Cyprus attracts credit crunch weary nationals from Middle East
Increasing number of nationals from Dubai and the UAE are taking their money out of the country and into the nearby safe haven of Cyprus.
As the global economic downturn hits the UAE, a growing number of people are taking their savings and putting it into Cypriot property to hedge against the current economic turmoil in stocks, shares and plummeting property prices. Property companies have been hit hard, with two of the UAE’s biggest firms losing almost 10% of their stock value. Morgan Stanley recently forecasted that the average price of a property for sale in Dubai would fall by around 10% by 2010, in light of the fact that a number of new-build residential developments are now being completed.
Derek Hatton, director of Morpheus Investments commented: “Cyprus is only a few hours flight away, and as a member of the EU, has a stable and accountable economy. As A result, top-end investors are heading to Cyprus to store their money away from the uncertain conditions in the Emirates. Many Dubai nationals are also heading to Cyprus and setting up their business operations here as it has one of the lowest corporate tax rates in the entire EU.”
Dubai based airline Emirates is making a series of enhancements to its services to Cyprus and it has already launched daily services between Dubai and Larnaca International Airport. The flight would depart Dubai on a daily basis at 8:15 am, and arrive in Larnaca at 10: 25 am. The flight will depart Larnaca each day at 7:30 pm, and land in Dubai 3 hours and 10 minutes later. According to Nabil Sultan, Emirates Senior Vice President, Commercial Operations, Europe, ” After 14 years of services, we are extending our commitment to the island and significantly improving connections to and from Dubai.”
According to the Knight Frank Index, Cypriot house prices have remained constant throughout the global economic downturn and the properties have recorded an average of 9% growth across the island in the last three months of this year.
Popularity: 58% [?]
