Newsroom
In a candid and forward-looking interview, Invest Cyprus President Evgenios Evgeniou shares how the island is gaining traction as a regional investment hub but also warns that serious challenges must be tackled head-on if Cyprus wants to stay competitive.
Speaking with Kathimerini’s Dorita Yiannakou, Evgeniou highlights record-breaking growth in the tech sector, an emerging strategic relationship with India, and promising signals from American investors following high-level diplomatic visits. But he also points to major stumbling blocks, like red tape, a shortage of private school spots, and the urgent need to bridge the skills gap, that could undermine long-term progress.
Here are the key takeaways from the interview:
Foreign investors are Cyprus’ best ambassadors
Evgeniou emphasized that foreign companies already operating in Cyprus are playing a critical role in shaping the island’s global image, essentially becoming informal ambassadors by spreading the word about Cyprus’ business potential abroad.
He pointed to a 200% rise in tech-sector investment in 2024 as proof that the message is working.
India rising, and Cyprus is paying attention
One of the most intriguing developments is the fast-growing relationship between Cyprus and India. Following a high-level visit by the Indian Prime Minister, interest from Indian tech and tourism companies has surged. Some have already opened operations on the island, using it as a launchpad into the EU market.
Evgeniou revealed that more announcements from Indian companies are on the way and highlighted ongoing collaboration with the India-Greece-Cyprus Business Council.
America’s eye on Cyprus
Following a diplomatic push led by President Christodoulides, U.S. tech giants are also exploring investment opportunities in Cyprus, particularly in AI and innovation, where the small market and EU framework make it a useful testbed. However, Evgeniou made clear that sustained effort is needed, including possibly setting up a permanent investment presence in places like San Francisco.
Middle East interest, but with a catch
Investors from the UAE, Saudi Arabia, and Qatar are also showing interest. However, their sovereign wealth funds typically seek much larger projects than Cyprus can offer. The real opportunity lies with private investors and startups, especially in tech, and Cyprus is now actively courting them.
Biggest challenges? Bureaucracy and school places
Evgeniou didn’t shy away from highlighting persistent problems. Red tape remains a major deterrent for investors. A shortage of spots in private, foreign-language schools is pushing some families to reconsider relocating. High energy costs and outdated industrial zones also need urgent upgrades. Progress is being made, he said, especially with the launch of the new Business Service Centre, and efforts to simplify processes for "strategic" investments.
Tax reform won’t scare off investors
Despite fears, Evgeniou said investors are “generally satisfied” with the upcoming tax reform, as long as there’s no long delay before it becomes law. He highlighted that Cyprus’ appeal isn’t just about low taxes; it’s the full package: EU membership, safety, location, and lifestyle.
Learning from Ireland, but taking a different route
While he praised Ireland’s transformation through foreign investment, Evgeniou doesn’t see it as a direct competitor. Still, there’s plenty Cyprus can learn from how Dublin built up its reputation and infrastructure.
Rebranding Cyprus: A new image on the horizon
Invest Cyprus is working with the presidency on a long-term rebranding campaign, based on a study by global firm KREAB. The aim is to create a unified, modern narrative for Cyprus, one that reflects the island's potential as a vibrant, forward-looking destination for business.
Bridging the skills gap
Cyprus has strong local talent, but to truly benefit from foreign investment, it must align local skills with the evolving needs of international companies. The government’s “Minds in Cyprus” initiative, aimed at bringing skilled Cypriots back home, is part of that effort.
Bottom line: Cyprus is on the cusp of something big. With increased foreign investment, especially from India, the U.S., and the Middle East, the island is gaining international attention. But unless it fixes long-standing issues like bureaucracy and infrastructure gaps, and acts swiftly, it risks losing momentum.
