendous success.”

During his three-day stay on the island, Luder will be meeting with leading local businessmen, financiers and regulators, in a bid to strengthen economic ties between the City and Cyprus.

The UK is Cyprus’ main trading partner and until not so long ago the island’s main source of tourists.

Luder is accompanied by a high-powered delegation, including people from Lloyd’s, the Chartered Standard Bank, Maritime London, HSBC (Maritime Division) and Partnerships UK, specialising in partnerships between the public and private sectors.

The Lord Mayor is the head of the City of London, one of the world’s leading international finance centres. As head of the City of London Corporation, which provides business and local government services to the City, the Lord Mayor of London's principal role is ambassador for all UK-based financial and professional services.

“We are very pleased with how the visit has gone,” Luder told the Cyprus Mail yesterday after a busy day of meetings with the President, the Finance Minister, top Cypriot bankers, chartered accountants and the head of the stock exchange, among others.

Luder said he had a “very productive” discussion with the Cyprus Stock Exchange where they explored the possibility of bolstering links between the CSE and the London bourse.

One such idea is the dual listing of Cypriot companies on the CSE and the LSE, a move that is felt will boost both the liquidity and outlook of Cypriot entrepreneurs.

Cypriot companies, which are generally small and have restricted liquidity, stood to benefit both in terms of greater liquidity and capital if they also traded on the LSE, Luder said.

They could be listed either on the main LSE market or on alternative markets.

“We are acting as facilitators…to forge closer links between the two countries’ business communities,” added Luder.

A hot item on Luder’s agenda was seeing “how we can deal with the economic crisis together” following concerns that Britons may stop visits to the island or stop buying homes here due to the falling sterling.

“In particular, we talked about the tourist industry. As you know, consumer demand has been weakened by the exchange rate movements. Now Cyprus may have to look at its pricing, as well as how it markets itself abroad,” Luder said.

Other issues discussed include public and private finance of infrastructure projects, regulatory issues, and education and training.

The Lord Mayor will be in Limassol today for contacts with the merchant marine and legal communities.

“We have extended an invitation to Finance Minister Charilaos Stavrakis to visit London. Naturally, business contacts between the City and Cyprus will continue in the interim,” he said.

The Grove Spa Resort, Cyprus, Construction Update

We are progressing well with The Grove Spa Resort, Cyprus construction.

Phase 1, which was the excavation of the land and preparation of the basement and foundation, is completed. The addition to the scheme of a further plot of land (that we purchased before Christmas in order to considerably enhance the development) has been approved by the planning authorities and is now being excavated for the basement and foundations. 

The extra space the land has provided will allows us to make significant improvements and a lot of buyers are really delighted with the extra facilities we are adding.

 

Details of the additional plot at The Grove Spa Resort can be found in the previous blog.

Phase 2 begins very shortly and I will post progress on this in due course.

In the meantime the interior architect has been finalising the interior look of the Spa and reception facilities. Watch this space for more news on this soon.

 

Dominic Farrell

 

www.thegrovesparesort.blogspot.com

UAE And Cyprus Explore Trade

The UAE-Cyprus Business Forum explored strategies aimed at enhancing bilateral trade, investment and tourism between the two countries.

The event was organised by the Sharjah Chamber of Commerce and Industry (SCCI) in coordination with the Cyprus Chamber of Commerce and Industry, the Cyprus Ministry of Trade, Industry and Tourism, and the Cyprus Trade Center in Dubai.

Delegates discussed the business and investment opportunities opened up by Cyprus’ liberal business and trade environments. The country allows foreign investors to acquire an equity share of up to 100 per cent in any domestic enterprise, does not require a minimum level of capital investment, and offers tax incentives that support maximum profit, said an official spokesman.

The forum also examined ways to further take advantage of Cyrpus’ strategic geographic location, which is close to vital shipping and air routes linking Europe with Middle and Far East countries.

