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Cyprus Investment Sector Calls For Deputy Ministry To Drive Sustainable Growth And Competitiveness

by THEFUTURE.TEAM

November 21, 2025

The Association of Large Investment Projects has renewed its call for establishing a dedicated Deputy Ministry for Development and Competitiveness. In a statement to President Nikos Christodoulides, association president Andreas Demetriades emphasized the need for a coherent national strategy centered on healthy, sustainable development and well-defined incentives.

Driving Job Creation And Economic Resilience

Addressing stakeholders at the association’s general assembly, Demetriades asserted that large-scale projects not only create jobs but also strengthen the social fabric and secure Cyprus’ future. The deputy ministry would be tasked with bolstering competitiveness, attracting high-quality investments, and coordinating much-needed reforms—from streamlining licensing processes and digitalizing services to establishing a one-stop shop for investors.

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Accelerating Reforms And Simplifying Approvals

The proposed body would oversee targeted licensing for strategic projects, thereby accelerating the development process in measurable ways. This aligns with a broader vision to position Cyprus as a regional business hub, attracting investments in high-end healthcare, higher education, technology, IT, tourism, shipping, green energy, and modern infrastructure.

Showcasing A Portfolio Of Impactful Developments

Demetriades highlighted that the 16 association members manage the island’s largest developments, attracting consistent foreign interest with an €8 billion portfolio spanning marinas, casinos, golf courses, universities, medical centers, research parks, and expansive tourist projects. Such initiatives have not only upgraded Cyprus’ investment and tourism landscape but have also supported thousands of jobs and improved living standards.

Policy Initiatives And Institutional Enhancements

In discussing long-term priorities, Demetriades stressed the importance of continual improvements in the business environment. He cited the recent cost of living allowance (CoLA) agreement as a demonstration of institutional maturity among the state, employers, and unions—a success that reinforces stability and predictability. As Cyprus prepares to assume the EU Council Presidency, these policy improvements are critical for handling weighty European dossiers, including the multiannual financial framework, competitiveness, defense, and security.

Addressing Housing And Infrastructure Challenges

Despite the progress, significant challenges remain. Demetriades underscored the pressing need to address housing shortages and expand educational infrastructure. He recommended targeted incentives, such as increasing building coefficients in selected areas and employing VAT mechanisms for investments in rental properties, to meet the rising demand for affordable housing.

Energy Strategy, Schengen Accession And Local Governance

High energy costs demand a robust, long-term national strategy, which includes improving natural gas supply, accelerating storage system deployment, and constructing critical infrastructure to enhance security and sufficiency. Additionally, accession to the Schengen Area would expand Cyprus’ economic reach and enhance its credibility among international investors.

Collaboration To Overcome Institutional Hurdles

Speakers representing key institutions, including Andreas Tsouloftas conveying President Stavros Stavrou’s message and Constantinos Yiorkadjis from the Nicosia EOA, stressed the importance of multi-level cooperation. They outlined measures such as digitizing permit processes and creating dedicated development services to address longstanding obstacles like bureaucracy, slow licensing, and manpower shortages. Local authorities, especially in sectors like water supply and sewage management, play an essential role in facilitating development and mitigating infrastructure constraints.

A Pivotal Moment For Cyprus

Despite global uncertainty, the resilient Cypriot economy continues to attract quality foreign investment. As institutional reforms progress and strategic incentives are implemented, large-scale developments are poised to sustain and further elevate Cyprus’ competitive edge. Through an integrated approach and strong public-private collaboration, Cyprus is well-positioned to emerge as a pillar of stability, modern governance, and sustainable growth in the region.

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Navigating Persistent Pressures: Labour Shortages, Bureaucracy, And Payment Delays In Limassol

by THEFUTURE.TEAM

December 19, 2025

Labour Shortages Challenge Expansion

Recent data from the Limassol Chamber Of Commerce And Industry underscores the enduring pressure within Limassol’s business community. Rather than indicating a sudden economic downturn, the survey reveals a gradual intensification of challenges that have long been a concern for local enterprises.

Skilled Labour In Short Supply

At the forefront is a chronic shortage of skilled labour, which accounts for 22.5% of the responses. Companies across a diverse range of sectors—from engineering and technical services to professional driving and specialized sales—are grappling with vacancies that remain open for extended periods. The persistent demand for critical skills forces many firms to overextend their existing workforce or postpone strategic projects. While recruiting talent from abroad is increasingly seen as a necessity, the process is often hampered by procedural delays, strict regulatory constraints, and rising employment costs.

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Administrative Complexities And Public Sector Frustration

In addition to labour challenges, businesses express deep frustration with public-sector inefficiencies. Slow administrative procedures, fragmented communication, and a lack of clear guidance have rendered government support only marginally effective. With more than half of respondents regarding public services as minimally helpful, the inefficiencies highlight a system that frequently delays critical decisions and complicates routine business processes.

Deteriorating Payment Discipline

The survey also highlights a significant decline in payment discipline, with difficulties in collecting debts now ranking third among business concerns at 11.8%. Late payments are intensifying cash-flow pressures, extending through supply chains and further straining liquidity. Added to this is a sluggish justice system, where prolonged court delays have left companies financially exposed, often shouldering the burden of non-compliant customers while legal remedies lag behind.

Cost Pressures And Cautious Investment

Rising labour costs, intense domestic competition, and the pressure of lower-cost international markets — particularly in Asia — are driving firms to reconsider their investment priorities. Although nearly 60% of businesses intend to hire in the near term, investment plans in infrastructure, technology, and renewable energy are markedly selective. Overall sentiment remains cautious, with two-thirds of respondents expecting sales to stay level, both domestically and in overseas markets.

Calls For Policy Reforms And Digital Transformation

In an environment strained by excessive bureaucracy and inconsistent policy, businesses advocate for decisive governmental action. Respondents have pointed to the need for reduced business taxation, streamlined administrative processes, and more responsive public services. Furthermore, investment in digital transformation, artificial intelligence tools, and enhanced collaboration with academic and research institutions are seen as critical to boosting competitiveness and fostering innovation.

Conclusion: A Need For Strategic Reforms

The autumn 2025 barometer paints a picture of a resilient business community operating under increasing strain. With entrenched labour shortages, administrative inefficiencies, and deteriorating payment discipline, there is a clear call for targeted reforms. Addressing these structural challenges will be essential for ensuring that Limassol’s businesses not only sustain their current operations but also position themselves for future growth in an increasingly competitive global landscape.