A group of foreign investors, representing 10 companies that have made significant investments in Cyprus, gathered at the Pralina Experience restaurant in Nicosia this month to share their views with the Deputy Minister to the President, Irene Piki, and Invest Cyprus Chairman Evgenios Evgeniou, on how the country can sharpen its competitive edge.
Who was present
- Irene Piki, Deputy Minister to the President
- Evgenios Evgeniou, Chairman, Invest Cyprus
- Antonis Antoniou, Senior General Manager, Wealth Management & Global Markets Eurobank Cyprus
- Yoni Assia, CEO, eToro
- Dmitry Byshonkov, Business Development Director, MY.GAMES
- Christina Georgiou, Chief of Staff, Invel Real Estate
- Shaul Keinan, Managing Director & Co-Partner, Premium Access Group
- Vera Khazova, Director, Wrike Cyprus Ltd
- Savvas Liasis, Chairman & Co-founder, ECM Partners
- Arthur Mamedov, CEO, TheSoul Publishing
- Dieter Rohdenburg, CEO, InterMaritime Shipmanagement
- Avi Sela, COO, eToro
- Evgenii Tiapkin, Executive Director, Freedom24
It was high noon as, one by one, the invitees made their way to the Pralina Experience restaurant on Nicosia’s Stasikratous Street. Part lunch, part unofficial audit, the gathering offered a rare moment of candour – a platform for foreign investors to weigh in on where Cyprus is getting it right and where it still has work to do. Some have been here for decades, others are newcomers, and the company covered a sizeable section of the local economy: private equity firms that have invested in hospitality and healthcare, Nasdaq-floating trading platforms, bigwigs in banking, shipping and video games, the works. The auditors? Deputy Minister to the President Irene Piki and Invest Cyprus Chairman Evgenios Evgeniou.
A good macroeconomic outlook
Over the past five years, Cyprus has weathered back-to-back macroeconomic shocks better than many of its EU peers. During the pandemic, real GDP fell by 5%, compared to an EU average of 6.6%. Inflation hit harder – peaking at 8.4% due to the economy’s small size – but the impact proved less enduring. By mid-2025, GDP growth hovered around a healthy 3.5%, unemployment sat below 4%, the public debt was falling and the fiscal surplus exceeded 4%. These fundamentals have helped Cyprus regain Category A status from all the major credit rating agencies. Indeed, the macroeconomic outlook suggests that there’s no imminent danger that the ship will capsize, something that can no longer be taken for granted in this era of runaway crises.
Evgenios Evgeniou
“Our Government is guided by a clear and forward-looking vision for the economy: to safeguard stability today while laying the foundations for sustainable, high-value growth tomorrow,” Deputy Minister Piki told the gathering.
As a small economy, Cyprus has long relied on foreign investment to punch above its weight. In the years preceding the pandemic, FDI inflows neared 29% of GDP and while that figure dipped deep inside the inflationary environment, investor sentiment has rebounded and 2024 saw US$6.5 billion flowing the island’s way. Part of this recovery stems from Nicosia’s consistent pro-investment stance, including new incentives and targeted support for sectors beyond tourism and real estate. “We are moving decisively with ambitious reforms – including the first comprehensive revision of the tax system in over two decades – to support entrepreneurship, fairness and long-term competitiveness,” Piki went on, also pointing to the proposed creation of a Unified Supervisory Authority for corporate service providers, the implementation of the National Sanctions Implementation Unit and the well-overdue privatisation of the Cyprus Stock Exchange. “These reforms are part of our broader effort to strengthen Cyprus’ appeal as a trusted and competitive destination for international investors,” she added.