“Cyprus serves as an important link between Europe and the Middle East. Its position at the crossroads of three continents in effect makes it Europe’s south-easternmost trading post. The significant gains the country has made in domestic economic and regulatory infrastructure, banking, and international finance in particular make it an essential part of the UAE’s foreign trade agenda,” said chairman, SCCI, Ahmad Mohammad Al Midfaa.

Cyprus, the third largest island in the Mediterranean Sea, lies at the intersection of the European, African and Asian continents.

It became an official member of the European Union (EU) in 2004, which significantly enhanced its economic and investment prospects. Its increasing role as a major regional and international commercial and business partner and the emergence of local economic growth areas such as telecommunications and tourism mirror the UAE’s own development as a business and travel hub of the Middle East.

The UAE has been highly supportive of initiatives to boost its bilateral relations with Cyprus and between the Gulf and the EU in general.

“Our countries have been able to overcome the challenges posed by today’s difficult economic conditions due to our diversification into lucrative industries, our wise management of our resources, and our good relations with our trade partners. Through this Forum, we hope to further strengthen our ties and together strive to attain our shared goal of sustained prosperity and peace,” said commercial and industrial officer, Cyprus Ministry of Commerce Industry and Tourism Charalambos Orphanides.

The Sharjah Chamber of Commerce and Industry has been hosting several meetings with its regional partners in support of the domestic business community and for the development of its members. – 

TradeArabia News Service

Cyprus to receive up to 300 million euro from European Investment Bank

The European Investment Bank (EIB) will finance Cyprus with up to 300 million euro for infrastructure projects, the use of renewable sources and for supporting small and medium-sized enterprises, through Cypriot commercial banks, thus boosting the island’s economy and social coherence.

This was stated Thursday by EIB Vice-chairman Ploutarhos Sakelaris after a meeting he held in Nicosia with Finance Minister Charilaos Stavrakis.

In statements to the press after the meeting, Sakelaris expressed the EIB’s confidence in the Cypriot economy and the measures taken by the government, adding that the economy of Cyprus ''will continue to develop” despite the world economic crisis.

He said that in 2009, Cyprus would receive double financing compared to the amount it received in the past ten years.

''Our cooperation with the Cypriot authorities is very good, but through effort we could increase our activities in Cyprus and double it this year and next year. With effort and the proper development projects the financing for Cyprus could reach 200 to 300 million euro”, he said.

During the meeting, the Cypriot Minister and the EIB delegation, headed by Sakelaris, discussed ways of cooperation to the benefit of the Cypriot economy.

According to EIB data, during the last 12 years, Cyprus received EIB financing reaching 1.5 billion euro, half of which was granted after Cyprus’ EU accession in 2004.

Sakelaris expressed the view that during the first semester of 2009 contracts would be signed with the Cypriot commercial banks for granting loans to the Cypriot small and medium sized enterprises.

In his statements, the Cypriot Minister of Finance said that the main areas of cooperation with the EIB are “the financing of great government projects, projects of the local authorities, the semi-governmental organizations, under attractive conditions”.

He expressed the view that “the most important is the financing of small and medium –sized enterprises with competitive interest rates through the Cypriot banks”.

The Minister said that Friday a meeting would be held with representatives of the Cypriot banks to discuss in detail “how this liquidity could be granted” and expressed the conviction that very soon there would be positive results.

''This possible cooperation is in line with our development policy, the great public projects, the support towards the small and medium-sized enterprises and the enhancement of the liquidity in the market”, he said, adding, “this contributes to our ambitious goals to achieve an even higher growth rate”

Source:  Financial Mirror

Dominic Farrell

The Grove Spa Resort, Cyprus - New Land, New Facilities

I have just got back from Cyprus where I spent the week working with Constantinos the architect and the whole consultancy team to finalise the changes to the plans for The Grove Spa Resort.  

 

Back in November 2008, we bought a new piece of land adjacent to The Grove Spa Resort that recently became available. We felt this offered a fantastic opportunity to improve the overall layout of the scheme and add in extra facilities.

 

The purchase of the extra 780m2 of land has enabled us to do several things to considerably enhance the Resort:

 

We have created a much larger central space between Blocks D & E and added a further pool for children with a beach-style entry and waterfalls plus more gardens and sunbathing space around this new pool.

