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Trade And Technology Propel Cyprus Business Growth

Cyprus has emerged as a dynamic hub of business activity in 2023, underscored by steady entrepreneurial expansion and the influential roles of trade and technology. Recent data from the Statistical Service (Cystat) reveals impressive growth figures that highlight a resilient and steadily evolving market environment.

Steady Enterprise Expansion

The number of registered enterprises surged by 4.5% in 2023, reaching 125,152 from 119,816 in 2022. This marks the fifth straight year of growth, following expansions of 5.7% in 2019, 1.3% in 2020, 3.8% in 2021, and 6.5% in 2022. Notably, the business register has grown from 101,323 enterprises in 2018, reflecting a robust upward trend in commercial activity.

Dominance Of Micro-Enterprises

Despite the significant expansion in overall business numbers, the structural composition of the Cypriot business landscape remains largely unchanged. Micro-enterprises, defined as firms with fewer than 10 employees, continue to dominate by accounting for 94.8% of all businesses, or 118,697 establishments. In contrast, large companies employing over 250 people are exceedingly rare, representing just 0.1% of the total.

Rising Employment Trends

Employment figures have mirrored enterprise growth, with total jobs increasing by 5.5% in 2023 to nearly 500,000 positions. From the downturn in 2020 due to the pandemic, employment rebounded with a 3.9% rise in 2021, followed by 6.4% in 2022. A detailed breakdown shows that micro-enterprises provide 38.1% of all jobs, while small, medium, and large enterprises contribute 20.1%, 16.5%, and 25.3% respectively.

Sector Performance Overview

The retail and wholesale trade sector continues to lead in business numbers, comprising 16,672 enterprises. This is followed by professional, scientific, and technical activities with 13,235 firms, and construction with 10,311. Employment figures also favor the trade sector, which accounted for 77,046 jobs, while accommodation and food services, alongside public administration, also contributed significantly. In contrast, sectors such as mining and quarrying remain minimal, underscoring the varied industrial landscape within Cyprus.

Regulatory Framework And Definitions

The methodology behind these statistics adheres to strict EU regulatory standards, with annual updates derived from social insurance, tax, and company registers. For clarity, an “enterprise” refers to the smallest autonomous legal unit producing goods or services, whereas an “establishment” is the specific location where business activity occurs.

By consistently attracting growth in both enterprise numbers and employment, Cyprus is positioning itself as a resilient and forward-looking business ecosystem—one where traditional sectors harmonize with innovative technology-driven industries.

FinTech’s Dominance In MENA: Three Strategic Drivers Behind Unyielding VC Success

Despite facing tightening global liquidity and macroeconomic headwinds, the FinTech sector continues to assert its leadership in the MENA region. In the first half of 2025, FinTech emerged as the most resilient and appealing arena for venture capital investments, proving its worth as a catalyst for financial innovation and inclusion.

Addressing Structural Financial Gaps

In many parts of MENA, a significant proportion of the population remains underbanked and underserved by traditional financial institutions. FinTech companies are uniquely positioned to address these persistent challenges by bridging critical access gaps and driving financial inclusion. With the proliferation of payment apps, digital wallets, and micro-lending platforms, investors have witnessed firsthand how these solutions pave the way for scalable growth and eventual exits. Early-stage momentum in the region is underscored by a doubling of pre-seed deals year-over-year, reinforcing the sector’s capacity for rapid innovation and sustainable expansion.

Highly Scalable and Replicable Business Models

One of the key factors behind FinTech’s dominance is the inherent scalability of its business models. Once the necessary infrastructure and regulatory approvals are in place, these models have demonstrated robust performance across borders. The first half of 2025 saw a marked acceleration in deal activity, with payment solutions leading the charge with 28 deals in MENA—a significant increase over the previous year. Lending platforms, in particular, experienced a meteoric 500% year-over-year increase in funding, emerging as the fastest-growing subindustry. Such replicability makes FinTech an attractive proposition for investors seeking high-growth opportunities in diverse markets.

Supportive Regulatory And Government Backing

The strategic support offered by key government initiatives in the UAE and Saudi Arabia has been instrumental in propelling the FinTech sector forward. Progressive frameworks, such as the UAE’s open finance and digital asset directives, coupled with Saudi Arabia’s live-testing sandboxes, have materially lowered entry barriers for startups. These measures not only foster innovation but also streamline the path to commercialization. Consequently, the combined efforts of these regulatory bodies have enabled the UAE and Saudi Arabia to account for 86% of MENA’s total FinTech funding in H1 2025.

The resilience of FinTech in MENA is not merely a reflection of contemporary market trends—it signals a fundamental shift in the region’s economic fabric. With an unwavering commitment to addressing real financial challenges, scalable and replicable business practices, and robust regulatory support, FinTech is setting the benchmark for sustainable innovation. As capital markets become increasingly discerning, this sector stands out as a beacon of long-term growth and transformative impact.

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