Cyprus today is firmly established as a reputable international business centre.

The Cyprus Economy is based on the free market system where the private sector is the base of all economic activities. The role of the government is to create a good healthy business environment by privatising all of its services. The Cyprus Economy has been transformed from a basic agricultural, underdeveloped one, into an economy with an open free market, a Westernised standard of living, a growing export-orientated light industrial sector, a modernised agricultural sector and an internationally important tourist centre.

The high external demand for Cypriot goods and services, along with the development of Cyprus into a commercial, financial and maritime centre and the performance of the economy has been such that it has combined high real growth with low inflation and low unemployment. Despite the obvious difficulties, by the Turkish invasion, thegovernment together with the enterprising private sector, made the economic recovery of the island possible .

The quality of life is better than that reflected by the per capita income alone, if one takes into consideration the excellent housing conditions, the pollution free environment and the low crime rate.

Cyprus, a European Union Member country, is situated in the north-eastern corner of the Mediterranean basin, close to the busy trade routes linking Western Europe with the Arab World and the Far East. It covers an area of about 9.251 km2 (3,570 sq. miles), making it the third largest island in the Mediterranean, after Sicily and Sardinia.

Cyprus, with its new image as a member state of the European Union is presenting a stable economic and investment property market environment 1st SEMESTER 2007 The capital of the island, Nicosia, with a population of 273,129 people, is the main administrative and business centre and is situated to the east of the geographical centre of the island. Limassol, the second largest city with a population of 197,300 people, is situated on the southwest part and is an important seaport, industrial and tourist centre. Larnaca, with a population of 115,266 people, is situated in the south part and is the location of the main international airport with a rapidly expanding tourist industry as well as the International Free Trade Zone area. Paphos, with a population of 66,038 people, is on the West Coast with a strong tourist industry, and the location of the second airport in Cyprus. In addition to the above main cities, Famagusta and Kyrenia are located in the east and northern parts of the island respectively, which are currently under the control of the Turkish occupation forces. Part of Nicosia is also under Turkish military control.