investment


Iraq Stock Market Report

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 18th October 2018).

Please click here to download a table of listed companies and their associated ticker codes.

The RSISX index ended the week at IQD634 (-3.8%) / $678 (-3.8%) (weekly change) (-21.6% and -18.9% YTD change, respectively). The number of week traded shares was 148.2 bn and the weekly trading volume was IQD55.5 bn ($45.7 mn).

ISX Company Announcements

  • Mosul Bank (BMFI) held an AGM* on Oct. 18, 2018 to discuss and approve 2017 annual financial results. ISX suspended trading of BMFI starting Oct. 15, 2018.
  • Iraqi Middle East Investment Bank (BIME) resumed trading on Oct. 15, 2018 due to disclosing 2017 annual financial results.
  • ISX requested AL-Sadeer Hotel (HSAD) to provide a subscription letter on the shares issued on Oct. 15, 2018 after the company’s decision to increase capital from IQD1.239 bn to IQD1.735 bn through 40% rights issue.
  • The Companies’ Registrar announced on Oct. 9, 2018 that the transfer process of the management center of Cihan Bank for Islamic & Finance (BCIH) from Baghdad to Erbil has been completed. The Companies’ Registrar requested a copy of the new adjusted contract.
  • Cross Transactions: 145.9 bn shares of Zain Al-Iraq Islamic Bank for Investment (BZII) (on Oct. 15 and Oct. 18, 2018) which represent 58.2% of BZII capital. 300 mn shares of Iraqi Agricultural Products Marketing Meat (AIPM) (on Oct. 17, 2018) which represents 6% of AIPM capital.

IBBC in Productive Trade Mission to Baghdad

Iraq Britain Business Council completes productive trade mission to Baghdad

IBBC recently completed a productive mission to Baghdad, meeting with high-level government officials and British authorities in Iraq. Baroness Nicholson of Winterbourne, President of IBBC and the Prime Minister’s Trade Envoy to Iraq led the delegation alongside Mr Rasmi Al Jabri, Deputy Chairman of IBBC, Mr Christophe Michels, Managing Director of IBBC and Mr Vikas Handa, IBBC representative in the GCC.

IBBC was joined by numerous member representatives, including from Al Bilal Group, Al Burhan Group, Al-Nukhba OFS, ARCHS, Constellis, Dar Group, EY, Gulftainer, G4S, Khudairi Group, International Islamic Bank, Kuwait Energy, Management Partners, Menzies Aviation, Mosul University, National Bank of Iraq, Ratba’a Contracting, Serco, Shell, Standard Chartered Bank and Turnkey LLC.

The delegation visited soon after the election of President Dr Barham Salih, who took time out of his busy schedule to meet Baroness Nicholson and the IBBC leadership who were joined by HMA Jon Wilks. Dr Salih has been a close friend of the IBBC for many years and recently spoke at the IBBC Cumberland Lodge Conference in July.

On Sunday 7 October the delegation held meetings with the Governor of the Central Bank of Iraq, Mr Ali Mohsen Ismael Al Alaq, H.E. Mr Adbuallah Luabea the Deputy Minister of Transport, Mr Fayadh Neema, Senior Deputy Minister of Oil and Dr Sami Al Araji, Chairman of the National Investment Commission. The delegation were hosted by the Iraqi Federation of Chambers of Commerce in the evening for dinner.

On Monday the delegation met with Dr Mehdi Al Alak, Secretary General of the Council of Ministers, Dr Hameed Ahmed Deputy Chairman of the Council of Ministers, Dr Sabah Mushatat, Economic & Investment Advisor to the Prime Minister of Iraq, Dr Mudher Mohammed Saleh, Finance Advisor to the Prime Minister of Iraq and with Ján Kubiš Special Representative of the Secretary-General and Head of the United Nations Assistance Mission for Iraq.  In the evening Ambassador Jon Wilks hosted a reception for the delegation and Iraqi dignitaries at his residency.

Before leaving Iraq, Christophe Michels visited Serco, who are working with the Iraqi Civil Aviation Authority at Baghdad International Airport. Serco supports the Iraqi authorities in managing the entire spectrum of air traffic control in Iraq including the increasing number of international overflights.

(Source: IBBC)

Iraq Stock Market Report

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 11th October 2018).

Please click here to download a table of listed companies and their associated ticker codes.

