Foreign direct investment in Cyprus rose by approximately 10% in 2025

Foreign direct investment in Cyprus rose by approximately 10% in 2025 compared with the previous year. President Nikos Christodoulides said this while speaking in Nicosia at EY’s Future Realized forum.

According to the president, international companies’ interest in the island has been growing in recent years — primarily in information and communication technologies (ICT), fintech, innovation, business services and other knowledge-intensive industries. The government’s goal is to make Cyprus a European and regional hub for investment, technology, energy, transport and trade.

Christodoulides also listed the factors that are still hindering progress: energy costs, the speed of administrative procedures, a shortage of specialists with the required qualifications, transport connectivity and the pace of infrastructure project implementation.

Over the past three and a half years, the authorities have carried out a tax reform, digitally transformed the public sector and simplified procedures for strategic investments. A Business Support Centre has been created for Cypriot and foreign companies as a single point of contact. Among the infrastructure projects, the president mentioned airport expansions, the modernisation of Vasiliko port, electricity interconnectors and the construction of a liquefied natural gas terminal.

Cyprus’s economy grew by around 10% over three years — four times higher than the European average. Unemployment fell to 3.6%, employment reached a historic high, and the country’s credit ratings remain in the A category.

The president also mentioned cooperation with NVIDIA, Columbia University and the Plug and Play platform, as well as the Minds in Cyprus initiative to attract specialists. According to him, the government will continue removing barriers to investment and accelerating reforms.