A REPORT that compares business regulations for firms in 189 economies around the world confirms the bureaucratic issues that plague businesses on the island and hamper the efforts to attract investments for the implementation of major development projects.
Although Cyprus ranks 38th on the ease of doing business and 44th on starting a business, it performs very poorly on construction-related activities and the enforcement of contracts. For example:
- It ranks 86th in dealing with construction permits, which requires nine procedures with an average time to secure a licence at 677 days.
- It ranks 108th in getting electricity, which requires five procedures and takes an average of 247 days to obtain a supply.
- When it comes to registering property, Cyprus ranks 103rd, with the process requiring six procedures and taking an average of 6 days.
- As for the efficiency of the judicial system in enforcing contracts, Cyprus ranks 110th, with the process involving 43 procedures and taking an average time of 735 days.
Speaking to the online news portal Stockwatch Andreas Demetriades, spokesman for the Major Development Projects Association, said that “development and bureaucracy are two incompatible concepts”, stressing that “if we want to attract investors, as a state should create the required business-friendly environment and provide the necessary incentives.”
Doing Business 2014 – Understanding Regulations for Small and Medium-Sized Enterprises (Published by the World Bank and the International Finance Corporation).