The RSISX index ended the week at IQD660 (-2.4%) / $705 (-2.4%) (weekly change) (-18.7% and -15.7% YTD change, respectively). The number of week traded shares was 2.6 bn and the weekly trading volume was IQD1.5 bn ($1.3 mn).

ISX Company Announcements

  • The Central Bank of Iraq (CBI) announced that it will hold its fourth annual conference on Dec. 10, 2018. Conference themes will be about the developmental dimension of monetary policy and the role of financial technology in economic development. (CBI)
  • Mosul Bank (BMFI) will hold an AGM* on Oct. 18, 2018 to discuss and approve 2017 annual financial results. ISX will suspend trading of BMFI starting Oct. 15, 2018.
  • Ashur International Bank (BASH) resumed trading on Oct. 11, 2018 due to disclosing 6M18 and 2017 annual financial results.
  • Iraq Baghdad for General Transport (SBPT) resumed trading on Oct. 9, 2018 after discussing and approving 2017 annual financial results and to distribute 150% cash dividend (IQD1.50 dividend per share, 8.8% dividend yield).
  • Gulf Insurance and Reinsurance (NGIR) resumed trading on Oct. 9, 2018 after discussing and approving 2017 annual financial results.
  • Bank of Baghdad (BBOB) resumed trading on Oct. 8, 2018 according to ISC decision after providing answers to ISC regarding its questions about its 2017 annual report related with the following items; shipping documents account, mutual accounts, accounts receivable, projects under construction and law suits.

Market Review: “Feast or Famine”

By Ahmed Tabaqchali, CIO of Asia Frontier Capital (AFC) Iraq Fund.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

The uncertainty that has prevailed over all economic activity during the last few months is finally coming to an end in a typical Iraqi fashion- extremes of either feast or famine. The parliamentary elections in May, having yielded no clear winner, led to a multi-month paralysis during which the election results were contested in court, subsequently leading to a partial recount of the votes.

Increasing the election anxiety were massive demonstrations in Basra and the southern governorates, where citizens demanded reform and investment into basic services, and the proverbial shaking of the political class by raising fears that they would spread throughout the country. Thoughts on the protest movement and its implications are further discussed in, (The Protest Movement, the Politicians and the Elections).

The end of the uncertainty came in early October with the appointment of a president, and a prime minister in quick succession. This was done at a speed almost unheard of in post-2003 Iraq. While the individuals are two of Iraq’s most accomplished politicians with a lot of promise, the important takeaway is that the process of selecting them broke the mould and ended the political gridlock that bedevilled the country since 2003.

This was a continuation of the effects of the same 2015 protest movement that had such a profound effect on how the elections were fought and their subsequent results. The most visible effect was the fragmentation of the prior ethno-sectarian monolithic blocs that dominated over the past 14 years, the root cause of Iraq’s political and social instability since 2003. It is the end of this gridlock that holds the promise for change in Iraq and with it begins the unlocking of the massive reconstruction drive that lies at the heart of the Iraq investment opportunity.

This is made significantly easier for the upcoming new government as the windfall from higher oil prices (based on the year-to-date average Iraqi oil price of USD 65/bbl) could imply that Iraq would have a two-year cumulative surplus of USD 24.5bn, or the equivalent of a 19% stimulus for non-oil GDP by the end of 2018. Conservative assumptions for Iraqi oil prices for 2019 of USD 59/bbl would imply a further surplus of USD 9.3bn by end of 2019, but if Iraqi oil prices were to remain at the current average price then the 2019 surplus could easily double to USD 18.6bn.

The implications of a three-year cumulative surplus of USD 33.8 – 43.1bn by end 2019 are enormous for Iraq’s ability to plan the funding of the reconstruction and to address the country’s structural imbalances. The assumptions above don’t assume that the current rally in oil prices is sustainable, but that Brent would stabilize at about USD 65-70/bbl from the current USD 84+/bbl (Iraqi oil tends to sell at a discount of USD 5/bbl).

However, this is at least a few months away as the new government is unlikely to be formed before the middle of November and as such would not be able to take any action before year end. Given that, the county is in the mildest of the 40-day Arbaeen pilgrimage, the timing of the new government’s spending programme would coincide with the return of activity following the Arbaeen pilgrimage -hence the earlier reference to the extremes of feast or famine for Iraq’s economy.