Irene Piki
Relocation, relocation, relocation
A major driver of recent FDI has been the wave of corporate relocations and regional headquarters, particularly in the tech sector. Russia’s invasion of Ukraine spurred an influx of companies seeking stable ground. In 2024 alone, the Business Facilitation Unit (BFU), established in close collaboration with Invest Cyprus, supported over 440 company relocations and by mid-2025, the figure had climbed to 620. Since then, the BFU has been rebranded as the Business Support Centre (BSC), consolidating several services under one roof, including licensing. “It symbolises our commitment to reducing bureaucracy and enhancing the investor experience,” Piki noted while Invest Cyprus Chairman Evgenios Evgeniou added that the true number of new entrants was likely even higher once smaller-scale enterprises were included. “This underscores Cyprus’ growing attractiveness as a business destination,” he said.
Technology, once a footnote, now accounts for an estimated 14% of Cyprus’ Gross Value Added, displacing legacy sectors and helping to diversify the economic base. The startup ecosystem has also gained some momentum: in 2025, Cyprus broke into the top 40 of the StartupBlink Global Startup Ecosystem Index. Evgeniou credited this to the work of the Deputy Minister for Research, Innovation and Digital Policy, the Chief Scientist and the Research and Innovation Foundation. “This performance demonstrates that innovation-led entrepreneurship is not only propelling the technology sector but also significantly enhancing Cyprus’ broader investment proposition, which as Invest Cyprus we are leveraging,” he said.
New markets, new money
Meanwhile, Cyprus has widened its international outreach. The US and India have emerged as priority markets. In May, a presidential delegation supported by Invest Cyprus met with tech and finance firms in New York and Silicon Valley. There was even the requisite bell-ringing photo op at the closing of the New York Stock Exchange. Markets happened to plunge that day, spooked by President Trump’s newly unveiled tariff plan, a reminder that volatility seems to be the only constant. “The US trip positioned Cyprus as a credible EU entry point and regional hub for American capital,” Evgeniou said. “And we are actively following up on a number of opportunities.”
India, too, has signalled interest. Prime Minister Narendra Modi became the first Indian leader to visit Cyprus, culminating in a business roundtable and a joint declaration with President Christodoulides. Several Indian firms announced plans to establish EU operations on the island. “It marked India’s growing strategic interest in Cyprus as a stable, business-friendly gateway to the European Union,” said Evgeniou. The Government’s 2025 agenda also included ‘Minds in Cyprus’, a campaign aimed at bringing back skilled members of the Cypriot diaspora. A delegation of officials and business leaders travelled to London to make the case. “We inaugurated the initiative to attract and reintegrate professionals from the global Cypriot diaspora, offering incentives and support services to connect global expertise with domestic opportunity,” Piki explained. She added that a national rebranding campaign was already underway. “These efforts are part of a broader vision: to reposition Cyprus as a modern, outward-looking economy, one that builds trust, values talent and creates the conditions for long-term, meaningful investment partnerships.”
Evgeniou cited several high-impact initiatives led by Invest Cyprus, from public-private investment summits and digital investor outreach to expanded market access for startups. Pro-investor policy reforms were also in motion, including MiCA adoption, the new Fund Administration Law, and innovation sandboxes designed to enhance regulatory clarity across key sectors. “I remain confident that through sustained public-private collaboration, a proactive and innovation-friendly policy environment and continuous global engagement, Cyprus will not only maintain its current momentum but further strengthen its position as one of Europe’s most dynamic and trusted destinations for international business and investment,” he said.
Savvas Liasis
So, how did the invited investors respond to this positive presentation and the official roadmap?
The usual suspects: bureaucracy, regulations, justice
Despite efforts to cut down red tape, bureaucracy was at the front and centre, alongside overregulation and the slow justice system. Among the investors was Savvas Liasis, Chairman and Co-founder of private equity firm ECM Partners, focused on distressed assets, which had led to a handful of investments into Cyprus’ healthcare sector, including acquiring 75% of Ygia Polyclinic. Liasis didn’t mince his words: he wants things to speed up, from registering a fund to the adjudication of justice. Compared to other fund destinations such as Luxembourg, registering a fund in Cyprus can take more than double the time. As for the justice system, resolving civil and commercial cases can take an average of 800 days at first instance, stretching to a near-comical 2,300 days on appeal. That makes Cyprus the slowest judicial system in the EU, a record no one can brag about.
