The number of investment companies in Cyprus has increased, according to new data released by the Central Bank on Friday 16 August.
The total number of registered investment companies in Cyprus rose from 328 in March 2024 to 330 in June 2024.
At the same time, their total assets also increased. The total assets of investment companies reached €6,848 million at the end of June, an increase of 0.9% compared to €6,789 million in March 2024. Compared with June 2023, the total assets of investment corporations in Cyprus increased by 10.1%.
According to the Central Bank of Cyprus statistics, the deposits and loans of investment funds reached the mark of €869 million in June 2024. In turn, the value of securities rose to €4.93 billion. Shares and other equity fell to €570.9 million, while non-financial assets (including fixed assets) fell to €358.9 million. Other assets decreased to 151.2 million euro.
It should be recalled that investment funds are one of the main priorities for attracting foreign direct investment to Cyprus and creating conditions for foreign companies to set up operations here. The development of the investment fund sector in Cyprus leads to an increase in tax revenues, creates specialised jobs and attracts wealthy foreign professionals to the country.
It is worth noting that the highest growth of investment organisations in Cyprus was recorded between 2008 and 2020.
The total assets of these organisations will amount to €5.62 billion at the end of December 2020. This is almost 440% more than in 2008, when the value of total assets did not exceed €1.27 billion. The largest share of assets was represented by equities, with a total value of almost €4 billion. Non-financial assets totalled EUR 317.6 million. A further €702.5 million were deposits and loans and €367.6 million were securities.
Cypriot investment funds invest mainly in Cypriot shares and real estate. Mixed investments are also popular. The last investment category is bonds.