1. 20 th June 2014 Charis Papacharalambous Director General Cyprus Investment Promotion Agency (CIPA) Investing in Cyprus, an ideal gateway to Europe for the Arab world

2. Cyprus Facts Location:35  N and 33  E Total area:9,251 km 2 Population:866,000 (2012) Time Zone: GMT+2 Currency: Euro Capital: Nicosia Languages:Greek, Turkish, English for business Political System:Presidential Democratic Republic Location:35  N and 33  E Total area:9,251 km 2 Population:866,000 (2012) Time Zone: GMT+2 Currency: Euro Capital: Nicosia Languages:Greek, Turkish, English for business Political System:Presidential Democratic Republic

3. C yprus I nvestment P romotion A gency (CIPA) Promote Cyprus as an attractive international investment and business centre in key priority economic sectors Provide investor facilitation and support to new and existing investors Advocate reforms in order to improve the regulatory and business environment and infrastructure

4. Recent facts about the Cyprus economy All four TROIKA assessments - “Program is on track” - ECB, IMF, EC Resilient economy: Contraction of 5.4% v initial est. of 8.7% Return to growth by 2015 - European Commission’s forecast

5. Economic Indicators Source : Cyprus Ministry of Finance * estimated forecast

6. Economic Indicators Source : Cyprus Ministry of Finance * estimated forecast

7. All four TROIKA assessments - “Program is on track” - ECB, IMF, EC Resilient economy: Contraction of 5.4% v initial est. of 8.7% Return to growth by 2015 - European Commission’s forecast Fiscal deficit is much lower than originally expected Private consumption decline was less than originally expected 40% of Foreign Investors planning to expand investments within the next 3-5 years - CIPA survey Dec 2013 Cyprus successfully returned to the markets 18 months before forecasted Recent facts about the Cyprus economy

8. In November 2013, Standard & Poor’s first upgrade for Cyprus On 22nd March 2014, Moody’s has upgraded Cyprus’ Government and financial institutions credit worthiness from negative to positive, citing the Cyprus stronger-than-expected fiscal and economic performances in 2013 and the authorities’ track record of meeting conditions under the Troika funding program. On 25th April 2014, Standard & Poor's raised the long-term foreign and local currency sovereign credit ratings on Cyprus to 'B' from 'B-'. S&P affirmed the short-term foreign and local sovereign credit ratings at 'B'. The outlook remains positive. Ratings

9. Cyprus 10- Year Government Bond Yield Source: Ministry of Finance

10. Economic Sentiment Indicator (ESI) Source: Eurostat last update: 28/05/2014

11. 39 th out of 189 countriesEase of Doing Business 32 nd out of 161 countries Best Countries for Business 31 st out of 176 countries Corruptions Perceptions Index 29 th out of 140 countries The Travel & Tourism Competitiveness Report 27 th out of 145 countries Best Countries for Business 27 th out of 142 countries The Global Innovation Index 21 st out of 140 countriesBest Travel & Tourism Environment & Infrastructure 1 st out of EU28 Bathing Water Quality 11 2013 Global Competitiveness

12. Cyprus, the Gateway into Europe and beyond! Strategic Location: Cyprus has been an important trading hub since antiquity!

13. Cyprus

14. Cyprus, the Gateway into Europe and beyond! Strategic Location: Cyprus has been an important trading hub since antiquity! Ease of Doing Business: Introduction of numerous structural reforms EU and Eurozone: Full harmonization of EU legislation and Directives Tax System: Possibly the most attractive tax systems in Europe - Double Taxation Treaties

15. Cyprus: Attractive Tax System Exempt from tax: Dividend income Profits from overseas permanent establishments Profits from the sale of securities No withholding tax on: Dividends Interest Royalties paid from Cyprus  Most international transactions are exempt from VAT  Double Tax Treaties with 50 countries  Intellectual Property (IP) regime with an effective tax of less than 2%

16. Cyprus, the Gateway into Europe and beyond! Strategic Location: Cyprus has been an important trading hub since antiquity! Ease of Doing Business: Introduction of numerous structural reforms EU and Eurozone: Full harmonization of EU legislation and Directives Tax System: Possibly the most attractive tax systems in Europe - Double Taxation Treaties Robust Legal & Regulatory Framework: Based on English Common Law Principles

17. Cyprus: Legal System Based on the English Common Law Principles Transparent Fully harmonized with international standards High quality legal services Collaboration with international law firms Application of EU Directives

18. Cyprus, the Gateway into Europe and beyond! Incentives: Wide range of investment incentives for foreign companies Infrastructure: Well advanced and modern Infrastructure Value for Money Services: “Centre of Excellence” – First country in the world to train “UK Chartered Accountants and “CIMA Accountants” outside the UK Human Talent: Highest tertiary education percentage in the EU Quality of Life: Weather, History & Culture, Gastronomy, International schools - More than 85% of existing foreign investors value the high quality of life in Cyprus - source: CIPA survey Dec. 2013

19. Cyprus ranks 5th best country to relocate Source: www.knightfrank.com

20. Key Economy drivers Professional Services  Market has created opportunities Banking & Financial Services  Niche sectors like ship financing, energy project financing Tourism  Well developed infrastructure. World’s most Blue flags per coastline km & cleanest waters in the EU (100% success) Research & Development  Innovation in Medical Research projects Renewable Energy  2 projects awarded the EU funding NER300 program and over 20 new licenses

21. The ONLY EU approved tonnage tax regime with benefits for ship-owning, ship-management and crew management Largest Ship Management Centre in EU 2nd largest Ship Management Centre globally 3rd largest merchant fleet in EU 10th largest fleet worldwide  More than 1,022 registered vessels with 21 million gross tonnage are registered under the Cyprus flag  More than 140 ship owning and ship management related companies are operating from Cyprus International Shipping Center Key Economy drivers

22. Large Scale Development Projects Potential Opportunities: Luxury Real Estate Developments Marinas Leisure & Theme Parks Luxury Resorts & Golf Courses Health & Wellness Tourism Projects Education & Universities Key Economy drivers

23. Upcoming opportunities in Privatizations Ports Energy Telecommunications Key Economy drivers

24. Hydrocarbons in Cyprus Note: 60 tcf NG would fully cover Cyprus’ domestic energy needs for approximately 6,000 years - There are also indications for the existence of oil Key Economy drivers

25. Existing Foreign Investor survey by CIPA – Dec. 2013

26. Tel: +357-22-441133 info@investcyprus.org.cy www.investcyprus.org.cy Thank You!