The market followed through with its longer-term bottoming process as the July interim bottom continued to be tested this month, in-line with the same trend seen in August and will likely continue for some time. The market, as measured by the Rabee Securities RSISUSD Index was down -4.8% for the month and -10.5% for the year. Average daily turnover declined significantly for the month to the lowest levels (by a wide margin) for a number of years as can be seen from the chart below.

Average daily turnover Index (green) vs RSISUSD Index (red)

(Source: Iraq Stock Exchange, Rabee Securities, Asia Frontier Capital)

The poor market action over the summer months should be seen in the perspective of the low turnover coupled with the continuation of the demonstrations that began in July, the prolonged uncertainty over the governments formation and finally the 40-day Arbaeen pilgrimage that brings the country to a standstill as millions of pilgrims take part in “the largest annual gathering of people anywhere on earth.

However, the low activity was not without fireworks as a sell-off by a foreign investor in Mansour Bank (BMNS) set off a frenzy of trading activity in a replay of the sell-off in the Bank of Baghdad (BBOB), as reported in July’s update “Of Frenzies & Market Bottoms”. At the worst point BMNS, was down -40% for the month and its market capitalization was equal to about 0.5x Book Value, 17% of assets and 22% of cash (based on trailing 12-month numbers). In an exact replay of the events with BBOB, once the position was liquidated locals and some other foreigners bought the stock which sent it up +27% to end the month down -24%, and -10% for the year.

However, the financial position of BMNS during the past few difficult years is almost the mirror opposite of BBOB. BBOB suffered from the same forces that crushed the sector’s earnings, as reviewed in (Of Banks and Budget Surpluses), in addition to its share of company specific issues and structural weaknesses that were exposed by the pains of 2014-2017, including the recent pressure on FX margins. BMNS on the other hand, weathered the storm mostly unscathed as seen below, and in particular it’s in a strong position to reap the rewards of a recovery given its strong deposit growth, low loan/deposit ratio, and low ratio of non-performing loans (NPL’s) to deposits.

As explained “Of Banks and Budget Surpluses”, the banks’ leverage to the economy crushed their earnings. In particular, the double whammy of the ISIS conflict and the collapse in oil prices squeezed government finances as expenses soared while revenues plummeted. The government resorted to dramatic cuts to expenditures by cancelling capital spending and investments which, due to the centrality of its role in the economy, led to year-year declines in non-oil GDP of -3.9%, -9.6% and -8.1% for 2014, 2015 and 2016, respectively. Ultimately, the government had a cumulative deficit of around USD 41bn during this period and accumulated significant arrears to the private sector in the process.

The same leverage should work in reverse as the potential budget surpluses of USD 33.8 – 43.1bn for 2017-2019 should have a simulative effects on economic activity which ultimately should translate to stronger future earnings for the banks. These were discussed in further details in: “Forget the Donations, Stupid.”

BMNS’ financial performance during the years of conflict can be seen through the three charts below that look at loans/non-performing loans (NPL’s), deposits and trade finance and their association with budget surpluses/deficits. BMNS’ loan and NPL data as supplied by the research team at Rabee Securities is gratefully acknowledged, while other data was taken from the Central Bank of Iraq. Data from 2010-2014 are based on Iraqi accounting standards, while data from 2015-2017 are based on IFRS, and all calculations uses the official USD/IQD exchange rate.

BMNS’ loan book growth peaked in 2015 at the same time that NPL’s peaked. Unlike many other banks in the sector, its loan book was almost flat during 2015-2017 and NPL’s as a percentage of loans declined by almost 50%. At the same time BMNS increased its provisions significantly at almost twice the NPL’s in 2017.

Mansour Bank: Loans & NPL’s 2011-2017

(Source: Central Bank of Iraq (CBI), Rabee Research, Asia Frontier Capital (AFC))

Unlike, almost all other banks in the sector, BMNS experienced deposit growth throughout the crisis with growth accelerating during the relative stability in 2017. A flat loan book and sharply increasing deposits resulted in a very low loan/deposit ratio allowing BMNS the opportunity to grow its loans book. Moreover, most of these loans are collateralized by property as most banks’ loans are in Iraq where the norm is for collateral value at 2x the loan.

Mansour Bank: Deposits and Loan/Deposit ratio 2011-2017

(Source: Central Bank of Iraq (CBI), Rabee Research, Asia Frontier Capital (AFC))

BMNS’ trade finance declined, however, at much lower rates than those experienced by the sector, while the damage to BMNS’ earnings was mitigated by the relatively small size of the business.

