Petr Valov on how public-private sector collaboration can solidify Cyprus' standing as a tech and fintech hub

For Exness Founder and CEO Petr Valov, bold and coordinated action between the public and private sectors is urgently needed to build on Limassol’s strong foundations and transform it into a globally recognised tech and fintech hub.

From housing to talent development, Valov outlines potential solutions to some of the city’s most pressing challenges.

Fintech is one of Limassol’s most dynamic sectors but, as elsewhere, it’s facing talent shortages. What solutions could make the biggest impact on attracting international talent and cultivating more local expertise?

Limassol has emerged as a key driver of fintech growth in Cyprus, fuelled by the presence of leading international companies and a growing community of relocated professionals. The sector has become the city’s most dynamic and influential and, while Limassol remains the focal point, its impact extends nationwide – contributing to GDP, creating jobs, generating direct and indirect tax revenue for the state and stimulating the local economy through employee spending on housing, education and daily living.

Talent shortages in fintech are a challenge, not just in Cyprus but across Europe. Many countries have responded with targeted relocation incentives and Cyprus has made significant strides in this area. Initial efforts focused on creating a competitive corporate environment, with a favourable tax regime such as the IP Box and low taxation for beneficial owners. Over the past four years, however, policy has evolved to include talent attraction measures, such as a naturalisation scheme for highly skilled professionals and tax benefits for relocated individuals.

To build on this momentum, further improvements are needed in infrastructure, particularly international schools, healthcare facilities and affordable housing, to make relocation viable and attractive. Additionally, enabling easier access to work permits through frameworks like the EU Blue Card is essential to remain globally competitive.

Cultivating local expertise must also remain a national priority. While Cyprus’ population is limited and attracting international talent will always be necessary to sustain growth and evolve into a truly global tech hub, we must continue to invest in local talent. This means building stronger bridges between academia and industry, expanding internship and mentorship opportunities and designing reskilling programmes that help young Cypriots transition into tech careers. Most importantly, we must show young people that there is a future for them in the sector and that they can build meaningful, impactful careers in Cyprus.

As a global company headquartered in Limassol, how do you assess the city’s strengths and limitations as a strategic base for fintech? How is it currently perceived by the global tech community and what would help elevate its profile internationally?

Limassol is seen as a promising fintech hub, supported by Cyprus’ favourable tax regime, EU membership and high quality of life. However, its perception globally remains that of an emerging destination, not yet on par with established tech cities like London, Berlin, Amsterdam or Dubai. One key limitation is infrastructure. Until recently, Limassol lacked modern office space and, even now, most commercial facilities remain mid-range and undersized for larger operations. We need high-quality, future-ready projects that reflect the ambitions of the companies operating here and those yet to come.

There’s also pressure on international schools, housing and healthcare services, making it difficult to attract and retain senior talent with families. Beyond infrastructure, visibility remains a challenge. Cyprus still lacks a cohesive national strategy to position itself as a global tech hub. Raising Limassol’s profile will require flagship projects that physically signal ambition such as innovation districts, tech parks or university-linked research hubs. Public-private initiatives that co-locate startups, R&D centres, accelerators and regulatory support would signal maturity and long-term commitment.

A strong national branding effort is also essential. Cyprus needs to actively promote itself as a digital, sustainable and innovation-friendly jurisdiction. This includes participation in major global tech and fintech conferences, hosting industry summits locally and forming partnerships with global tech media and investment platforms.

The regulatory environment is another opportunity. Establishing sandboxes for emerging sectors such as crypto, AI and green fintech could position Cyprus – and, by extension, Limassol – as a forward-thinking jurisdiction. Regulatory certainty, transparency and responsiveness are key differentiators in the eyes of international operators. Finally, Cyprus must provide concierge-style support to global firms, streamlining permit processes, while expanding access to international schools and healthcare. Limassol has strong foundations but turning it into a recognised tech centre will require bold, coordinated action at both the city and national levels.

Exness recently invested in a primary school facility in Limassol. Does this reflect broader concerns about the adequacy of education infrastructure for international families in the city? What other challenges do such families typically face when relocating to Limassol?

