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.
