Cyprus Steps Up Push to Become Regional Investment, Technology and Trade Hub

Cyprus is intensifying efforts to position itself as a European and regional centre for investment, technology, energy, transport and trade, with President Nikos Christodoulides saying that substantive foreign direct investment (FDI) increased by approximately 10 per cent in 2025 compared with the previous year.

Speaking on Wednesday at the EY Cyprus Future Realised Forum in Nicosia, Christodoulides said the rise in investment activity was reinforcing confidence in the country’s long-term economic prospects. He noted that international businesses were increasingly looking towards Cyprus for opportunities in sectors offering higher value-added activity.

“Over recent years, we have seen increasing interest from international companies across a wide range of sectors, such as information and communications technologies (ICT), fintech, innovation, business services and other knowledge-intensive activities,” he said.

According to the president, the expanding footprint of the ICT industry reflects a broader shift in Cyprus’ economic structure towards higher-value activities. Such a transformation, he said, could support stronger productivity growth and contribute to the country’s longer-term economic development.

At the same time, Christodoulides recognised that Cyprus still faced a number of obstacles that needed to be addressed if the country was to improve its competitiveness and attract additional investment.

“Energy costs, the speed of administrative procedures, the availability of specialised skills, connectivity and the need to accelerate the implementation of key infrastructure projects are areas where further progress is required,” he stated.

The president said his government had spent the past three and a half years implementing an ambitious programme of reforms designed to improve the business environment and lay the foundations for sustainable long-term economic growth.

Among the measures introduced were tax reform, the digitalisation of the public sector and the streamlining of procedures relating to strategic investments.

Christodoulides also highlighted the establishment of the Business Support Centre, which operates as a single point of contact for both Cypriot and international companies and investors.

The centre, he explained, is designed to enable businesses to complete administrative procedures more efficiently while making it easier for companies to establish themselves in Cyprus and expand their existing operations.

Infrastructure, energy and connectivity were also identified by the president as critical components of Cyprus’ future competitiveness and resilience. He referred to several major projects, including airport expansions, the upgrading of Vasilikos port, electricity interconnections and the development of an LNG import terminal.

“These projects will also strengthen the country’s role as a regional hub for transport, trade, logistics and energy,” he said.

Christodoulides said Cyprus’ geographical position could be transformed into an economic advantage by strengthening links between Europe and neighbouring regions.

“Our country aims to turn geography into economic value, becoming a European and regional hub with global reach, connecting markets, investment, talent, technology and ideas,” he said.

The government is also seeking to improve businesses’ access to capital. In this regard, Christodoulides referred to the establishment of the Cyprus Business Development Organisation, which is expected to provide dedicated financial instruments aimed particularly at innovative start-ups.

He also said that the privatisation of the Cyprus Stock Exchange was in progress and was expected to contribute to the development and strengthening of Cyprus’ capital market.

Innovation and emerging technologies form another important part of the government’s economic strategy. Christodoulides pointed to cooperation with organisations such as NVIDIA, Columbia University and Plug and Play, saying these partnerships were helping to create greater opportunities in research, innovation and new technologies.

Efforts to attract skilled professionals and strengthen the country’s human capital were also highlighted. Among these initiatives is Minds in Cyprus, which seeks to encourage talent to come to the country and contribute to its economic development.

The president further stressed the importance of closer links between universities and industry, arguing that stronger cooperation between the two would help Cyprus respond to the changing requirements of an economy undergoing rapid transformation.

“Our goals are clear, to remove the barriers that restrict investment, productivity and innovation, to make the state faster and more effective, and to create the conditions so that businesses can invest with greater confidence and greater speed,” he said.

Christodoulides said the Cypriot economy had grown by approximately 10 per cent over the previous three years, describing this rate of expansion as roughly four times the European average.

He also pointed to improvements in the labour market, noting that unemployment had declined to 3.6 per cent and that employment had reached historic levels.

Cyprus, he added, had received successive A-category credit ratings, maintained sound public finances and improved the resilience of its banking system.

The president connected the country’s economic strategy with its position both within the European Union and in the wider region.

He said Cyprus’ presidency of the Council of the EU had offered the country an important opportunity to demonstrate its capacity to “build bridges” between different European interests, between Europe and the wider region, and between policy priorities and economic opportunities.

“Our ambition as a government is clear, to build on the stability we have secured and turn it into opportunity. To bridge markets, regions, people and ideas. To accelerate the reforms, infrastructure and innovation that determine competitiveness,” he said.

Christodoulides said the government’s ultimate goal was to develop an economy that was “much more productive, more innovative, more outward-looking” and capable of generating greater opportunities for future generations.

“Today, we can proudly say that Cyprus offers something increasingly valuable in an uncertain world, stability with prospects,” he said.

However, the president acknowledged that the government alone could not deliver the country’s long-term economic ambitions.

He therefore underlined the importance of cooperation among the government, businesses, investors and wider society in speeding up the process of change and creating the conditions necessary to support sustainable economic growth.

The government’s broader objective, he indicated, is to build on the stability already achieved while addressing remaining structural weaknesses and accelerating investment, infrastructure development, innovation and reform. Through these efforts, Cyprus seeks to convert its strategic geographical position into a lasting economic advantage and establish itself as a hub connecting European and regional markets, capital, businesses, talent and technology. 

By fLEXI tEAM