startup ecosystem — Cyprus’ startup ecosystem continues to evolve, carving out a significant niche within Europe’s innovation landscape. According to EU-Startups’ Olga Codina, this development is evident in the emergence of ten startups founded since 2021, showcasing the island’s growing tech maturity.
- Codina emphasised that the ecosystem reflects both continuity and transition, moving from a service-driven economy to one focused on product-oriented technology development.
Startup ecosystem: Emerging Tech and Startups
Codina noted that the Southern European ecosystem is “steadily advancing and securing its niche.” While it may not yet rival larger hubs on the continent, the growth of startups in Cyprus supports entrepreneurial ambition and fosters cross-border collaboration.
Cyprus benefits from a blend of local talent and global outreach, thanks to its strategic geographical position at “the crossroads of Europe, the Middle East, and Africa.” This makes the island a prime location for founders aiming to target multiple markets simultaneously.
Startups across Cyprus are now thriving in various sectors, including gaming, SaaS, B2B software, Web3, AI, and digital infrastructure. Additionally, the rise of innovation in fields such as EdTech and tourism-related technology illustrates how new developments are emerging alongside traditional sectors, rather than replacing them.
Codina emphasised that the ecosystem reflects both continuity and transition, moving from a service-driven economy to one focused on product-oriented technology development.
Tourism Cooperation with Israel
In a parallel development, Cyprus and Israel have reaffirmed their commitment to enhancing tourism collaboration. Deputy Minister of Tourism Kostas Koumis met with Israel’s Tourism Minister Haim Katz during the International Tourism Fair IMTM, where they discussed increasing tourist arrivals during the winter season and boosting flows regarding special forms of tourism.
Koumis highlighted the significance of the Israeli market for Cypriot tourism, noting that in 2025, arrivals from Israel surpassed half a million visitors for the first time, reaching 588,000. This figure places Israel as the second-largest source market for Cyprus, following the United Kingdom. The 2025 figures represent a 38.4 per cent increase compared to 2024, and a staggering 112.3 per cent rise from the period between 2022 and 2025.
Maritime Decarbonisation Discussions
On another front, Cyprus Shipping Deputy Minister Marina Hadjimanolis participated in a high-level discussion on maritime decarbonisation. The event, part of the 16th Annual Capital Link Greek Shipping Forum, featured ministers and international officials, including US Deputy Assistant Secretary for Transportation Affairs Marco Sylvester.
Sylvester voiced concerns regarding the Net Zero Framework (NZF), asserting that the transition to a decarbonised maritime sector risks failure without proper realism, technical documentation, and active industry engagement. He clarified that the US’s objections to the NZF do not signify a withdrawal from international cooperation but rather a concern that the framework could transform the International Maritime Organisation (IMO) from a technical body focused on navigation safety into a global climate policy regulator.
Digital Euro Initiative in Cyprus
Cyprus is also making strides in the discussion around the digital euro. Policymakers, bankers, and institutions convened in Nicosia for an event titled ‘Presenting the Digital Euro in Cyprus’, which saw participation from the European Central Bank (ECB). The event was organised by Disy MEP Michalis Hadjipantela, in conjunction with the Association of Cyprus Banks, and attended by Finance Minister Makis Keravnos.
Over 170 representatives from various sectors attended the conference, which Hadjipantela described as proof that Cyprus, despite its size, can play an active and substantial role in shaping the dialogue and development of the digital euro. He added that the island has the potential to influence European decisions that will shape the financial landscape in the coming years.
Increase in Vehicle Registrations
Meanwhile, Cyprus has reported a notable increase in motor vehicle registrations for January 2026. The latest figures from the statistical service (Cystat) indicate that the market began the year positively, highlighting a continued shift towards hybrid and electric vehicles. Total registrations reached 4,350, reflecting a 6.7 per cent increase compared to January 2025.
Specifically, passenger saloon registrations rose by 4.5 per cent to 3,317 from 3,173 in the same month the previous year. Of these saloon cars, 1,294—39 per cent—were new, while 2,023—61 per cent—were used. However, rental saloon cars saw a sharp decline of 22.8 per cent, totalling 159 registrations.
