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CIFA: A Year Of Strategic Growth And Opportunity For Investment Funds In 2025

The Cyprus Investment Funds Association (CIFA) is stepping into 2025 with renewed confidence, building on the significant achievements of the past years. Despite the global uncertainties that continue to unfold, Cyprus’ Investment Funds sector has firmly established itself as a vital contributor to the nation’s economic and social prosperity.

In 2024, Cyprus reached a major milestone, surpassing €9.3 billion in assets under management. This remarkable achievement highlights the sector’s impressive growth and resilience. The year also marked an expansion of Cyprus’ global presence, attracting new fund managers and investment opportunities, further cementing its status as a leading European hub for Investment Funds. This success was driven by strategic collaborations and the dedicated efforts of professionals within the sector, fostering the creation of specialized job roles and reinforcing Cyprus’ position as a robust financial centre.

Looking ahead to 2025, CIFA remains fully committed to promoting Cyprus as the premier destination for global investment funds. By working alongside key stakeholders, including the Ministry of Finance, the Cyprus Securities and Exchange Commission, and Invest Cyprus, CIFA aims to enhance the regulatory framework and drive innovative solutions for the industry. The timely approval of pending legislation that modernizes regulatory processes and introduces new investment structures is crucial for unlocking the full potential of the sector. These updates will provide the industry with the necessary tools to stay competitive and aligned with international best practices. CIFA urges all stakeholders to prioritize this agenda to ensure Cyprus continues to attract high-quality investments and talent.

In addition, CIFA recognises the importance of equipping individuals and businesses with essential financial knowledge. In 2025, the association plans to roll out initiatives designed to boost financial literacy across Cyprus. These will include workshops, partnerships, and digital campaigns aimed at enhancing understanding of investment funds and financial planning. By empowering citizens and professionals with the knowledge to make informed financial decisions, CIFA is contributing to the long-term economic resilience of Cyprus.

Maria Panayiotou, President of CIFA, shares her outlook for the year: “The success of the Investment Funds sector is a reflection of our adaptability, innovation, and ability to thrive in a competitive global market. In 2025, our focus will be on sustainability, technology-driven solutions, and strengthening our partnerships across markets. Our goal is to drive economic growth while delivering lasting value for society. With the combined expertise and dedication of our sector, I am confident that we will continue to play a transformative role in Cyprus’ economy, fostering resilience and creating opportunities for all.”

As Cyprus embarks on a year of revitalisation and resilience, CIFA remains steadfast in advocating for the interests of its members, elevating Cyprus on the international stage, and supporting initiatives that promote sustainable development within the financial sector. The association calls on all stakeholders to collaborate in advancing the innovation, sustainability, and resilience that will define Cyprus’ financial future.

Nearly 80% Of Cyprus’ Foreign Investment Came From Outside EU In 2025

Cyprus had the highest share of foreign direct investment (FDI) originating outside the European Union among 14 EU member states reporting data for 2025. According to Eurostat, non-EU economies accounted for 79.4% of the island’s inward FDI, highlighting its distinct position among the reporting countries.

The figures contrast with most other EU economies, where investment from within the bloc remains the main source of foreign capital.

Cyprus Leads In Non-EU Investment Share

Eurostat measures inward FDI positions by the ultimate investing economy, identifying the economy where the investment ultimately originates rather than only the country through which it is channelled. This distinction is important when investments involve subsidiaries or intermediary holding companies.

In nine of the 14 reporting countries, most foreign investment came from within the EU. The Czech Republic recorded the highest intra-EU share, at 75.1%, followed by Romania at 73.3% and Estonia at 64.8%.

Cyprus was among five countries where non-EU economies accounted for more than half of inward FDI. Spain, Sweden, Greece and Denmark also recorded shares above 50%, ranging from 51% to 55.1%.

US Is The Largest Source Of FDI Across Reporting Countries

Across the 14 countries collectively, the United States was the largest ultimate source of foreign direct investment, accounting for 15.4% of the total.

Germany ranked second at 11.5%, followed by France at 9.4%, the United Kingdom at 9.3% and Switzerland at 5.8%.

These figures reflect the combined investment positions of the reporting countries and do not identify Cyprus’s leading individual investment sources. However, the country-level data underline the island’s strong reliance on capital originating outside the European Union.

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