Market information
General
Cyprus today is firmly established
reputable international business centre.
The Cyprus Economy is based on the free
market system where the private sector is the
base of all economic activities. The role of the
government is to create a good healthy
business environment by privatising all of its
services. The Cyprus Economy has been
transformed from a basic agricultural, underdeveloped
one, into an economy with an
open free market, a Westernised standard of
living, a growing export-orientated light
industrial sector, a modernised agricultural
sector and an internationally important tourist
centre.
The high external demand for Cypriot goods
and services, along with the development of
Cyprus into a commercial, financial and
maritime centre and the performance of the
economy has been such that it has combined
high real growth with low inflation and low
unemployment. Despite the obvious
difficulties, by the Turkish invasion, the
government together with the enterprising
private sector, made the economic recovery of
the island possible . The quality of life is better
than that reflected by the per capita income
alone, if one takes into consideration the
excellent housing conditions, the pollutionfree
environment and the low crime rate.
Geography
Cyprus, a European Union Member country,
is situated in the north-eastern corner of the
Mediterranean basin, close to the busy trade
routes linking Western Europe with the Arab
World and the Far East. It covers an area of
about 9.251 km2 (3,570 sq. miles), making it
the third largest island in the Mediterranean,
after Sicily and Sardinia.
Cyprus, with its new
image as a member
state of the European
Union is presenting a
stable economic and
investment property
market environment
1st SEMESTER 2007
The capital of the island, Nicosia, with a
population of 273,129 people, is the main
administrative and business centre and is
situated to the east of the geographical centre
of the island. Limassol, the second largest city
with a population of 197,300 people, is
situated on the southwest part and is an
important seaport, industrial and tourist
centre. Larnaca, with a population of
115,266 people, is situated in the south part
and is the location of the main international
airport with a rapidly expanding tourist
industry as well as the International Free
Trade Zone area. Paphos, with a population
of 66,038 people, is on the West Coast with a
strong tourist industry, and the location of the
second airport in Cyprus. In addition to the
above main cities, Famagusta and Kyrenia
are located in the east and northern parts of
the island respectively, which are currently
under the control of the Turkish occupation
forces. Part of Nicosia is also under Turkish
military control.
Political System
Cyprus is an independent, sovereign Republic
with a presidential system of government.
Under the 1960 Constitution the executive
power is ensured by the president of the
Republic, elected by universal suffrage for a
five-year term. The president ensures
executive power through a Council of
ministers, appointed by him. The Ministers
may be chosen from outside of the House of
the Representatives. Each Minister is the Head
of the relevant Ministry and exercises
executive power on all the subjects falling.
