Invest Cyprus earlier this year organised an International Summit entitled ‘Unlocking Investment Through Public-Private Partnerships’ in association with the World Association of Investment Promotion Agencies (WAIPA) and the World Association of PPP Units & PPP Professionals (WAPPP).
A publication edition containing an overview of what was discussed during the 26-27 March 2025 Summit, is now available online. You can find it here.
Within the publication, WAPPP President Ziad-Alexandre Hayek shared his expert opinion on how Cyprus can compete for more FDI, among other related topics:
'In a shifting global economy where predictability trumps promise, WAPPP President Ziad-Alexandre Hayek believes that Cyprus can no longer rely on its favourable location and legislation alone to attract Foreign Direct Investment.
To become a serious FDI contender, it must leverage well-structured public-private partnerships – not just to build infrastructure but to build investor confidence.
In a world of intensifying competition for foreign direct investment (FDI), the strength of a country’s partnerships is becoming as vital as the appeal of its offerings.
This was the central message delivered by Ziad-Alexandre Hayek, President of the World Association of PPP Units & Professionals (WAPPP). “In today’s rapidly shifting global economy, the country’s ability to attract strategic investment depends not only on what it offers, but on how it partners,” he said. “A well-structured Public-Private Partnership (PPP) builds more than infrastructure. It builds confidence. It tells investors that this is a country that thinks long-term, acts decisively and is pro-business.”
For Cyprus to become a serious contender for FDI, it must offer what investors seek most: predictability. According to Hayek, this is defined not merely by political stability but by consistent governance, clear frameworks and respectful collaboration between public and private stakeholders. “Predictability is the essence of encouraging foreign direct investment,” he stressed.
Currently, gross fixed capital formation in Cyprus hovers around 20% of GDP – a figure Hayek believes can and should be elevated. “PPPs can improve total factor productivity. They can strengthen our logistics performance index,” he said, noting that Cyprus’ strategic location as a maritime hub for the region makes such improvements not just desirable but essential.
Hayek, who resides in Limassol and calls Cyprus home, underlined the country’s potential to punch above its weight in the global investment landscape. One of the unique advantages of the PPP model, he explained, lies in its financial leverage. “80% of a PPP project’s capital expenditure is typically financed through long-term debt. This means that one euro of equity can mobilise four additional euros of infrastructure investment,” he noted
In contrast to manufacturing or services, where equity investments are absorbed directly, PPPs allow for a “multiplier effect” that magnifies the impact of each euro. Moreover, when PPP projects are structured around user fees and avoid government guarantees, the resulting debt does not necessarily contribute to national public debt levels. “Those who benefit from a service are the ones who pay for it – not the unserved taxpayer,” Hayek said.
The economic case is equally compelling. According to the World Bank, every euro invested in infrastructure can yield €1.50 or more in GDP. In Latin America, PPPs helped drive a 15% increase in FDI over a decade. The social return is also significant: “An investment of €1 billion in infrastructure has the power to create 30,000 direct jobs in Cyprus – nearly 4% of the entire labour force,” he stressed. When accounting for indirect and induced employment, the total impact becomes exponentially greater.
Beyond economic gains, PPPs can serve as instruments of resilience and sustainability. “When that investment is directed towards sustainable infrastructure renewables, smart water systems, resilient roads, etc., it becomes an investment not just in growth but in stability,” Hayek mentioned. It strengthens the economy’s capacity to withstand shocks, making it more adaptive and attractive to long-term investors.
Cyprus, he argued, does not need to reinvent this approach – it only needs to adopt and adapt it. Countries as diverse as Portugal, Singapore, Australia, Ireland, Greece, Saudi Arabia and Brazil have already leveraged PPPs to attract long-term capital and revitalise their infrastructure. “The UAE’s digital infrastructure PPPs have helped transform Dubai and Abu Dhabi into magnets for innovation and investment,” he added.
The lesson from these examples is clear: the future is not built by governments alone. It is built through the combined ingenuity of the public and private sectors working together. Cyprus, he insisted, has the legal foundations, institutional strength and human capital to follow suit. What is now required is decisive action.
The range of sectors where PPPs can be catalytic is wide. From clean energy to smart cities and from modern healthcare to high-end tourism, Hayek pointed out that Cyprus is well-positioned to unlock long-term value. “We can lead in solar and offshore wind. We can digitise public services, expand educational institutions and build healthcare facilities that not only serve Cypriots but attract patients and students from across the region,” he said and called for boldness in emerging sectors such as biotechnology, cybersecurity and artificial intelligence, areas where Cyprus is already attracting interest. “These are not optional areas of investment. They are strategic imperatives,” he added.
Importantly, Hayek urged policymakers not to overlook the potential of small-scale PPPs. While large infrastructure projects dominate the headlines, smaller initiatives such as municipal lighting, wastewater treatment or community centres can have outsized impacts on local economies and SMEs. “These projects, smaller in size but not in significance, can empower local communities and provide real impetus for growth to small and medium-sized enterprises,” he said.
To support such initiatives, Hayek proposed the creation of a dedicated government fund to facilitate SME participation in PPPs. For him, no idea is too small to consider, and no business is too small to lead. The localisation of PPPs not only democratises investment opportunities but creates a pipeline of firms capable of scaling up. “You can’t go from zero to 100. You go from zero to five, to 10, then 30. This is what small-scale PPPs do for small Cypriot companies,” he said.
As an example of the wider impact that PPPs can have, Hayek highlighted the recent bicommunal solar energy project in the UN buffer zone – a collaborative initiative supported by the UN, the EU and key stakeholders. “This project is far more than a clean energy solution. It is a symbol of cooperation, a rare and hopeful bridge between communities,” he noted. In this single initiative, he said, one sees the promise of all five pillars underpinning the UN’s Sustainable Development Goals: People, Planet, Prosperity, Peace and Partnership.
“What is needed now is to act with purpose. Cyprus has what it takes – the vision, institutions, the ambition. With the right Public-Private Partnerships, we can turn partnerships into prosperity and ambitions into actions,” he said.'
About PPPs
Public-Private Partnerships (PPPs) are vital for fostering innovation, improving infrastructure and enhancing public services. By leveraging the strengths of both the public and private sectors, PPPs combine the former’s access to large-scale projects and social responsibility with the latter’s efficiency expertise and resources. This collaboration enables governments to undertake large, complex projects – building infrastructure, improving healthcare or advancing technology – that might be financially or logistically challenging alone. Additionally, PPPs help distribute risks and rewards, ensuring that projects are completed on time, within budget and to a high standard, ultimately benefiting society as a whole.
You can also read Hayek's contribution in the online edition here.
