Corporate Finance - Cyprus

Cyprus

In Cyprus, the revenue in the Corporate Finance market market is projected to reach US$105.90m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2028) of 0.26%, resulting in a projected total amount of US$107.00m by 2028.
The average transaction value in the Corporate Finance market market amounts to US$56.70m in 2024.
When compared globally, the United States leads with the highest revenue of US$119.10bn in 2024.
Cyprus is experiencing a surge in foreign direct investment within its corporate finance market, driven by its attractive tax incentives and robust regulatory framework.

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Currency

Analyst Opinion

The Corporate Finance market in Cyprus is experiencing a notable shift driven by various factors.

Customer preferences: Customers in Cyprus are increasingly seeking personalized and tailored financial solutions to meet their specific needs. This demand for customized services has led to a rise in boutique financial firms that offer niche expertise in areas such as mergers and acquisitions, capital raising, and financial advisory services.

Trends in the market: One prominent trend in the Cyprus Corporate Finance market is the growing interest in sustainable and socially responsible investments. Investors are placing greater emphasis on environmental, social, and governance (ESG) factors when making financial decisions. This trend is influencing the types of projects and companies that receive funding, with a focus on long-term sustainability and ethical business practices.

Local special circumstances: Cyprus, being strategically located at the crossroads of Europe, Africa, and the Middle East, serves as a gateway for international investments. The country's favorable tax regime and business-friendly environment have attracted a significant number of foreign investors looking to establish a presence in the region. This influx of foreign capital has contributed to the growth of the Corporate Finance market in Cyprus.

Underlying macroeconomic factors: The recent economic recovery in Cyprus following the financial crisis has created a more stable and conducive environment for business growth. Low interest rates and government initiatives to promote entrepreneurship have encouraged investment activities in the Corporate Finance sector. Additionally, Cyprus's status as a member of the European Union provides access to a larger market and opportunities for cross-border transactions, further fueling the development of the Corporate Finance market.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.