let greece inspire you · the egnatiaodosis a motorway that crosses northern greece, from east to...
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Let Greece
inspire you Take the next step.Invest in prosperous business ventures.
May 2019
Greece Today | Priorities and Strengths | Reforms and Results | Path for Growth | Investment Projects
EconomicOutlοok
Economic Outlοok – A Snapshot
� After a severe economic crisis, Greece’s economy grew by 1.4% in 2017, and by 1.9% in 2018,
recording its highest increase since 2007
� Unemployment continued its steady decrease, standing at 19.6% in 2018 Q1-Q3 relative to a
21,7% level for the same period in 2017
� The direct contribution of travel and tourism stood at €14.6 billion in 2017, rising by 9.6% to
€16 billion in 2018 (Bank of Greece), while its total contribution in the economy corresponds to
27% share of GDP(2017)
� Exports of goods grew by 15.7% y-o-y (EL.STAT) in 2018, exports of goods and services
increased from a 19% share of GDP in 2009, to more than 36% (GDP) in 2018
� The new National Export Growth Strategy has set a target for 50% contribution in GDP by
2025.
� Net Foreign Direct Investment inflows during 2018 reached €3.6 billion vs. €3.2 billion during
2017, an increase of 14%, following a 3nd consecutive year of increased flows
� Overall, the Greek economy maintains its growth momentum despite the prevailing economic
slowdown affecting the Eurozone and international trade
Transformingthe ecomomy
New National Development Strategy
• The new paradigm for the economy will be underpinned by structural
competiveness, social justice and the protection of the environment and
the natural resources of the country
• Fair Growth is a strategic choice, aiming for GDP and income recovery with
long term viability, through capitalising on the highly skilled workforce ,
new productive investments in areas with high extroversion, innovation
and a propensity to new technology, producing internationally tradable
products and participating in wider value chains
• Promotion of investment, exports, innovative small and medium-sized
enterprises, value adding and competitive economic sectors, digital
education, network development (telecoms, transport, energy)
• Support Regional development and the a Balanced Growth approach vis-a-
vis urban and less urban regions of Greece
Government Policiesto improve Business Climate and return to growth
• Absorption of the Structural available funds for the period 2014-2020 (€36bn
earmarked for the next period 2021-2027)
• New investment Law to support new investments
• Cooperation with international financial institutions to increase liquidity
and ease investment financing (EIB, EIF, EBRD, IFC, Black Sea Trade & Development
Bank etc)
• New Development Bank to support SMEs through microcredit,
guarantees, loans, infrastructure, innovation
• NPLs framework in place
• Acceleration of the Privatisation agenda
• Improved business Licensing in cooperation with the World Bank
Aid schemes:
1. Tax exemptions
2. Cash grants
3. Leasing subsidy (leasing)
4. Wage costs subsidy
5. Financial instruments (capital participation, loan guarantee, loan etc.)
6. Fixed tax regime for a certain period of time
7. Rapid licensing
State Aid percentages:
Regional State Map percentages foresee maximum aid rates reaching 55%
of the total investment cost for small and very small enterprises and 35%
for large enterprises.
New Investment Incentives Law
• The EquiFund (Initial Capital €500 million from European, national funds, and extra
funds from financial institutions and private investors) is now active
• The Entrepreneurship Fund II (approx. €1 billion from NSRF and participating banks)
• The new Infrastructure Fund (approx. €1 billion, 2nd semester of 2018) directed to
development, regeneration and energy infrastructure projects
• The Residential energy efficiency program (approx. €700 million, 2nd semester of
2018)
• TANEO fund of funds has signed an MoU with Mubadala, Abu Dhabi’s strategic
investment group, to create a €400 million co-investment platform, targeting
investment opportunities found in key sectors of Greece’s economy
• Business Restructuring Fund (approx. 400 million) to be announced in the 2nd
semester of 2018)
• The MicroLoans Fund (support to SMEs and entrepreneurs, approx. €200 million)
New Financing Instrumentsfor the Greek Economy (forthcoming)
Intra-group service centers established in Greece, under
Law 3427/2005, may provide the following services to
their head-offices or affiliates abroad, as well as in
Greece:
• Consulting services
• Centralised accounting services
• Quality control of production, products, procedures
and services
• Preparation of studies, designs and contracts
• Advertising and marketing services
• Data processing services
• Receipt and supply of Information and Research &
Development services.
