The Cyprus tech sector has drawn over €2.5 billion in foreign investment, as highlighted by Invest Cyprus during its annual general meeting on Friday.
- The Cyprus tech sector has drawn over €2.5 billion in foreign investment, as highlighted by Invest Cyprus during its annual general meeting on Friday.
Cyprus tech: Record Foreign Direct Investment in 2024
Invest Cyprus reported that 2024 saw a remarkable gross foreign direct investment inflow of €8.5 billion, marking an increase of around 60 per cent compared to previous years. This surge reinforces Cyprus’ position as a prime destination for international capital, ranking second in the European Union and within the global top ten for foreign direct investment per capita.
Significant Contributions to the Technology Sector
The organisation revealed that €2.6 billion was specifically directed towards the technology sector, particularly in information and communication technology (ICT). This investment is pivotal in bolstering Cyprus’ rapidly expanding technology ecosystem and underscores the growing interest from foreign investors.
Invest Cyprus’ Role in Attracting Foreign Capital
Invest Cyprus has played a crucial role in this investment boom, recording over 70 quality letters of intent for various investment projects and advancing 12 major investments during the reported period. Additionally, more than 420 companies established operations in Cyprus through the Business Support Centre, further reflecting the increasing international interest in Cyprus as a favourable business location.
Economic Impact of Foreign Investment
A comprehensive study conducted by the Economics Research Centre of the University of Cyprus provided insights into the economic impact of foreign investment. The research indicated that new foreign investment inflows contribute approximately 3.3 per cent to Cyprus’ gross domestic product (GDP) and create around 4 per cent of employment opportunities. Notably, technology companies established through foreign investment account for about 11 per cent of the nation’s GDP, highlighting their significance in diversifying the economy.
International Outreach and Strategic Partnerships
Looking ahead, Invest Cyprus has outlined an ambitious international outreach programme for 2025, which includes presidential missions to Canada, New York, and San Francisco. A high-level business visit from India, which coincided with the Indian Prime Minister’s official trip to Cyprus, was also part of this initiative. The organisation has sought to establish strategic partnerships, leading to the creation of the India-Greece-Cyprus Business and Investment Council and the UAE-Cyprus Business and Investment Council, among others.
Strengthening Economic Cooperation
These partnerships aim to enhance economic cooperation within the region, emphasising the importance of trilateral collaboration among Greece, Egypt, and Cyprus. During the reporting period, Invest Cyprus supported approximately 800 existing and prospective companies, further solidifying the country’s investment ecosystem.
Plans for Future Promotion and Development
As it looks to 2026, Invest Cyprus will focus on promoting Cyprus internationally through initiatives in collaboration with the Financial Times, including targeted events in London and New York. Furthermore, a business and investment mission to India is being planned in cooperation with the Cyprus Chamber of Commerce and Industry, coinciding with an official visit by the President of the Republic to India.
Enhancing the Defence Industry
In addition to fostering the tech sector, Invest Cyprus is also contributing to the development of the Cypriot defence industry. This initiative involves partnerships with companies from India, France, Italy, the United Kingdom, and Spain, working alongside the Defence Ministry and private sector stakeholders to enhance this strategic sector.
Unified Messages for International Investors
In the current geopolitical climate, Invest Cyprus stresses the importance of delivering coherent and credible messages to the international business community. A coordinated international communication initiative will be launched in collaboration with the Presidency, the Ministry of Foreign Affairs, and private sector partners to reinforce the message that Cyprus remains a safe and stable investment destination.
Leadership and Strategic Direction
During the annual general meeting, the new board of directors was welcomed, with confidence expressed in their ability to support the continued development of Invest Cyprus and to strengthen the country’s international investment profile. Chairman Evgenios Evgeniou remarked on the significance of these results, emphasising that Cyprus is solidifying its position on the international investment map.
Finance Minister Makis Keravnos reiterated the importance of foreign investment in the government’s economic policy. He noted that the results presented during the meeting affirm Cyprus’ momentum as an investment destination, highlighting the crucial work of Invest Cyprus in promoting the country abroad and facilitating investor engagement.
Commitment to Enhancing the Business Environment
The meeting reaffirmed Invest Cyprus’ dedication to strengthening the investment ecosystem, advocating for reforms that improve the business environment, and implementing initiatives that generate long-term value for the Cypriot economy. As the official organisation responsible for promoting investment, Invest Cyprus aims to attract high-quality foreign investment and support international companies in establishing or expanding operations within the country.
