Efforts to attract investment, cut bureaucracy and improve Cyprus’s business climate were the focus of talks between Deputy Minister to the President Irene Piki and the Nicosia Chamber of Commerce and Industry, as businesses continue to call for faster reforms.
Piki met chamber president Michalis Mousiouttas and board members to discuss challenges facing companies in the capital and opportunities to support economic growth.
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Government And Businesses Seek Closer Cooperation
In a post on X on Sunday, Piki stressed that closer cooperation between the government and the private sector is essential to removing investment barriers and improving competitiveness. She identified the Cyprus Chamber of Commerce and Industry (Keve) and its district chambers as key partners in building a more competitive economy.
Businesses Highlight Structural Challenges
The Nicosia chamber continues to raise concerns over bureaucracy, labour shortages, infrastructure gaps and rising operating costs. At its general assembly in November 2025, Mousiouttas called for a more predictable business environment, citing administrative delays, traffic congestion, energy costs and water shortages. He also backed development projects involving the former state fair grounds and the Sopaz area.
The chamber has since held talks with Labour Minister Marinos Mousiouttas on labour shortages, pension reform and the EU Pay Transparency Directive, and with Transport Minister Evi Tsolaki on infrastructure and development challenges.
Measures To Improve Cyprus’s Investment Appeal
The government launched the Business Support Centre in May 2025 to provide investors with a single point of contact for establishing or expanding operations. The centre brings together business facilitation, investment promotion and licensing services.
For qualifying strategic projects, a separate fast-track process aims to secure planning and building permits within 12 months, with dedicated coordinators helping to reduce administrative delays.
Revitalising Nicosia’s Historic Centre
The municipality has secured €10.8 million to redevelop Ledra and Onasagorou streets under the Green Line revitalisation programme. The project includes improvements to building façades and public spaces, though shopkeepers have warned of disruption during construction. In September, the municipality said it was consulting affected businesses and residents on ways to limit the impact.
A separate €10 million government scheme supports new businesses, existing enterprises and job creation in Nicosia’s walled city. The programme, designed to regenerate the historic centre through annual funding allocations, is due to run until the end of 2026.
Funding Available, Implementation Still Key
Support for industry also includes €226 million in schemes under the Thalia 2021-2027 programme and a further €137 million in European recovery and energy-related funding. These resources target manufacturing, innovation, digital transformation and the energy transition.
Businesses argue that funding must be matched by simpler procedures and faster implementation. Piki’s meeting reflects the continuing effort to translate national investment policies into practical improvements for companies in Nicosia. No new funding commitments or reform deadlines were announced after the talks.