(Left to right): Dmitry Byshonkov, Arthur Mamedov and Evgenios Evgeniou
Also in attendance was Dmitry Byshonkov, Business Development Director at MY.GAMES, a European video game publisher with over one billion registered users worldwide, which relocated to Cyprus almost a decade ago. He called out immigration delays and inconsistent procedures, arguing that digitisation would be part of the fix but greater predictability was needed. “Greater legal and regulatory transparency, including the consistent application of laws, especially in areas like investment protection, property rights and dispute resolution are essential,” he said.
Shaul Keinan
The need for predictability was echoed by Shaul Keinan, Managing Director and Co-Partner of family office Premium Access Group, which has taken over the transformation of the Palm Beach Resort in Larnaca into a luxury resort, an ambitious investment worth over €110 million. “Investors value speed, reliability but also clarity – delays and unclear procedures increase risk,” he said. He also stressed that Cyprus could soon seize a significant opportunity to fill the gap left by traditional capital-favoured destinations. Dubai’s appeal might wane due to US tariffs, the UK’s new non-dom regime has already triggered relocations of HNWIs and so on. The Government, though, needs to give the private sector more freedom, say, by unlocking public-private investments, he insisted. At this point, Irene Piki mentioned that a tender has now been published for the long-delayed Technology Park in Pentakomo, a remark that led to more than a few raised eyebrows.
Dieter Rohdenburg
Also at the table was Dieter Rohdenburg, a key figure in the Cyprus shipping industry for more than three decades. He has recently taken the role of CEO at InterMaritime Shipmanagement, a newly merged entity. The maritime sector, he noted, has benefited from the Deputy Ministry of Shipping’s ‘one-stop shop’, which was launched in 2023 and consolidated multiple shipping-related services, especially those under the Civil Registry and Migration Department, into a single location. Other industries, he said, deserved a similar service.
Keeping on top of AI
In the fintech sector, Evgenii Tiapkin, Executive Director of trading platform Freedom24, which moved its European headquarters to Cyprus in 2023 and has since invested over €300 million into the Cypriot economy, creating employment opportunities for more than 400 professionals, pressed for policies that matched Cyprus’ ambitions. “Active support for businesses committed to innovation and transparency can create an attractive ecosystem that promotes long-term investment and economic diversification,” he stressed.
Deputy Minister Piki directed Tiapkin to the BSC, precisely because it has been upgraded to provide better support to businesses.
(Left to right): Avi Sela, Yoni Assia and Arthur Mamedov
Meanwhile, Yoni Assia, CEO of eToro – the first major fintech to go public since 2021 following its standout Nasdaq debut – emphasised that “there’s plenty of opportunity, provided that Cyprus’ regulators are forward-looking.” COO Avi Sela added, “Cyprus can become a better international business centre, as long as there is a focus on preparing to support the latest developments in financial regulation in Europe, such as MiCA and AI.” Indeed, the eToro leadership emphasized that the new wave of artificial intelligence will be a growth catalyst in their industry, making it imperative for policy to align accordingly. Tiapkin reinforced this point: “Cyprus can become a fintech and innovation hub for the EU,” he said, “serving as a laboratory for pioneering digital financial solutions and tech advancements.” For him, embracing this vision will attract investment, nurture local talent and stimulate economic growth.
Piki acknowledged the AI point, highlighting the new National AI Taskforce spearheaded by Cyprus’ Chief Scientist and comprising experts from the private sector, government, and academia. Its agenda? To chart a pathway for AI’s much-needed integration into the Cyprus market.
Similar views were shared by Arthur Mamedov, CEO of TheSoul Publishing, a global digital media and content creator platform that launched out of Limassol in 2016. For him, the country is uniquely positioned to serve as a sandbox for emerging technologies such as AI, fintech, and sustainability solutions. “Encouraging regulatory flexibility and piloting initiatives in these areas can make Cyprus an attractive location for startups and multinational firms alike,” he argued.
