Remarkable Growth in Cyprus Investment Fund Sector Draws Interest from India, the Middle East, and Japan

The recent developments in Cyprus’ investment fund sector have generated significant interest, particularly from investors in India, the Middle East, and Japan. These developments were showcased during the 9th International Funds Summit and Expo, a prestigious event jointly organized by key associations in Cyprus.

At the summit, the government’s commitment to research, innovation, and technology as drivers of economic growth was highlighted. This dedication has been rewarded with Cyprus attaining investment-grade status, recognized by international rating agencies.

Cyprus’ strengths in fostering innovation, including its strong connections with small and medium-sized enterprises, robust research systems, and innovative business processes, have positioned it favorably in the European Union and the Global Innovation Index.

The government’s long-term strategic plan, Cyprus Vision 2035, aims to establish the island as a regional hub for innovation and technology. This vision seeks to leverage digitalization to make Cyprus an attractive destination for living, working, and conducting business.

The Research and Innovation Foundation plays a pivotal role in supporting the Cypriot ecosystem through funding programs and support services aimed at nurturing innovative startups and businesses targeting global markets.

The foundation’s new funding framework for 2021-2027 allocates an additional €150 million to various sectors, promoting research, collaboration, knowledge transfer, innovation, infrastructure, capacity development, and internationalization.

The summit also underscored the sector’s remarkable growth, with total assets under management reaching €10.7 billion by the second quarter of 2023, marking a significant 175% increase since 2017.

The Cyprus Investment Funds Association (CIFA) observed a growing trend of capital managers from various regions, drawn to Cyprus’ significant advantages in the investment sector. There is notable interest from India, the Middle East, and Japan in establishing a presence in Cyprus.

The sector’s diversification is evident, with a variety of asset management and collective investment companies totaling 334, managing assets exceeding €10.7 billion. Over 160 collective investment organizations are investing in Cyprus, with investments totaling over €2.8 billion, emphasizing the sector’s strength and appeal.

The prominence of Cyprus as a mutual fund jurisdiction is underscored by the allocation of nearly 90% of assets under management to securities. This diversification includes investments in private equity, hedge funds, real estate, and mutual funds.

Furthermore, Cyprus’ top-ranking in Europe for cross-border investment services demonstrates its role as a leader in regulated industries and its ability to meet global financial standards.

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