Large-scale developments have the necessary credentials to act as a catalyst for attracting beneficial investment, creating new jobs, strengthening the domestic economy and enhancing Cyprus' competitiveness, Andreas Demetriades, President of the Association of Large Investment Projects, emphasises.
He explains that, to maximise these benefits, it is essential to create a business environment that enables strategic investments to be implemented more quickly and with greater predictability.
In an interview with InBusinessNews, Demetriades stresses that the outlook for the second half of 2026 remains positive, particularly for projects that generate added value for the economy, society and the environment, while contributing to the modernisation of Cyprus' urban centres. In particular, he sees significant opportunities in integrated mixed-use developments, tourism projects, student accommodation and specialised developments, as well as investments linked to the green transition, technology, innovation and energy.
Asked to identify one intervention by either the state or the market that would strengthen the resilience of the Cypriot economy, he points to the need for a more business-friendly environment, a long-standing request of the Association of Large Investment Projects.
"Delays have demonstrably undermined Cyprus' competitiveness. The speed of decision-making is a critical factor in attracting and retaining investment in an increasingly competitive international environment," the Association's President notes.
How do you assess the performance of the Cypriot economy and your sector during the first half of 2026? Which developments stood out as positive or negative, and to what extent were the forecasts you made at the beginning of the year confirmed or overturned?
The first half of 2026 confirmed the resilience of the Cypriot economy. Despite the geopolitical and economic uncertainty characterising the international environment, our country managed to maintain positive growth rates, with investment and the services sector continuing to support economic activity.
As far as the large-scale developments sector is concerned, there remains strong demand for high-quality, integrated projects, as Cyprus continues to attract investors and businesses seeking a stable business environment within the European Union. Another positive development is the increased emphasis on projects incorporating sustainability, technology and modern urban planning principles.
At the same time, challenges remain that affect the speed of investment implementation, including lengthy licensing procedures and the need for further upgrading of critical infrastructure.
In parallel, the high cost of electricity continues to have a multidimensional impact, acting as an obstacle to growth and affecting the competitiveness of the Cypriot economy. This makes it imperative to adopt a sustainable national energy policy.
Overall, forecasts for a year of steady growth are being confirmed. Nevertheless, ongoing challenges, including the shortage of housing units and the anticipated increase in interest rates by the European Central Bank (ECB), require careful management, continuous adaptability and strategic planning.
What are your expectations and priorities for the second half of 2026? Where do you see growth opportunities, and what challenges do you believe will shape the market through to the end of the year?
The outlook for the second half of the year remains positive, particularly for projects that generate added value for the economy, society and the environment, while contributing to the modernisation of cities. Significant opportunities exist in integrated mixed-use developments, tourism projects, student accommodation and specialised developments, as well as investments linked to the green transition, technology, innovation and energy.
Large-scale developments possess the necessary credentials to act as a catalyst for attracting beneficial investment, creating new jobs, strengthening the domestic economy and enhancing Cyprus' competitiveness. However, to fully realise this potential, it is essential to establish a business environment that allows strategic investments to be implemented with greater speed and predictability.
The main challenges continue to relate to the uncertain international environment, access to specialised human capital, and the need to maintain Cyprus' attractiveness as an investment destination compared with other competing markets.
Risks and opportunities arising from geopolitical developments
To what extent have geopolitical developments, particularly the crisis in the Middle East, affected the economy in general and your sector in particular? Have they created more risks, market shifts or new opportunities?
As I have mentioned previously, geopolitical developments inevitably shape the investment climate and overall economic activity. Uncertainty and instability are always factors that influence investment decisions and capital flows.
Nevertheless, Cyprus has repeatedly demonstrated that it can serve as a pillar of stability in the wider region. This strengthens its position as a safe investment destination, creating opportunities to attract investors and businesses seeking a reliable environment in which to operate.
Therefore, geopolitical developments create not only risks but also opportunities. It is up to us to capitalise on our country's comparative advantages through close cooperation between the public and private sectors and the adoption of a coherent investment strategy.
Faster decision-making to attract and retain investment
If you could identify one intervention by the state or the market that would strengthen the economy's resilience during the second half of the year, what would it be?
The most important intervention, as we have consistently emphasised as the Association of Large-Scale Developments, is the creation of a more business-friendly environment. Delays have demonstrably undermined Cyprus' competitiveness. The speed of decision-making is a critical factor in attracting and retaining investment in an increasingly competitive international environment.
Our country possesses significant advantages, including its geographical location, its skilled workforce and its status as a Member State of the European Union. To fully capitalise on these advantages, a more flexible and efficient framework is needed—one that reduces bureaucracy and strengthens investor confidence.
Through such an approach, Cyprus will be able to further enhance its competitiveness, accelerate the implementation of major projects and strengthen its economy against the challenges emerging at the international level.
(Source: InBusinessNews)
