Due to its geographical location, Cyprus has always been a destination for hosting people who were forced to leave their countries due to war conflicts. For example, after the civil war in Lebanon and the Yugoslav wars, Cyprus hosted people and absorbed labor from the affected countries. Many of them are now Cypriot citizens and are productive units in the economy.

The ongoing war in Ukraine has created, according to figures from the UN refugee agency, 4.9 million refugees so far. Tens of thousands of these people will choose Cyprus as their next stop. Similarly, it is possible that companies from Ukraine or Russia, some of which are already active in Cyprus, may choose to transfer their headquarters and their staff to our country.

Beyond the humanitarian dimension of the matter, which is undoubtedly of the greatest importance, Cyprus can reap multiple benefits in terms of know-how and immediate needs, through the absorption of labor force from Ukraine and Russia. In particular, Ukraine has in recent years built a good name for its performance in the field of technology, while Ukrainian IT workers are considered among the most qualified in Europe. It is important to note that now globally known start-ups such as Gramarly, Readdle and YouScan started in Ukraine and were then acquired by international giants such as Amazon and Snapchat.

The attraction of human potential in the field of technology functions as reinforcement in the context of the effort to create a regional tech hub between Europe and Asia, in Cyprus. Already companies such as Wargaming, Apella Games, Nexters, Easybrain, 3CX have chosen our country for the establishment of their corporate base, taking into account the comparative advantages that Cyprus has such as the geographical location, the tax regime, the qualified domestic human resources, the high level of support services, as well as the quality of life. In fact, according to a recent study carried out by an audit firm on behalf of the Cyprus Investment Promotion Organization (Invest Cyprus), the economic impact of the presence of international technology companies in our country amounted to €1.5 billion in 2020.

In addition to the technology sector, Cyprus faces human resource shortages in several sectors. As the general manager of the OEB, Mr. Michalis Antoniou, pointed out in his statements, deficiencies also exist in the tourism industry, retail trade and catering, which makes finding solutions to facilitate the integration and direct employment of personnel from third countries necessary.

With the current data, in order to employ a person from a third country he needs certification from the Ministry of Justice of his country of origin, which in the case of Ukraine is difficult to do. OEB’s recommendation is that these personnel be accepted in Cyprus initially with a tourist visa and the certification process be done later. There could also be an expansion of the criteria required to obtain the Cyprus Digital Nomad Visa, a recently implemented measure aimed exclusively at attracting personnel from third countries, employed in the technology sector.

In recent years, Cyprus has made significant strides in establishing itself as a first-choice destination for companies and workers from abroad. However, there is always room for improvement. In this direction, the reform of the Judiciary is of major importance for strengthening our competitiveness, as well as dealing with the bureaucracy which can be achieved in combination with the digital transformation of the state, with the aim of speeding up and simplifying the procedures.

Evaluating the developments, as Cyprus we must move with speed, flexibility and implement targeted policies in order to attract more innovative companies and established professionals, while strengthening Cyprus’ accessibility to new European and regional markets.

Cryptocurrencies have infiltrated our financial vocabulary, leading even citizens who had never dealt with investments to devote part of their income to them. According to data from the International Monetary Fund (IMF), there are currently more than 8,000 active cryptocurrencies, with a total of $2.5 trillion in cryptocurrencies and coins being traded.

The first decentralized cryptocurrency, Bitcoin, was created in 2009 by Satoshi Nakamoto, a pseudonym believed to correspond to an anonymous developer or group of people. It began as a libertarian vision, aiming to free the transfer of value and wealth from the control of banks and governments, giving control back to citizens. This is based on the fact that the issuance of cryptocurrencies takes place without the intervention of any central bank. The main advantage of digital currency technology is that it is decentralized – since it is not controlled by any central institution – and immutable, since all transactions are recorded on the blockchain and cannot be tampered with.

The IMF, in its Global Financial Stability Report , states that the more the use of cryptocurrencies increases, the more likely they are to cause negative effects on the global economy.

At the same time, however, he points out that the very technology that makes possible the existence of digital currencies also offers the necessary tools to monitor, detect and process illegal transactions for which they are used. In order to deal with these phenomena, it is necessary to conclude cross-border cooperation between governments for the regulation of cryptocurrencies. At present, the absence of a common commitment by states for an international regulatory framework that will govern the smooth and legal operation of cryptocurrencies, leads some states to individual actions aimed at obtaining short-term interest.

Cryptocurrencies are here to stay. However, as with any new technology, the proper mechanisms to regulate them must also be created. When the appropriate institutional framework is in place and their high volatility is limited, digital currencies will establish themselves as an alternative medium of exchange.

One of the most important achievements of Cyprus in recent years is its establishment as an attractive destination for headquarters of companies from abroad. Organizations with huge, by Cypriot data, turnover and displacement, such as Wargaming, eToro, NCR, 3CX, AMDOCS and UTX, among others, have chosen Cyprus as their corporate base. This is a development that brought to our country important know-how, thousands of jobs and provided significant support to the economy in the midst of crises.

First of all, the country has a wide network of double taxation agreements that is constantly expanding, as well as an attractive tax regime. At the same time, it provides high-quality and low-cost support services, while an important advantage is its geographical location, operating as a regional center with access to developed markets, both in Europe and the Middle East. At the same time, it offers a high level of quality of life, one of the lowest crime rates in the EU, mild weather conditions and qualified human resources.

The government’s recent announcement on the new investment attraction program strengthens the competitiveness of Cyprus, while it is expected that it will also contribute to the redefining of the country’s development model, with a view to sustainable development. In particular, the new investment attraction program focuses on facilitating the relocation procedures of foreign companies, expanding the tax incentives offered to foreign companies, as well as providing employment permits for personnel from third countries working in international companies.

At the same time, it focuses on a sector that is emerging as an important pillar of our economy, that of higher education. Strengthening private and public higher education institutions will contribute to the development of the country’s workforce, and will attract researchers, students and resources from abroad, while effectively linking education to the labor market, which will lead to to the further reduction of unemployment.

In a highly competitive environment, attracting foreign investment remains key to the recovery of the economy and a necessary element for the creation of a sustainable development model. In this direction, it is necessary to emphasize the promotion of Cyprus as an attractive destination for attracting quality investments in various sectors of the economy, such as technology, education and research, health, renewable energy sources, financial and professional services, shipping, sports and the cultural industry. The extraction of know-how and capital in different sectors will lead to the growth and diversification of the productive base of the economy, creating quality jobs for the local population.

To achieve these goals, the private sector and the State must work together to promote the country abroad and highlight its comparative advantages through the organization of international conferences and participation in financial forums.

At the same time, dealing with the bureaucracy, which can be achieved in combination with the digital transformation of the state, as well as the reform of the Judiciary with the aim of speeding up and simplifying the procedures, is of major importance for strengthening the country’s competitiveness.

With flexibility and telecommuting now taking on a central role in the labor market, headquartering and attracting foreign investment are not just additional advantages for our country’s economy, but its components, which ensure stability and sustainable its development.