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Grant Scheme Announced To Strengthen New Business Activity In British Bases Areas

A second announcement of a grant scheme to strengthen new business activity in areas within the British Bases has been approved by the Council of Ministers following a proposal by the Minister of Energy, Trade and Industry George Papanastasiou.

According to a press release by the Ministry, the scheme, which was prepared for equal treatment of citizens of the Republic, aims to develop, support and promote entrepreneurship, placing an emphasis on specific groups, such as young people and women, who wish to be active in business in the sectors of manufacturing, services and tourism, making use of their knowledge, experience, training and talents.

The grant will be up to 70% for young men and women aged 18-29 years, while for men aged 30-50 and women aged 30-55, it will be up to 60%. The grant is calculated on the cost of the eligible costs of the investment (equipment, special facilities, construction, purchase and renovation/configuration of building spaces, promotion and other expenses), with a maximum eligible budget per company of €120,000.

The total budget to be allocated for the needs of the 2nd announcement of the scheme amounts to €500,000 and comes from the state budget.

Those interested can obtain the scheme guide, which contains all the details, the list of supporting documents, as well as other required forms or documents, from the Ministry’s website and, particularly, from the website of the Industry and Technology Service.

It is noted that the applications/proposals from the beneficiaries will only be submitted through the electronic system of sponsorship plans of the Ministry of Energy, Trade and Industry, in a specific period that will be determined in the relevant call for proposals, which will be announced in the next period.

For more information, those interested can contact the relevant officials at 22867178/156/317/109/194.

Cyprus Tech Sector Propels Economic Growth and Reshapes Talent Landscape

Robust Economic Expansion

At the recent TechIsland Summit, Christophoros Anayiotos, Head of Deal Advisory at KPMG Cyprus, delivered a compelling assessment of the island’s burgeoning tech ecosystem. The 2024 report highlights that the technology sector now contributes 16% of Cyprus’ total Gross Value Added (GVA), up from 12.6% in the previous year. Overall, the sector’s economic impact is estimated at €8.5 billion, with direct contributions of €4.7 billion and an additional €3.8 billion generated indirectly.

Sectoral Contributions and Productivity

Using the Leontief Input-Output Model, the study covers key areas including ICT, professional scientific and technical activities, as well as tech-driven financial and insurance services. Notably, the ICT segment itself delivers €3.4 billion in direct GVA, while professional services and financial operations contribute €840 million and €505 million respectively. This horizontal spread of technological influence underscores the industry’s pivotal role in driving multifaceted business growth.

Resilience During Economic Downturns

Even amid challenging economic conditions, the tech sector has demonstrated remarkable resilience. In the pandemic-stricken year of 2020, while the broader Cypriot economy contracted by 3%, the ICT sector experienced a robust growth rate of 21%. This momentum accelerated further to a striking 38% growth in 2021, reinforcing technology’s role as a stabilizing economic force.

Divergent Trends in Employment

Anayiotos’ analysis reveals that the tech sector now sustains over 62,000 full-time equivalent jobs in Cyprus, with 45,900 direct and 16,300 indirect roles. For every €1 million in increased sector revenue, approximately 13 jobs are generated. Despite the overall employment surge, there has been a significant shift in workforce composition. In 2015, Cypriot nationals comprised 88% of ICT employees; by 2024, this figure dropped to 50%, with non-EU nationals accounting for 42% and other EU citizens 8% of the workforce.

Cyprus as an EU Leader in ICT

Cyprus now holds a prominent place in the EU, ranking second in the EU27 for ICT’s share of national GVA at 11.4%, a notable rise from 9.4% in 2023. Furthermore, the island leads the bloc in ICT GVA growth, posting a remarkable 347% increase between 2015 and 2024. With a top-five ranking in GVA per ICT employee—whereby each contributes approximately €130,000, compared to the EU average of €116,000—the country’s technology workforce has expanded at an annual growth rate of 12.1%, from 9,300 in 2015 to 26,000 in 2024.

Strategic Imperatives for Future Growth

Anayiotos emphasizes the need for strategic enhancements to sustain this expansion. Key recommendations include improving air connectivity, joining the Schengen Area to boost mobility, and attracting more international banking institutions. Additionally, introducing tax incentives designed to favor stock options is considered crucial in luring and retaining skilled talent. Addressing the limited capacity in private education is also vital to accommodating professionals relocating with families.

Investing in Talent and Digital Transformation

Looking forward, investments in education and digital upskilling remain paramount. There is a clear call for a national initiative aimed at promoting STEM careers, elevating the digital skills of both students and educators, and accelerating the digital transformation of public services. Moreover, streamlining legal procedures will be critical to improving the overall business climate and competitiveness.

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