investment appeal — President Nikos Christodoulides has committed to boosting Cyprus’ investment appeal, emphasising the need for government modernisation during his address to the general assembly of the association of large investment projects.
Photo: cyprus-mail.com
In a climate marked by international instability, the president highlighted that Cyprus remains a reliable investment destination, thanks to a modern regulatory framework and a business-friendly environment. He stated, “Our economy is shielded by a productive base that is constantly expanding and with quality jobs increasing.”
Photo: cyprus-mail.com
With public debt projected to fall below 56 per cent of GDP by the end of the year, Cyprus is experiencing one of the highest growth rates in the EU. The country has also returned to full employment for the first time since 2008, with an unemployment rate of 4.3 per cent recorded in the first half of 2025.
Christodoulides noted the importance of reforms in sustaining this growth, mentioning tax reform, the planned pension reform for 2026, and the modernisation of the audit office and legal service. He underscored that reforms are central to the government’s strategy and are aimed at fostering a competitive and innovative economy.
A significant part of this strategy involves digital transformation, which is reshaping interactions between citizens, businesses, and the public sector. The president pointed to a series of targeted infrastructure projects designed to enhance competitiveness and resilience in the face of global challenges.
“Close cooperation with the private sector is essential,” he remarked, as he referred to large-scale development as a key pillar of economic activity. The government’s early investments in structured cooperation with business organisations aim to support stability and progress within the country.
Major development projects are underway, contributing to job creation and enhancing Cyprus’ reputation as a regional hub of expertise and quality. Christodoulides stated, “As a government, we are leveraging private initiative, knowledge, experience and the network of your partners.”
Efforts to modernise public administration are also a top priority. Simplifying procedures across departments is intended to facilitate business activities and improve the overall business climate. The establishment of a business service centre aims to streamline access to state services for both Cypriot and foreign investors.
To further boost efficiency, the government is implementing a fast-track examination process for large and strategic developments, which aims to complete reviews within 12 months. Additionally, plans to digitise licensing procedures seek to reduce bureaucracy and accelerate project delivery.
In 2026, a new control and enforcement unit will be established within the department of town planning and housing to ensure compliance, transparency, and construction safety, creating an environment of high standards for investors and the public alike.
Christodoulides expressed optimism regarding the impending tax reform, expected to take effect on January 1, 2026. He described it as a comprehensive initiative aimed at promoting productive activities, attracting investment, and ensuring fair income distribution.
The president concluded his address by reiterating the ongoing commitment to transforming Cyprus into a more competitive and innovative nation, highlighting the role of partnerships with the Chamber of Commerce and Industry (Keve) and other stakeholders in achieving these goals. He stated, “Although challenges often stem from external factors, responsible fiscal policy and bold reforms, together with cooperation from the business community, will help turn them into new opportunities.”
