Business Profile
Economy: The southern, Greek-Cypriot region has a strong agricultural sector, producing fruit and vegetables, potatoes, barley, citrus fruit and grapes for export. However, the south's principal exports are clothing, footwear and textiles which dominate the region's light manufacturing industry. Tourism is the main component of the southern service economy, but in recent years financial services -including 'offshore'enterprises -have also assumed an important role. The UK's sovereign military bases on the southern coast and near the partition boundary are a major source of revenue for the south. Economic development of the Turkish-controlled north -the Turkish Republic of Northern Cyprus (TRNC) -has been severely limited by lack of diplomatic recognition and it continues to rely heavily on economic support from Turkey. The profile of the TRNC's agricultural sector is similar to that of the south; manufacturing is relatively insignificant; tourism relies heavily on visitors from the Turkish mainland. Both parts of the island rely on imported raw fuels for their energy supplies. For the south, the UK is the largest single trading partner, while the EU as a whole has now superseded Arab countries (Lebanon, Egypt, the Gulf States and Libya) in trading importance. Under a customs union agreement with the EU, all trade barriers with the south will be abolished by the end of a 15-year transition period ending in 2003. Having signed an Association Agreement with the EU -the essential first stage on the lengthy road to full membership -the southern government is among the so-called 'first wave'of applicant countries who may accede between 2003 and 2005. The main complicating factors remain the condition of the TRNC and the position of the Turkish government. Turkey aside, the UK is the TRNC's main trading partner (see Turkey section for further details on its relations with the EU).
Commercial Information: The following organisation can offer advice: Cyprus Chamber of Commerce and Industry, PO Box 21455, 38 Grivas Dhigenis Avenue, Nicosia (tel: (2) 889 800; fax: (2) 669 048).
Conferences/Conventions: Many hotels have facilities; seating for up to 1200 people is available. Nicosia is a popular destination for budget-priced conferences and has a number of modern facilities. Advice can be obtained from the Cyprus Tourism Organisation in London (see address section).
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