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Address by the Minister of Commerce, Industry and Tourism Mr Nicos A. Rolandis

at the Annual General Meeting of the Cyprus-Israel Business Association

(Hilton Hotel, Nicosia - Thursday 11 July 2002)

Mr. Chairman,

Ladies and Gentlemen,

It is indeed a great pleasure for me to be here tonight to address your Annual General Meeting and brief you on the progress achieved in the field of high technology in Cyprus.

Cyprus´ strategic location at the centre of three continents and its close proximity to the busy trade routes linking Europe with the Middle East and the Far East has been a major factor shaping its history throughout the centuries.  In recent years this strategic location together with the very good political and economic relations with our neighbours, our highly developed socio-economic infrastructure, excellent telecommunications, a sophisticated banking system, a wide range of high quality professional services and a favourable economic and business environment, make Cyprus an ideal Centre for business activities.

Cyprus is today a well-developed European country with its economy growing at a satisfactory rate while exhibiting signs of macroeconomic stability.  Cyprus has been linked with the European Community since 1973 through a Customs Union Agreement.  In July 1990, Cyprus applied to join the European Union as a full member.  In addition, Cyprus has since 1995 become a full member of the World Trade Organisation and has adopted all the provisions of the General Agreement on Tariffs and Trade (GATT).

It is also anticipated that when Cyprus becomes a full member of the E.U., she will play a more important role in strengthening relations and integrating economies between the E.U. and the Middle East.

Bearing in mind the above factors and the needs of small and medium enterprises, which constitute the backbone of the Cyprus economy, the Cyprus Government, through the Ministry of Commerce, Industry and Tourism introduced in June 1999 its New Industrial Policy, which consists of 12 Chapters and addresses the following broad goals:

  • to offer assistance to existing and attract and develop new high tech industries
  • to assist the restructuring of the traditional manufacturing industry
  • to attract capital intensive foreign investment
  • to improve productivity

The first two Chapters aim at the creation of new high technology industrial units through the setting up and operation of business incubators, and the enhancement of the applied research capability of the country.

A technology-incubating program is an innovative system designed to assist entrepreneurs and inventors in the development of new technology-based firms. It seeks to effectively link talent, technology, capital and know-how to leverage entrepreneurial talent in order to accelerate the development of new companies, and thus speed the commercialisation of technology. It is a facility that aids the early-stage growth of technology-based companies by providing shared facilities such as space and office services, and business consulting assistance.

The Government of Cyprus will provide part financing to the incubatees up to the sum of CYŁ120.000 for projects aiming at the development of new high technology products, for a period of up to two years. 

The efforts of the Ministry of Commerce, Industry and Tourism for the creation of High Technology Business Incubators began in 1998 and we have followed the models of other countries, especially the successful model of Israel.

We have already signed a contract for the creation of the first High Technology Business Incubator and there is already a declared interest from another ten companies for the creation of four more incubators by the end of this year.

The Government of Cyprus will provide to the selected incubators a grant of up to CYŁ57.000, over a three-year period, to cover running expenses and a grant of up to 15% on the initial investment for the purchase of land, building and equipment and for the acquisition of know-how.  The main income of the Incubators will be derived from the fees paid by the incubatees for the use of the premises and for the services offered.

Our goal is the creation of companies in the field of high technology and information systems, which could drastically change the industrial scene of Cyprus. In order to establish links with scientists and other interested parties which will be beneficial to our programme for promoting high tech industry, we are in contact with foreign Governments, Technology and Research Centres, Universities and Academies and Techno Parks around the world, the remarkable achievements of which in the field of technology are well known.

In concluding, I would like to express my sincere thanks to your Association for giving me this opportunity to communicate with you and I congratulate you all for your efforts to promote further the good relations with Israel and strengthen our cooperation.

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