(Left to right): Antonis Antoniou and Evgenii Tiapkin
Banking and capital markets
While Cyprus’ banking sector has stabilised, demonstrating strong capital adequacy, profitability and improving asset quality, for many, there’s still room for improvement. Liasis called for faster, clearer onboarding and compliance processes, while Byshonkov added, “Access to banking services for foreign investors and businesses remains a challenge.” A more flexible, modern approach would bolster growth.
Representing the banking sector was Antonis Antoniou, Senior General Manager of Wealth Management & Global Markets at Eurobank Cyprus, a key player in servicing high-net-worth and institutional clients, which will now absorb Hellenic Bank following a €1.2 billion acquisition by its parent company. Building out capital markets and alternative financing platforms, he said, would make Cyprus more appealing to institutional investors. “We need breadth and depth,” he said, “and options.”
Christina Georgiou
Despite the growth in the country’s startup scene, issues persist, most notably access to risk capital. This was highlighted by Christina Georgiou, Chief of Staff for Invel Real Estate, a private equity firm founded in 2013 specialising in opportunistic and value-add strategies, which has snapped up key prime properties in the Cyprus hospitality sector, including the Aphrodite Hills Resort and The Landmark Hotel in Nicosia. For Georgiou, more can be done to improve access to capital and financial innovation by incentivising banks and angel investors through measures such as tax credits, tax deferral for profits reinvested in other startups within a set period, and partial loan guarantees for startup financing. “Startups and innovative businesses need diverse financing options,” she said.
Mamedov picked up on Georgiou’s point. “It would be beneficial,” he said “to emphasise the need for increased competition from international players. Current banking procedures, due to over-compliance, are limiting the rapid development of small and medium-sized businesses and startups.”
Diversify, strategically
“Cyprus offers limited opportunities,” said Liasis. “A number of sectors, such as coastal real estate, are already saturated.” Despite efforts to reduce Cyprus’ dependency on the traditional triptych of real estate, services and tourism, which have resulted in a strong tech sector, there is still room to grow. For Liasis, the country needs to double down on financial services and fund management. “While Cyprus sees the money flow, it lacks the insight and expertise to discern the decisions driving those flows,” he said, noting the absence of a local investment management community akin to that of London or New York. Replicating Luxembourg, he added, would be smarter than starting from scratch.
Healthcare is another untapped frontier. “Private healthcare is severely under-serviced in the country,” Liasis noted and flagged R&D investment in pharmaceutical CDMOs as a promising growth area – stating that specific investments are currently under consideration – provided the state was willing to demonstrate its own enthusiasm. On his part, Rohdenburg mentioned health tourism, higher education and renewables as sectors worth nurturing.
A more selective focus was also backed by Antoniou: fintech, asset management and professional services aligned well with Cyprus’ strengths, he said.
Vera Khazova
Unlocking talent
Talent, it turned out, is not just in short supply but is also hampered by mobility issues, as highlighted by Vera Khazova, Director of Wrike Cyprus Ltd. The collaborative work management platform founded in 2006 – serving over 2.4 million users worldwide across more than 20,000 companies – moved over 150 employees to Nicosia in early 2023. For Khazova, Schengen non-access is a major hurdle. “Employees from third countries have great difficulty obtaining a Schengen business visa. This makes business travel inside the EU unnecessarily painful,” she said, a sentiment that was shared by others at the table. Piki was quick to clarify that the processes for Cyprus to join the Schengen Area are already underway, with accession expected in the first half of 2026.
Reactions to this news, however, were not universally positive. Drawing on his experience as a tax lawyer, Keinan warned that Cyprus might face pressure from other members to abandon its low corporate tax rate, which they could view as an unfair advantage. This conversation, he argued, needs to happen before any potential accession.
