Cyprus foreign direct investment rises about 10 per cent in 2025, president says

Nicosia, Cyprus. The value of substantive foreign direct investment in Cyprus rose by around 10 per cent in 2025 compared with the previous year, President Nikos Christodoulides said on Wednesday.

He said the increase reflected stronger confidence in Cyprus’ long-term prospects as the government seeks to establish the country as a European and regional hub for investment, technology, energy, transport and trade.

Investment interest

Addressing the EY Cyprus Future Realised Forum in Nicosia, Christodoulides said international companies were showing growing interest in higher value-added sectors.

He cited information and communications technologies, fintech, innovation, business services and other knowledge-intensive activities.

The growing presence of the ICT sector demonstrated the transformation of Cyprus’ economic model towards higher value-added activities, he said, adding that this could support stronger productivity growth.

Competitiveness challenges

Christodoulides said Cyprus continued to face challenges in improving competitiveness and attracting further investment.

He identified energy costs, the speed of administrative procedures, the availability of specialised skills, connectivity and the need to accelerate key infrastructure projects as areas requiring further progress.

Reforms and business support

The president said the government had pursued an ambitious reform programme over the past three and a half years to improve the business environment and support sustainable long-term growth.

The programme included tax reform, the digital transformation of the public sector and simplified procedures for strategic investments, he said.

Christodoulides also referred to the Business Support Centre, which serves as a single point of contact for Cypriot and international companies and investors.

The centre is intended to help businesses complete procedures more efficiently and facilitate the establishment and expansion of their activities in Cyprus, he said.