The 12 foreign investments that have defined 2024 in Cyprus

In recent years, Cyprus has been quietly – and then not so quietly – reinventing itself. The bulk of foreign direct investment (FDI) flowing into the economy has reduced its reliance on the traditional trio of real estate, tourism and services, leading to a new pillar of economic activity: technology.

Today, the tech sector contributes more than a tenth of Cyprus’ €32 billion GDP and employs roughly 17,000 people – about 3.5% of the labour force. The benefits of having a robust tech sector became especially evident during the pandemic, as economies with a strong tech foundation proved more resilient – this might come in handy when the next crisis comes around.

By mid-2024, over 270 companies, of which 70 are international tech firms, had navigated the relocation process through the Ministry of Energy, Commerce & Industry’s Business Facilitation Unit. Frequently commended by investors for its efficiency, the Unit is just one of several state bodies endeavouring to gain a bigger slice of the global FDI pie for the country.

In July 2024, President Nikos Christodoulides, addressing the audience at the 12th Invest Cyprus Investment Awards – the annual event hosted by GOLD, which recognises foreign investors for their contribution to the local economy – highlighted that the Government views such investors as partners in a joint mission to drive sustainable growth.

Over the past few years, more than 10,000 foreign employees have relocated to the island, often accompanied by their families.

According to data from Invest Cyprus, the country attracted €3.2 billion of FDI in 2023. On a per capita basis, this placed Cyprus second in the EU – just behind Malta – and among the top ten globally.

Below, we profile 12 of the most significant FDI deals that shaped Cyprus in 2024.

KASSATLY CHTAURA GROUP

Kassatly Group Holding, a leading Lebanese beverage producer, took a significant step by establishing a state-of-the-art manufacturing facility at Ypsonas, Limassol. Operating under the name Boutique Beverage Bottling International Ltd (BBBI), the new plant became fully operational in March 2024 and was officially inaugurated in October. BBBI is a subsidiary of the Kassatly Chtaura Group, a company with over 50 years of innovation and excellence in the beverage sector. Since its founding in 1974, it has been headquartered in Beirut, perfectly situated to oversee its growing operations in both Lebanon and Cyprus. This strategic venture marked the company's evolution from a regional powerhouse to a global contender in the beverage industry. BBBI's establishment in Cyprus represents a major step in expanding the Group’s bottling capabilities, with a key focus on promoting the renowned FREEZ brand to international markets.

Read more about this investment here in the online edition of GOLD magazine.

ECM PARTNERS

In a phased acquisition, ECM Partners has taken a 75%, majority stake in Ygia Polyclinic, one of Cyprus' oldest private hospitals, for an undisclosed sum. This move is rooted in Cyprus’ evolving healthcare landscape, especially with private hospitals integrating into the national health system. It aligns with broader trends in healthcare mergers and acquisitions, paralleling the recent buyouts of the Apollonion and Aretaeio Private Hospitals, as well as radiology provider Gallietto Ltd, by the Hellenic Healthcare Group, backed by US private equity giant CVC Capital.

Read more about this investment here in the online edition of GOLD magazine.

EUROBANK

In 2024, Eurobank sought to solidify its presence in Cyprus through the strategic acquisition of Hellenic Bank shares. In June, it increased its stake to 55.3% by purchasing a 26.1% share for €275.7 million. By November, it had expanded its ownership to 93.47%, acquiring additional shares from Demetra Holdings Plc and Logicom Services Ltd for approximately €493 million. This monumental acquisition, valued at around €1.2 billion, represents one of the largest corporate transactions in Cyprus’ history. The merger is set to be concluded in early 2025, culminating in Hellenic Bank’s delisting from the Cyprus Stock Exchange.

Read more about this investment here in the online edition of GOLD magazine.

SOLAAR HOSPITALITY & ACCOR HOTELS

Solaar Hospitality, under the leadership of Rajai Khoury, has partnered with Accor to introduce the renowned Mercure brand to Cyprus, revolutionising the island's hospitality sector. The first property, Mercure Larnaka Beach Resort, opened in May 2023 in Oroklini, on the site of the historic Michael's Beach Hotel. The 60-room beachfront resort combines modern amenities with a semi-private Mediterranean beach, delivering an authentic Cypriot experience. Building on this success, the Mercure Larnaka City Hotel opened in July 2024. Situated in the heart of Larnaca, this nine-story hotel enhances the city’s status as a boutique destination, offering luxury and comfort for both business and leisure travellers. Together, these developments signify a substantial investment in Cyprus’ tourism infrastructure, leveraging the island’s strategic location and cultural heritage.

Read more about this investment here in the online edition of GOLD magazine.

HELLENIC DAIRIES

In October 2024, the major Greek dairy producer Olympus – a Hellenic Dairies Group company – made a major investment in Cyprus, opening a €40 million factory in the Tseri Industrial Area, Nicosia, which will produce Halloumi, the traditional Cypriot PDO cheese, and other dairy products. The investment is linked another made in Cyprus by the Trikala-based company, which acquired 49% of the share capital of the historic Kouroushis Dairies, which retains management rights, and a provision for the acquisition of the remaining shares in a second year, enabling the successful entry of Hellenic Dairies in the Cyprus market.

Read more about this investment here in the online edition of GOLD magazine.

