Nicosia: 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.
According to Cyprus News Agency, President Christodoulides, addressing the EY Cyprus Future Realized Forum in Nicosia, stated that the increase in investment activity was reinforcing confidence in Cyprus's long-term prospects. He also noted growing interest from international companies in higher-value sectors such as information and communication technologies, fintech, innovation, and business services.
The President highlighted the transformation of Cyprus' economic model towards sectors that generate higher value-added and stronger productivity growth, exemplified by the growing footprint of the ICT sector. However, he acknowledged that Cyprus still faced challenges in enhancing its competitiveness and attracting further investments. Energy costs, administrative processes, availability of specialized skills, connectivity, and infrastructure project delivery were identified as areas needing improvement.
Christodoulides mentioned the government's ambitious reform program over the past three and a half years, aimed at improving the business environment and supporting sustainable long-term growth. This includes tax reform, digital transformation of the public sector, and streamlining procedures for strategic investments. The establishment of the Business Support Centre was also noted, designed to facilitate the establishment and expansion of companies' activities in Cyprus.
The President pointed to several infrastructure, energy, and connectivity projects essential to the country's future competitiveness and resilience. These projects include the expansion of airports, the upgrade of Vasilikos port, electricity interconnections, and an LNG import terminal, which aim to strengthen Cyprus' role as a regional hub for transport, trade, logistics, and energy.
Further efforts to improve business financing through the Cyprus Enterprise Development Organisation were highlighted, along with the ongoing privatisation of the Cyprus Stock Exchange, expected to boost the island's capital market. Partnerships with NVIDIA, Columbia University, and Plug and Play were mentioned as expanding opportunities in research, innovation, and emerging technologies.
The President emphasized initiatives like Minds in Cyprus to attract talent and strengthen human capital, and cooperation between universities and industry to meet economic needs. He reiterated the government's goal to remove barriers hindering investment, productivity, and innovation, and create conditions for businesses to invest with greater confidence and speed.
President Christodoulides shared that Cyprus' economy had grown by around 10% over the past three years, outpacing the European average, with unemployment falling to 3.6% and employment reaching historical levels. He noted the country's successive A-category sovereign credit ratings, sound public finances, and strengthened banking sector resilience.
Linking Cyprus' economic ambitions to its role in the European Union and the wider region, Christodoulides noted the opportunity provided by the country's Presidency of the Council of the EU to 'build bridges' between European interests, regions, and economic opportunities.
He outlined the government's ambition to build on stability and turn it into perspective, fostering an economy that is more productive, innovative, and outward-looking, capable of creating opportunities for future generations. The President emphasized that stability with perspective is a valuable offering in an uncertain world.
Acknowledging that the government cannot build the future alone, Christodoulides stressed the importance of partnerships with businesses, investors, and the wider population to accelerate economic change and create sustainable growth conditions.
