It is interesting to observe how often countries with oil or other natural resources have failed to grow more rapidly than those without. This phenomenon is widely known as “Natural Resource Curse”. In the other hand since 2001, hundreds of academic studies have examined also the “political resource curse” (Rosss, 2015) which shed new empirical light on the existence and scope conditions of the “Political Resource Curse” (Lall, 2017). Considering the above, Cyprus initiated the gas explorations which are likely to result in considerable natural gas revenues, but the dilemma is whether the domestic use of natural gas revenues could assist to partially reduce the country’s political, popular and economic pressures? According to Cyprus government officials, the recent findings of the natural gas could strengthen the country’s financial position, wealth, and the standard of living of Cypriots in the near future, but if risks and uncertainties are not taken to account, the future of a country after finding such resources might differ from what is expected initially.

History shows that this little island has always been at the mercy of some exterior power because of its geostrategic location and discovery of hydrocarbons could bring the situation to a successful conclusion depending on what the definition of success turns out to be for Cyprus (Andersen, 2012). It is therefore necessary to form a framework to ensure the long-term management of the income from the natural gas aims at gaining highest possible return on investments, and inter-generational equity which can be achieved by looking at what has been done in a selected range of countries, including both successful and failed practices to highlight pitfalls which should be avoided, as well using the successful proved practices. Consequently, the aim of this research is to primarily develop a reflective and analytical conceptual framework to determine the potential factors which might cause a “resource curse” based on the idiosyncratic conditions of Cyprus.

Furthermore, this research will investigate producing another eclectic conceptual framework based on theories, experiences of other countries, and the Norwegian Model ‘best case’ to prevent, mitigate or cure the potential detrimental effects for Cyprus assessed in the first model. In pursuit of the two main areas of this research, the following research objectives have been set. Exploring the phenomenon known as “Dutch Disease” as a basis for understanding relevant seminal and recent theories surrounding “Natural Resource Curse” and “Dutch Disease”, identifying Cyprus’ potential and actual problems in terms of ‘Natural Curse’, studying and analysing the optimal management theories and to examine previous success experiences of other countries, in particular Norwegian model for its potential application to Cyprus, and developing a conceptual framework for identifying the factors that can be useful for managing the natural gas windfall and preventing Cyprus from the “Natural Curse”. This study is informed by theories, previous models, experiences, case studies, and individual perceptions and thoughts that exist across the government and other strategic decision makers in this respect. It relies upon exploratory, qualitative data generated by rich open interviews and finally, qualitative content analysis is used to support the result.