Establishment of intra-group service Centers in Greece
Qualification Prerequisites
• The total value of the investment exceeds 100 million Euro
• The value of the investment exceeds 40 million Euro and,
concurrently, the investment creates at least 120 new jobs
• The investment creates at least 150 new jobs or at least 600
jobs are maintained in a viable and sustainable manner
• The value of the investment exceeds 15 million Euro for
industrial investments within organized industrial areas
or
• the total investment cost exceeds 5 million Euro for
investments regarding the development of Business Parks
or
• 3 million Euro for investments included in JESSICA initiative
45 day
deadline
45 day
deadline
One-stop-
shop
One-stop-
shop
Absolute
priority
Absolute
priority
The process
Fast Track+ Residence permit for non EU executives of the companies
Or
Or
Or
Electronic Company Establishment e-OSS
(One-Stop-Shop)
https://eyms.businessportal.gr/auth
Establishing a new company is now even easier through the new swift process introduced through
a recently launched e-platform, in 3 steps:
• Step 1: Insert company details
• Step 2: Acceptance of company details and Articles of association by all company shareholders
• Step 3: Automatic registration at the Business Registry (GEMI), Tax Authority (AADE), Local
Chamber, Social Security Organisation (EFKA)
There will be gradual introduction of all business types (eg SA, Ltd,
etc.) starting with single-member private capital companies
A UniqueInvestmentProposition
Combining:
A. Timeless competitive advantages:
Location & Natural resources
B. Developed Country:
Stability & Framework
C. Emerging economy growth opportunity:
• Market opening up to investment
• Market consolidation
• Run operations at highly competitive costs
• Asset development
• Growth sectors
A Unique Investment Proposition
Supported by high-calibre Human Capital…
41
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10
20
30
40
50
60
ITA
HU
N
DE
U
CZ
E
SVK
PR
T
AU
T
GR
C
ESP
EST FIN
LVA
SVN
OA
VG
PO
L
FRA
BE
L
NLD
DN
K
SWE
LUX
GB
R
LTU
TERTIARY ED UCATION
ENROLLMENT (% IN POPULATION)
Percentage of Managers, Professionals,
Technicians and Associate Professionals
who speak a foreign language 59%
53,3%
43,9%41,1%39,3%38,9%
28,5%
13,6%
Source: OECD 2017
Source:
Education statistics 2015
55%45,5%
40,8%39,1%36,7%36,4%31,2%
19,1%
Percentage of Clerical Support Workers,
Service & Sales Workers who speak a
foreign language
... available at a competitive cost
Source: OECD Employment Outlook 2017
ForeignDirectInvestmentas a keypriority
Selected Deals 2011-2017
StrategicInvestmentsUnderway
PORT PRIVATISATIONS
Privatisation of Piraeus Port (OLP) - COSCO
Privatisation of Piraeus port
An €1.5bn total investment deal, confirmed in August 2016 when
COSCO acquired 51% of the port, for €280.5 mn. The Port now ranks
2nd on container traffic in the Mediteranean and 6th in Europe
(Porteconomics 2018) having managed scale up its container traffic
volume within the last 10 years. The beginning of 2019 sees OLP
increasing its total capacity in piers I, III and III to 7,2 mil. Teus’s,
following the completion of the ongoing expansion plans. New Business
at the Port is expanding with MNC’s like HP, Huawei, ZTE, Sony,
Shanghai International Port Group, establishing a presence and
expanding their business EU-wide.
COSCO is set to invest around €466 million in transforming Piraeus into a Mediterranean home porting hub,
through a master plan aiming to boost Piraeus’ reputation as a tourism destination with the construction of four
new hotels on the port’s premises and a new cruise terminal that will be able to handle up to six cruise ships
transporting some 600,000 passengers.
“…the world’s fastest growing port, and will be the largest
port in the Mediterranean by 2019.” Die Zeit (May 2018)
Privatisation of Thessaloniki and other
regional ports
Privatisation of Thessaloniki port
In March 2018 the consortium of Deutsche Invest Equity
Partners (DIEP)-France’s CMA CGM (Terminal Link)-
Savvidis Group (Belterra Investments Ltd), acquired a
67% stake in Thessaloniki Port following its succesful
tender for €232 mn. The full benefit of the deal will
amount to € 1.1 bn as it also includes the consortium’s
commitment to invest €180 mn in the next 7 years,
capitalising on the ports supreme location as an export
gate for the wider Balcan area.
Privatisation of 10 other ports
The Hellenic Republic's Asset Development Fund has
100% share ownership for 10 ports in the form
of sociétés anonymes. HRADF has announced its intention
to proceed with the tenders in the near future for the
ports of Volos, Rafina, Igoumenitsa, Patras,
Alexandroupolis, Heraklion, Elefsina, Lavrion, Corfu and
Kavala.
GREECE IS BECOMING AN ENERGY HUB
TAP will transport natural gas from the giant Shah Deniz II field in Azerbaijan,
via Greece and Albania, and across the Adriatic Sea to Southern Italy, and
further to Western Europe.
Shah Deniz Consortium selects TAP
as European export pipeline
� 550 Km of
pipeline in Greece
� 80.7%
completed
ASTIR PALLASVOULIAGMENIS
Astir Palace Vouliagmenis
On 31 December 2015, after long negotiations with the Investors, a contract agreement
was signed by Jermyn Street Real Estate Fund, as an Addendum
of the existing Shares Purchase Contract, regarding the modified Special Plan
for the Astir Palace Vouliagmenis.
The legendary Astir Palace was transformed into the first Four Seasons Hotel in Greece
(€100 million invested) which recently opened its doors.
FORMER ATHENSAIRPORT
The MoU includes many improvements on the
original agreement, such as completion of the
investment in a shorter period of time and a clause
stipulating that 80% of the investment must be
completed within 12 years.