Mansour Bank: Trade Finance 2011-2017

(Source: Central Bank of Iraq (CBI), Asia Frontier Capital (AFC))

It’s logical to conclude that the sea change which has taken place in the government’s financial health would reverse the trends that affected the banking sector’s earnings as the significant stimulus to non-oil GDP should lead to sustainable economic activity which should provide the sector with room to recover. Given BMNS’ strong position relative to other banks, it should have an opportunity to grow much faster than the sector as a whole.

Please click here to download Ahmed Tabaqchali’s full report in pdf format.

Mr Tabaqchali (@AMTabaqchali) is the CIO of the AFC Iraq Fund, and is an experienced capital markets professional with over 25 years’ experience in US and MENA markets. He is a non-resident Fellow at the Institute of Regional and International Studies (IRIS) at the American University of Iraq-Sulaimani (AUIS), and an Adjunct Assistant Professor at AUIS. He is a board member of the Credit Bank of Iraq.

His comments, opinions and analyses are personal views and are intended to be for informational purposes and general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any fund or security or to adopt any investment strategy. It does not constitute legal or tax or investment advice. The information provided in this material is compiled from sources that are believed to be reliable, but no guarantee is made of its correctness, is rendered as at publication date and may change without notice and it is not intended as a complete analysis of every material fact regarding Iraq, the region, market or investment.

Iraq Stock Market Report

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 4th October 2018).

Please click here to download a table of listed companies and their associated ticker codes.

The RSISX index ended the week at IQD676 (-3.5%) / $722 (-3.5%) (weekly change) (-16.7% and -13.6% YTD change, respectively). The number of week traded shares was 25.7 bn and the weekly trading volume was IQD8.1 bn ($6.6 mn).

ISX Company Announcements

  • Mosul Bank (BMFI) will hold an AGM* on Oct. 18, 2018 to discuss and approve 2017 annual financial results. ISX will suspend trading of BMFI starting Oct. 15, 2018.
  • AL- Kindi of Veterinary Vaccines Drugs (IKLV) will resume trading on Oct. 7, 2018 due to disclosing its 2017 annual financial results.
  • The following companies will be suspended from trading by the ISC starting Oct. 7, for not disclosing annual and quarterly financial reports: BASH, BWOR, BERI, MTRA, IHLI, VKHF, ITLI, IELI, IMPI, SBAG, SIGT, HTVM, HISH, IICM, IMCM, IFCM and IKHC.
  • Gulf Commercial Bank (BGUC) resumed trading on Oct. 4, 2018 after discussing and approving 2017 annual financial results and to distribute 3% cash dividend (IQD0.03 dividend per share, 15.8% dividend yield).
  • Iraq Baghdad for General Transport (SBPT) will hold an AGM* on Oct. 7, 2018 to discuss and approve 2017 annual financial results. ISX suspended trading of SBPT starting Oct. 2, 2018.
  • Depositing the shares of Asia Al Iraq Islamic Bank for Investment and Finance (BAIB) started on Sep. 30, 2018. The bank has a capital of IQD100bn paid-in capital and has completed the listing procedures. BAIB will start trading after depositing and activating 5% of the listed shares or after 21 days of depositing the company’s shares, that is, Oct. 21, 2018.
  • Cross Transaction: 24.9 bn shares of Zain Al-Iraq Islamic Bank for Investment (BZII) on Oct. 4 2018, which represents 9.96% of BZII capital.

New Investment Opportunities in Iraq

By John Lee.

The National Investment Commission (NIC) has announced new investment opportunities in Iraq:

  1. Powder Milk Plant, General Company for Food Products
  2. Rehabilitation of factories, State Company for Petrochemical Industries
  3. Rehabilitation of factories, State Company for Glass and Refractories

(Source: National Investment Commission)

(Picture: Business opportunity word cloud, from ibreakstock/Shutterstock)

Iraq Stock Market Report

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 27th Sept 2018).

Please click here to download a table of listed companies and their associated ticker codes.

The RSISX index ended the week at IQD700 (-0.8%) / $748 (-0.6%) (weekly change) (-13.7% and -10.5% YTD change, respectively). The number of week traded shares was 5.6 bn and the weekly trading volume was IQD3.3 bn ($2.7 mn).

