Nicosia, Cyprus. Cyprus is adjusting its higher education model as universities upgrade programmes, expand research structures and deepen links with industry, while the government increases student sponsorship to improve access and address labour market gaps.
Shift toward applied skills and innovation
During 2024-2025, public and private institutions adopted a more outward-looking approach aimed at aligning academic output with economic priorities. The focus has moved beyond theory toward applied knowledge, employability and innovation, reflecting the needs of a digital and increasingly technology-driven economy.
Modernised student sponsorship
Student sponsorship has been updated, with the annual budget rising to €62 million and the number of beneficiaries expanding. Income and property criteria for families with five or more dependent children have been abolished, in a move intended to ease financial pressure as study and living costs remain a critical factor in educational choices.
International competition and sector growth
Higher education has become a significant economic sector, with more than 50,000 students enrolled in universities and colleges, about half from abroad. Increasing international competition, including developments in Greece and higher student mobility across Europe, is prompting institutions to invest more in quality, research and international visibility.
Strategic plan and regulatory changes
A new strategic plan for higher education approved in December 2024 sets priorities focused on quality and excellence, stronger labour market links and greater internationalisation. Public universities can now offer undergraduate programmes in foreign languages, and the framework allows for the operation of non-profit branches of foreign universities.
Skills mismatch and STEM demand
The core challenge remains a persistent skills mismatch. Forecasts by the Human Resource Development Authority (Anad) indicate that about 40 per cent of total employment demand between 2022 and 2032 will concern STEM professions.
How do you think Cyprus should balance internationalisation with addressing domestic skills gaps in higher education?