Former Athens airport redevelopment project
The biggest real estate redevelopment project
in Greece. The €8 billion investment will
include a diverse range of residential
communities, hotels, shopping centers, family
entertainment venues, museums and cultural
venues, health and wellness centers,
significant space for sports and recreation, a
business and metropolitan park and other
facilities.
The site spans a total area of approximately
6.2 million sq.m. (620 hectares). It has a 3.5
km coastline and includes a currently
operational 337-berth marina (capacity for
vessels up to 100 meters length). By way of an
indication of its size, the site is more than
three times the size of Monaco, more than
two times the size of Hyde Park (London, UK)
and Central Park (NY, USA).
June 2016: MoU signed between
HRADF and Lamda Development
FORMER ATHENSAIRPORTREGIONAL
AIRPORTS
German – Greek consortium gained the tender
• 40-year concession to operate, manage, develop and maintain the facilities
• 25.3 million passengers in 2016 (9% increase from 2015)
• 1.234 bn € upfront concession fee
• An annual fixed concession fee of initially 22.9 mn € will be paid
• A total of 400 mn € will be invested in airport infrastructure until 2021
• Plus any maintenance and traffic-driven capacity investments during
subsequent years of the project
• Total investment will exceed €3 bn
Privatisation of 14 regional airports
FRAPORT3 bn € deal
MANUFACTURING
Philip Morris International new €300 million
euro investment in Greece
The project:
• 3 new buildings at Papastratos’ facility in Aspropyrgos, Athens
• Construction of new lines of tobacco processing and
production of refills for innovative IQOS product
• Creation of 400 new jobs
Production upgrading:
• 20 billion refills a year, absorbing a significant amount of Greek tobacco production
• Products will be exported to more than 30 countries
Philip Morris new investment
Mytilineos Group announced a new investment reaching 400 million
euro in Central Greece
The investment:
� New aluminum production facility at the Aspra Spitia site, in Central
Greece
� The new facility will boost output by one million tons, on top of the
current factory capacity of 820,000 tons
� Completion is estimated in 18 months from the beginning of
construction and 300 new jobs will be created
The Mytilineos Group formally merged with the Aluminium of
Greece conglomerate – following approval by a majority of its
shareholders
Mytilineos Group investment
Egnatia Motorway Privatisation (in progress)
The Project:
� The Egnatia Odos is a motorway that crosses Northern Greece, from East to West, from the
the Greek-Turkish border to the western Port of Igoumenitsa, which connects Greece to Italy.
� The motorway is a catalyst for investments in Northern Greece in the sectors of transport,
manufacturing and tourism. It greatly facilitates trade and travel within Greece, bringing Epirus
and Western Macedonia much closer to the metropolitan center of Thessaloniki (2nd largest
Greek city), the rest of Macedonia and Thrace.
� HRADF declared in May (2018) the (7) pre-qualified investment schemes for the tender
� Among the schemes qualified to participate in phase B of the tender, the following overseas
companies participated: ANAS International Enterprise S.p.A. (IT), EGIS PROJECTS S.A. (FR),
Macquarie European Infrastructure Fund (AUS), ROADIS Transportation Holding S.L.U. (PSP
Investments – CAN), SICHUAN COMMUNICATIONS INVESTMENT GROUP CO. (CN) and VINCI
HIGHWAYS S.A.S – VINCI CONCESSIONS S.A.S (FR)
FDI inflows 2010-2018 In million Euro
Source: Bank of Greece
Net Foreign Direct Investment inflows during 2018 reached €3.6 billion vs. €3.2 billion during 2017, a
Y-O-Y increase of nearly 14%, following a 3nd consecutive year of increased flows
249
822
1354
2122 2022
1143
2592
3204
3640
2010 2011 2012 2013 2014 2015 2016 2017 2018
Net FDI Inflows +13.8%
FDIis welcome!
InvestmentOpportunitiesKey Sectors
Attractive Investment Opportunities
TOURISM – REAL ESTATE AGRI – FOOD ENERGY – CLEAN TECH LOGISTICS
ICT LIFE SCIENCES CULTURAL & CREATIVE
INDUSTRIES
PRIVATIZATIONSSSCs & BPOs
CentralizingCentralizingCentralizingCentralizingOutsourcingOutsourcingOutsourcingOutsourcing
Greece
TOURISM
One of the most popular
destinations in the world
is undergoing a regeneration,
offering an upgraded and
diversified tourist product
Greece and Athens among Best Worldwide destinations for 2016, 2017 & 2018
Condé Nast Traveler Votes
Greece the Best Country
in the World for 2016 Readers’ Travel Award
Athens the fourth Best European
Destination for 2017, according to the
results of the eighth online competition
organized by the European Best
Destinations (EBD) organization.