 

We have also been able to extend the shops. The size of the supermarket has increased from 95m2 to 150m2 which means we can now offer an on-site bakery and off-licence in addition to general groceries and fresh food.

 

The second shop has been increased from 53m2 to 90m2 to allow an extra retail facility in addition to the on-site re-sales, lettings and management office.

And finally we have added three new 1 bedroom apartments plus two 2-bedroom apartments to the second floor of Block C.

Please see the attached site map to see the new scheme layout.  I think you will agree that the overall design of the scheme is significantly enhanced and that the additional pool, gardens and shops provide increased amenity at no extra cost, thereby enhancing your investment and offering even better value for money.

 

Stephanie Fairhurst

 

InvestinCyprus.com Developers

 

http://thegrovesparesort.blogspot.com/

Larnaca Facelift On The Way

BRAND new walkways, parking spaces and three town squares are part of the planned projects for the transformation of the centre of Larnaca, which is expected to be completed by summer

A fountain will be built at Ermou Square as well as a specially designed roof-covered space to host various events, Larnaca Mayor Andreas Moiseos told the Cyprus Mail yesterday.

He said the municipality intended to build two new roads in order to relieve the congestion in the centre of the town and change the direction of the existing ones.

“The new traffic arrangements mainly concern Ermou and Ayios Lazaros squares….the completion of the renovation works of the Ermou, Medieval Castle and Ayios Lazaros squares in conjunction with the new traffic arrangements are expected to bring a breath of fresh air to the market,” he said.

“People just pass with their cars but no one actually gets down for shopping. They avoid it because of the chaotic situation such as congestion and lack of parking, these new measures will end this.”

Moiseos said three separate studies had been conducted to carry out these projects and they all more or less come to the same conclusion regards what has to change and how it will change.

Based on the main findings of the three studies, 70 per cent of the traffic is just passing through to get from the east to the west of the city and vice versa. Another important finding of the study is that the existing parking is not sufficient so two new multi-levelled parking places will be built in cooperation with private investors, he said.

According to Moiseos, all work will be completed by the end of July, beginning of August. The transformation will include paving, benches, new lighting and special columns that will seal off cars from the paved walk paths.

“The part that will be paved at Zenonos Avenue will only be open to traffic at certain times and mostly for commercial cars. It will be closed for cars on weekends”, the Larnaca mayor said.

“We have distributed a special pamphlet informing the residents over the new traffic arrangements, and we will also hold meetings where they can express their views and their questions”, Moiseos said.

Cyprus Preparing For Natural Gas Talks With Israel

IN ONE YEAR Cyprus should know whether there are worthwhile reserves of natural gas off its southern coast, a government official said yesterday.

Solon Kassinis, head of the Commerce Ministry’s Energy Department, was referring to Israel’s discovery of large amounts of hydrocarbons in its territorial waters this week.

A US-Israeli exploration group led by Noble Energy said on Sunday it had found more than 88 billion cubic meters of natural gas 90 kilometres from the port of Haifa in northern Israel.

According to Reuters, the group plans to carry out production tests and additional verification drills in the next few months before making a final decision on whether to go ahead with an investment expected to reach $1.5 to $2 billion. The natural gas is estimated to be worth a total of $15- billion to $16 billion over a 15-year period starting in 2013.

The Israeli site is close to one of the exploration blocks earmarked for possible drilling by the Cyprus government and known as ‘Block 12.’ The government is said to have reached a preliminary deal with Noble Energy on this block, which appears to be the most promising.

Noble Energy is an independent energy company engaged in the exploration, development, production and marketing of crude oil and natural gas. It has operations in the Gulf of Mexico, West Africa, the North Sea and Israel.

Nicosia and Tel Aviv now need to thrash out an agreement fixing their respective Exclusive Economic Zones (EEZ) so there is no overlap.

Kassinis said the government was preparing for talks with Israel. A high-level visit to the neighboring country was on the cards.

