Cyprus recorded a 62.7% annual growth rate, the highest in the European Union for the third consecutive year. The island has risen from 57th place in 2021 to 34th this year in StartupBlink’s Global Startup Ecosystem Index 2026. This marks its fifth consecutive year of improvement.
Cyprus now ranks 20th in Europe, 17th in the EU, and 4th in Southern Europe. The report describes Cyprus as “storming into the global top 35,” reflecting sustained momentum in an ecosystem that has earned its place as a competitive regional player.
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Global Context
The United States leads the global index, followed by the United Kingdom, Israel, and Singapore. In Europe, Sweden ranks 6th as the highest EU country, followed by Germany at 7th and the Netherlands at 10th.
The index identifies a trend where “much of the global momentum now sits outside the very top ecosystems.” This refers to the gains of small but fast-moving ecosystems outside the very top tier, including Cyprus, Saudi Arabia, Romania, Malta, Thailand, and Vietnam.
Cyprus’s 62.7% growth rate is the third-highest globally among the top 50 economies. Romania recorded 32.9% growth (second in the EU), Malta recorded 32.5%, and Greece recorded 4.8%. Greece dropped from 47th to 51st place, falling out of the global top 50.
Sector Performance
The Global Startup Ecosystem Index also provides industry-level breakdowns. Cyprus has established competitive positions in specific sectors in addition to its overall ranking.
Startup Community Activity: 12th Globally
Cyprus ranks 12th globally and 9th in Europe in the Startup Community Activity functional category. This measures startup events, meetups, accelerator programs, and community engagement relative to ecosystem size.
For an island of 1.2 million people, a 12th global ranking reflects an exceptionally high density of startup-related activity. This is thanks to organisations such as TechIsland, the Research and Innovation Foundation (RIF), and Cyprus Seeds, which collectively provide pre-acceleration, grants, mentorship, and connections to EU funding.
Gaming: 16th Globally
Cyprus ranks 16th globally in Gaming, its highest-ranking sub-industry. Turkey, one of the region’s better-known gaming ecosystems, also has Gaming highlighted in its StartupBlink profile and ranks 13th in Europe.
Cyprus, however, ranks higher overall in the global country index, at 34th compared with Turkey’s 38th. For a small ecosystem with a population of 1.2 million, Cyprus’s global top-20 position in Gaming suggests a level of specialisation that exceeds the scale of its overall ecosystem.
Business Environment: 15th Globally
Cyprus ranks 15th globally in StartupBlink’s Innovators Business Environment Index. The IBEI evaluates how easily innovators can start and run a business, covering regulation and governance, access to capital and financial infrastructure, taxation, digital infrastructure, and global mobility and openness.
According to the IBEI report, Malta ranks 49th globally in Business Environment. Greece ranks 33rd. Cyprus’s 15th place positions it ahead of Belgium (16th), Australia (17th), and Finland (19th).
Social & Leisure: 26th Globally
Cyprus’s strongest main industry is Social & Leisure, where it ranks 26th globally. This puts Cyprus below established country-level leaders such as the United Kingdom, which ranks 2nd globally in Social & Leisure, and Germany, which ranks 6th globally, but close to Saudi Arabia, which ranks 23rd globally in the same industry.
Limassol Breaks Top 200, Nicosia Posts Highest Growth
Cyprus has four cities in the global top 1,000. Estonia, Luxembourg, and Iceland each have one or two cities in the top 1,000.
Limassol enters the global top 200 for the first time, rising 39 places to 191st with 73.6% growth. It ranks 1st nationally and serves as the country’s leading startup hub.
Nicosia enters the global top 300, rising 71 places to 275th with 82.8% growth, the highest among Cyprus’s cities. Nicosia is growing faster than Limassol in percentage terms, though from a smaller base.
Larnaca ranks 884th, and Paphos ranks 899th. Paphos rose 41 places with 49.6% growth. Larnaca declined 34 places despite 21.4% growth, as peer cities globally advanced more quickly.
Centralisation remains low, with Limassol’s total score only 1.9 times that of Nicosia. Potentially strengthening Limassol’s position as a more consolidated leading hub would drive stronger national outcomes, according to the report.
Regional Comparison: MENA And Southern Europe
In the MENA region, Israel ranks 3rd globally and maintains dominance despite geopolitical pressures. Saudi Arabia ranks 28th, having overtaken the UAE (30th) as the leading GCC country. The UAE declined nine places this year due to Dubai’s first drop in seven years, falling 27.5% annually.
Cyprus now ranks just four places behind the UAE. The UAE ranks 5th in Business Environment, while Cyprus ranks 15th. Despite the UAE’s stronger structural conditions, Cyprus is growing faster (62.7% vs. -27.5%) and closing the gap in ecosystem output.
Qatar ranks 73rd, and Jordan ranks 68th in the overall MENA standings.
In Southern Europe, Cyprus ranks 4th overall. Spain ranks 13th globally, and Italy ranks 25th globally. Greece ranks 51st globally and has fallen from the top 50 despite positive growth, as global competition intensified.
Specialisation As An Asset
Cyprus has achieved specialisation rather than overall leadership. By ranking 16th in Gaming and 26th in Social & Leisure, the island demonstrates that a small ecosystem can compete with top-tier players by focusing on specific high-growth niches.
The full StartupBlink Global Startup Ecosystem Index 2026 is available at startupblink.com.