Greece topped the Best
Islands in the World ranking
at the 2018 Condé Nast
Traveler votes
Greece amongst the 10
most welcoming places
in the world for 2018 at
the Booking Guest Review
Awards
The tourism market_Facts
Tourism is a big
force in the
economy30,2 mn Tourist
arrivals
10% y-o-y increase
15 bn Euros
Tourist receipts
11% y-o-y increase
The tourism
sector (2017)2018
27,3% of GDP
37,2% of
employment
Every € 1 created by
tourism activity, has
been found to cause
indirect additional
economic results of
€ 1.5, while in total
creates € 2.5 GDP
6th record year
Greek tourism sector growing over three times
faster than wider economy• 33,1 mil visitors
• 16 bn tourist receipts
• Outpaced the EU’s regional Travel & Tourism growth
rate of 2.4%. Both the EU and Greece’s wider
economies grew at a rate of 2.0%.
• Benefitted from €18.5bn international visitor spend,
representing 27.9% of total exports.
And….
• Athens a rapidly increasing city break destination, with 5,5 mn. visitors in 2018, 600% increase in
the last 5 years
• a top hotel investment destination with rising demand 8,4% annually and only 0,1% new hotel
capacity (Cushman & Wakefield 2018)
TourismInvestment opportunities
Cruise – Marinas
Upgrade existing infrastructure –
Establish new destinationsLarge Integrated resorts –
Vacation Homes
Thematic parks / sports tourism Enhance city break experience
Medical tourism –
Thalassotherapy
TourismPrivatisations & New Infrastructure Investment
Private Projects & Public Assets
available for development
in our portfolio
Privatisations of publicly owned
assets
Source: PWC, 2018
Golden Visa Program for Investors
• Permanent residence permit to non-
EUs and their family members
(ascendants/descendants) when
purchase property or invest in Greece
• Investment threshold: €250,000
3 Competitive Options
1.
Residence Permit
with the purchase of
Real Estate Property
2.
Residence Permit
for Investment
Activity
3.
Residence Permit
for Strategic
Investments
Golden Visa Program for Investors
Golden Visa Program for InvestorsBenefits
�Reside without time restrictions in Greece
�Travel without any requirements to 26 European Schengen-area countries and reside for
up to 3 months every semester
�No language requirement
�No minimum personal income requirement
�Simple, fast and transparent processing
�Access to the Greek education and healthcare systems
�Very competitive prices in real estate assets
�High rental yields for quality properties in prime locations
A fast-growing programResidence Permits when investing in GreeceNumber of residence permits for real estate owners
issued per top 10 countries of origin
(as of April 01, 2019)
A total of 4,154
residence permits
have been issued since
the commencement
of the program
for real estate owners
Source: Hellenic Ministry of Migration Policy
2416
428402
129 12287 84 80 69 55
China Russia Turkey Egypt Lebanon Iran Ukraine Iraq Jordan Syria
A fast-growing programResidence Permits when investing in Greece
A total of 11,445 residence
permits have been issued
since the commencement of
the program for real estate
owners and their family
members (spouses,
ascendants, descendants)
Number of residence permits for real estate owners &
family members issued per top 10 countries of origin
(as of April 01, 2019)
Source: Hellenic Ministry of Migration Policy
6824
1072 1032
357 343299 241 203 196 185
China Turkey Russia Lebanon Iraq Egypt Iran Jordan Syria Ukraine
mega projects underway in tourism
Porto Heli Collection: A 347 hectare
exclusive development in Greece, to host a
range of high-end, masterplanned, leisure-
integrated residential resorts
Costa Navarino: New investments to develop
new Hotel, residences, golf courses in the new
tourism destination of Peloponnese.
Chios Island Fast Track project: A 100-million-euro
investment project on the Aegean island of Chios for
the development of a 5-star 700-room resort complete
with museum, a paleontological theme park, a yacht
marina and educational facility
Miraggio Thermal Spa Resort and Mare Village, a
3.000 m2 development in Halkidiki to host one of
the biggest spa resort worldwide.
REAL ESTATEForeign demand for Greek real
estate is growing rapidly as
overseas investors are drawn by
attractive asset prices, amid
strong signs for recovery the
Greek real estate market, after
years of decline
Real estate sector: a snapshot
54
Greek economy
Traditional
pillar of the
Greek economy
�Real Estate coupled with construction used to represent more than 10% of Greek GDP
�Real Estate traditionally offers high yields
Stressed by
the financial
crisis
�Investment and employment in residential construction have fallen to the lowest level of
the past 12 years
�Credit availability for house purchase is constrained;
� Taxation stresses the owners
Relatively
resilient
� Even during the current crisis some subsectors and locations show comparative
resilience, tracking average losses of 45%
�High yields for specific sub sectors
New deals
shaping the
trend
�New deals from foreign investors (Canada, UAE, Russia, Germany, Israel, Turkey, Argentina, �New deals from foreign investors (Canada, UAE, Russia, Germany, Israel, Turkey, Argentina,
US etc)
�Many foreign companies participate in public tenders for real estate assets
�Growing interest from foreign companies
Big projects in
the pipeline
�Legislation provides new investment opportunities for real estate development
�State owned real estate assets, largely unexploited till now, are bringing new opportunities
in the market
Real estate market drivers …
� Historical data show that real estate pays better than all other investments in Greece
� New public and private projects under way
� Building costs decrease, because of the decline in investment in construction
� New law for the construction of tourism residences in conjunction with 5* tourism
infrastructure projects
� New law makes it easier for foreigners to acquire real estate in Greece’s boundaries and
islands
� Golden Visa Program for non- EU investors in Real estate
� Airbnb rental expansion, with over 25,000 premises currently available in 6 major tourist
locations (Mykonos, Rhodes, Corfu, Santorini, Chalkidiki & Crete)
� New Law for REICs
� Wide range privatisation program to exploit public real estate assets
Main subsectors: an outlook
56
OfficesSignificant opportunities exist in the office market, with many
good projects in high-end locations being available
Retail
High street shops and commercial centers stand strong in the
general decline in the prices and yields, while new projects are
under planning
Industrial/Logistics
Privatisation of Piraeus port to COSCO, Thessaloniki port, Thriasio
Logistics center and TRAINOSE offer new investment
opportunities in the sector
Hospitality
New investment opportunities through the law for integrated
tourism resorts and holiday homes + new regime for residence
permits. New developments taking place.