He foresaw no major obstacles in concluding an agreement.

“I don’t think there will be problems…although there are some vague points to be clarified,” he told newsmen, without elaborating.

Kassinis gave a ballpark figure of three to five years when asked one might expect actual drilling to commence in Cypriot waters.

“But no sooner than that,” he added.

He also denied press reports that some oil corporations had lost interest in the other blocks and jumped ship because the blocks did not appear to contain enough natural gas to make drilling profitable.

But Kassinis said no company had bailed out; rather, he said, the government had decided that these corporations did not meet the criteria spelled out in the bids.  

Dominic Farrell

Breaking News: Gas Found Near Cyprus Reports Israeli Media

Reports from Israel suggest that a US based drilling has company has discovered a massive reserve of gas between Israel and Cyprus.

Israeli Infrastructures Minister Binyamin Ben-Eliezer said that the find was of “historic proportions,” and that it could change the face of Israel’s economy.

Arutz 7 Radio reports that the Houston-based Noble Energy company, drilling for Israel’s Delek fuel company, announced that it has discovered a huge deposit of natural gas under the Mediterranean Sea near Haifa.

If verified, the news will come as a welcome surprise to the government in Nicosia, which last year announced their own data indicated that there are oil and gas deposits in a sea area separating the island from Egypt to its south and Lebanon to its east.

According to Arutz 7, 87 billion cubic meters, or nearly 3.1 trillion cubic feet, of high-quality gas are estimated to be in three deposits in the Tamar Drilling site.

The gas is located 90 kilometers west of Haifa, between Israel and Cyprus, but the rights to the Cypriot drilling sites are also owned by an Israeli company.

The depth of the water above the find is 1.7 kilometers, over a mile, and the gas is located another 4.9 kilometers deep in an area 140 meters wide.

The Cyprus government signed agreements with Egypt in 2005 and Lebanon in early January this year delineating their sea boundaries in the eastern Mediterranean to facilitate future underwater oil and gas exploration.

In November the government accused Turkey of harassing two Panamanian-flagged oil research vessels in international waters.

The dispute came as little surprise to many political commentators, some of whom have long predicted that oil and gas exploration by either side would stoke tensions in the region.

Turkish Cypriots have strongly objected to any exploration by the Greek Cypriots and said that any natural reserves discovered belong to both sides.

Some studies suggest that there could be undersea reserves of up to eight billion barrels of crude oil off Cyprus.

Copyright © Famagusta Gazette 2009

Dominic Farrell

Cyprus Annual Inflation Down to 1.8% In December 2008

Cyprus annual inflation was 1.8% in December 2008 , down from 3.1 in November 2008.

According to a Eurostat news release issued here Thursday, said that Euro area annual inflation was 1.6% in December 2008, down from 2.1% in November. A year earlier the rate was 3.1%. Monthly inflation was -0.1% in December 2008.

EU annual inflation was 2.2% in December 2008, down from 2.8% in November. A year earlier the rate was 3.2%. Monthly inflation was -0.1% in December 2008.

In December 2008, the lowest annual rates were observed in Luxembourg (0.7%), Portugal (0.8%) and Germany (1.1%), and the highest in Latvia (10.4%), Lithuania (8.5%) and Estonia (7.5%). Compared with November 2008, annual inflation fell in twenty-four member states and rose in one.

The lowest 12-month averages up to December 2008 were registered in the Netherlands (2.2%), Portugal (2.7%) and Germany (2.8%), and the highest in Latvia (15.3%), Bulgaria (12.0%) and Lithuania (11.1%).
The main components with the highest annual rates in December 2008 were housing (3.6%), alcohol and tobacco (3.5%) and hotels and restaurants (3.3%), while the lowest annual rates were observed for transport (-2.5%), communications (-1.8%) and recreation & culture (0.3%).

Concerning the detailed sub-indices, gas (+0.28 percentage points), restaurants and cafes (+0.16), bread and cereals and electricity (+0.11 each) had the largest upward impacts on the headline rate, while fuels for transport (-0.81), heating oil (-0.20) and telecommunications (-0.12) had the biggest downward impacts.

