Cyprus is evolving into a ‘magnet’ and a hub for foreign direct investments (FDIs), achieving this through specific policies implemented by the Government and Invest Cyprus. These efforts have shaped a particularly attractive business environment, which, in practice, is reflected in the relocation or establishment—especially in recent years—of major international companies on our island.
This is evidenced by the fact that in 2023, foreign investments in Cyprus reached €3.2 billion, while 2,500 new jobs were created.
The majority of foreign direct investments (FDIs) flowing into the Cypriot economy has reduced its dependence on the traditional trio of real estate, tourism, and services, creating a new pillar of economic activity: technology.
The technology sector contributes more than one-tenth of Cyprus’s €32 billion GDP and employs approximately 17,000 people—about 3.5% of the workforce. The benefits of having a strong technology sector became particularly evident during the pandemic, as economies with a solid technological foundation proved to be more resilient.
It is noted that by mid-2024, more than 270 companies, including 70 international technology companies, had completed their relocation process through the Business Facilitation Unit (BFU) of the Ministry of Energy, Commerce, and Industry.
As mentioned earlier, in 2023, Cyprus attracted €3.2 billion in foreign direct investments, which, on a per capita basis, ranked our country second in the EU—behind Malta—and among the top ten globally.