+ Favorabe legislation for REICs
FOOD & AGRICULTURE
The home of the Mediterranean
diet is becoming a favorite to
foodies from around the world,
who enjoy the highest quality
ingredients on offer
Agribusiness and Food A snap shot
Annual Turnover:
26 %
of Manufacturing
Activity
Employment:
35.1 %
of Manufacturing
Activity
Gross Value Added:
24.3 %
of Manufacturing
Activity
Number of
Companies:
25.5 %
of Manufacturing
Activity
Production Value:
24.7 %
of Manufacturing
Activity
F&B: The most dynamic Greek industry sector
Exports:
€5.91 billion /
17.9%
of total exports
(2018)
Sources: IOBE , Facts & Figures 2018/ Panhellenic Exporters’ Association
Agribusiness and Food Greece: A strategic location in global food production
Strengths
•Brand value and positioning
•Geography and climate conditions
•Traditional high-quality ingredients
•Specialized know how and
expertise
•Research and Innovation Network
Opportunities
• Development of new livestock farms and
new crop cultivations in vacant agricultural
land.
• Repositioning and consolidation of
agricultural production using
new technologies
• Consolidation of smaller, organic producers
with strong export potential.
• Investment in the packaging, export and
marketing of traditional staples of Greek diet
• Development of joint venture activities with
domestic agricultural producers through
contract farming.
• Invest in certified, protected products under
the strict and favorable PDO/PGI framework.
ENERGYCombining a strong capacity to
produce Electricity with abundant RES,
availability to develop previously
unexplored hydrocarbons, and a
strategic location right in the centre of
evolving new networks for the
transportation of energy from Asia and
the Middle East to Europe, Greece is
now emerging as a key energy hub in
the EMEA region
• New infrastructure in natural gas transmission (TAP, IBG, EASTMed, LNG terminals, gas distribution s, etc.)
• Renewable energy projects (Wind, Solar-thermal, Biomass, Small Hydro, Geothermal, Hybrid, etc.)
• RES production capacity of 5.6GW, supported by a new “feed in premium framework”, penetration in
production at 18% on a national level (2016) and a revised national target for 2030 set to 50%, with new RES
investments expected to amount to €3,5 bn in the next 2 years, directed mainly to wind farms
• New electricity auctions form RES production scheduled for 2019
• Development of Waste to Energy projects (biogas, biomass, etc.)
• Hydrocarbons exploration and deveIopment is evolving rapidly with of world class energy MNC’s participating
• Privatisations of major energy utilitieson track : Public Gas Corporation of Greece (DEPA), Public Power
Corporation (PPC) and Greece’s oil company Hellenic Petroleum
• New Grid connectivity projects estimated (Cyclades, Crete, EuroAsia Interconnector, etc.)
