Cyprus is developing into a hub for Collective Investments and managers from various geographical areas
The latest developments of the Investment Funds sector in Cyprus were presented by the president and the members of the Board of Directors of the Cyprus Investment Funds Association (CIFA), in the context of a press conference, held on Wednesday 28 September, at the Journalists House press centre in Nicosia.
The Investment Funds sector is on an upward trajectory and has developed at a rapid pace in recent years. Equally indicative is the fact that the total Assets Under Management have risen from €6.3 billion in 2018 to €11.1 billion in the first quarter of 2022, based on the latest available data from The Cyprus Securities and Exchange Commission (CySEC).
As emphasized, Cyprus has all the guarantees and can become a regional hub for Investment Funds, that wish to take advantage of the investment opportunities in areas such as Europe, the wider Eastern Mediterranean region, and the Middle East. Furthermore, Funds’ investments in the Cypriot economy, to date have exceeded €2.5 billion and are spread across various sectors of the economy, such as Shipping, Renewable Energy, Education, Technology, and Real Estate.
Extensive reference was also made to the challenges created in the sector, firstly by the pandemic crisis and then by the wider effects of the war in Ukraine, inflation and uncertainty in the markets. The latest figures from the European Fund and Asset Management Association (EFAMA) demonstrate the impact of these challenges on the investment fund sector internationally, as in the second quarter of 2022, a global asset decline of 5.5% was recorded.
The President of CIFA, Andreas Yiasemides, stated: “As CIFA we believe that, despite the uncertainty and occurrent instability of the recent years, the sector in Cyprus presented good reflexes, showed resilience, and continued to develop with steady steps at all levels. The benefits of the growth and development of the Investment Funds sector are many–new investments are welcomed to the Cypriot economy; government revenues are increasing; new, well-paid jobs are being created; the traditional model of the professional services sector, and the economy in general, are being diversified”.
The President of the national investment promotion agency, Invest Cyprus, Evgenios Evgeniou, who was also present at the Press Conference, stated: “As far as Invest Cyprus is concerned, the development of the Investment Funds sector acquires particular importance and value if we place it in this context of efforts made to build a new, and above all, sustainable growth model of the Cypriot economy”.
The conference was graced by the presence of the Vice-President of the CySEC, George Karatzias.
