Vote of confidence in Cyprus from reliable investors

The need to attract quality investors and the example of the Olympia Group

The banking and financial crisis of the last decade and, more recently, the coronavirus pandemic and the war in Ukraine highlight the paramount importance for any country of a healthy economic environment, an attractive tax system and, above all, the implementation of an investment attraction strategy that create value in the local economy and society. Especially for Cyprus, its geographical position, its qualified human resources, political stability and security, as well as its excellent weather conditions, are a comparative advantage in the effort to attract well-established companies and investors, who wish to expand their operations.

Political priority

In this highly competitive environment prevailing at the international level, the need to attract quality investors that do not see the country as a “flag of convenience” is intensifying. In recent years, the promotion of Cyprus as a destination for Foreign Direct Investment has been a top political priority, something that has been also reaffirmed by the new government. In 2023, the Cypriot economy is expected to experience growth of 2.5%, considerably higher than the Eurozone average of 0.5%.

Cyprus’s vision to become a technology hub

This encouraging performance confirms the remarkable resilience the Cypriot economy has demonstrated in the difficult environment created by the global health crisis and the Russian invasion of Ukraine. Economic growth in Cyprus has been supported by new lending by the Cypriot banking sector and Foreign Direct Investment. As a result of the facilitation and acceleration of a fast-track process for incoming firms and other incentives, a large number of high value-adding foreign companies have relocated their activities to Cyprus. Among them, major multinational companies active in the Information, Communication and Technology industry, supporting Cypriot GDP and reinforcing the vision to transform Cyprus into a technology hub in the region. The importance of Cyprus as a foreign investment hub is also reflected in the Greenfield FDI Performance Index, created by FDI Intelligence, according to which in 2021 Cyprus was ranked in 18^th place out of the 84 countries included in this index (climbing by 50 places compared to 2020).

The example of a reliable investor

The example of the international investment group Olympia represents a vote of confidence in the Cypriot economy, as it operates in Cyprus since 2006.This is a typical case of an investor who creates value in our country and shapes the future of the economy as a long-term investor in strategic sectors and in technologies that support the EU's objectives for the digital and green transition. Since 2017, the Olympia Group has used the Regulated Alternative Investment Funds Market and has created one of the largest Private Equity Funds in Cyprus, the Folloe Fund, which operates in strategic sectors for the Cypriot and EU economy, such as energy and the digital economy.

The Olympia Group up to now has a successful track record as an investment fund that aims to create long-term business value and champion companies in their sectors, in Southeastern Europe, such as the GERMANOS technology retail store network and the mobile telephony company Play. Success is based on the choice of leadership teams and sector focus, but also on the wider ecosystem of partnerships fostered with banks and other investment organizations.

The value of Long-Term Investing

One of the companies owned by Olympia since 1994, is Sunlight Group one of the main investments of the Folloe Fund, with a global presence in the key sector of energy storage. In 2018, a fire accident affected 95% of the company's production capacity. Studies show that only 5% of the companies facing a crisis of this scale manage to overcome it. Only 5 years later, thanks to the commitment of its shareholders and their support with considerable volumes of funds, as well as to the collective effort of management, employees and the local community, Sunlight has gained a leading position in its market and is already leading the way with flagship investments in the key energy a strategic sector, aspiring to play a significant role in both the green transition and energy autonomy in Europe.

The Sunlight Group, with over 30 years of experience in the production of lead-acid and lithium-ion batteries, is a world-leading provider of industrial batteries for the sectors of intralogistics sector and of energy storage systems. Sunlight supplies the international market with innovative and cost-effective products, which are manufactured and assembled at its state-of-the-art facilities in Greece, Italy, Germany, Israel and the USA, and are distributed either directly or through a network of authorized partners to more than 115 countries. The Sunlight Group also operates sales offices and provides customer support and warehousing services in the countries where it carries out production activities, as well as in Romania, the Netherlands, Denmark, Luxembourg, France, the United Kingdom, and Australia. With a specialist scientific team in R&D centres and over 15 years of experience in lithium-ion battery innovation, the Sunlight Group invests in emerging technologies to support the development of sustainable and integrated, software-based energy storage solutions.