• Energy efficiency, an emerging subsector with rewarding investments
• High-end R&D focusing on generation and storage
• 19 strategic energy projects, “Projects of Common Interest” (PCIs), in the electricity and natural gas sectors will
spur new investment activity in the Greek energy sector
• Total investment in the Energy Sector is expected to reach €35bn, in the medium term
Energy and green-techInvestment opportunities
Energy Infrastructure Projects (Developed – under development)
Key Energy Infrastructure Projects (approx. € 7bn)
• Trans-Adriatic Pipeline of 878 km in total will supply Europe
with natural gas from Azerbaijan through Greece, Albania and
Italy, with a capacity of 20 bn m³ per annum
• Attica – Crete and Attica-Peloponnese – Crete Interconnectors:
310 km underwater electric cable connecting Crete with the
mainland, capacity of 1,000 MW and 400MW respecttively
• IGB: Natural gas pipeline of 182km length will connect the Greek
and Bulgarian existing networks, with daily transport capacity of
approximately 3-5bcm per year
• Alexandroupoli Independent Natural Gas System: New offshore
LNG with 28 km length of subsea and onshore pipeline (4 km
onshore and 24 km offshore), with storage capacity of 170k m³
and pumping capacity of 6,1bcm per year
• Ptolemaida V Power Plant: New single lignite power plant of
660 MW and 140 MW for district heating (PPC)
• Kavala LNG: Floating storage (170k m³ LNG capacity) and
processing terminal (annual sent-out capacity of 3-5bcm) at
Kavala Bay
Source: PWC, 2018
Map of the 20 Greek
sea blocks for the exploration and
exploitation of hydrocarbon
reserves
The Norwegian company
Petroleum Geo-Services (PGS)
conducted the necessary seismic
surveys which opened the way for
the relevant public tenders
Energy and Hydrocarbon Exploration
Exploration activities in 6 offshore and onshore areas of Western Greece have already
initiated, while in the meantime international tenders are currently open for other unexplored
sea blocks in West and South Greece, following an overall increased petroleum and natural gas
activity in the entire Eastern Mediterranean basin, from major conglomerates like Total,
Edison, Repsol, ENI, ExxonMobil, Noble & Delek
LOGISTICS
Quickly emerging as a major
logistics hub, located on one of
the busiest trade routes in the
world, Greece is developing the
capacity to capture an increased
share of trade flows to Europe
Logistics: Trends, …
• Greece stands on the crossroad of three
continents -a strategic node in the greater
region.
• Logistics sector in Greece accounts for
almost 10% of Greece’s GDP
• Piraeus ranks 6th in Europe and 2nd in the
Med, accordind to TEU’s transferred
(Porteconomics 2018), aiming to become
#1 Port in the Med by 2020, thus
confirming its position as a significant node
in the new Maritime Silk Road from China
to Europe, the vision of COSCO for the port
and the transfer of internationally traded
goods reaching swiftly major European
markets
• Modernization of existing logistics infrastructure and targeted development of new facilities (in
Attica-Viotia and Thessaloniki), a major component of Greece’s priorities, including Hellenic Railways
Organization, ports (Piraeus, Thessaloniki, other regional and small ports), motorways (Egnatia Odos)
and marinas
• New Rail projects amounting to € 6.7bn, with 73% coming from urban rail projects
• Agreements between Greek and foreign countries’ Certification Organizations provide new
opportunities for middle products manufacturing and forwarding services
• New energy projects provide new opportunities also to logistics companies that establish their
presence in the country.
Logistics: …, prospects, …
Source: PWC, 2018
…and investments…
�Privatisation of Piraeus port concluded
successfully in 2016, with Chinese COSCO
winning the multimillion tender and
scheduling the deployment of their
multimillion investment plan
�Privatisation of 14 Regional airports
concluded successfully in late 2015, with
German Fraport signing an 1,2 bn € deal
�Italian Ferrovie Dello Stato Italiane S.p.A.
gained the tender for the Greek Railway
Operator TRAINOSE, and deploys its
multiyear investment plan
�Privatisation of Thessaloniki port: In April 2017 the consortium of Deutsche Invest Equity Partners (DIEP) -France’s
CMA CGM (Terminal Link) - Savvidis Group (Belterra Investments Ltd), offered 231.92 mn € for a 67% stake in
Thessaloniki Port. The full benefit of the deal will amount to 1.1 bn € as it will also include the consortium’s
commitment to invest €180 mn in the next 7 years
… in intermodal cargo centreslinked to cargo ports and rail centres
� Piraeus, Thriassio Mega
Logistics Center, the
Goldair-ETVA consortium,
will deploy Phase A of their
€180 mn investment plan
within 2019
� Thessaloniki, Str. Gonou
Logistics Center, tender
completed
� Alexandroupolis Logistics
Center, to be tendered
within 2019
� Kavala, Larissa, Volos,
Igoumenitsa Logistics
Centers, will be rolling ahead
●●●●Piraeus
●●●● Volos
Larissa●●●●
ICT
From start-ups to research
centres of global ICT giants, the
ICT scene benefits from highly-
skilled personnel at competitive
costs
�Top talent at a highly competitive cost. Greece is listed as a stage 3 economy (innovation driven), together with 36
developed economies in the world. Also according to the Global Competitive Index, Greece ranks 44th in Higher
Education & Training, 50th in Technological Readiness and 58th in Market Size. (World Economic Forum 2017-2018)
�National and EU funds available for cooperation and development of joint projects
�Brand new Greek start-ups ecosystem
�R&D expenditure as a % of GDP increased from 0,58% (2007) to 1,14% (2017)
�Technology exports have increased from 7,4% (2008) to 10,4% (2017), as a % of industrial exports
Greece has become the center of several new investment initiatives announced by some of the largest companies
in the global ICT industry such as NSN, Microsoft, HTC, Samsung and SAP, exploring investment opportunities in…
• Upgrade existing infrastructure – Establish new destinations
• Data Centers
• Call Centers/service centers staffed by Multilingual staff
• Mobile Marketing & advertising
• Software development
• Information Security Services
• Assembly and distribution of ICT devices
• B2B cloud services
• Information security services
• Innovation and research activities
ICT
The Greek tech start-up scene: Success Stories
Source: Report Startups in Greece 2018 by EIT_Digital and Foundation
LIFE SCIENCES
With one of the highest per capita
ratios of doctors to the population
and an established presence
by all major pharmaceuticals,
life sciences will develop
extensively in the next decade
Life Sciences / Key facts
Indicative type of Investment Projects • Almost 6 doctors per 1,000 population,
Greece ranks 1st in OECD
• Regional Hub for Clinical Trials: Greece
has established itself as a regional hub
for clinical trials
• The educational background of the
executives is very high (71% hold an
MBA and 14% hold a PhD). Also, 64% of
the workers in the industry are
university degree holders.
