Nicosia: Cypriot companies operating in the defence industry are experiencing rapid growth, as reported to the House Committee on Energy, Commerce, and Industry by the Cyprus Chamber of Commerce and Industry (CCCI) and the Cyprus Association of Research and Innovation Enterprises (CARIE). According to CCCI, the number of defence-related companies has surged tenfold in recent years. Meanwhile, CARIE noted that these activities generate revenues of approximately £40 million.
According to Cyprus News Agency, Defence Minister Vasilis Palmas addressed the Committee, stating that the Cypriot defence industry is now equipped to produce final products. He emphasized that these companies can supply goods to both the public and private sectors, benefiting various economic segments. Palmas also highlighted the Defence Ministry’s role in subsidizing companies to promote their products and participation in international defence exhibitions.
Committee Chairman and DISY MP Kyriakos Hadjiyianni raised questions about the EU SAFE program budget allocation for equipment. Palmas explained that up to 60% of the budget is designated for large member states, with the remaining portion yet to be determined. He pointed out that Greece and Cyprus are advocating for special consideration due to their unique geopolitical circumstances with Turkey, similar to the sensitivity shown to the Baltic states concerning Russia.
Anna Aristotelous, the Ministry’s Acting Permanent Secretary, informed the Committee about the Ministry’s contracts with foreign contractors, which encourage collaboration with Cypriot companies. She noted that 13 Cypriot companies recently participated in a defence equipment exhibition in Greece.
Panayiotis Hadjipavlis, Director of General Procurement and Defence Capabilities Development, expressed satisfaction with Cyprus securing funds from the European Defence Fund. He mentioned the preparation of a defence industry strategy supported by a £500,000 European grant, expected to be completed in about 1.5 years.
Lieutenant General Georgios Tsitsikostas, Chief of the National Guard General Staff, underscored the importance of timely equipment provision for the National Guard. He explained that current market delays necessitate many countries to produce equipment copies. Although the National Guard has not yet received final products from Cypriot companies, tests have shown competitive products, highlighting the significance of testing in the production process.
The Cyprus Association of Research and Innovation Enterprises reported to the Committee that the revenue from Cypriot defence industry activities stands at £40 million. Andreas Andreou, Deputy Secretary General of the Cyprus Chamber of Commerce and Industry, stated that the number of active companies in this sector has risen to about 30 from an initial 2-3.
Public universities and the Deputy Ministry of Research and Innovation have also expressed their commitment to contributing to research and innovation efforts, further bolstering Cyprus’ defence industry.