Cyprus can help connect Europe with the Middle East and Asia—but turning that geographic advantage into lasting economic value will require stronger regional cooperation, trade links and investment in infrastructure, President Nikos Christodoulides said Monday.

Addressing the Economists Enterprise 22nd Annual Cyprus Summit, Christodoulides pointed to opportunities in shipping, energy, tourism, technology and digital services across the Eastern Mediterranean. He also warned that geopolitical tensions were disrupting trade, energy supplies and investment prospects.

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Economic resilience, he said, now depends not only on national security but also on the ability to absorb external shocks, diversify energy sources and trading relationships, protect critical infrastructure and attract investment.

A Strategic Crossroads For Trade And Investment

The Eastern Mediterranean’s position between Europe, the Middle East, North Africa and Asia gives the region significant commercial potential, Christodoulides said. Cooperation, he argued, could convert that geographic advantage into practical economic opportunities.

“Energy interconnections, trade corridors and port infrastructure are not simply technical or economic projects,” he said, adding that they also carry political and geostrategic significance. Decisions made now, he warned, will influence the region’s economic prospects and geopolitical balance for years to come.

One initiative he highlighted was the India-Middle East-Europe Economic Corridor, or IMEC. The corridor could improve trade and transport connections while opening new avenues for investment and economic security. “Our country has an important role to play in its implementation,” he said.

Building Links With India

Christodoulides also pointed to the anticipated signing of an EU-India Free Trade Agreement in Brussels next December, on the sidelines of the European Council and in the presence of Indian Prime Minister Narendra Modi. He said the agreement would make progress on IMEC more urgent by creating the potential to deepen commercial ties between Europe and India.

Cyprus is seeking to strengthen its position in that relationship. Christodoulides cited his recent visit to India, the opening of a commercial office in Mumbai and ongoing discussions to improve air connectivity between the two countries. Nicosia has also proposed an IMEC Group of Friends within the European Union to promote the corridor and build broader European support.

Geopolitical Risks Put Trade Routes In Focus

The president’s remarks came amid rising geopolitical uncertainty, with consequences that extend beyond the countries directly involved. He cited tensions around the Strait of Hormuz and Bab el-Mandeb, as well as Russia’s continuing invasion of Ukraine, as developments affecting European security, energy flows and international trade.

Obstructing or weaponizing critical commercial passages, he warned, can disrupt supply chains and inflict far-reaching economic costs. He also stressed that sovereignty, territorial integrity and respect for international law must be upheld consistently.

Europe, he said, needs to reinforce its resilience, competitiveness and strategic autonomy while assuming greater responsibility for its security. Strategic autonomy, he clarified, should not mean isolation; it should mean building a stronger Europe that can work effectively with international partners.

Cyprus Seeks A Broader Regional Role

Within that framework, Cyprus is aiming to move beyond what Christodoulides described as a traditionally single-issue foreign policy. The country wants to be seen as a stable and dependable bridge between the European Union and the wider Middle East and Gulf region.

“As a country, we seek to be part of the solution and not part of the problems and challenges in our region,” he said. Cyprus’s positive agenda, he added, is not directed against any country; it is intended to identify shared interests and create conditions for mutual benefit.

As an example, he cited an informal European Council meeting held in Cyprus in April. For the first time in that format, EU leaders and representatives of European institutions met with leaders from the wider region, including Egypt, Jordan, Lebanon, Syria and Gulf Arab countries. Discussions focused on specific projects for regional cooperation.

Christodoulides said the meeting showed how Cyprus could help facilitate dialogue between Europe and its neighbours—and turn diplomatic engagement into practical cooperation.

Cooperation On Climate And Resilience

The president also highlighted the Cyprus Regional Initiative on climate change, which brings together 13 countries to improve their collective ability to adapt to and mitigate climate impacts. He framed the initiative as part of a broader effort to strengthen regional resilience amid challenges that increasingly affect economic development and long-term stability.

The Eastern Mediterranean, Christodoulides said, faces a choice: remain defined by crises and competition, or develop into a region of meaningful cooperation, growth and shared benefit. Cyprus will continue to draw on its relationships with neighbouring countries, its EU membership and its geographic position to promote dialogue, he said.

“We extend a hand of cooperation to all those who wish to participate in this effort and become partners in the goal of building a region that is safer, more interconnected, more resilient and more prosperous,” he concluded.