• Strong Business base: More than 100
producers and importers (almost 70%
of the companies are foreign
multinationals)
• R&D and Development know-how –The
share of patents filed in the
pharmaceutical sector in 2016 was
21.4% much higher than the
corresponding figure in Europe (3.1%)
Health Sector: recent investments & acquisitions
Perseus Healthcare SA -owner of Metropolitan Hospital- sold a majority equity
stake to Hellenic Healthcare Sarl, an investment vehicle controlled by CVC
Capital Partners.
Iaso SA, a Greek-listed clinic sold a 97.2 pct equity stake in its subsidiary Iaso
General to Hellenic Healthcare Sarl ( a CVC CAPITAL PARTNERS affiliated
company), based in Luxembourg.
DIMERA (Savvidis) and IASO Group agreed to invest in a clinic with health care
(rehabilitation, plastic surgery, center of slimming, center of kidneys, etc.) The
health resort will include tourist residences as well as a marina. The total
investment will reach € 80 million and will be carried out by "Premium
Development".
MARFIN INVESTMENT GROUP HOLDINGS S.A.” (MIG) has sold its majority stake
in HYGEIA hospital amounting to 215,189,466 shares, corresponding to 70.38
pct of HYGEIA’s share capital, to Hellenic Healthcare Sarl ( a CVC CAPITAL
PARTNERS affiliated company) . Furthermore, MIG will have an option to acquire
up to 10 pct in “HELLENIC HEALTHCARE S.A R.L.”.
Life Sciences Life Sciences
Life Sciences
�Exports: the Greek pharmaceutical sector has been significantly extrovert,
emerging markets in South Eastern Europe, Eastern Europe and the
Commonwealth of Independent States are likely to rise, driven by cost-effective
domestic production and ready access to new EU member states
�Manufacturing of Generics - R&D centers: significant market growth both in
Greece and internationally, sizeable established industry, successful exporting
activities of domestic players
�Medical tourism: outpatient segment (e.g. dental care, certain cosmetic
procedures, selected eye surgery) and inpatient segment (e.g. cardiovascular
interventions, orthopedic procedures). High number of specialized doctors,
Lower cost for medical services compared to high-end destinations, Good
offering of supporting tourism infrastructure
�Long term and elderly care: Focus on pensioners of Northern European
countries plus fast ageing of Greek population; 32% expected to share 65+
population in 2050 in Greece compared to 19% in 2010
�Clinical Trials Hub
�E-health tools and services
CULTURAL AND CREATIVE INDUSTRIES
The Cultural and Creative
Industries (CCI) have shown great
resilience during the crisis – they
actually continued to grow – while
stimulating creativity and innovation
spill-overs in other sectors
ADVANTAGES
• Τop talent at a highly competitive cost• Advantageous geographical position; favourable
weather conditions• Strong market• Development of creative clusters• Personal identity of creation • Freedom of thought and expression • High aesthetics • Emphasis on innovation
Greece’s strong comparative advantages and opportunities
INVESTMENT OPPORTUNITIES
• Digital Design and Animation• Film Industry• Plastic arts, museums • Fashion • Jewelry, silverware and crafts• Performing and Visual Arts • Video and Computer Game
Investment incentives for the Greek Creative sector
The recent implementation of the cash rebate system (L.4487/2017) for
the production of audiovisual works in Greece is a decisive step towards
attracting film, television, documentary, animation producers and
digital games developing companies to invest in the Greek creative
sector
� The cash rebate amounts to 35% on the eligible expenses incurred
in Greece
� The maximum amount payable per audiovisual work cannot
exceed €5,000,000
� Fast-track procedure 45 days
� The cash rebate will be available to producers no later than six
months after the completion of production
� Financing of the rebate is guaranteed through the Greek Public
Investment Program and amounts to a total of €75m available for
the years 2018 to 2022
OutsourcingCentralizing
� Geostrategic location of the country
� Readily available human capital
� Competitive salaries
� Flexible legal framework
� Telecommunication infrastructure
� Attractive office market
� Excellent climate and living conditions
� An EU member country enjoying stability, security and prosperity
Centralizing/Outsourcing in Greece
Location drivers
Establishment of SSCs and BPOs in Greece
Investment Incentives
• Very flexible and
modern legal
framework
• Simple and clear
application
procedure
• Fully electronic
procedure
• Legal certainty with
pre-defined profit
margin on costs for
SSCs
• Residence and work
permits for foreign
staff
• Accounting
• Quality control
• Project Design
• Marketing &
advertising
• Data processing
• R&D
• Software
development,
computer
programming, IT
systems support
• Data management
• Supply chain
management
• Contact services
• HR Management &
Training
Legal Framework Range of Services Licensing
• One stop shop
service
• Flexibility on the
type of the business
entity
