The number of investment organizations in Cyprus has decreased, as evidenced by the latest Central Bank data released on Friday, February 16.
Thus, in December 2023, the total number of registered investment companies in Cyprus fell to 316 from 321 in September 2023.
At the same time, their total assets are also declining rapidly. The total assets of investment entities fell to €6.495 million at the end of the year, down 0.8% from €6.55 million in September 2023. Compared to December 2022, the total assets of investment organizations in Cyprus decreased by 10.4%.
According to the statistics of the Central Bank of Cyprus, deposits and loans of investment funds they have reached the mark of €760.9 million in December 2023.
In turn, the value of securities rose to €4.66 billion. Shares and other equity fell to €554.6, while non-financial assets (including property, plant and equipment) fell €358.9 million. Other assets fell to €151.2 million.
Recall that investment funds are one of the key priorities for attracting foreign direct investment in Cyprus and creating conditions for foreign companies to transfer their business here. The development of the investment funds sector in Cyprus leads to an increase in tax revenues, creates specialized jobs, and attracts wealthy foreign professionals to the country.
The greatest growth of investment organizations in Cyprus was recorded from 2008 to 2020.
The total assets of these organizations at the end of December 2020 amounted to 5.62 billion euros. This is almost 440% more than in 2008 when the value of all assets did not exceed €1.27 billion. The largest share of assets was made up of equities, with a total value of almost €4 billion. Non-financial assets amounted to €317.6 million. Another 702.5 million were deposits and loans, while €367.6 million were securities.
It is worth noting that Cypriot investment funds invest mainly in Cypriot equities and real estate. Mixed investments are also popular. Bonds occupy the last place in terms of investments.