TechIsland and the Cyprus Employers and Industrialists Federation (OEB) signed a Memorandum of Understanding on Friday, aimed at further developing Cyprus's technology ecosystem and strengthening the competitiveness of the Cypriot economy, opening the way for closer cooperation on innovation, investment and human capital.
The memorandum establishes a structured framework for cooperation and coordination to promote technology, innovation and entrepreneurship in Cyprus.
Under the agreement, the two organisations will develop joint initiatives and policy proposals in areas that directly affect the business environment and innovation. Among the areas earmarked for action are improving the regulatory and tax framework, developing physical and digital infrastructure, and creating more favourable conditions for attracting and retaining investment, businesses, entrepreneurs and skilled workers.
Particular emphasis is also being placed on developing digital and technological skills, upskilling and reskilling the workforce, and more closely aligning education and vocational training with the real needs of the labour market.
"The signing of this memorandum forms part of the two organisations' long-standing efforts to continually modernise the economy and move towards a more sustainable development model, with technology and innovation as fundamental components of the strategy to boost productivity and competitiveness," the organisations said in a joint statement.
The partnership comes at a time when the technology sector is emerging as one of the most important pillars of the Cypriot economy. In recent years, Cyprus has attracted a significant number of technology companies, while the presence of start-ups has also grown.
Economic footprint
TechIsland is today the largest association of technology companies in Cyprus, representing more than 400 companies with a substantial presence in the country.
Speaking at the signing of the agreement, TechIsland president Valentinos Polykarpou said around 52% of its members are purely Cypriot companies, while around 48% are foreign-owned companies with a registered office or premises in Cyprus. This is a particularly broad ecosystem, he noted, encompassing start-ups and scale-ups, small and medium-sized enterprises, and large multinationals, active in sectors such as fintech, video gaming, software development, artificial intelligence, healthtech, cybersecurity and many others.
Beyond the breadth and diversity of the ecosystem, he stressed, the sector's economic footprint in Cyprus is also significant.
According to a recent study by KPMG Cyprus on the sector's impact on the Cypriot economy, he said, technology directly contributed 16.2% of the country's total GDP in 2025.
"The impact on employment is significant too. Around 48,200 people work directly in the sector, while, together with the indirect jobs it supports elsewhere in the economy, the total impact is estimated at 79,000 jobs," he said.
He added that over the past decade, from 2016 to 2025, the Gross Value Added of the ICT sector in Cyprus grew by 435%, with Cyprus recording the highest growth rate among EU member states over that period.
Polykarpou stressed the importance of creating the conditions for this growth to continue sustainably, contributing more broadly to the development of Cypriot business, higher productivity and a more competitive economy.
