The value of substantive foreign direct investment (FDI) in Cyprus increased by around 10% in 2025 compared with the previous year, President of the Republic, Nikos Christodoulides said on Wednesday. At the same time he outlined the government’s ambition to establish Cyprus as a European and regional hub for investment, technology, energy, transport and trade.
Addressing the EY Cyprus Future Realized Forum in Nicosia, Christodoulides said the increase in investment activity was reinforcing confidence in Cyprus’s long-term prospects, while noting growing interest from international companies in a range of higher-value sectors.
‘In recent years, we have witnessed growing interest from international companies across a range of sectors, including information and communication technologies, fintech, innovation, business services and other knowledge-intensive activities,’ he said.
The President noted that the growing footprint of the ICT sector was indicative of a transformation of Cyprus’ economic model towards sectors that generate higher value-added and stronger productivity growth.
At the same time, however, he acknowledged that Cyprus still faced challenges in strengthening its competitiveness and attracting further investment.
‘The cost of energy, the pace of administrative processes, the availability of specialised skills, connectivity and the need to accelerate the delivery of key infrastructure projects are areas where further progress is required,’ he said.
He added that the government had pursued an ambitious programme of reforms over the past three and a half years aimed at improving the business environment and supporting sustainable long-term growth, including tax reform, the digital transformation of the public sector and the streamlining of procedures for strategic investments.
President Christodoulides said the Business Support Centre had been established as a single point of contact for local and international companies and investors, helping them navigate procedures more efficiently and facilitating the establishment and expansion of their activities in Cyprus.
He also pointed to a series of infrastructure, energy and connectivity projects which, he said, were essential to the country’s future competitiveness and resilience. These include the expansion of Cyprus’ airports, the upgrade of Vasilikos port, electricity interconnections and 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 President added that the government’s broader objective was to turn Cyprus’ geographical position into economic value by connecting European and regional markets with investment, talent, technology and ideas.
‘Because our country aims to transform geography into economic value: to become a European and Regional hub with global reach, connecting markets, investment, talent, technology and ideas,’ he said.
Christodoulides also highlighted efforts to improve access to finance for businesses through the Cyprus Enterprise Development Organisation, with dedicated financial instruments focusing on innovative start-ups. He added that the privatisation of the Cyprus Stock Exchange was in progress and was expected to boost the island’s capital market.
On innovation, he pointed to partnerships with NVIDIA, Columbia University and Plug and Play, saying these were helping to expand opportunities in research, innovation and emerging technologies.
The President said initiatives such as Minds in Cyprus were also aimed at attracting talent and strengthening the country’s human capital base, while cooperation between universities and industry would help meet the needs of a rapidly changing economy.
‘Removing the barriers that hold back investment, productivity and innovation, making the state faster and more effective, creating the conditions in which businesses can invest with greater confidence and greater speed,’ he said referring to the goals of the government.
The President also said Cyprus’ economy had grown by around 10% over the past three years, at a pace approximately four times higher than the European average, while unemployment had fallen to 3.6% and employment had reached historical levels.
He said Cyprus had secured successive A-category sovereign credit ratings, maintained sound public finances and strengthened the resilience of its banking sector.
The President also linked Cyprus’ economic ambitions to its role in the European Union and the wider region, saying the country’s Presidency of the Council of the EU had provided an opportunity to demonstrate its ability to ‘build bridges’ between European interests, Europe and its wider region, and political priorities and economic opportunity.
‘Our ambition as the government is clear,’ Christodoulides said. ‘To build on the stability we have secured and turn it into perspective. To bridge markets, regions, people and ideas. To accelerate the reforms, infrastructure and innovation that determine competitiveness.’
He said the ultimate goal 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 Perspective,’ he said.
President Christodoulides acknowledged that the government could not build this future alone, stressing the importance of partnerships with businesses, investors and the wider population to accelerate economic change and create the conditions for sustainable growth.