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Cyprus’s defense industry has grown tenfold in recent years, with approximately 30 companies now generating an estimated €40 million in revenue annually, officials revealed Tuesday during a session of the Parliamentary Committee on Energy, Commerce and Industry.
Defense Minister Vasilis Palmas described the sector’s development as a government priority of “emblematic importance,” noting that Cypriot firms are increasingly participating in European defense projects and international exhibitions with state backing.
Committee members, ministry officials, and representatives from the Cyprus Chamber of Commerce and Industry (CCCI) and the Cyprus Association of Research and Innovation Enterprises (CARIE) emphasized the industry's role in economic development and innovation. Palmas said the defense industry is now capable of producing final products and contributing to both public and private sectors.
The Ministry of Defense has supported the industry's growth through subsidies, procurement advocacy, and international cooperation initiatives. Deputy Director Anna Aristotelous noted that 13 Cypriot companies recently showcased products at a defense exhibition in Greece.
Lt. Gen. Georgios Tsitsikostas, Chief of the National Guard, stressed the urgency of timely equipment delivery amid global procurement delays and highlighted the competitiveness of some domestically developed products.
Despite the progress, Committee Chairman and DISY MP Kyriakos Hadjiyiannis criticized the slow pace in developing a national defense industry strategy, which is being funded by a €500,000 EU grant. He also called for greater involvement from the Ministries of Commerce and Education in workforce training and strategy alignment.
Universities and the Deputy Ministry of Research and Innovation voiced their commitment to advancing defense-related research, particularly in cybersecurity and dual-use technologies. Still, officials acknowledged the need to accelerate commercialization and resolve legal barriers to spin-off companies.
While progress was widely acknowledged, lawmakers from across the political spectrum urged quicker implementation, citing both economic opportunities and national security imperatives stemming from Cyprus’s geopolitical position.