On his part, Mamedov argued that the Blue Visa would be a particularly crucial development. “It opens the door for highly skilled professionals from outside the EU and will contribute to both workforce diversity and economic dynamism,” he said. Piki reassured him that, despite notable delays, the Blue Visa is finally set to launch officially in early July.
Regarding other areas of the economy, Liasis noted that Cyprus lacked the workforce and low-cost base for large-scale manufacturing – the kind of investments that EMC Partners like – but had the human capital for high-value, niche manufacturing and R&D in sectors such as pharmaceuticals and specialised food production. Byshonkov, Rohdenburg and Antoniou all flagged the need to streamline visas, improve academic pipelines and align training with industry as means to solve the talent shortage.
Infrastructure needs
The growth that Cyprus has seen in the FDI landscape, specifically from the headquartering boom, has not been without growing pains. By 2023, Cyprus’ population had grown by nearly 15% over a decade and this pressure has revealed issues with the country’s infrastructure – physical and digital alike. In the same time span, the number of vehicles entering Limassol via the motorway has doubled, from 45,000 to 90,000 per day – bottlenecks and frayed nerves are a daily reality. Rohdenburg sounded the alarm on urban congestion. “Transport in urban areas has become a challenge, particularly given the absence of functioning public transport,” he said. The population swell, alongside foreign buyer activity, has also caused a real estate supply crunch, with housing and rental prices skyrocketing. For Georgiou, maintaining affordability and quality of life is critical. “While demand for high-end real estate remains strong, policies that encourage alternative models such as build-to-rent and co-living developments could help ease housing pressure and attract younger professionals,” she highlighted, adding that a balanced and forward-thinking urban planning strategy is essential to ensure that supply matches demand without risking overdevelopment or market distortions.
Cyprus’ rapidly changing demographics have also revealed shortages in schooling options, especially those catering to the international talent that has relocated to the island. “Cyprus should invest in the full ecosystem that attracts and supports international professionals and their families,” said Keinan. This means schools, healthcare, elderly care, housing, everything.
Mamedov joined the chorus for a more consistent investment in educational institutions, particularly those that support a long-term innovation economy. This means schools that embrace project-based learning to foster curiosity, collaboration, and problem-solving national programmes that equip teenagers and young adults with practical skills in technology, content creation, product thinking and entrepreneurship. “Ultimately, Cyprus needs a learning environment that’s as forward-thinking as its innovative business sector,” he says.
One of Cyprus’s most persistent infrastructure challenges remains energy prices, which in 2025 continue to rank among the highest in the EU for both households and businesses. “A modern economy needs modern infrastructure,” said Khazova, calling for predictable energy pricing, investment in renewables, and water security. And with data centres and AI on the rise, energy consumption would naturally follow, she stressed.
Digital services, too, need urgent attention. Rohdenburg pushed for more e-government and much better rural broadband: “The IT industry is thriving here. The public sector should keep up.” Antoniou brought the vision full circle: “Embracing green finance and accelerating digital transformation – including public administration – will align Cyprus with the priorities of global investors.”
Rebuilding reputation
Reputation, as everyone around the table knew, can take years to build and seconds to lose – and Cyprus is no stranger to that. Recent scandals have dented the reputation of Cyprus funds, leaving investors wary. Rohdenburg and Mamedov agreed that a global campaign should be launched to highlight Cyprus as a stable, pro-business destination, elevating the country’s standing among global founders, investors and business leaders.
Cyprus stands at an inflection point. The fundamentals are strong, the ambitions are clear and investor sentiment is cautiously optimistic. But as the country courts global capital and talent, it must deliver on the promises made: faster processes, smarter infrastructure and a business environment as dynamic as its pitch. The path forward will require coordination, clarity and the political will to turn reform into reality. The question remains: can Cyprus move from being a competitor to a leader? The general consensus among those present at this year’s Business Talk would seem to be yes, but only when a great deal more work has been done.
(Photos by Michalis Kyprianou)