Our decision to invest was a direct response to the growing pressure on education infrastructure in Limassol. It’s important to clarify that Exness will not be operating the school – we are not educators, nor do we claim to have the expertise to be. Our involvement was purely an interim measure, aimed at easing an immediate bottleneck by creating additional capacity in a high-demand area.

However, while this initiative brings a few hundred additional places, it is far from a solution to the problem. Demand for international school placements continues to outpace supply and waiting lists remain long. Many other companies are also willing to invest in educational infrastructure and partner with established school operators but they are often met with slow, bureaucratic procedures and significant delays in obtaining permits, barriers that make it difficult to respond to the issue at scale. Additionally, investing in this kind of infrastructure is not attractive in terms of financial return.

Another key point is that the Government needs to actively foster and support this type of private investment. When private investors take on the major capital expenditure required to expand or upgrade school facilities, the authorities should be enabling and not hindering such efforts. Investors are not looking to operate schools but they can play a crucial role in supporting the expansion of educational facilities to create more places and accommodate more students, provided they are given the right policy and regulatory framework. To address this sustainably, Cyprus needs to introduce targeted incentives for the development of social infrastructure – not just schools but also healthcare facilities and other essential community services. Several EU countries already offer policy tools to attract such investment. For instance, France applies a reduced VAT rate to the construction of public services, including schools and medical facilities, while Belgium offers reduced rates for newly constructed educational facilities.

These mechanisms make it more viable for private investors to support social infrastructure, helping cities like Limassol grow in a balanced and inclusive way. Cyprus should study these models closely and explore adopting similar approaches to meet the growing needs of its population.

With Limassol’s population rising rapidly, housing shortages and the cost of living have become serious concerns, especially for younger people. You’ve previously spoken about tackling the affordable housing issue by creating a more attractive framework to draw in investment and stimulate the market. So, how do you assess current public strategies? And is systemic reform alone enough to address the challenge?

The solution to the housing crisis is not simply adding a few “affordable units” to the market – it’s about making the entire housing market affordable. That requires a structural shift and the only way to achieve it is by significantly boosting the housing supply. A key part of this shift must be the expansion of the rental market. If we want to modernise our housing model and make cities like Limassol liveable for younger generations, we need to scale up rental housing in a meaningful and sustainable way. The Government has introduced a few incentive schemes to encourage affordable housing development. This is a positive and welcome step, as it has helped spark a much-needed public dialogue around housing and the role of the private sector. However, in their current form, these schemes have not succeeded in attracting sufficient investment into the rental market, possibly because the incentives are not strong or flexible enough to make such projects financially viable.

With adjustments such as more attractive terms, streamlined procedures and a clearer long-term framework, these tools could become a powerful catalyst for expanding the supply of rental housing, and, subsequently, reducing rental prices. Looking at international examples, Spain applies a 4% VAT rate and Slovakia a 5% VAT rate on the construction of residential units intended for rent, provided that these units remain in the rental market for a considerable period of time. Such mechanisms help reduce development costs while promoting long-term affordability and supply stability through the free market, by achieving a better balance between supply and demand. Cyprus should consider adopting a similar model, with clear, scalable and investor-friendly policies that incentivise the creation of rental housing. Paired with faster permit issuance, zoning flexibility and public-private collaboration, such a strategy could finally move us from discussion to delivery and build the kind of housing market that is both affordable and supportive of inclusive urban growth.

Fast-forward five years: What does a thriving Limassol fintech scene look like to you? And what kind of urban development is needed to support that vision and improve the daily lives of the people who live and work in the city?

Fast-forward five years? The future of Limassol’s fintech scene will depend entirely on the decisions we make today. The potential is undoubtedly there. A growing base of international companies, a favourable tax regime, a strategic location and a high quality of life. But without the necessary infrastructure upgrades, we are unlikely to see meaningful progress. If current gaps in office space, housing, international schools and healthcare persist, Limassol will struggle to absorb new companies or attract the talent needed to grow the ecosystem. In that case, the fintech scene may remain much as it is today, promising, but constrained. However, if bold and coordinated steps are taken, especially in expanding infrastructure, streamlining processes and investing in human capital, Limassol could evolve into a fully recognised tech and fintech hub – a city known not just for its potential but for delivering real innovation, talent retention and sustainable growth at scale.

This article was first published in the June issue of GOLD magazine. To view it click here