Offshore Activity: The Island as a Services Base for the Middle East

Abstract

Many small countries have sought to encourage offshore activity in recent years, from the Cayman islands to Bahrain and Singapore. Cyprus was a relatively late starter, but has gone to considerable effort to make up for lost time. Over 4000 offshore businesses are already established on the island, involving a large range of commercial activities. Shipping companies are especially significant, but the authorities have also sought to take advantage of the island’s geographical location to encourage companies to serve the Middle East regional market. One aim is to act as a bridgehead between Europe and the Arab World, an objective which seems both feasible and desirable.