In the top two in Europe and the top ten worldwide in foreign direct investment per capita, Cyprus has climbed impressively high. These are among the many figures highlighted by Invest Cyprus Chairman Evgenios Evgeniou, underscoring the validity of repeated references by officials and market stakeholders to an increasingly promising international investment environment that is growing stronger by the day.
In an interview with IN Business magazine, Evgeniou emphasises the importance of so-called “aftercare”, as well as the need for every investor to enjoy strong returns while feeling protected by a reliable safety net.
In recent years Cyprus has demonstrated strong momentum in attracting foreign investment. How do you assess this trajectory?
The Cypriot economy is one of the fastest-growing in the European Union. According to a study by the University of Cyprus, annual foreign investment inflows contribute approximately 3.3% to GDP, a figure almost equivalent to the country’s annual growth rate, highlighting their decisive role in economic development. The 2024 figures are indicative: inflows reached €8.5 billion, marking a 60% increase, with Cyprus ranking second in the EU and among the global top ten in foreign direct investment (FDI) per capita. Particularly significant is the strengthening of the ICT sector, which attracted €2.6 billion in investments, confirming the contribution of foreign investment to the development of new sectors of economic activity.
What do the figures indicate regarding investor confidence?
According to an annual survey we conduct, investor confidence remains strong: more than 90% state that they intend to stay, while two-thirds are planning expansion. This is a substantial indicator of success. It is not enough merely to attract investments; the key is to create the conditions that allow them to remain and grow.
How is this achieved?
At Invest Cyprus we place strong emphasis on aftercare, supporting the long-term presence of investors. These results are highly encouraging, but we must not take them for granted. In a highly competitive environment, where all European countries are vying for investment, there is no room for complacency.
A Stable Launchpad
What are Cyprus’ main comparative advantages today that make it attractive to international investors?
Cyprus offers something increasingly valuable: a stable launchpad for European and regional expansion. As an EU member state with an Anglo-Saxon legal system, a business-friendly environment and a consistent policy framework, it attracts companies from the Middle East and India seeking a gateway to Europe. At the same time, Western companies are expanding here in order to leverage regional talent and serve the broader market of the region.
People, of course, remain a decisive factor. Cyprus combines a highly skilled, English-speaking workforce with quality of life in a safe and open society. In addition, the establishment of international groups and the relocation of thousands of highly paid professionals have increased demand for real estate, healthcare, education, financial services and infrastructure, creating further investment opportunities.
Despite geopolitical developments in the wider Middle East region, Cyprus remains an attractive destination. What messages are you receiving from the international investment community?
At a time when the geopolitical landscape is more complex than at any point in the post-war era, supply chains are being reshaped, globalisation is fragmenting, economic alliances are shifting and technology is changing the way we live and work, investors have become more disciplined than ever.
As we observed through our recent international engagements in collaboration with the Financial Times in London and New York, investors are not simply seeking returns. They are looking for security, stability, regulatory reliability and predictable governance. Cyprus is viewed within this framework. All of these qualities were earned over recent years through responsible economic policy and a credible international presence, and we must safeguard them by continuously proving that we are truly a safe destination.
Investors from Across the Globe
Which companies choose to invest in Cyprus through FDI, relocation or headquartering, and how do they establish themselves in the country?
In recent years, the strategy to attract highly specialised companies and talent, dozens of businesses have established operations in Cyprus in sectors such as fintech, gaming, software development and technology-enabled business support and compliance services. Over the past two years, increased interest has emerged from new markets, particularly the United States and Canada, through investment missions led by the President of the Republic, as well as from India, where momentum has followed the visit of the Indian Prime Minister. Companies typically establish themselves in Cyprus with the support of Invest Cyprus.
Are there indicative figures regarding countries of origin, headquarters or regional headquarters?
The geographical distribution of total foreign investment in Cyprus is balanced, with approximately one-third originating from Europe, one-third from Asia and the remainder from the Americas. As for regional headquarters specifically, while there are no official figures, our experience shows that they mainly originate from the broader Middle East and Eastern Europe, utilising Cyprus’ strategic position as a bridge between markets.
What picture emerges regarding partnerships with Cypriot companies?
Synergies with the local economy are extensive. Every international company established in Cyprus collaborates with real estate companies, schools, medical centers, universities, law firms, audit firms, accounting offices and consulting firms. In addition, the thousands of professionals relocating with their families are consumers who strengthen the domestic market, contributing further to economic activity.
Preferred Cities and Sectors
Which sectors of activity among new investors are showing the greatest momentum?
Technology is currently the fastest-growing sector of the Cypriot economy, with Cyprus ranking third in the EU for sector growth. In 2024, foreign investment in technology increased by 200%, while the number of sector specialists has more than doubled over the past three years, transforming both the country’s talent base and economic profile. This momentum is driven almost entirely by foreign investment.
How does this translate into numbers?
Today, more than 800 international technology companies operate in Cyprus. According to a recent study by the University of Cyprus, foreign technology companies contribute 11% to GDP, while the overall tech sector reaches 14%, surpassing traditional industries such as shipping and approaching tourism. At the same time, the increased demand created has led to substantial investments in education, healthcare, real estate, the financial sector and tourism infrastructure, strengthening the economy as a whole.
What is the geographical footprint of international investors in Cyprus?
Limassol is the main business hub for fintech and shipping companies, due to the strong presence of international businesses and its highly outward-looking character. Nicosia maintains its leading role in financial and professional services, while also developing dynamically in the technology sector, leveraging its proximity to universities, research institutions and centers of excellence. At the same time, Paphos and Larnaca are gradually strengthening their position, attracting investments in logistics as well as large-scale tourism infrastructure projects.
