29.09.2022
The Cyprus Investment Funds Association (CIFA) hosted an event on Wednesday highlighting the latest developments in the Cyprus Investment Funds sector, chaired by the Association’s President and Board of Directors.
“The investment fund sector is on an upward trajectory and has developed rapidly in recent years,” the association said in a statement.
In addition, according to the latest figures from the Cyprus Securities and Exchange Commission (CySEC), total assets under management (AuM) in Cyprus rose from EUR 6.3 billion in 2018 to EUR 11.1 billion in the first quarter of 2022.
The Association stressed that Cyprus has the potential and opportunities to become a regional investment fund hub, especially for centers that wish to take advantage of investment opportunities both in Europe and the wider Eastern Mediterranean region, as well as in the Middle East.
It is important to note that the funds’ investments in the Cypriot economy to date have exceeded 2.5 billion euros and are distributed across various sectors of the economy, including shipping and maritime businesses, renewable energy projects, the education sector, technology and the real estate market.
The challenges faced by the sector were also mentioned in detail, including the pandemic crisis, the wider impact of the war in Ukraine, soaring inflation, as well as the prevailing uncertainty in global markets.
The latest data from the European Funds and Asset Management Association (EFAMA) clearly reflects the impact of these problems on the international investment funds sector, with a 5.5% decline in global assets recorded in the second quarter of 2022.
“As CIFA, we believe that despite the uncertainty and lack of stability that we have faced in recent years, the sector in Cyprus has shown good reflexes, demonstrated resilience and continued to develop with sustainable steps at all levels,” CIFA President Andreas Yasemides.
“The benefits of the growth and development of the investment fund sector are many: the Cypriot economy is attracting many new investments, government revenues are increasing and new well-paid jobs are being created, while the traditional model of the professional services sector and the economy as a whole is diversifying,” he added.
Meanwhile, the president of the national investment promotion agency Invest Cyprus, Eugenios Evgeniou, said that “the development of the investment fund sector takes on special significance and value if we place it in this context of efforts to create new and, above all, sustainable growth. model of the Cypriot economy”.