HELLENIC HEALTHCARE GROUP (HHG)

In June 2024, Hellenic Healthcare Group (HHG), utilising funds from the private equity firm CVC Capital Partners, continued its expansion into the Cypriot healthcare sector by acquiring shares in the American Medical Center (AMC) in Nicosia. Asked about the next steps for AMC, following the competition authority’s approval of the HHG deal, AMC Founder and Chairman Dr Marinos Soteriou said, “There will definitely be investments in the hospital, depending on its needs.” Plans to develop and expand the hospital have existed for years, he added, and they have been submitted to the authorities for approval, which is still pending. The value and the equity stake have not been revealed but this was undoubtedly a significant acquisition, considering previous investments by HHG in the sector, through its deals with the Apollonion and Aretaeio hospitals in Nicosia. The Apollonion buyout in 2021 was estimated at €83 million. Both hospitals joined Cyprus’ National Health Scheme while the American Medical Centre has always indicated its intention to remain private.

Read more about this investment here in the online edition of GOLD magazine.

GLOBEDUCATE

Globeducate, one of the world’s leading K-12 educational groups, acquired Olympion Educational Group for an undisclosed sum in September 2024. This marks the second significant investment by Globeducate in the island’s education sector, following its acquisition of Pascal Schools in 2012. The move comes at a time when Cyprus faces a pressing need to expand its educational infrastructure, particularly international schooling, to accommodate the influx of expatriate families drawn by the island’s headquartering boom.

Read more about this investment here in the online edition of GOLD magazine.

SKLAVENITIS GROUP

In early 2024, Sklavenitis Group, one of Greece’s largest retailers, bought out Papantoniou Supermarkets in Cyprus for sum estimated at €50-60 million. The Group has now set its sights beyond the Greek and Cypriot markets, with plans to expand into central Europe in the future. According to Greek media reports, the Group recorded a record-breaking turnover of over €5 billion in 2023, up from €4.47 billion in 2022. The change of Papantoniou stores to Sklavenitis is expected to be completed by the end 2025 and all the former Papantoniou locations are due to be renovated.

Read more about this investment here in the online edition of GOLD magazine.

AMERICAN UNIVERSITY OF BEIRUT (AUB)

In September 2024, the American University of Beirut (AUB) inaugurated its first campus outside Lebanon in Paphos, marking a milestone in the university’s storied history. The AUB-Mediterraneo estimated €29 million investment transformed part of the city’s Old Carob Mills building complex into a modern educational facility. Dr. Wassim El Hajj, Rector of AUB-Mediterraneo, cited Cyprus’ academic freedom, safety and growing student market as key factors behind the expansion. “It was after meeting Mayor Phedon Phedonos,” he commented, “that we became interested in Paphos. His vision for the municipality of Paphos matched AUB’s aspirations and vision. We visited Paphos and quickly saw that it was a great place to locate a university.”

Read more about this investment here in the online edition of GOLD magazine.

PREMIUM ACCESS GROUP

The iconic Palm Beach Resort in Larnaca has embarked on a transformative journey under the vision of the Premium Access Group, led by shareholders Evgeni Leibovich and Shaul Keinan in a strategic partnership with Thanos Hospitality Services. The Palm Beach in Larnaca ceased public operations in 2020 and functioned as a quarantine facility during the COVID-19 pandemic. This ambitious redevelopment, set to open in 2026, aims to redefine luxury and sophistication in Cyprus, with an estimated investment exceeding €110 million. Far beyond a simple renovation, the project aims to invigorate Larnaca’s tourism and real estate sectors by creating a destination that blends world-class hospitality with sustainable, innovative living.

Read more about this investment here in the online edition of GOLD magazine.

TRASTOR REIC

In September 2024, Globe Invest, the exclusive family office of Israeli businessman Teddy Sagi, announced that its wholly owned subsidiary, Whitestreet Investments, had entered into a binding agreement for the sale of Excelsior Hotel Enterprises, owner and operator of the iconic LABS Tower in Nicosia. Trastor Real Estate Investment Company (REIC) acquired 100% of Excelsior Hotel Enterprises Limited, the owner of LABS Tower – the purchase price was based on the net asset value (NAV) of Excelsior at the time of closing, with the property's value set at €39 million – and the acquisition marked Trastor’s strategic expansion into the Cypriot market.

“LABS Tower represents a distinctive opportunity situated in the heart of Nicosia’s business district, perfectly aligning with our investment strategy,” said Tassos Kazinos, CEO of Trastor REIC. “It offers an optimal blend of office space and serviced apartments,” he went on, “while its unique layout and architecture allow for adaptive use-modifications to continually drive capital growth for our shareholders. Acquiring LABS Tower is more than just adding a trophy asset to Trastor’s portfolio; it signifies our entry into the Cypriot market and exemplifies the quantitative and qualitative attributes we will seek in future investments.”

Read more about this investment here in the online edition of GOLD magazine.

KRAFTON INC.

In August 2024, South Korean video game publisher Krafton led a US$11.3 million Series A round for Nicosia-based Eschatology Entertainment. Co-investors included The Games Fund and GEM Capital. The deal represents one of the largest amounts raised by Cyprus’ burgeoning startup ecosystem to date.

Read more about this investment here in the online edition of GOLD magazine.

Click here to read the entire Cover Story in the online edition of the December 2024 issue of GOLD magazine.