International investment decisions are being made in an environment of increasing interdependence, where access to reliable information, understanding global trends, and assessing new opportunities have become especially important for businesses and investors.
Invest Cyprus celebrated 20 years of activity with an anniversary event held at The Landmark Nicosia, Autograph Collection, attended by distinguished guests and leading market figures.
In his presentation, “Cyprus on the global investment map: 20 years of progress and the next chapter of growth,” Chris Knight, Managing Director of FT Locations, presented concrete data demonstrating the remarkable transformation of Cyprus’s international investment profile. FT Locations is a specialised business unit of the Financial Times Group (Financial Times Group), providing data, digital mapping tools, and strategic analysis for the Foreign and Domestic Direct Investment (FDI) sector.
As he noted, “Cyprus recorded a compound annual growth rate (CAGR) of 105.6% in its investment activity over the period 2006–2025, which surged to an impressive 118.4% between 2021 and 2025.” With this performance, the island emerges as the “fastest-growing market among competing European countries” such as Luxembourg, Malta, and Estonia.
The radical shift in investment motives and the dominance of technology
At the same time, he highlighted the profound global changes reshaping investor motives, examining the factors driving these developments, including geopolitical uncertainty, talent shortages, inflation, and the green transition. FT Locations’ data show that, compared with the past, investors now place far greater emphasis on “proximity to markets” (+17.4%), “technology and innovation” (+11.8%), and “availability of skilled labour” (+8.3%), while downgrading criteria such as low cost.
This international shift fully explains the structural transformation of the Cypriot economy. While financial-sector investment dominated during 2004–2011, accounting for 36%, data for 2018–2025 reveal that the “Software & IT” sector has taken the lion’s share at 43%, marking an impressive rise of 37 percentage points.
Competitive advantages and new growth pillars
In his remarks, Chris Knight stressed that Cyprus offers a highly competitive base for international business. The island shows strong growth momentum, with a “forecast GDP growth of 3.07% over a five-year horizon,” outpacing Ireland and Greece, while maintaining a highly attractive “maximum corporate tax rate of 15%.” In addition, the country ranks “1st in Southern Europe in the Innovators Business Environment Index,” 7th globally for workforce with tertiary education, and “1st globally in ICT services exports as a share of total exports.”
Concluding, the head of FT Locations emphasised that the next chapter of growth rests on implementing the national strategy “Cyprus Vision 2035” and initiatives such as talent attraction through “Minds in Cyprus” and the Project Bank platform. Emerging Venture Capital sectors in Cyprus show that the market is now moving dynamically towards “Fintech & Regtech (31%), AI and digital services (26%), as well as Healthtech and energy technologies.”
Amid a challenging geopolitical environment, Cyprus offers a stable, predictable, and business-friendly environment that can unlock new opportunities for sustainable growth through close cooperation between the state and investors.
Read also: Nikos Christodoulides: New responsibilities for Invest Cyprus in the pipeline with the prospect of taking on the export sector - Specific proposals coming soon
