Cyprus is positioning itself as a stable and competitive destination for international investment, Energy, Commerce and Industry Minister Michalis Damianos said on Thursday, pointing to strong economic fundamentals and ongoing reforms.
Speaking at the opening of the International Investment Conference organised by the Great Britain–Cyprus Business Association in Limassol, Damianos described the presence of international participants as a clear vote of confidence in Cyprus as a resilient and credible business centre.
Foreign direct investment, he said, remains essential for a small, open economy such as Cyprus, contributing directly to economic resilience, productivity and competitiveness. It also supports high-quality job creation, boosts broader economic activity and facilitates the transfer of advanced technologies and expertise.
Damianos noted that Cyprus has evolved into a dynamic hub for international business in recent years, as reflected in its economic performance. In 2025, the economy grew by 3.8%, well above the European Union average, alongside low inflation and conditions nearing full employment. Public debt continues on a downward path, approaching 50% of GDP, while fiscal discipline has led to a strong surplus.
He also highlighted that all major international credit rating agencies have upgraded Cyprus to investment grade A for the first time since 2011, underscoring the credibility and consistency of the country’s economic policy.
Stable environment amid global uncertainty
Against a backdrop of geopolitical tensions and economic challenges, Damianos said Cyprus stands out as a predictable and secure investment destination.
As a member of the European Union and the eurozone, the country offers a transparent regulatory framework, a strong legal system based on English common law principles and a business-friendly environment that supports innovation and growth.
He pointed to a competitive tax system, ongoing digitalisation of public services and efforts to reduce bureaucracy, alongside a clear strategy for energy transition. Energy, he noted, is a key strategic sector for Cyprus’ future.
The government aims to establish Cyprus as a reliable regional energy hub, strengthening both national and regional energy security. Progress is being made through investments in large-scale renewable energy projects, energy storage systems and emerging technologies such as green hydrogen.
Damianos also referred to the Great Sea Interconnector and efforts to develop natural gas resources within Cyprus’ exclusive economic zone, aimed at diversifying the energy mix and reducing costs for businesses.
Focus on investment opportunities
The minister stressed that strengthening Cyprus’ appeal as an investment destination remains a government priority, with a commitment to facilitating high-quality investments from initial interest through to full implementation. He also recalled the launch of the Business Facilitation Unit last year.
Cyprus offers a wide range of opportunities across key sectors, including green energy, technology and innovation, real estate, healthcare, shipping and logistics, tourism and education. Damianos invited British companies to explore these prospects, not only as investors but also as a gateway to broader regional markets.
He also underlined the strong and long-standing ties between Cyprus and the United Kingdom, describing the UK as one of the island’s most important economic partners.
Cyprus, he concluded, has moved from a period of crisis to one of stability and opportunity, and is ready to move forward with confidence, guided by sound policy, strategic vision and strong international partnerships.
Source: CNA