Interview with Socratis Ioakim
Bilateral relations between Saudi Arabia and Cyprus were strengthened significantly during the past four years. His Excellency, Ambassador Khaled M. Alsharif is the first resident Saudi Ambassador to Cyprus. Since his appointment, many high officials’ mutual visits from both countries have taken place, and several memorandums of cooperation and agreements are under revision to further boost ties between the two countries in various fields. On the occasion of the visit of the Saudi Minister of Investment, Mr. Khalid Al Falih, to Cyprus we had the opportunity to discuss with Ambassador Alsharif so as to have this interview.
What was the purpose of the visit of the Saudi Minister of Investment, Mr. Khalid Al Falih to Cyprus?
The main reason of the visit was to sign a Framework Cooperation Programme (FCP) so as to promote investments between our two friendly countries in areas of mutual concern. The FCP that was signed on March 11 in Nicosia by the Cypriot Minister of Finance, Mr. Makis Keravnos and the Saudi Minister of Investment, Mr. Khalid Al Falih marks a new era at strengthening economic ties and facilitating investment opportunities between Saudi Arabia and Cyprus. As Mr. Al Falih mentioned the signing of FCP will enhance bilateral relations in the field of investment and open a new era for economic cooperation for the public and private sector partnership among our two nations. Furthermore, this signing of the FCP, comes only a few months after a landmark deal between Saudi Arabia, Cyprus and Greece which will constitute one of the world’s longest and impactful data transmission corridor, called EMC.
After the signing of the Programme the Saudi Minister met with the President of Cyprus, Mr. Nikos Christodoulides at the Presidential Palace to inform him about the potential investments between the two countries.
Considering the cost-of-living and inflation crises facing the global economy, do you think that is this a good time to invest?
Price inflation has affected countries differently and governments are concerned about the rising cost of living in 2023. Certain parts of the world have still low inflation like Saudi Arabia. Saudi economy achieved 8.7% growth in its gross domestic product (GDP), the highest growth rate among the G20 countries in 2022, despite the difficult economic conditions and challenges, experienced by the world, according to the data released by General Authority for Statistics (GASTAT). Nonetheless, these are challenging times and the uncertainty is still there. However, inflation occurs naturally in every economy. It is a fact that governments should maintain prospects for economic growth while taming inflation. In my opinion if a country’s investment policies are credible, the investors will naturally keep on investing even though with vigilance and cautious steps.
Could you tell us more about the importance Saudi Arabia gives to investing? What is the action plan behind your investment decisions?
His Royal Highness, Crown Prince Mohammed bin Salman bin Abdulaziz, launched in 2021 the Saudi National Investment Strategy (NIS), a key enabler to deliver on Vision 2030. The Crown Prince’s Vision 2030 is a social and economic strategic reform project laid by the Kingdom of Saudi Arabia to diversify the nation’s economy and to stimulate numerous changes in its social and economic sectors. Moreover, it is built on three pillars – a vibrant society, a thriving economy and an ambitious nation. As mentioned by the Crown Prince Saudi holds strong investment capabilities, which can stimulate the Kingdom’s economy and diversify its revenues. The National Investment Strategy is all about empowering investors, offering investment opportunities, investment plans for sectors, including manufacturing, renewable energy, transport and logistics, tourism, digital infrastructure, and health care. For Saudi the importance of investment is imperative in driving the economic growth and sustainable development. For this reason the Kingdom has opened its doors for foreign investment and simplified the regulatory framework. International investors can now fully own local companies and repatriate their profits without any restrictions. Additionally, the government has created a “one-stop-shop” platform to simplify the investment process and it now offers several incentives for foreign investors. Moreover, the government has also relaxed regulations on foreign ownership in certain sectors and provided investor support services and training programs.
In your opinion what are the comparative advantages of Cyprus as a business and investment hub?
Cyprus has a great geographical location and is a strong international business centre and EU base for cross-border operations. It is also the closest EU country to Saudi Arabia and an attractive destination for foreign direct investment as well as for businesses to establish their European and International headquarters. Additionally, the Cyprus–Saudi Business Association that has been initiated in October 2020 under the auspices of the Cyprus Chamber of Commerce aims to create new opportunities for partnership between businesspeople in both countries as well as further strengthening the business relations by operating as a bridge between Saudi and Cyprus. It’s an official platform that mutually benefits economic and trade relations. Similarly, The Federation of Saudi Chambers of Commerce and the Cyprus Chamber of Commerce have signed a cooperation agreement to establish Saudi-Cypriot Business Council, to further enhance our business bond.
Which sectors of Cyprus would you say interest Saudi Arabia, investment-wise?
Numerous sectors and a wide range of projects in a number of fields in Cyprus could be attractive for direct investment from Saudi Arabia. However, as Cypriot Minister of Finance, Mr. Makis Keravnos mentioned after his meeting with the Saudi Minister of Investment, Mr. Khalid Al Falih the prospects for investments were discussed in a variety of priority sectors for our countries such as ICT, tourism and hospitality, shipping, renewable energy, health and education. Additionally, we are happy to see that Invest Cyprus, the National Investment Promotion Authority of Cyprus, is doing a remarkable job to facilitate greater economic cooperation and investment between the two countries and the first roundtable discussion between business people from Saudi Arabia and Cyprus that followed the signing of the FCP was very important.
The interview was first published in Greek in Forbes Cyprus.