The main components with the highest monthly rates were recreation and culture (2.0%), hotels and restaurants (1.0%) and food (0.2%), and the lowest were transport (-1.9%), clothing (-0.8%) and housing (-0.7%). In particular, package holidays (+0.20 percentage points) and accommodation services (+0.08) had the largest upward impacts, while fuels for transport (-0.34) and heating oil (-0.14) had the biggest downward impacts.

Source:  Financial Mirror

Record Passenger Traffic At Cyprus Airports

Hermes Airports Ltd announced a new record for passenger traffic at both Cyprus International Airports. According to the latest findings, throughout 2008 over 7,238,000 passengers passed through the country’s International Airports, which translates to an increase of 3.26% and overturns the previous record last year of 7.009.803 passengers.

Approximately 5.5 million passengers passed through Larnaka International Airport during 2008, an increase of 4% in relation to 2007. An increase in passenger traffic was also recorded at Pafos International Airport where about 1,760,000 passengers used Cyprus’ second International Airport in 2008.

In December of 2008 alone, both airports served over 320,000 passengers who travelled to and from Cyprus during the Christmas period. The greatest traffic, however, was observed during the month of August when over 1,020,000 passengers used the country’s two airports.

In a statement, Hermes Airports Ltd Public Relations and Communications Manager, Adamos Aspris said: «We are happy with the new record for passenger traffic at both our country’s airports in 2008. The past year signified the beginning of a new era for air transport in Cyprus as the new Pafos Airport began its operations. Even though 2009 is expected to be affected by the global economic downturn, Cyprus’ airports are welcoming the New Year with an encouraging and optimistic message, which is none other than the opening of the new contemporary Larnaka International Airport in 2009. We are confident that despite any possible downturn in the market, we are going to see a successful opening of our new terminal».

With the two new International Airports in operation, Hermes Airports aims to provide not only a higher standard of service to travellers coming to and from Cyprus but also to strengthen the country’s economy, particularly the tourism industry.

Source:  Financial Mirror

"Disneyland" Of The Mediterranean in Larnaca

This is the translation from Greek to English I promised in the last posting.

RUSSIANS WISH TO INVEST 800 MILLION EUROS AND BRING HALF MILLION TOURISTS TO CYPRUS

“DISNEYLAND OF THE MEDITERRANEAN” IN PYLA

Russian investors wish to build a theme park in Pyla in a land of over 600 donums. The project is estimated at a cost of 800 million Euros and if the plan materialises, will be the largest investment ever made in Cyprus, made with foreign investment capital, said Minister of Finance, Mr. Charilaos Stavrakis. According to the advisors of the investor group, the materialisation of this grand plan will have multiple benefits for Cyprus. To start, it will create 3,000 new jobs, but most importantly will attract a half million tourists per year with high buying power from Russia and other countries of the former Eastern block.

The Russian government is informed of the plans of the 4 investors and supports the plan as it will assume a bi-communal nature, and will also indirectly allow it to exert increased influence in the politics of the island. This is assumed by the selection of an area inside the “no man's land” (buffer zone between the area controlled by the Republic of Cyprus and that controlled by the Turkish military) in the area of Pyla village. If the Cyprus government, currently reviewing the application of Boema Group which represents the interests of the Russian investors consents to the leasing of state land in no man's land, the bi-communal nature of the theme park will be defined by two main entrances, one from each side, and by the inclusion of Turkish-themed attractions as well. According to the Minister of the Interior, the leasing of state land is very difficult but not impossible and was not the reason for the rejection of the first application of the consortium. In addition, in the construction and operation of the theme park, Turkish Cypriots will participate as well. The Russian government has received complaints from the Turkish Cypriot community leaders for not investing in the northern part of Cyprus and with this project is likely to satisfy them.

