Nicosia:The information and communication technology (ICT) sector significantly impacted Cyprus' economy in 2025, contributing approximately £4.1 billion to the country's gross value added. This figure represents 12.5% of the total, in contrast to the European Union average of around 5.6%. These insights were revealed in the Cyprus ICT Market 2026 Study, presented by the Cyprus Computer Society (CCS) on Thursday.
According to Cyprus News Agency, the CCS commissioned and funded the study, which was conducted by the research organization IMR. The findings indicated a remarkable 435% growth in the ICT sector between 2016 and 2025, positioning Cyprus among the leading EU countries in terms of sector size and growth.
Despite this growth, the study identified a significant gap in the adoption of advanced digital technologies by Cypriot businesses. Only 9.27% of enterprises in Cyprus used artificial intelligence technologies in 2025, compared to 19.95% across the EU. However, there is a strong interest in AI, with 83% of surveyed organizations likely to invest in AI during 2026.
Cybersecurity also emerged as a critical concern, with 71% of respondents emphasizing the need to strengthen this capability. New regulatory requirements are further increasing the demand for digital security services. The study also highlighted challenges such as the availability of specialized personnel, AI skills, organizational readiness, and the implementation of digital transformation projects.
Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou, in a speech delivered on his behalf by Deputy Ministry's Acting Director General Stavri Ttofa, emphasized the need for technological progress to reach more businesses, translating into higher productivity across the economy. He expressed the government's ambition for Cyprus to develop more products and services with international potential through stronger collaborations between businesses, universities, and research centers.
The event in Nicosia featured a welcome address by CCS President Andreas Loutsios, with CCS Vice-President George Christodoulou introducing the presentation. Christina Kokkalou presented the findings on behalf of IMR. The study was based on surveys of organizations purchasing ICT services and technology providers, as well as in-depth interviews with senior representatives from government, regulatory authorities, and industry, combined with official statistics and international sources. The full study is available on the CCS website.