Limassol:Cyprus is setting its sights on expanding its video game industry, aiming to increase the number of games developed domestically, foster the establishment of locally-founded studios, and attract more investment in intellectual property. This was announced by Nicodemos Damianou, Deputy Minister of Research, Innovation and Digital Policy, during the Cyprus Games Summit 2026 held in Limassol.
According to Cyprus News Agency, Damianou highlighted the findings of the first Cyprus Video Game Industry Report by CYGMA, which revealed that Cyprus leads globally in the number of games companies, games revenue, and mobile installs per capita. The report states that there are 415 companies employing over 4,300 professionals, with an estimated games revenue of around £3.2 billion projected for 2025.
Damianou emphasized that the gaming industry is already a crucial component of Cyprus' technology and innovation-driven economy. He noted Cyprus' strengths, such as EU membership, strategic location, and a robust professional-services base, which help attract globally active companies. The government supports innovation through measures like the IP Box regime, R&D expenditure deductions, and tax incentives for investment in innovative companies.
The Deputy Minister also addressed the European Commission's proposal for a Digital Fairness Act, indicating Cyprus' commitment to engage constructively to ensure player protection while maintaining feasible regulations for game studios in Europe.
Damianou outlined the role of growth capital in developing the ecosystem, noting the Research and Innovation Foundation's support for innovative companies through blended-finance programmes. He also mentioned the proposed G3, Games Go Global programme, aimed at helping Cyprus-based studios access international markets.
He cited KPMG's assessment, which reported that Cyprus' technology sector employed approximately 48,200 people in 2025, with a significant portion being foreign nationals. Technology employment grew annually by nearly 10% over the last decade. Damianou stressed the importance of investing in STEM and digital skills, supporting upskilling and reskilling, and aligning education with industry needs.
Discussing the National AI Strategy, Damianou said it focuses on AI adoption and positioning Cyprus as a regional hub for AI development. The games industry is expected to contribute significantly to this goal.
Concluding his remarks, Damianou expressed the ambition for Cyprus not only to host games companies but also to have more globally played games originate from the country.