Christodoulos Papadopoulos, the Director of Boema in Cyprus, in an interview with Politis Daily, gave us a “tour” of the theme park and went over the status of the efforts of the group to secure state land for the project. The project was originally scheduled to be made in Serbia, where state land was offered, until Cypriot advisors engaged in the process suggesting Cyprus. The disadvantages for Serbia included political instability whereas the advantages of Cyprus, which include the better weather and climate and the potential to secure European Union funds in the areas of culture and renewable energy resources, helped change the plans in favour of Cyprus.

The two minister committee which is considering the leasing of state land, under the auspices of Minister of the Interior Mr. Neoklis Silikiotis, has already dealt with a previous plan requesting 1,000 donums of state land, which was rejected, on grounds of the size of the project. The committee is convening again in the coming week to examine the application anew, this time for 650 donums of state land. In case the leasing of state land is granted, the issue will be presented to the Council of Ministers for final approval. However, according to Mr. Silikiotis, the application faces difficulties due to the plan's enormous size as well as the fact that it is located in “No Man's Land”. Two more ministers, Charilaos Stavrakis and Antonis Pashalides (Minister of Commerce and tourism) agree with this position, stating that it is premature to talk definitively about this project.

However, according to Mr. Papadopoulos, whose office started working with the Group of investors a year and a half ago, things are on a good path. Contacts are already made with the government of Cyprus, the two mayors of Pyla, the United Nations via the Foreign Ministry of the Republic of Cyprus, and any obstacles can be overcome. In case the leasing of state land is not possible, the interest of the Russian investors is still there, as there is a plan B for the construction of the project in state land at another location.

According to Mr. Papadopoulos, the viability of the project is a given, as the investors have secured assurances and have signed tentative agreements with tour operators who move 15 million Russian tourists a year, for the transport of half a million tourists a year to Cyprus. At the same time, the overall development in the Larnaca area with the new airport, the marina and the upgrading of the port to accept cruise ships, opens new prospects for the success of the theme park. The investors seek the permits for the project soon so that it may be operational by 2012, when Cyprus will receive the 6-month presidency of the European Union. In case the lease of state land is approved, the plans for the theme park will be submitted without delay to the Planning Authority. On the question of the identity of the Russian investors, Mr. Papadopoulos stated that they are Russian businessmen investing in Moscow as well as in European countries, in the fields of restaurants, night clubs, etc, while this period they are constructing a shopping mall in Moscow. The General Manager of Boema Group in Cyprus is Mr. Theofanis Pantelides. The construction company will be Chinese, with experience in the Olympic Games, while the co-operation with Cypriot architects and constructors is a given.

The theme park will include a 1,000-bed five-star hotel. The hotel will have such a shape that all rooms will have a garden view and will be next to the theme park, water park, cinema, theaters, amphitheaters, a ski slope, water falls, adventure park, shops, spas, museum, etc. The rides in the theme park, and the general theme will be inspired by Greek mythology and Cyprus history. Big parts of the park will be covered to be used in the winter as well. The name of the park, “Pygmalion and Galateia” will be taken from Cyprus history. Tourists visiting Cyprus are interested to know our history and culture. In one of the pools, which will have a mechanism for the creation of waves, there will be a daily show with the Battle of Salamis, with actors and possibly with the inclusion of some of the audience. The amphitheatre will be based on the ancient Kourion Amphitheatre, and with elements from Herodion amphitheatre. The Penatadaktylos mountain range will also be there and visitors will be able to climb it. Another pool will be themed after the Baths of Aphrodite.

The theme park will be open to all and will provide free transportation from all major cities in Cyprus.

Article taken from Politis (newspaper) 11-1-09 and translated into English
Article code 846092

Dominic Farrell

Breaking News: €800million "Disneyland" Style Project For Cyprus

"This is great news and is a further major infrastructure project for the Larnaca and Famagusta districts.  Combined with the recent announcement concerning the construction of golf courses in the area, the medium to long-term outlook for property prices and rentals is sound.  This complex is only a 20 minute drive from The Grove Spa Resort, Mazotos."  Dominic Farrell

"Russian investors have announced their intention to construct the world’s largest children's entertainment facility in the mixed village of Pyla.

