Cyprus wants to move beyond hosting video game companies and build an ecosystem where more games are developed, funded and launched from the island, Deputy Minister of Research, Innovation and Digital Policy Nikodemos Damianos said. He was addressing the Cyprus Games Summit 2026 in Limassol.
Citing the first Report on the Video Game Industry in Cyprus, published by CYGMA (Cyprus Game Makers Association), Damianos said that, on a per capita basis, no other country has more game companies, higher industry revenues or more mobile app installations. The report records more than 415 companies and over 4,300 professionals in Cyprus, while video game revenues for 2025 are estimated at around €3.2 billion.
These figures show that the sector is already an important part of an economy based on technology and innovation, he said. Cyprus has demonstrated that it can attract companies with international operations, he added.
Establishing local studios
He identified the next priorities as developing more games in Cyprus, establishing more local studios, increasing investment in intellectual property and expanding opportunities for people on the island to build international careers in the sector.
The Deputy Minister highlighted Cyprus’s advantages for game development by studios: it is an EU member, occupies a strategic position between three regions, has a strong professional services base and an international business community, and has a policy framework that supports innovation.
Relevant measures, he said, include a special tax regime for intellectual property that meets the "IP Box" criteria, an enhanced deduction for eligible research and development expenditure, employment-income incentives for qualifying professionals, and tax incentives for investment in certified innovative companies.
Referring to the European Commission’s proposal for the Digital Fairness Act, published on Wednesday, Damianos said Cyprus would participate constructively in the process. The aim, he said, is to provide meaningful protection for users, particularly children, and establish rules for video game studios in Europe that are clear, fair and workable.
Almost 50,000 employed in the sector
Specialised growth capital is a key component of any developing ecosystem, according to the Deputy Minister. The Research and Innovation Foundation provides tools for innovative companies, including blended finance programmes. It has also sought feedback from the market on the proposed «G3» (Games Go Global) programme, which is being launched as a pilot. The programme aims to help Cyprus-based studios reach international publishers, platforms and players through marketing, content adaptation, publishing preparation and business development activities.
Damianos also said international networks were as important as individual support programmes. The next cycle of "Plug and Play Cyprus", supported by the Government, will focus on gaming and give studios access to international mentors, corporate partners and investors.
"This is the practical value we seek through such partnerships. Not the creation of another layer of structures, but the strengthening of links between companies in Cyprus and the markets or capital they need to scale their activities," he said.
The Deputy Minister also referred to a recent KPMG estimate that Cyprus’s wider technology sector directly employed around 48,200 people in 2025. Around 33% were foreign nationals, while employment in the technology sector had grown by nearly 10% annually over the previous decade.
"We must remain open to international expertise while developing a much stronger local talent pool," he said. This means investing in STEM (Science, Technology, Engineering and Mathematics) and digital skills, supporting upskilling and reskilling, and bringing education into closer alignment with industry needs, he added.
Building an ecosystem
He also stressed the importance of cooperation between studios and universities. Curricula need to evolve, he said, but students also need practical experience, internships, mentoring, work on specific projects and opportunities for their first professional jobs.
Expressing satisfaction with CYGMA’s activity in cooperation with the University of Cyprus and the Cyprus University of Technology, Damianos urged every studio operating on the island to offer an internship, mentor a student, collaborate on a course or give a young creator their first professional opportunity.
On developments in artificial intelligence (AI), Damianos said the National Artificial Intelligence Strategy focuses on its practical adoption and on establishing Cyprus as a trusted regional hub for its development and use.
The video game industry can contribute directly to this goal, he said, as studios are known for their creativity and international outlook, as well as their experience in testing new technologies in demanding commercial environments. Their success can demonstrate how advanced digital technologies can be adopted responsibly and turned into products for the global market.
Concluding, the Deputy Minister said the future of video game development in Cyprus would depend on how effectively creative teams, investors, universities, consultants and public bodies work together.
He reiterated that the ambition is not simply to host video game companies, but to build an ecosystem that creates, funds and develops more games from Cyprus, delivering lasting value, strengthening skills and creating quality opportunities for people on the island.
Source: CNA
