Cyprus’ next objective is more games developed in the country, more locally founded studios, more investment in intellectual property, and more opportunities for people in Cyprus to build international careers in the sector, Deputy Minister of Research, Innovation and Digital Policy, Nicodemos Damianou said.
In his opening address, Damianou noted that according to the first Cyprus Video Game Industry Report, published by CYGMA, per person, “no country in the world has more games companies, games revenue or mobile installs”. He said that this has given a clearer picture of what this industry means for the country: 415 companies, more than 4,300 professionals, and estimated games revenues of around €3.2 billion in 2025.
“These figures demonstrate that the industry is already a significant part of our technology and innovation-driven economy”, he said, adding that Cyprus has proven that it can attract globally active companies.
“Our next objective is depth: more games developed here, more locally founded studios, more investment in intellectual property, and more opportunities for people in Cyprus to build international careers in the sector”, the Deputy Minister said.
A jurisdiction can attract companies. An ecosystem gives them reasons to build, hire and stay.
Cyprus, he said, “has important strengths”, such as membership of the European Union, a strategic position between three regions, a strong professional-services base, an international business community and a policy framework that supports innovation. Relevant measures include the IP Box regime for qualifying intellectual property, the enhanced deduction for eligible research and development expenditure, employment-income incentives for qualifying professionals and tax incentives for investment in certified innovative companies, he added.
Noting that on Wednesday, the European Commission published its proposal for a Digital Fairness Act, he said that Cyprus would engage “constructively”, seeking real protection for players, especially children, but also rules that are clear, proportionate and workable for the studios that make games in Europe.
He also said that specialist growth capital is a major component of any growing ecosystem, and that the Research and Innovation Foundation provides instruments for innovative companies, including blended-finance programmes such as BOOST and DISRUPT. It has also sought market feedback on the proposed G3, Games Go Global programme, which starts with a pilot, designed to help Cyprus-based studios reach international publishers, platforms and players through marketing, localisation, publishing readiness and business development, he added.
Citing KPMG’s latest assessment, he said Cyprus’ wider technology sector directly employed approximately 48,200 people in 2025, with around one third being foreign nationals, while technology employment grew by almost 10% annually over the previous decade. “We must remain open to international expertise while building a much stronger local pipeline. That means investing in STEM and digital skills, supporting upskilling and reskilling, and connecting education more closely with the needs of industry”, Damianou said.
Damianou also referred to the National AI Strategy, which, he said, is centred on the practical adoption of AI and on positioning Cyprus as a trusted regional hub for its development and use. “The games industry can contribute directly to that ambition”, he said.
In his closing remarks, he said that gaming is multidisciplinary by nature, and that its future in Cyprus will depend on how effectively creative teams, investors, universities, advisers and public institutions work together.
Our ambition is not simply to host video game companies, he said, but “for more of the games the world plays to begin here”, he said.