ISX Company Announcements

  • The ISC invited the holders of the National Bonds / Second Issuers to deposit and register the bonds they hold in the IDC and to sell them during the period of the continuous session from 10 am to 12 pm until the maturity date on Apr. 2, 2019. The percentage change will be 5% within the upper and lower limits after the completion of all the procedures required in accordance with the instructions of government bonds.
  • The ISC sent a letter to Bank of Baghdad (BBOB) regarding the calculation of provisions in its 2017 annual report. ISC requested the bank to provide facts and procedures regarding calculating the provisions and whether or not they were calculated according to the accounting standards and the instructions of the CBI.
  • ISX requested Al-Janoob Islamic Bank (BJAB) to provide names of high authority members in the bank (BoDs and their representatives, the CEO, Finance Manager, as well as internal and external auditors).
  • Baghdad for Packing Materials (IBPM) will hold an AGM* on Oct. 11, 2018 to discuss and approve 2017 annual financial results. ISX will suspend trading of IBPM starting Oct. 8, 2018.
  • Ishtar Hotel (HISH) will hold a GA on Oct. 3, 2018 to discuss the hotel’s investments. The company has been suspended from trading since Aug. 8, 2018 by an ISC decision for not disclosing 2017 annual financial results.
  • Gulf Insurance and Reinsurance (NGIR) will hold an AGM* on Oct. 3, 2018 to discuss and approve 2017 annual financial results. ISX will suspend trading of NGIR starting Sep. 30, 2018
  • Al-Zawraa for Financial Investment (VZAF) will resume trading on Sep. 30, 2018 after discussing and approving 2017 annual financial results.
  • ISX announced that Asia Al Iraq Islamic Bank for Investment and Finance (BAIB), having IQD100 bn paid-in capital, has completed the listing procedures. BAIB will start trading after depositing and activating 5% of the listed shares or after 21 days of depositing the company’s shares.
  • Baghdad Soft Drinks (IBSD) invited its shareholders to visit the company’s headquarter starting Oct. 15, 2018 to receive their cash dividends of 2017.
  • Cross Transactions: 510 mn shares of Cihan Bank for Islamic & Finance (BCIH) on Sep. 23 and Sep. 26, 2018, which represent 0.2% of BCIH capital.

Iraq Stock Market Report

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 20th Sept 2018).

Please click here to download a table of listed companies and their associated ticker codes.

Note: ISX was closed today (Sep. 20, 2018) due to religious holiday, 10th Day of Muharam “Ashura”. The next trading session will be held on Sunday (Sep. 23, 2018).

The RSISX index ended the week at IQD706 (-1.8%) / $753 (-1.8%) (weekly change) (-12.9% and -9.9% YTD change, respectively). The number of week traded shares was 892.6 mn and the weekly trading volume was IQD544 mn ($446.9 k).

ISX Company Announcements

  • Gulf Insurance and Reinsurance (NGIR) will hold an AGM* on Oct. 3, 2018 to discuss and approve 2017 annual financial results. ISX will suspend trading of NGIR starting Sep. 30, 2018
  • Original shares of Al-Hamraa for Insurance (NHAM) resumed trading on Sep. 19, 2018 after discussing and approving 2017 annual financial results and increasing the capital from IQD5.0 bn to IQD7.0 mn through 40% bonus issue.
  • Cihan Bank for Islamic & Finance (BCIH) resumed trading on Sep. 18, 2018 after discussing and approving 2016 and 2017 annual financial results and to distribute 11.8% cash dividend (IQD0.118 dividend per share, 4.5% dividend yield).
  • Al-Harir for Money Transfer (MTAH) resumed trading on Sep. 18, 2018 after discussing and approving 2017 annual financial results.
  • Kurdistan International Bank (BKUI) will hold an AGM* on Sep. 22, 2018 to discuss and approve 2017 annual financial results. ISX suspended trading of BKUI starting Sep. 18, 2018.

New Investment Opportunities in Iraq

By John Lee.

The National Investment Commission (NIC) has announced new investment opportunities in Iraq:

  1. Sugar production, General Company for Food Products
  2. Hydraulic centre, Hydraulic Industries State Company

(Source: National Investment Commission)

(Picture: Business opportunity word cloud, from ibreakstock/Shutterstock)

Cyprus: A Powerful Investment brings a European passport

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By Veronica Cotdemiey, CEO of Citizenship Invest.

