The perception remains that Cyprus is a stable European country. However, the sad situation in Ukraine has had a significant impact on the island in terms of its economy and the geo-political landscape. The volatile global conditions with rising interest rates and energy prices are also affecting the local economy.

Some firms that were heavily dependent on work from the CIS have been struggling. A considerable number of law firms report that they are increasingly advising on sanction issues, providing legal opinions on enforcement and are doing more compliance work.

Cyprus has an ideal strategic location and is internationally recognised as a lucrative shipping centre. The country has been attracting investments from other countries as well – the Israelis are now investing more in Cyprus.

With the opening up of the country in the aftermath of the Covid pandemic the real estate and construction markets are now active again. The tourism industry is also thriving.

Technology companies continue to significantly invest in Cyprus. These technology companies are redeploying staff to the island and are setting up their offices there. There is a steady increase in corporate and commercial work from the technology sector and firms have been kept busy advising on issues like data protection, employment law and the protection of intellectual property rights.

There are still delays in the courts partly due to the pandemic – the reforms of the court system are still ongoing.

It is anticipated that there will be more restructuring and foreclosure work as well as liquidations in the year ahead, as some local companies are in financial difficulties.

While there could be some difficult times ahead, the future remains promising for Cyprus.