NICOSIA, Apr 21, 2010 (AFP) - Gas-rich Qatar and Cyprus are to jointly build a luxury hotel and shopping complex in Nicosia, under six agreements signed in the Cypriot capital on Wednesday, officials said.
The first phase of the joint venture project between the two governments will cost 150-million-dollar and take 30 months to complete.
The second phase of the 50-50 investment, whose overall value was not disclosed, will include shops, offices and apartments on a site covering 50,000 square metres (540,000 square feet).
The other agreements signed aim to improve air, labour and trade links between the two countries.
"Our decision to proceed with such a large investment in Cyprus is due to the fact that the Cypriot economy has not been affected to a great extent by the (world) financial crisis," Qatar's emir, Sheikh Hamad bin Khalifa al-Thani, told reporters.
"The Cypriot economy has opportunities for growth."
Cyprus, an EU member since 2004, recorded negative economic growth in 2009, at 1.7 percent of GDP. But the government projects a marginal 0.5 percent expansion this year.
Technically, the island is still in recession, although the key tourism sector recorded an upsurge in March for the first time in more than a year.
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Copyright AFP 2010.
