Cyprus, officially the Republic of Cyprus, is a Eurasian island country in the Eastern Mediterranean, east of Greece, south of Turkey, west of Syria and north of Egypt. It is the third largest island in the Mediterranean Sea and one of its most popular tourist destinations. An advanced, high-income economy with a very high Human Development Index, the Republic of Cyprus was a founding member of the Non-Aligned Movement until it joined the European Union on 1 May 2004.
The earliest known human activity on the island dates back to around the 10th millennium BC. Archaeological remains from this period include the well-preserved Neolithic village of Khirokitia, which has been declared a World Heritage Site by UNESCO, along with the Tombs of the Kings. Cyprus is home to some of the oldest water wells in the world, and is the site of the earliest known example of feline domestication. At a strategic location in the Middle East, Cyprus has been occupied by several major powers, including the empires of the Hittites, Assyrians, Egyptians, Persians, Rashiduns, Umayyads, Lusignans, Venetians and Ottomans. Settled by Mycenean Greeks in the 2nd millennium BC, the island also experienced long periods of Greek rule under the Ptolemies and the Byzantines. In 333 B.C., Alexander of Macedon conquered the island from the Persians. The Ottoman Empire conquered the island in 1571 and it remained under Ottoman control for over three centuries. It was placed under British administration in 1878 until it was granted independence in 1960, becoming a member of the Commonwealth the following year.
In 1974, following 11 years of intercommunal violence, using an attempted coup d’état by Greek Cypriot nationalists and elements of the Greek military junta with the aim of achieving enosis (union of the island with Greece) as a pretext, Turkey invaded and occupied the northern portion of the island, resulting in the partition of the island, Turkey’s objective since 1955. The intercommunal violence and subsequent Turkish invasion led to the displacement of hundreds of thousands of Cypriots and the establishment of a separate Turkish Cypriot political entity in the north. These events and the resulting political situation are matters of ongoing dispute.
The Republic of Cyprus has de jure sovereignty over the entire island of Cyprus and its surrounding waters except small portions, Akrotiri and Dhekelia, that are allocated by treaty to the United Kingdom as sovereign military bases. The Republic of Cyprus is de facto partitioned into two main parts; the area under the effective control of the Republic of Cyprus, comprising about 59% of the island’s area, and the Turkish-controlled area in the north, calling itself the Turkish Republic of Northern Cyprus, covering about 36% of the island’s area and recognized only by Turkey.
The Cypriot economy is prosperous and has diversified in recent years. According to the latest IMF estimates, its per capita GDP (adjusted for purchasing power) at $28,381 is just above the average of the European Union. Cyprus has been sought as a base for several offshore businesses for its highly developed infrastructure. Economic policy of the Cyprus government has focused on meeting the criteria for admission to the European Union. The Cypriot government adopted the euro as the national currency on 1 January 2008. Oil has recently been discovered in the seabed between Cyprus, Lebanon, Israel and Egypt and talks are underway between Lebanon and Egypt to reach an agreement regarding the exploration of these resources. The seabed separating Lebanon and Cyprus is believed to hold significant quantities of crude oil and natural gas. However the government of Cyprus states that the Turkish Navy does not allow the exploration of oil in the region.
The economy of the Turkish-occupied areas operates on a free-market basis although it continues to be handicapped by the lack of private and public investment, high freight costs and shortages of skilled labor. Despite these constraints the economy turned in an impressive performance in 2003 and 2004 with growth rates of 9.6% and 11.4%. The average income in the area was $15,984 (S₣16,289) in 2008. Growth has been buoyed by the relative stability of the Turkish new lira and by a boom in the education and construction sectors. The island has witnessed a massive growth in tourism over the years and as such the property rental market in Cyprus has grown alongside. Added to this is the capital growth in property that has been created from the demand of incoming investors and property buyers to the island.