Foreign direct investment (FDI) in Cyprus continued on a downward trajectory for a second consecutive year in 2024, according to data on inward FDI positions published on Wednesday by the Central Bank of Cyprus.
The total stock of inward foreign direct investment reached €365.07 billion in 2024. Of this amount, €83.46 billionoriginated from the Russian Federation, representing 23 per cent of the total.
EU, US and UK investment breakdown
Investments from the 27 EU member states accounted for 20 per cent of total FDI, amounting to €74.36 billion. The largest share among EU countries came from Luxembourg, with €32.1 billion, representing 9 per cent of the total and 43 per cent of EU-origin FDI. The Netherlands followed with €6.9 billion, corresponding to 2 per cent of the totaland 9 per cent of EU investment.
The United States ranked next with €66.57 billion (18 per cent), while the United Kingdom accounted for €17.17 billion (5 per cent). Foreign direct investment from Ukraine stood at €10.64 billion, representing 3 per cent of the total.
Other investment sources
Additional inflows included €8.4 billion from the Cayman Islands, €2.4 billion from the British Virgin Islands, and €3.5 billion from the Marshall Islands.
Investment from Israel amounted to €5.1 billion, while a further €7.6 billion came from other countries in the Near and Middle East.
Declining trend over recent years
Central Bank data confirms a clear downward trend in inward FDI. Total foreign investment declined from €489.4 billion in 2022 to €394 billion in 2023, before falling further to €365 billion in 2024.
Of the €124 billion decrease recorded between 2022 and 2024, €52 billion is attributed to reduced investment from Russia, which fell from €135.7 billion in 2022 to €83.46 billion in 2024.
Gains and losses by country
Compared with 2023, the largest increase in foreign direct investment came from Luxembourg, which recorded an additional €10 billion.
The most significant declines were recorded from the United States (-€15.1 billion), Switzerland (-€14.7 billion), and the United Kingdom (-€10 billion).
According to the Central Bank of Cyprus, the publication of these figures aims to present a clearer picture of the actual origin of inward foreign direct investment in Cyprus.
Source: Cyprus News Agency (CNA)