Economy of Cyprus

the Soviet Union it gained great popularity as a portal for investment from the West into Russia and Eastern Europe,becoming for companies of that origin the most common tax haven. More recently, there have been increasing investment flows from the West through Cyprus into Asia, particularly China and India, South America and the Middle East. In addition, businesses from outside the EU use Cyprus as their entry-point for investment into Europe. The business services sector remains the fastest growing sector of the economy, and had overtaken all other sectors in importance. CIPA has been fundamental towards this trend.

Cyprus holds significant potential in the oil and gas sector, with surveys indicating substantial untapped reserves in the eastern Mediterranean basin between Cyprus and Israel. The estimated reserves are nearly equivalent to the world's total annual consumption of natural gas. Various international companies, including Noble Energy, Shell, Delek, Avner, Eni, KOGAS, TotalEnergies, ExxonMobil, and QatarEnergy, have shown interest and invested in exploration and production sharing contracts. However, infrastructure development for gas landing and liquefaction for export is necessary to fully leverage this potential.

Cyprus has emerged as one of the largest ship management centers globally, with around 50 ship management companies and marine-related foreign enterprises conducting international activities on the island. Its strategic geographical position at the crossroads of three continents and proximity to the Suez Canal have promoted merchant shipping as a vital industry. Cyprus boasts the tenth-largest registered fleet globally, with 1,030 vessels accounting for 31,706,000 dwt as of 1 January 2013.

Tourism plays a crucial role in Cyprus' economy, culture, and overall brand development. With over 2 million tourist arrivals annually, Cyprus ranks 40th globally as a tourist destination. Despite its relatively small population, it ranks 17th per capita in terms of tourist arrivals. The island has received numerous international awards for its sustainable tourism efforts and boasts 57 Blue Flag beaches. Cyprus Tourism Organization oversees industry practices and promotes the island worldwide, contributing to its competitiveness in the global tourism market.

In 2008 fiscal aggregate value of goods and services exported by Cyprus was in the region of $1.53 billion. It primarily exported goods and services such as citrus fruits, cement, potatoes, clothing and pharmaceuticals. At that same period total financial value of goods and services imported by Cyprus was about $8.689 billion. Prominent goods and services imported by Cyprus in 2008 were consumer goods, machinery, petroleum and other lubricants, transport equipment and intermediate goods.