Recently Cyprus has been recognized as the ‘super star’ of the citizenship by investment programs worldwide. The country has the most appealing second citizenship program being the only European country which grants the nationality in only 6 months without ever having to reside there. Cyprus has officially and by far, the fastest form of legally obtaining a European citizenship and passport which enables living, working and studying in any of the 28 countries members of the European Union.

Moreover, Cypriot passport holders can travel to major destinations without applying for visas. It allows instant visa free travel to over 170 countries including the UK, UAE, European Union countries, Canada, Australia among other major countries and often allows a stay from 30 up to 90 days at a time depending on each country.

Most importantly, the citizenship can be inherited by family members and future generations. Children, grandchildren, great-grandchildren and beyond also have the right to obtain the citizenship and passport through a very simple process which takes only two weeks.

Unlike many of the fast track citizenship programs which require a non-refundable financial contribution to a Government fund, Cyprus offers its investors the possibility of earning a good return while obtaining the citizenship. The Cypriot citizenship law requires a temporary investment of EUR 2 million in a Real Estate investment in Cyprus which is required to be held for 3 years and thereafter can be sold while maintaining a property worth 500,000 EUROS. It is certain that not everyone can afford it, but for those who can, this is potentially on of the best investment they would have made in their lifetimes, leaving their families a great legacy.

The program has become so popular among HNWI citizenship applicants from all over the world especially Asia, Middle East and Russia, that the Cypriot Government has recently announced a cap of only 700 applications per annum to maintain its high standards. According to Cypriot news agencies, the Government of Cyprus has released reports of issuing passports for over 3,300 families bringing into the economy approximately USD 4.5 Billion. This has helped turning the Cypriot economy around becoming one of the fastest growing GDP’s in Europe. At the moment, Cyprus GDP levels are considerably higher than those of the Eurozone and the European Union according to a report released by the international firm KPMG.

The Cypriot citizenship by investment program is one of the many incentives established by the Government to attract foreign direct investment to the country. The first amendments to the citizenship law were introduced back in 2013. Since its inception, the program has undergone various improvements to make it more accessible and attractive for investors. In September 2016, the Government of Cyprus introduced an amendment which reduced the minimum investment amount to EUR 2 million (from EUR 2.5 million) and the option to add the parents of the main applicant for an additional EUR 500,000 plus VAT investment in a property in Cyprus.

According to official statistics from the Department of Land and Surveys, in 2017 Cyprus has recorded a 24% increase in real estate sales contracts, 30% of which accounted to non-nationals. Not surprisingly 31% of the real estate transactions in 2017 were properties valued at around 2 million EUROS, which indicates that a high number of investors are purchasing real estate as a mean to obtain the Cypriot citizenship.

The contribution of real estate to Cyprus’ GVA amounted to EUR 2,4 Billion in 2017. Construction activities from 2013 onwards indicate to have broken through the slowdown of the financial crisis, which has been clearly left way behind, and entered into an expansion period which until 2019 is set stretch to pre-2013 levels where Cyprus recorded all-time highs in real estate transactions.

From a taxation point of view Cypriot passports holders actually benefit. Non-tax residents are not liable for income tax generated outside the country. More importantly Cyprus does not impose inheritance tax on property, which gives the ability to pass it down to future generations without incurring costs.

So how does all this benefit investors? Cyprus has become one the of the most attractive real estate investments in Europe. This injection of billions of Euros in luxury real estate and infrastructure is turning the Cypriot landscape around. Limassol will soon have ‘One’ the tallest residential tower in Europe, Ayia Napa is undergoing the non-stop 24/7 construction of the most luxurious marina in the region with high end international restaurants and villas worth EUR 5 million with their own private berths. The whole country is having a radical facelift with modern contemporary architecture of glass and refined design are taking over. In the next 3 years, when allowed to re-sale, investors will be able to appreciate the growth of their investments as part of this radical transformation.

One can understand the excitement of savvy businessmen when considering buying property in Cyprus, after all they know that they are purchasing luxury real estate in a newly booming property market.

It is clear that Cyprus has not only become the ‘super star’ of citizenship programs but also earned a prime position amongst the most profitable real estate investments worldwide. Demand translates into growth which then translates into high profits. Whether applying for citizenship or not, Cyprus seems to be the place to invest in.