Nicosia: A Southern Cypriot EU lawmaker has issued a cautionary statement regarding the increasing Israeli investment and property acquisitions in Cyprus, which he believes may alter the island's social and economic landscape.
According to Anadolu Agency, Fidias Panayiotou expressed concerns on Saturday through the social media platform X, highlighting that Israeli investors and companies are significantly expanding their land purchases and development projects in Cyprus. This surge in foreign investments, particularly in the real estate and land development sectors, has positioned Israelis as prominent buyers in recent years.
Panayiotou emphasized the growing dependency on Israeli investment for the wellbeing of the Cypriot economy, warning that concentrated property purchases are creating exclusive residential zones in specific areas. He acknowledged the role of investments from other non-EU countries such as Russia, Ukraine, China, the US, and the UK, noting that while foreign ownership is not inherently negative, it can become problematic without proper transparency and oversight.
He criticized the Greek Cypriot Administration for its weak controls and reliance on foreign investment, which he believes has facilitated unchecked expansion by wealthy foreign investors. Panayiotou illustrated his point by suggesting that if the government permits Israeli investors to operate without restrictions or oversight, it could attract even more foreign investment under the guise of Cypriot entities.
Additionally, Panayiotou pointed out the emergence of Israeli communities in Southern Cyprus, which are reportedly developing separate infrastructures, including schools primarily attended by Israelis. In response to these developments, he called for tighter regulatory measures, urging the authorities to introduce legislation that would enhance transparency in land purchases and ensure compliance with local laws.
He further advocated for initiatives aimed at bolstering the local economy to decrease reliance on foreign capital and mitigate external influences on domestic affairs.