The value of substantial foreign direct investment (FDI) in Cyprus increased by around 10% in 2025 compared with the previous year, President Nikos Christodoulides said on Wednesday, as he outlined the government’s ambition to establish the country as a European and regional hub for investment, technology, energy, transport and trade.
Speaking at the EY Cyprus Future Realised Forum in Nicosia, Christodoulides said the rise in investment activityreflected growing confidence in Cyprus’s long-term prospects.
He also pointed to increasing international interest in higher value-added sectors, including information and communications technologies (ICT), fintech, innovation, business services and other knowledge-intensive activities.
“The increasing presence of the ICT sector demonstrates the transformation of Cyprus’s economic model towards sectors that create higher added value and contribute to stronger productivity growth,” he said.
Government acknowledges challenges to competitiveness
Christodoulides acknowledged that Cyprus continued to face challenges in strengthening its competitiveness and attracting further investment.
“The cost of energy, 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 said.
The president said the government had pursued an ambitious reform programme over the past three and a half years aimed at improving the business environment and supporting sustainable long-term growth.
Measures include tax reform, the digital transformation of the public sector and the simplification of procedures for strategic investments.
He also highlighted the creation of the Business Support Centre as a single point of contact for Cypriot and international companies and investors, designed to help them navigate procedures more efficiently and facilitate the establishment and expansion of their activities in Cyprus.
Infrastructure projects seen as key to future growth
Christodoulides also referred to a series of infrastructure, energy and connectivity projects that he said would be essential to the country’s future competitiveness and resilience.
These include 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.
The government’s broader objective, he added, was to turn Cyprus’s geographical position into economic value by connecting European and regional markets with investment, talent, technology and ideas.
“Our country aims to turn geography into economic value: to become a European and regional hub with global reach, connecting markets, investment, talent, technology and ideas,” Christodoulides said.
Government seeks to improve access to finance
The president also highlighted efforts to improve businesses’ access to finance through the creation of the Cyprus Business Development Organisation, including dedicated financial instruments targeting innovative start-ups.
He said the privatisation of the Cyprus Stock Exchange was also under way and was expected to strengthen the country’s capital market.
On innovation, Christodoulides pointed to partnerships with organisations including NVIDIA, Columbia University and Plug and Play, saying these were helping to expand opportunities in research, innovation and emerging technologies.
He also highlighted initiatives such as “Minds in Cyprus”, which aim to attract talent and strengthen the country’s human capital.
Closer cooperation between universities and industry, he said, would help address the needs of a rapidly changing economy.
“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 for businesses to invest with greater confidence and speed,” he said.
Economy grows by around 10% over three years
Christodoulides said the Cypriot economy had grown by around 10% over the past three years, at a rate approximately four times higher than the European average.
He said unemployment had fallen to 3.6%, while employment had reached historic levels.
Cyprus had also secured successive A-category credit ratings, maintained healthy public finances and strengthened the resilience of its banking sector, he said.
Christodoulides also linked Cyprus’s economic ambitions to its role within the European Union and the wider region.
He said Cyprus’s presidency of the Council of the EU had provided an opportunity for the country to demonstrate its ability to “build bridges” between different European interests, between Europe and the wider region, and between policy priorities and economic opportunities.
“The ambition of our government is clear: to build on the stability we have secured and turn it into opportunity,” he said.
“We want to bridge markets, regions, people and ideas, and accelerate the reforms, infrastructure and innovation that determine competitiveness.”
The ultimate goal, he said, was an economy that was “much more productive, more innovative, more outward-looking” and capable of creating greater opportunities for future generations.
“Today, we can proudly say that Cyprus offers something increasingly valuable in an uncertain world: stability with prospects,” Christodoulides said.
Christodoulides concluded by acknowledging that the government could not build this future alone.
He stressed the importance of cooperation with businesses, investors and wider society to accelerate change and create the conditions for sustainable growth.
Source: CNA
