How much of Cyprus’s technology spending goes to suppliers on the island? A new study puts the figure at between €800 million and €950 million in 2025.
That’s roughly half of what businesses and public bodies in Cyprus spent on technology that year, according to a study conducted by IMR and the University of Nicosia for the Cyprus Computer Society. The researchers put total spending at €1.7 billion in their central estimate, with a range of €1.33 billion to €2.15 billion.
Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram
Cyprus’s ICT industry, meanwhile, generated an estimated €4.1 billion in gross value added in 2025, up 435% from 2016.
These two sets of figures, however, answer different questions. One tracks a Cyprus-based software company selling to customers abroad. The other a hotel in Cyprus buying software from an overseas supplier, where the purchase counts towards domestic spending.
The study estimates that financial services accounted for €321 million of that spending and the public sector €276 million. The study also included the reasons submitted by buyers for being dissatisfied about their ICT providers. These included: slow responses (63%), delivery delays (52%) and while lack of expertise (15%).
The study asked organisations how likely they were to invest in different technologies in 2026. AI drew more interest overall: 83% of respondents said they were likely or very likely to invest in it, compared with 69% for cybersecurity. But more respondents chose “very likely” for cybersecurity than for AI: 44% versus 28%.
In a separate question, 71% identified cybersecurity as a capability their organisation needed to strengthen.
Eurostat’s 2025 figures show how far AI use in Cyprus trailed the EU average. It stated 9.27% of enterprises in Cyprus used AI, compared with 19.95% across the EU. The figures cover enterprises with at least 10 people employed in the sectors surveyed. In the separate IMR buyer survey, 51% of respondents reported a shortage of AI skills.
When asked about digital transformation, 57% of respondents mentioned reliance on traditional working practices as an obstacle, compared with 31% who stated a shortage of in-house expertise. The report also found that none of the organisations surveyed used adoption or usage rates to assess their technology investments.
