The Cyprus Investment Funds Association (CIFA) enters 2026 with a clear strategic focus on the quality growth of the sector, in an environment of heightened regulatory requirements, technological transformation and intensifying international competition.
In recent years, Cyprus has not limited itself to creating an institutional framework to attract investment structures, but has built a functional and reliable market, characterised by regulatory consistency, transparency and international credibility. At a time when investors are seeking not only returns but also predictability, the Cypriot jurisdiction has proven that it can support the entire life cycle of an investment fund — from establishment and marketing, to operation, reporting and exit.
Cyprus’ key competitive advantages can be summarised in the threefold proposition of European passporting, practical flexibility and specialised human capital. Full alignment with the European regulatory framework, combined with fast licensing procedures, creates a business-friendly environment, while the mature ecosystem of professional services with international experience supports complex and demanding investment strategies.
At the same time, the profile of investment structures choosing Cyprus is evolving in qualitative terms. In particular, there is growing interest in private equity and private credit, as well as in investments in sectors such as technology, energy, sustainability and shipping. Investors’ demand for strong risk management, liquidity management and transparency in decision-making is raising the overall standards of the ecosystem.
2026 is also expected to be a year of increased regulatory challenges, with the implementation of AIFMD II, DORA, strengthened AML obligations and developments around MiCA. Although the rising cost of compliance creates pressure, especially for smaller organisations, the new requirements act as a quality filter and enhance the long-term credibility of the market, potentially also leading to synergies and consolidation.
Particular emphasis is also placed on the ESG framework. Within the European regulatory environment (SFDR and Taxonomy), the Cypriot market is increasingly turning towards investments in the real economy, such as renewable energy projects, sustainable infrastructure and social investments, where sustainability is measurable and verifiable. CIFA systematically invests in the training of its members, so that the ESG approach is based on data and robust governance, rather than communication practices.
At the same time, technology is transforming the sector, shifting it from simple digitisation to data-driven compliance, advanced risk-monitoring tools and heightened cyber-resilience requirements. Moreover, the DORA regulation now clearly establishes that digital resilience is a matter of management and corporate culture, and not merely a technical IT issue.
For the next two years, CIFA identifies three key challenges:
• the need for specialised human capital,
• managing regulatory complexity without losing competitiveness, and
• targeted international promotion based on data and proven success stories, in markets that match Cyprus’ profile.
The President of CIFA, Maria Panayiotou, stated:
“In recent years, we have demonstrated that Cyprus can operate as a mature European investment funds jurisdiction. The next chapter for us is qualitative scaling: more activity, but with even greater emphasis on governance, resilience and long-term value. We want investment structures with real substance, strong operational presence and international reach. If we achieve this, the investment funds sector can act as a catalyst for the overall upgrade of the country’s economic model.”
CIFA remains committed to supporting its members, strengthening cooperation with supervisory and state authorities, and promoting Cyprus as a reliable and competitive international investment funds centre, making a meaningful contribution to sustainable growth and the long-term resilience of the Cypriot economy.