Importantly, more than one in three foreign companies are considering expanding their presence into other cities in the coming years while maintaining their primary headquarters. This trend will contribute to balanced development.
Invest Cyprus’ Strategies
How does Invest Cyprus contribute to facilitating establishment in the country?
Invest Cyprus is the national investment promotion agency and serves as the first point of contact for any investor considering the country. Its role is not limited to promoting Cyprus abroad, but extends across the entire investment cycle: initial information, facilitation of establishment, liaison with relevant authorities and ongoing post-establishment support. All this requires cooperation with competent government departments and private-sector stakeholders.
How much importance is placed on aftercare?
Great emphasis is placed on aftercare, as this is where long-term trust with investors is built. In this context, regular dialogue meetings with the Government, thematic events by country and sector, and networking activities are organised, while solutions are simultaneously promoted for issues companies may face. Our objective is to strengthen the smooth integration of investors into the Cypriot economy.
Alongside major investments, there has also been growth in the local startup scene. Could you elaborate on this?
Cyprus now possesses a dynamic innovation ecosystem, with more than 850 startups and a strong presence of research institutions and centers of excellence. Within this framework, Invest Cyprus works systematically to connect innovation with investment attraction and the internationalisation of the ecosystem. This effort is implemented in close cooperation with the Deputy Ministry of Research, Innovation and Digital Policy, the Chief Scientist, the Research and Innovation Foundation, as well as universities and research institutions. Through joint initiatives abroad, particularly in markets such as the US and India, we are strengthening the connection between Cypriot startups and international investors and technology ecosystems.
What challenges remain?
As in every economy, Cyprus faces challenges relating to bureaucracy, licensing timelines and the adjudication of cases. In addition, the cost of energy and ports, as well as infrastructure deficiencies in industrial zones, limit the potential for productive investments.
Continued growth also requires stronger infrastructure in housing and foreign-language schools. These issues are being addressed with consistency, systematic work and political consensus. Overall, the impression investors receive is that the Government listens, recognises the challenges and moves forward with concrete actions.
Rebranding Underway
How do FDI, relocation and headquartering contribute to Vision 2035?
Foreign investment is a key pillar in implementing the Vision 2035 action plan. Investments do not only bring capital, but also know-how, quality jobs and enhanced international networking. They contribute to the development of new sectors of economic activity and to the transition of the economy toward a more outward-looking, innovative and productive model, strengthening resilience.
This diversification does not occur in isolation. It is grounded in an ecosystem based on research and innovation. Cyprus hosts nine research institutes, seven centers of excellence and twelve universities that actively support research, development and cooperation with industry. We rank 27th globally in the Global Innovation Index and are recognised as a Strong Innovator within the EU.
Do you believe Cyprus’ reputation has been negatively affected by various publications?
The country has undertaken substantial reforms in recent years that strengthen its credibility: stricter compliance with the European regulatory framework, enhanced AML mechanisms, close cooperation with foreign law enforcement authorities and greater transparency. A country’s brand does not change overnight, but gradually through the consistent implementation of policies. Today, Cyprus is repositioning itself as a modern, transparent and reliable European investment destination.
How is the effort to rebrand Cyprus progressing?
The effort to reposition Cyprus, which is a Government priority, is fully underway with a strategic and organised character. Invest Cyprus plays a coordinating role, in cooperation with international consultants, focusing on perception analysis, image repositioning and communication strategy.
In the immediate future, the second phase will proceed with a presentation to the Council of Ministers. At the same time, high-level investment missions led by the President of the Republic to the US and India are planned for 2026. Our cooperation with the Financial Times and the related initiatives in the US and the UK are also part of this framework. The goal is to highlight Cyprus as a country that offers stability and prospects — a European hub with a regional role.
New Jobs
Foreign investments create new jobs. What do the numbers show?
According to a University of Cyprus study, annual foreign investment flows contribute 4.4% to domestic employment, demonstrating their importance for the local labor market. In addition, the technology sector now employs more than 30,000 workers, while between 2023 and August 2024 nearly 21,000 residence permits were issued for specialised personnel in the sector.
At the same time, according to our own survey, two-thirds of foreign companies operating in Cyprus plan further increases in staffing, reinforcing employment momentum. This growth has a strong multiplier effect, as it increases demand. Simultaneously, it contributes to higher wages, improved productivity and the overall upgrading of the economy. However, strong demand has also created pressures, particularly in housing costs. Addressing these challenges requires a combination of market-driven actions and public policy measures.
The Momentum in Numbers
Investment & Growth
- €8.5 billion in gross foreign direct investment inflows in 2024
- +60% increase in foreign direct investment (FDI)
- Cyprus ranked 2nd in the EU in FDI per capita
- Top 10 globally in FDI
- 3.3% of GDP annually generated by FDI
- €2.6 billion invested in the ICT sector
- 90%+ of investors remain in Cyprus
- Two-thirds of investors are planning expansion
Technology & Innovation
- 800+ international technology companies in Cyprus
- 200% increase in technology investments in 2024
- 11% of GDP generated by foreign tech companies
- 14% total contribution of the tech sector to GDP
- 30,000+ employees in technology
- 21,000 residence permits issued in 2023–2024
- 850+ startups
- Cyprus ranked 27th globally in the Innovation Index
This interview first appeared in the April edition of IN Business magazine. Click here to view it.
