The Government will continue to work consistently to ensure a stable and predictable economic environment, to promote reforms that enhance competitiveness and to create the conditions for sustainable development, the Deputy Minister to the President, Irene Piki has emphasised.
Speaking at the 12th KEBE Business Leader Awards, on behalf of the President of the Republic, she pointed out that the Government's primary concern remains a strong and resilient economy, which constitutes the foundation on which businesses can plan, invest and grow with certainty. "A stability that becomes even more important in a period of international uncertainty, such as the one we are going through, where geopolitical and economic changes can easily affect market prospects. In this complex environment, an economy that remains consistent, reliable and resilient functions as a stable point of reference for the business world, strengthening confidence and the possibilities of long-term planning," whe said.
Referring to the presentation of the President of the Republic's vision for a more competitive Cyprus, which was presented at the Cyprus Chamber of Commerce & Industry's Annual General Assembly and on the occasion of the assumption of the Presidency of the Council of the European Union in just a few weeks, Irene Piki explained that this vision's path is through the extroversion of businesses, access to financing by utilising national and European financial tools and the continuous strengthening of a simple and friendly business environment.
Stressing that the tax reform corrects distortions and gives a clear signal of serious modernization, Piki said that with the new tools and more rational taxation limits, the operating environment of businesses becomes more predictable and fairer, which strengthens the country's competitiveness and creates more equal playing fields. "A central element of the effort for Cypriot businesses is: the abolition of the deemed distribution of dividends and the reduction of taxation on actual dividends from 17% to 5%. These are changes that enhance the liquidity of businesses, increase predictability for investors and reinvestment, supporting sustainable development," she noted in this regard, expressing optimism that the tax reform will be voted in on 22 December 22 and will be implemented from 1 January 2026.
Among other things, the Deputy Minister to the President stated that improving access to financing is also a crucial factor for the development and competitiveness of Cypriot businesses, explaining that in this context, targeted interventions are being promoted that strengthen both the available financial tools and the overall ecosystem.
At the same time, she pointed out that through a comprehensive set of reforms covering taxation, financing, simplification of procedures, energy strategy and strengthening the extroversion of businesses, a modern, competitive and business-friendly environment is being created.
"All our policies fall within the ideology of social liberalism and are implemented within the framework of our five main priorities, which are: Defencee, Security and Foreign Policy, a Strong and Resilient Economy, Reforms and Modernisation of the State, Transparency, Accountability and the Fight against Corruption, and the Prosperity of the country and the improvement of the daily lives of citizens," Piki noted in this regard.
The Deputy Minister to the President's full speech, on behalf of the President of the Republic, at the 12th KEBE Business Leader Awards can be read below, translated from the original Greek:
It is with great pleasure that I am with you today, on behalf of the President of the Republic, on the occasion of the 12th presentation of the KEBE Business Leaders Awards. An institution that highlights and rewards business excellence and leadership and has now established itself as a point of reference for the Cypriot business community, strengthening the effort for continuous improvement and innovation.
At this point, I would like to underline the important work that the Cyprus Chamber of Commerce & Industry (CCCI-KEBE) performs, both within and outside the borders of Cyprus. Through its continuous and systematic action, it essentially promotes our country as an attractive destination for investments, opening new horizons for collaborations and strengthening our export capabilities.
Three days ago, at the Annual General Assembly of the CCCI, and on the occasion of assuming the Presidency of the Council of the European Union in just a few weeks, the President of the Republic presented his vision for a more competitive Cyprus.
A vision that goes through:
- the extroversion of businesses
- access to financing by leveraging national and European financial instruments, and
- the continuous enhancement of a simple and friendly business environment.
Our Government's primary concern remains a strong and resilient economy, which constitutes the foundation upon which businesses can plan, invest and grow with certainty.
A stability that becomes even more important in a period of international uncertainty, such as the one we are experiencing, where geopolitical and economic changes can easily affect market prospects. In this complex environment, an economy that remains consistent, reliable and resilient acts as a stable reference point for the business world, strengthening confidence and the possibilities for long-term planning.
The Cypriot economy has proven just that. In 2024, GDP grew by 3.4% and is expected to approach 4% in 2025, while inflation remains among the lowest in the EU, while unemployment has fallen below 5%. At the same time, major rating agencies now classify Cyprus in the “A” category, with positive prospects, recognizing stability and prudent economic management.
The 2026 Budget, the debate of which concludes next week in the House of Representatives, reflects the choice for an economy that is stable, reliable and oriented towards long-term, sustainable growth. The main pillars are fiscal stability, with the maintenance of a surplus balance, which offers the country the opportunity to safely plan its priorities.
With surpluses that contribute positively to the government's financing plan and create the conditions for public debt as a percentage of GDP to continue its steady downward path. It is expected to be limited to 50.9% by 2026. This development strengthens the resilience of the economy, reduces future debt service costs and creates more room for targeted spending.
With investments in energy, digital infrastructure, technology and the green economy, the 2026 Budget creates a stable and predictable environment that allows businesses to grow, invest and strengthen their competitiveness and the conditions for extroversion, innovation and the long-term diversification of the productive base of the economy.
It thus becomes a policy tool with a clear orientation to serve stability, enhance development and transform the country's potential into tangible results for citizens and businesses.
