The prospects created by strengthening cooperation between Cyprus, the European Union and the United States for attracting investment and developing the Cypriot economy were highlighted by the Chairman of Invest Cyprus, Evgenios Evgeniou, in the context of the section "A New Strategic Era for the Transatlantic Partnership" during the AmCham Annual Conference.
According to Evgeniou, we are in an era where geopolitics, economic security and investment are increasingly interconnected, which has led to a global stagnation of Foreign Direct Investment (FDI).
Within this international backdrop, Evgeniou described Cyprus' performance as "extremely impressive", as the country ranks 2nd in the European Union in Foreign Direct Investment per capita and is consistently in the global top 10. As he emphasised, "according to Financial Times data, the cumulative average growth rate (CAGR) of Foreign Direct Investment for Cyprus over the last four years amounts to 118%, well above our European partners."
The €26.2 billion milestone and the American giants
He then stated that economic and investment cooperation is the “glue” that holds the strategic alliance of the two countries together beyond political circles. He announced that “at the end of 2024, the total stock of US Foreign Direct Investment in Cyprus reached approximately €26.2 billion.” However, he pointed out that annual inflows still remain relatively small, which demonstrates the enormous room for growth that exists.
The presence of US businesses on the island now presents strong diversification, with the Chairman of Invest Cyprus citing specific examples:
- Blackstone: The leading hospitality platform acquired the Olympic Lagoon Resort in Paphos.
- Kraken: The CEO of the giant was in Cyprus for productive contacts, having founded a fully regulated European investment services platform.
- Technology & Innovation: Companies such as TKI and Cobalt Mountain Technologies are expanding their activities, while the Plug and Play Innovation Center now connects the Cypriot ecosystem directly with Silicon Valley.
- Energy: The steady presence of ExxonMobil and Chevron in the Cypriot EEZ safeguards European and broader Western energy security.
The five catalysts that will change the data (Game Changers)
In order to fully unlock the potential of the bilateral relationship and remove obstacles, Evgeniou emphasised five specific initiatives on the conference table, which if implemented will be a real "game changer":
- Cyprus joins the US Visa Waiver Program to facilitate business mobility.
- Modernization of the Double Taxation Avoidance Agreement, which dates back to the 1980s and is the oldest that any EU member state has with the US.
- Signing of a Bilateral Social Security Agreement to facilitate the movement of professionals.
- Establishing direct flights to enhance business and tourism connectivity.
- Creation of a US clearance facility in Cyprus, upgrading the island's role as a regional aviation hub.
In closing, Evgeniou underlined that the United States remains a top strategic priority for Invest Cyprus, with efforts focused on attracting technology, biotechnology companies and the creation of regional business operations centers (back & middle office) that will serve the wider region and Asia.