• Simple, fast and
transparent
licensing procedure
• 50 days for the
approval
• Most attractive
investment
incentives
• In the form of
financial grants
• For the first 5 years
of operation
• Simple and clear
application process
• Fully electronic
procedures
• Fast evaluation
procedure
Investment incentives for SSCs and BPOs
Nature of investment
incentives
Eligible expenses
Job Creation GrantsUp to 50% of total wage cost for all employees recruited in the first five years of operation
and for 12 months following their recruitment
Capex Grants Up to 200,000 of the expenses for the purchase of ICT software and equipment directly
related to the new operation, however part of the aid amount up to €200,000 may be
granted for other employees on the basis of the Commission Regulation (EU) No. 1407/2013
Employer Training
Grants Up to 50% of the costs for the training of new employees related to the new activity
RDΤΙ Grants From 25% to 50% of a)personnel costs; b) costs of buildings, instruments and equipment;
c)costs of contractual research and consulting services ; d) additional overheads and other
operating expenses ; e) costs for feasibility studies
Tax incentives for SSCs and BPOs
Nature of Tax Incentives Business Expenses
Tax deduction The expenses for scientific and technological research at the time they are incurred
are tax deductible business expenses, incremented by thirty per cent (30%).
Tax exemption Business profits from the selling of products for the production of which an
internationally recognized patent in the name of the company was used are exempt
from income tax for three fiscal years starting from the year in which they were first
realized.
Tax deduction Employer’s contributions for the creation of new jobs for dependent, full-time
employment for any person aged up to 30 years or long-term unemployed registered
with the Hellenic Manpower Employment Organization are deducted from the
company’s gross revenues increased by 50%, and up to 14 times the minimum base
salary, for the year of their recruitment and for the next four consecutive years
provided that provided that the average number of employees and the salary
expenses of each year have not decreased compared to the previous year.
Reduced main pension
contributions
Employee’s main pension contribution paid by the employer for any employee aged
under 25 years is reduced by 6,66% on the gross wage or salary irrespective of their
amount.
Attractive labour cost in the service sector
Source: │Hourly Labor Costs in the EU, 2018
13.8 14.3
16.3
20.1
25.826.9
28.730.5
36.1
40.6
Greece Portugal Cyprus Spain EU Italy EU AREA Germany France Belgium
Labour Cost per hour in Euro in the Service Sector
INDICATIVE INVESTMENT PROJECTS
Indicative Investment Projects
TOURISM
•Marinas Cruises
• City hotels
• Hotels &
Integrated resorts
• Conference & Incentives
• Health Tourism
AGRICULTURAL PRODUCTION
• Commodityproducts
• Olive oil
• Aquaculture
• Niche products (i. e. superfoods)
• Organic
ICT
• Data Centers
• Call Centers
•Mobile
Marketing &
advertising
• Software development
• Information Security Services
LIFESCIENCESCT
• Generics
• Elderly and
LTC care
• Clinical Trials
• E-health
• Home care services
ENERGY SOURCES
• Oil & Gas
• RES
• Grid connectivity
for the islands
• Energy efficiency
•Waste Management
InvestmentFinancing
• EIB – European Investment Bank between 2010-2018 invested approx.EUR 13.7 billion
in Greece, mainly in infrastructure, SMEs and energy projects. Financing for small
businesses accounted for 75%, with an additional 22% for innovation and 3% for
infrastructure projects.
• Juncker Plan (EFSI), Greece ranks first (April 2019) among all EU countries in absorption
of funds (per € of GDP), with approvals for 19 investment plans in various sectors, with
approximately €2.3 billion in total financing, set to trigger €7.3 billion in total
investment
• European Bank for Reconstruction and Development (EBRD) is financing 44 projects (to
date), EUR 2,4 Billion, with investments in Energy, Financial institutions (Greek banks,
Equity funds), Industry, commerce and agribusiness, Infrastructure (airports)
International Organizations support Greek Investments (1)
• EIF - European Investment Fund-total commitment EUR 420 million
o 7 supported Private Equity Funds investing in Greek SMEs
o 8 Partner Finance and Guarantee Providers
o 3,600 Greek SMEs supported
• IFC (WBG) has also assumed long term committed investments in Greece
amounting to 700 million Euros, during 2015-2018
• Black Sea Trade and Development Bank (BSTDB) has approved 26 projects
(as of 31/3/2019) with a total investment of EUR 480 million (Industrial, IT,
Utilities, Telecom)
International Organizations support Greek Investments (2)
Enterprise Greece is the official agency
of the Greek State, under the supervision
of the Ministry for Economy and Development.
To showcase Greece as an outstanding destination
for investment and to promote the highly
competitive products and services produced
in Greece for export.
