Dorita Yiannakou
Cyprus is emerging as a strategic hub for high-tech companies developing unmanned and defense systems, thanks to its neutral geopolitical profile and unique regulatory advantages, industry experts say.
Gary Rafalovsky, co-founder of Limassol-based company Swarmly, outlined the island’s advantages during the Digital Agenda 2025 conference, themed “Beyond AI.”
Rafalovsky said Swarmly’s decision to base its headquarters in Cyprus was deliberate. The island’s non-membership in NATO and exemption from International Traffic in Arms Regulations (ITAR) give companies flexibility in exports and international collaborations. At the same time, Cyprus’ membership in the European Union and the Eurozone provides access to the single market and institutional stability.
He also highlighted the island’s legal system, modeled on common law, which facilitates partnerships with Anglo-Saxon countries, as well as its highly educated workforce, increasingly specialized in technological and scientific fields.
“Cyprus is emerging as an international hub for developing innovative unmanned systems, attracting investment and expertise from around the world,” Rafalovsky said.
Founded in 2018, Swarmly has grown to become Europe’s largest manufacturer of uncrewed systems, placing Cyprus at the forefront of a rapidly expanding sector. The company employs 59 people, 53 of whom are Cypriots, demonstrating its commitment to the local economy. Swarmly maintains close ties with the Cypriot government, particularly the Ministry of Defense and the Cyprus Police, and invests heavily in staff training through partnerships with universities and research centers.
Rafalovsky acknowledged challenges in the drone sector, including complex regulatory and technical issues, airspace management, operational safety, and the need for updated legal frameworks. He said Swarmly actively participates in shaping regulations, promoting safe and sustainable solutions while prioritizing crisis response planning and cybersecurity.
Looking ahead, Rafalovsky said automation in unmanned systems can save lives and reduce operational risks, with technical intelligence complementing human work rather than replacing it.
“Swarmly does not just manufacture drones; it is shaping the future of autonomous technology in Europe,” he said, adding that the company continues to push the boundaries of innovation and safety, putting Cyprus on the global map of technological leadership.
