It is a fact that Cyprus from time to time benefits from the misfortunes of others. Its geographical location, as well as its religion and its taxation system, have helped this country and played a large part of its economic “success”.

Following the 1974 invasion and the misery that followed, we had the Lebanese civil war which attracted the mainly wealthy Lebanese Christians (Maronites) and others to move to Cyprus, with millions of dollars at the time being invested in the island. The most notable examples are the Le Meridien and St. Raphael hotels, but there are others including offshores, extensive office and home buying. After this, we had the Yugoslavian civil war and Cyprus has attracted the Serbs of the country. The Serbs being Christian “orthodox” found a welcoming country and the enterprising Serbs have set up international business, followed again by home buying mainly in Limassol. After this we had Russia, with the Yeltsin era, with literally bags of dollars coming over. The Russians being of the same religion and having, since Makarios’ time, friendly ties, was a likeable place to move into. Does Cyprus now, during its difficult economy and real estate market has another benefactor? It is not yet evident, but a large market may emerge from the surrounding Arab states. The “spring revolution” of the Arab states looks like it will benefit this island again from two sections. Firstly the up to now governing elite of countries such as Egypt, Syria, Lebanon etc must feel quite insecure in their own countries. This wealthy elite can find a neighbor near home and only very limited racism (if any) for foreign people to feel comfort. In addition and perhaps more importantly is the large community that the Christians have in the Arab states. The Egyptians Coptic religion (similar to the Christian Orthodox) can feel quite secured in Cyprus. The very recent inter-religious troubles in Egypt is an example to note, whereas it is evident that the Arab states in the area will be taken over by the Muslim parties, causing the Christians and the governing elite to have valid causes of concern. Syria has also a fair share of Christians, not to mention other far away countries such as Congo, where the religious differences are surfacing, whereas the Palestinian state and even more liberal Lebanon is affected by the Syrian situation, since Syria plays an important role in Lebanon’s politics. So, shall we, as Cyprus, exploit (in the good sense of the word) the misfortunes of others again? The difference now is that we are in trouble as developers/agents/business people and we must go out there and market each one its own proposal. You do appreciate that people who might be interested for Cyprus are mainly wealthy Christians, but of course everybody is welcomed, whereas due care must be given to the offshore and other international and local businesses in these countries, who might consider the island a suitable place to have/continue their business in Cyprus.

We, as Cyprus (as well as other countries) have introduced 5 years ago the measure of Passports for Cash (€10 mil.) and securing permanent residence with home buying (with a house of €300.000). These measures have been adopted by other countries including Spain (€1 mil. deposit) and the U.K. (£5.0 mil.) but there are others. We seem to think that we are the “chosen” country and for this reason we have up the stakes. But, yet, both alternatives are based on the prerequisites that these business/home seekers must live in Cyprus permanently (i.e. more than 163 days p.a.). This places Cyprus’ attraction out of competition since foreign people with “difficulties” do not necessarily wish to leave their own country, but more to have a base should something go wrong in their own state. So in our opinion we are loosing the boat of attraction and more flexible countries who have similar finance facilities will take advantage of this situation. We have been misinformed by the Government that the permanent residency with home buying would have been a routine procedure. How wrong we were!! We have promoted this in China and Armenia and here we are, with 12 sales in our hands, but no permanent residency. We have been trying and trying to educate ourselves and the general market of this measure and after 1½ year of constant pestering the Government, on the 30.11.2011 we held a seminar on the subject, with Governmental officers explaining to us the “correct” situation. We almost had a riot in our hands during the seminar from the 156 local people attending. What a mess our dear readers and we now stand the chance to lose the Chinese and more recently the Arab market. What a waste of a good measure and an opportunity to help the local economy and the Cypriot real estate market. We did not leave this however to “go” and we have had together with other associations including the association of developers, CIPA etc a meeting with the Cyprus Chamber of Commerce and we went on the offensive by suggesting several alternatives to these “permanent residency” requirements etc. Cyprus does not necessarily need more local residents but more business and money in the economy. Regrettably Cyprus has nothing more to offer other than tourism and the good weather, as well as the low crime rate. A suitable place to live and do business in this part of the world. So and towards the target of having Cyprus as one of the financial centers, this is its way to go (the gas situation apart). So, the other day we had a 26 year old applicant with €20 mil. to deposit in a Cypriot bank in exchange for a passport. Clean and good money inherited from his father. Turned down by the civil servants because he should have been 30 years old and we ask you, Bill Gates was a millionaire at the age of 26 and Charles Bronson was less than 30 years old, let alone wealthy footballers and entertainers less than 30 years old. Imagine what we have lost. The measure was introduced by a right wing Government in the year 2007 by T. Papadopoulos, but then the “Communist” Government took over with other ideas on the economy (by giving subsidies to everybody).

A unique situation in a capitalist/globalized world, yet this Government opts to live in the past of the Stalin era. We have two marinas and 5 golf courses stagnant because of lack of finance/foreign investments. How on earth these projects will be financed is beyond us.

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