Cyprus wants to use its position between Europe and the Middle East to strengthen its role as a regional economic hub, President Nikos Christodoulides said at the EY Cyprus Future Realized Forum 2026.
He said EU membership, political stability and strong institutions give Cyprus a foundation for attracting capital, talent and technology despite geopolitical uncertainty.
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Growth Supports Cyprus’ Investment Case
The economy has expanded by about 10% over the past three years, nearly four times the European average, Christodoulides said. Unemployment has fallen to 3.6%, employment is at a record high and public debt remains among the eurozone’s lowest.
Foreign direct investment increased by about 10% in 2025, with growing interest in technology, fintech, innovation and business services. These sectors are also supporting a shift toward higher-value economic activity.
Energy And Talent Remain Challenges
High energy costs, bureaucracy, shortages of specialized workers and connectivity remain among Cyprus’ main competitiveness constraints. The government is addressing them through tax reform, digital public services and simplified procedures for strategic investments.
Christodoulides also highlighted gov.cy, Digital Citizen and Tax For All, as well as the Business Support Center, which provides a single contact point for companies and investors.
Infrastructure And Innovation Plans
Airport expansion, the Vasilikos port upgrade, electricity interconnections and the liquefied natural gas terminal are among the infrastructure projects the president said could strengthen Cyprus’ role in transport, logistics and energy.
The government is also developing financial instruments for startups, pursuing Cyprus Stock Exchange reforms and expanding innovation partnerships with NVIDIA, Columbia University and Plug and Play.
Through the Minds in Cyprus initiative, Cyprus is seeking to attract skilled professionals from the island and its diaspora. Christodoulides said broader international engagement is targeting technology, fintech, logistics, research, innovation and energy.
He said the strategy ultimately depends on faster reforms, stronger infrastructure and cooperation among government, businesses, investors and workers.