The new Disneyland-type project is expected to cost €800million and be the biggest entertainment complex in Cyprus.

It is also estimated that it would create up to three thousand jobs.

According to Politis, the Russian government is in favour of the building of the facility in the buffer zone so that it would play a supporting role among the two communities."

Few other details about the project are available. - Copyright © Famagusta Gazette 2009

Cyprus GDP grew by 0.6 in Q3 '08 despite financial crisis

Cyprus Gross Domestic Growth (GDP) grew by 0.6% in the third quarter of 2008, confirming the Cypriot economy's strong resistance to the global financial crisis, according to figures released today by Eurostat, the European Union's Statistical Service.

Cyprus' GDP for Q3 2008 increased to 3.5%, recording a 0.6% growth compared to Q2, which constitutes one of the best performances in the Euroarea, which entered a technical recession recording a 0.2% decline both in Q3 and Q2.

The whole EU27 did not enter technical recession because the GDP declined by 0.2% in Q3 but recorded a zero growth in Q2.

On a yearly basis, Cyprus' GDP reached 3.5% the same as 2007 second quarter, while the Euroarea average grew by 0.6% compared to Q3 2007.

Source:  Financial Mirror

Cyprus November '08 unemployment third best in the EU

The Seasonally adjusted unemployment in Cyprus reached 3.9% in November 2008, recording the third best unemployment rate in the EU after the Netherlands (3.7%) and Austria (3.8%), according to figures released today by Eurostat, the EU's statistical service.

Compared to November 2007, Cyprus unemployment in November recorded a minor increase by 0.1% to 3.9%, a figure unchanged compared to October 2008.

Women's Unemployment in November was 4.4%, compared to 4.5% in October, while Men's unemployment rose by 0.1% to 3.4% compared to October 2008. Unemployment in youth (under 25 years) stood at 9.6% (September ‘08 figures).

According to Eurostat, average unemployment in the Euroarea increased by 0.1% to 7.8 compared to 7.7% in October 2008 while in the EU 27 unemployment reached 7.2% compared to 7.1%.

In absolute numbers, the November total number of unemployment in the EU was 17.4 million people, of which 12.2 million people are from states of the Euro area. Compared to August 2008, total unemployment rose by 1.13 million, of which 1.05 comes from the Euroarea.

Source:  Financial Mirror

Cyprus Golf Courses to total 14

Over the Christmas break, the Financial Mirror in Cyprus reported,

“Cyprus government plans to increase its golf courses to 14 in a bid to enrich its tourist product, Cypriot Minister of Commerce, Industry and Tourism Antonis Paschalides said.  Paschalides met with Cypriot businesspeople to discuss the government decision to increase the number of golf courses to 14.

''The proposal stipulates that there will be up to 14 golf courses in Cyprus'', he said, adding that three already operate on the island.  He added that government desires development, adding however that there should be a balance between development and the environment.

Paschalides said that he will examine the concerns expressed by the businesspeople and will discuss them with the other Ministers composing the Ministerial Committee dealing with the issue.
He added that after a consultation there will be a balanced proposal so everybody concerned will be satisfied. 

''Golf courses certainly reinvigorate effectively the tourist industry,'' he said.
Paschalides called for a ''geographical balance,'' adding that the golf courses will be constructed in Larnaca, Famagusta and Paphos.”

Those of us who know Cyprus well understand that things don’t happen overnight.  But the government’s direction is clear and will have a profound positive effect on the island in years to come.

Source:  Financial Mirror

Dominic Farrell

Financial Times Top 10 Investment Locations For 2009

The Financial Times recently published (27/28 December 2008) its Top 10 property investment locations for 2009. The Top 10 were: London, Paris, New York, Montenegro, Majorca, Austrian Alps, Southern Cyprus, Costa Rica, Turkey and Cambridge (UK).

I would agree with the majority of the Top 10.

It's great seeing Cyprus recommended as the country is very close to my heart and I have also made substantial profits on the properties and land I have invested in since 2003.

I must admit to looking forward to my next trip and getting away from the UK winter blues.

Dominic Farrell