Cyprus targets trusted regional AI hub status by 2032
Deputy Minister Nicodemos Damianou says Cyprus’s AI strategy prioritises public services, five established industries, skills and innovation.

Nicosia, Cyprus. Cyprus aims to establish itself as the Eastern Mediterranean’s leading trusted artificial intelligence hub by 2032, Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou said. The government’s new strategy prioritises practical applications that improve public services and support five major industries.
A regional base under European rules
Addressing the Digital Agenda Cyprus Summit in Nicosia, Damianou explained that the strategy favours useful adoption over pursuing technology as an end in itself, directing AI towards applications offering the greatest value nationally.
He said the government’s ambitions for 2032 include making Cyprus a dependable European jurisdiction for services enabled by AI and connecting the EU with neighbouring regions.
The proposed environment would allow companies to develop and validate AI systems under rules aligned with the EU before expanding into European and regional markets. Beyond domestic adoption, the aim is to offer businesses a base in Cyprus from which they can serve customers across Europe and nearby regions.
Public services and five industries
Damianou said the strategy identifies both the capabilities Cyprus needs and the conditions for pursuing its ambitions. Rather than distributing resources across all industries, the government is targeting public administration alongside five sectors where the country already has economic weight, institutional strengths and capacity.
Those sectors are shipping, tourism, healthcare, financial services and legal services.
In a post on his personal account, Damianou said AI could broaden Cyprus’s capabilities, adding that the government was responsible for converting that potential into tangible progress that people could trust.
Skills, enterprise and responsible use
The initiative also relies on suitably skilled people and businesses capable of transforming technology into services and products. Damianou identified education and human capital, together with entrepreneurship and innovation, as the two foundations supporting the effort.
The wider national strategy underwent public consultation earlier this year. Its objectives encompass responsible use of AI, modernisation of public administration, skills development, data and infrastructure, as well as collaboration among government, businesses and research institutions.
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