An international centre for shipping services

Maritime transport or shipping is such a high value-added service. Cyprus has distinguished itself in two aspects of shipping. It has the fourth largest ship registry in the world and it is the largest third-party ship management centre in the world. In no other sector of the economy has Cyprus achieved higher international ranking.

There are several reasons for this success in attracting ships and shipping companies. The Government offers a package of attractive fiscal incentives, the Cypriot legislation is based on the well-understood anglo-saxon legal system, it is fairly easy to staff an office with the necessary technical and managerial personnel, living in Cyprus is pleasant and affordable and communications with the island are of expected international standards.

In this respect, success breeds success. In a survey which was conducted by the Cyprus Shipping Council during the summer of 1995, the respondent shipping companies were asked to explain their reasons for choosing Cyprus. In addition to those cited above, many of the more recently established companies also said that they came to Cyprus in order to be in close proximity to their major clients. The survey revealed that for every ship management company in Cyprus, there are two companies providing shipping services and supplies. The more companies come to Cyprus, the more attractive Cyprus becomes to other companies.

Since services are intangible and a prospective buyer cannot inspect a seller's wares before hand, the successful providers of services, be it individuals, companies or countries, are those who become known for their quality and reliability. Cyprus now enjoys a good reputation which needs to be nurtured further.

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