Newsroom
For years, Cyprus’ economy leaned heavily on tourism and professional services, but the rapid rise of technology companies is reshaping the island’s financial landscape. In 2024, the Information and Communication Technology (ICT) sector’s contribution to the country’s Gross Value Added (GVA) has skyrocketed to nearly €7 billion—solidifying its role as a key driver of economic growth.
Cyprus is no longer just a holiday paradise—it’s becoming a powerhouse for global technology.
From Niche to Powerhouse
Panayiotis Rougalas of Kathimerini reported that the latest report by KPMG, presented at the TechIsland Summit 2024, highlights the sector’s direct impact of €4.12 billion and an additional indirect impact of €2.83 billion. Cyprus has seen one of the EU’s fastest-growing tech sectors since 2011, with a staggering 200% increase in value. In 2023, it ranked second among EU nations for ICT’s contribution to economic productivity, far surpassing the EU average. With tech companies now making up 14% of the island’s GVA, their influence is undeniable.
What’s Next? Policy and Infrastructure Needs
While the numbers tell a success story, industry leaders stress the need for policy changes to sustain momentum. Key proposals include:
- Better airport connectivity and Schengen membership to improve mobility and talent attraction.
- More international banks to enhance financial flexibility and competition.
- Tax incentives to attract and retain high-skilled professionals.
- Investment in private schools and STEM education to develop local talent.
- Digital transformation of schools and government services to create a tech-friendly environment.
- A transparent legal system with faster processes to boost investor confidence.
New Companies Keep Rolling In
The ICT sector’s growth is reflected in the steady influx of foreign companies. In 2025, 80 new firms have already been registered, following 265 in 2024 and 286 in 2023. Despite a drop from the 1,605 registrations in 2022—largely due to shifting geopolitical factors—interest remains strong, particularly from the UK, Israel, Belarus, Lebanon, Ukraine, and Russia. Many of these businesses focus on software development, e-commerce, marketing, real estate, and financial services.
Cyprus’ Global Tech Appeal
Cyprus is positioning itself as a major tech hub, not just through economic growth but also through high-profile industry events. Conferences like Digital Agenda in Nicosia and Reflect in Limassol have become crucial platforms for showcasing Cyprus’ tech potential. TechIsland member Stylianos Lambrou argues that these events are the best marketing tool for attracting investors—far more effective than costly government roadshows abroad.
The IMF Weighs In
The International Monetary Fund (IMF) recently commended Cyprus for its economic resilience, highlighting the ICT sector as a key factor in maintaining one of the highest growth rates in the Eurozone. While foreign investment and tourism remain strong, the rise of technology companies is cementing Cyprus’ reputation as a thriving innovation hub.
With billions pouring in and the sector expanding at an impressive 6.2% annual rate, one thing is clear: Cyprus is no longer just a holiday paradise—it’s becoming a powerhouse for global technology.
