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Cyprus’s justice system reforms, anti-corruption measures could encourage future investment from Western companies
As Western investment in Cyprus grows, several USA-based businesses, law firms, individuals, and funds have chosen Cypriot law firms to represent their interests in this part of the world. Dr Nicolas Kyriakides, a partner with Harris Kyriakides, a leading law firm established in 1976 in Cyprus, noted the country has advantages helping it attract international business, including its location, EU membership, and skilled workforce.
Changes at Home
Nicolas Kyriakides spoke about the ongoing reforms to the Cypriot justice system, and how these reforms may further attract inward investment. He stated, “The justice system is currently under major reform, and there will be many changes, new procedures, and rules implemented. Our e-Justice system came into effect recently to simplify the process of filings and finding case-related information, and there is a strategy in place to reduce delays and increase the speed of adjudication. The justice system has been problematic in the past few years, as the average time for adjudication of a case is seven to eight years. Along with that, corruption in Cyprus has been quite high – but there is light at the end of the tunnel.”
Nicolas Kyriakides
Partner
Harris Kyriakides
In addition to these reforms, three major anti-corruption bills have passed recently in Cyprus. When they go into effect next year, these bills will establish an independent anti-corruption authority, protect whistleblowers, and regulate lobbying.
Kyriakides mentioned, “On February 17, 2022 the House of Representatives of Cyprus voted in favor of a long overdue bill regulating lobbying which will bring people one step closer to policymaking. In 2023, when the bill will come into effect, transparent lobbying will become the means by which social groups and socially responsible businesses will be able to communicate and influence decision-making actors in a more structured and transparent way. Zenox Public Affairs is a public affairs and government relations startup. It is the first Cypriot company to openly state that it is engaging in lobbying. Its goal is transparent, regulated, and evidence-based lobbying.”
Those changes and others will likely be discussed at the Cyprus Forum, the largest independent policymaking conference in Cyprus. Organized by Oxygono in association with the Delphi Economic Forum, the Cyprus Forum seeks to be a catalyst for effective reforms in Cyprus and beyond while bridging the current gap between policymakers and businesses, academic institutions, and civilians. The forum is held each fall at the Nicosia Municipal Theater, with related events spanning other venues. The 2022 conference will take place on September 29-30 and will welcome EU commissioners, MEPs, and other high-profile speakers from Cyprus and beyond.
Changes Abroad
Cyprus is proactively adapting to complex global geopolitical shifts and responding to an ever-changing array of international issues. Previously, the nation relied heavily on investment from Russian companies and tourism. These income sources have been affected by the Russia-Ukraine war and the COVID-19 pandemic. Kyriakides said Cyprus has plans in place to adapt to these changes, “The government knows Russian investment will slow and diminish as a percentage over time in Cyprus. We have to look to the West, invest in new technologies, and pro-actively encourage companies to come to Cyprus. Our corporate tax rate and wide variety of higher education institutions, as well as our efforts to become a more transparent and well-regulated nation should play an important role in attracting new businesses to the area.”
Furthermore, Kyriakides said he hopes shifts in the political and economic climate will eventually strengthen the ties between the United States and Cyprus. He added, “Business investments from the USA have slowly been increasing over the past five years, and our political relationship has improved lately. But considering recent developments, I think there is more room for American tech companies and other businesses to come to the area and thrive.”
