"Strategic partnerships with India, the Gulf and the United States have become key drivers in reshaping Cyprus’ Foreign Direct Investment (FDI) landscape," Marios Tannousis, CEO of Invest Cyprus suggests, noting that, in addition to these key regions, Invest Cyprus is also actively pursuing opportunities in emerging markets across Southeast Asia, Europe and Africa, as well as Latin America.
In a recent interview with GOLD magazine on the occasion of the Invest Cyprus International Investment Awards, Tannousis describes the current investment landscape and discusses the future of investment in Cyprus and what the country is doing to maintain the momentum in attracting Foreign Direct Investment.
Among other things, he talks about how ‘friend-shoring’, ‘near-shoring’ and geopolitically aligned capital have impacted the country's FDI strategy. Tannousis also shares his view on what defining forces he anticipates will be shaping the region’s FDI landscape and Cyprus’ place within it over the coming years and where investors draw the red line when deciding whether or not to bring their assets to Cyprus.
Invest Cyprus has been deepening its strategic ties with India, the Gulf and the US. How are these corridors reshaping the FDI map? Are there other geographies you’re actively exploring?
Strategic partnerships with India, the Gulf and the United States have become key drivers in reshaping Cyprus’ Foreign Direct Investment (FDI) landscape. This strengthening of ties has attracted major multinational corporations like LTIMindtree, Thomas Cook India and Bcentriqe.AI to establish a base here, reflecting growing investor confidence. The historic visit to Cyprus by Indian Prime Minister Narendra Modi marked a turning point in bilateral relations, while President Christodoulides’ recent trip to the United States further solidified economic and strategic cooperation with the US administration.
In addition to these key regions, Invest Cyprus is actively pursuing opportunities in emerging markets across Southeast Asia, Europe and Africa, as well as Latin America. These initiatives aim to establish Cyprus as a premier global investment hub.
We have seen a global shift towards ‘friend-shoring’, ‘near-shoring’ and geopolitically aligned capital. Does this evolving landscape demand a rethink of Cyprus’ FDI strategy?
Cyprus’ investment strategy has always been shaped by its geopolitical realities – not as a reaction but through alignment with our shared priorities and longstanding partnerships. Hence, we ensure that our FDI strategy is closely coordinated with the Presidency and the Ministries of Finance, Foreign Affairs and Energy, Commerce & Industry, and guided by long-term national interests and the strategic goals that we aim to achieve together.
In many respects, the trend toward ‘friend-shoring’ and aligned capital confirms what Cyprus already offers: a secure, EU-based jurisdiction with strong rule of law, regulatory transparency and trusted relationships across Europe, the Middle East and beyond. Our strategic location and strengthened diplomatic ties with key countries in our region have enabled us to build meaningful partnerships and our investment strategy reflects that balance.
Beyond signals like Cyprus’ improved rating upgrades and fiscal stability, what do investors consistently flag as make-or-break factors when considering Cyprus?
Investors consider both economic indicators and practical business realities – so the two are intertwined. Cyprus offers a competitive tax regime, a strategic location and modern infrastructure – key strengths that enhance its appeal.
However, as highlighted in the 2024 EY Cyprus Attractiveness Survey, while Cyprus has strong advantages, investors stress the need for improved administrative efficiency and faster digital transformation. We are already working towards cutting red tape, with key reforms being advanced alongside the recent establishment of the Business Support Centre to assist investors in navigating administrative hurdles and expediting procedures.
Ultimately, investors seek a transparent, efficient environment underpinned by effective and dependable governance – an environment that Cyprus offers and continues to strengthen.
Looking ahead five years, what do you see as the defining forces shaping the region’s FDI landscape and Cyprus’ place within it?
Over the next five years, the FDI landscape will be influenced by several defining forces. These include rapid advancements in artificial intelligence (AI) and advanced data analytics, which are transforming how businesses operate and make strategic decisions. Alongside these technological innovations, global economic shifts, evolving regulatory frameworks and geopolitical developments will continue to shape investment patterns and drive investor confidence.
Our strong strategic focus on building partnerships with nations and the investor community will serve to reinforce our country’s position as a leading hub within the region’s vibrant and evolving FDI landscape. Its commitment to adopting cutting-edge technologies, combined with a robust legal framework and business-friendly environment, provides a clear competitive advantage.
The Invest Cyprus International Investment Awards ceremony has become a key event in Cyprus’ investment calendar. Why do these Awards matter?
The Invest Cyprus International Investment Awards have become a flagship event of recognition for international companies and individual investors that contribute meaningfully to the economic landscape of Cyprus. Celebrating their contribution is not just a formality – it’s a statement of appreciation to the investors and businesses that have helped shape our country’s progress in key sectors of the economy by driving innovation and creating high-quality jobs across a diverse range of industries. By honouring their impact, we reinforce the message that Cyprus values its partners and remains committed to maintaining a welcoming and supportive environment, cultivating relationships that extend far beyond this celebratory occasion.
This interview first appeared in the July edition of GOLD magazine. Click here to view it.