With the completion of the projects and reforms of the Recovery and Resilience Plan, a cycle of intensive utilization of European resources is closed. However, the preparation for the new Multiannual Financial Framework 2028-2034 has already begun. This is a process that concerns not only our national planning, but also constitutes a clear priority of the upcoming Cyprus Presidency of the EU. In 2026, the planning will begin, we will assess the country's financing possibilities for investments, digital and green infrastructure, social cohesion and innovation. The preparation will be done in a timely and methodical manner, always in cooperation and with you, with the aim of ensuring that Cyprus claims from a position of strength.
At the same time, tax reform corrects distortions and sends a clear signal of serious modernization. With new tools and more rational taxation limits, the operating environment for businesses becomes more predictable and fairer, which strengthens the country's competitiveness and creates a more level playing field.
Central to the effort for Cypriot businesses is the abolition of deemed dividend distribution and the reduction of taxation on actual dividends from 17% to 5%. These are changes that enhance the liquidity of businesses, increase predictability for investors and reinvestment, supporting sustainable growth.
We are optimistic that the reform will be voted on December 22 and will come into effect on January 1 .
Improving access to finance is also a critical factor for the growth and competitiveness of Cypriot businesses. In this context, we promote targeted interventions that strengthen both the available financial tools and the overall ecosystem.
Also, the establishment of the National Enterprise Development Agency – the relevant bill will be submitted to Parliament soon – will substantially expand the financing options and provide advisory services that enhance the organizational and operational maturity of small and medium-sized enterprises. We aim to make it an important tool for the utilization of European funds during the next programming period 2028-2034, following the model of good practices in other countries.
At the same time, the Cyprus Equity Fund, with a budget of 37.5 million euros, has already begun investing in innovative and dynamic businesses, while the Grant Schemes of the Ministry of Energy, Trade and Industry mobilize over 360 million euros until 2027 for actions that enhance competitiveness and extroversion.
In parallel with the efforts to strengthen financing, the government is actively promoting the improvement of the business environment. Over the last two years, we have consistently promoted the digitalization of state services and the positive results in processing for citizens and businesses are already visible, through faster procedures and less hassle.
Since 2025, the Business Service Center has also been operating in the center of Nicosia, which brings together critical business and investment licensing responsibilities in the same space, with the aim of offering a single guidance service that substantially reduces bureaucracy and accelerates the implementation stages of new projects and investments.
This reform complements our broader plan for a simpler, friendlier and more efficient operating environment for Cypriot businesses. With faster procedures, greater transparency and centralization of services, we free up time and resources for businesses to innovate and develop new activities.
Recognizing that reducing energy costs is a prerequisite for the competitiveness of Cypriot businesses, our Government is implementing a comprehensive energy strategy based on energy sufficiency and security and on the full utilization of RES and domestic energy resources. An important development in this context is the operation of the competitive electricity market from October 2025, which gives businesses the right to choose their supplier, creating real competition and pressure for lower and fairer prices.
What I have mentioned above, combined with the Government's systematic and coordinated effort to strengthen diplomatic relations and create new trade routes, is creating a framework that supports the development of extroverted businesses, capable of taking advantage of international opportunities.
Our strengthened diplomatic footprint creates favorable conditions for Cypriot businesses to develop an extroverted strategy, attract new investments, expand their markets and enhance their competitiveness at the international level.
The exploitation of course presupposes the existence of talent, highly specialized people who can support innovation and business development. The Government systematically invests in human capital, recognizing that it is the most decisive factor of competitiveness. In this context, the Minds in Cyprus initiative, which is implemented in collaboration with the CCCI and Invest Cyprus, promotes the repatriation of experienced professionals from abroad, further strengthening the country's skills ecosystem. We will soon announce the programming of events that will take place abroad for 2026 - indicatively, I would like to mention that we are targeting the USA, the United Kingdom and Greece - and I would like to encourage you to participate in them.
Through a comprehensive set of reforms covering taxation, financing, simplification of procedures, energy strategy and strengthening the extroversion of businesses, we are creating a modern, competitive and business-friendly environment. All our policies fall under the ideology of social liberalism and are implemented within the framework of our 5 main priorities, which are:
Defense, Security and Foreign Policy,
a Strong and Resilient Economy,
Reforms and Modernization of the State,
Transparency, Accountability and Anti-Corruption, and
the prosperity of the country and the improvement of the daily lives of citizens.
In closing, I would like to warmly congratulate tonight's award winners. Your successes are a testament to the dynamism, creativity and resilience of the Cypriot business community. They reflect an economy that is evolving, that invests in new ideas, that seizes opportunities and that is built on people with talent, vision and professional integrity.
The Government will continue to work consistently to ensure a stable and predictable economic environment, promote reforms that enhance competitiveness and create the conditions for sustainable growth."
The 12th KEBE BUSINESS LEADER AWARDS were jointly organised by the CCCI and IMH and presented by Genikes Insurance. The Gold Sponsor was European University Cyprus and the Silver Sponsors were Primetel and Sklavenitis. The event was supported by OPAP Cyprus. The communication sponsors were IN Business and Omega.
(Source: InBusinessNews)
