Evgeniou: Our 2024-2026 strategy prioritises positioning Cyprus as an international business and financial hub

Evgeniou, Chairman of Invest Cyprus, discusses the state of Foreign Direct Investment in Cyprus, the agency’s efforts to improve the country’s position in the global FDI arena and its strategic focus for 2025 and beyond.

Moody’s & Fitch’s recent upgrades of Cyprus’ credit rating to A is a significant milestone, underscoring the country’s fiscal discipline and economic stability. President Christodoulides has hailed them as a testament to Cyprus’ credibility as an investment destination. How has the global investment community responded and what impact have you observed on investor confidence?

The credit rating upgrades send a strong message to global investors and the business community that Cyprus offers a stable, reliable and competitive economic environment. They underscore the commitment of the Government and the country to sustainable growth, fiscal discipline and continued reforms, factors that contribute to enhanced investor confidence, giving us a great platform to promote Cyprus.

At Invest Cyprus, we take pride in contributing to these achievements. The Fitch report highlights the positive economic impact of robust FDI flows while the Moody’s report underscores the significant contribution to the economy of relocating international companies, highly qualified personnel and FDI – all are at the core of our strategy and actions.

Attracting foreign investments to drive economic growth is a key priority for the Government. To this end, how do you assess the efforts made so far?

In 2023, Cyprus achieved a milestone by attracting €3.2 billion in FDI, recording a 129% increase compared to the previous year and creating 2,500 new jobs. The country ranked second in the EU for FDI per capita and was among the Top 10 globally. Early 2024 data indicates that this positive trajectory is continuing, with over 750 new jobs created in the first part of the year.

This success stems from the implementation of strategic initiatives to attract highly specialised companies and talent, leading to the establishment of hundreds of tech companies and regional headquarters in the country. As a result, an ecosystem of over 800 tech companies has been created, contributing some €4 billion – or 13% of GDP – directly and indirectly to the economy.

Eurostat data further highlights that the direct contribution of the ICT sector is 9% of GDP. We have also seen greenfield FDI projects such as the €50 million investment in building a state-of-the-art bottling facility at Ypsonas and an investment of similar magnitude with the establishment of AUB Mediterraneo in Paphos.

Our collective efforts are delivering results, significantly contributing to Cyprus achieving growth rates among the highest in the EU.

How does Invest Cyprus contribute to and support the growth of the local startup scene?

In collaboration with the Research and Innovation Foundation (RIF), Invest Cyprus drives programmes like the PRE-SEED initiative to fund startups and foster growth. These efforts contribute to building a sustainable innovation ecosystem in Cyprus.

Additionally, we supported the launch of the Digital Nomad Visa, which attracts international talent and further enhances the country’s appeal as a hub for innovation and entrepreneurship. We partner with the Deputy Ministry of Research, Innovation & Digital Policy and with the Chief Scientist to strengthen the digital ecosystem, and we work with international businesses to showcase Cyprus’ investment potential.

The recent MoU with TechIsland aims to work with tech companies established in Cyprus to create a sustainable ecosystem, fully integrated into Cyprus’ economy and society.

Based on your discussions with foreign investors, what are the main factors that drive their decision to invest in Cyprus?

Whether they are considering a greenfield project or establishing a company presence here, investors choose Cyprus based on a comparison with other countries. It is therefore important to remain focused on continuously improving our competitiveness.

In their assessment, they take into consideration several factors ranging from the licensing and regulatory framework, the legal and taxation systems and factors such as the quality of life, safety, schooling and the availability of local talent, as well as the attractiveness of the country for foreign talent.

For FDI in greenfield projects, the scale of the investment, the time to completion and the potential returns are important factors. The weight they place on the various factors depends on the type of investment. Also, our strategic location as the eastern gateway to the EU, combined with our stability and reliability in a geopolitically challenging region, is an important factor.

What needs to be done to improve Cyprus’ position as an investment destination?

Providing seamless processes, transparency, defined timeframes for decisions and predictability are important. This is highlighted in the recent EY Attractiveness Survey, which also makes other recommendations such as refining Cyprus’ image, investing in talent reform, driving innovation and public-private partnerships. We should not take investors’ choice to be in Cyprus for granted; economic growth and job creation depend not only on new investors but also on existing ones

It’s important that they stay, expand their presence and become advocates for our country. As Invest Cyprus, we go beyond promotion and facilitation by focusing on after-care, acting as a single point of contact to address any issues investors may face. We organise meetings with them in the presence of government officials, including roundtables with the President, one-to-one meetings and social functions.

Investors have a good onboarding experience through the Ministry of Commerce’s Business Facilitation Unit, the Immigration Department and our own role as facilitators. However, once on the ground, they encounter bureaucratic challenges similar to those faced by Cypriot businesses, which must be addressed.

Invest Cyprus developed the Project Bank as a matchmaking tool between foreign investors and local projects. Which notable projects have been facilitated through this tool? And do you have any other similar tools in the works?

The Project Bank, an initiative by Invest Cyprus in collaboration with the private sector, is a platform that helps investors identify the right market opportunities in Cyprus. It is designed to connect investors and project owners via a thorough selection process, enabling them to find investment opportunities aligned with their interests.

There are over 20 projects across key sectors such as tech, financial services, healthcare, mixed-use developments, hospitality, real estate, and processing and reprocessing. Notable projects include the Engino STEM Toy Plant, the GreenH2CY sustainable hydrogen energy initiative, the Storm Data Centre and the Poseidon Theme Park – these projects underscore the growing and diverse investment opportunities in Cyprus.

The Vision 2035 strategy aims to position Cyprus as a premier destination for living, working and doing business. How does Invest Cyprus convey this ambition to international audiences?

Our strategy is aligned with the Vision 2035 action plan. It is our mission to connect Cyprus globally and position it as the premier hub connecting Europe, Asia, Africa and the Americas. To support this ambition, in 2023, Invest Cyprus participated in 65 major events worldwide, held 714 one-to-one meetings and launched 14 targeted campaigns across 19 markets.

We also recently secured significant agreements, including collaborations with Invest Parana, Invest Mina in Brazil and a trilateral agreement with Greece and Jordan – all important milestones for Cyprus. In 2024, we have further strengthened our relations with India, renowned for its ICT sector, focusing on startups and research and innovation. In parallel, we are very active in the World Association of Investment Promotion Agencies (WAIPA) and have received global recognition for our outstanding work in the global FDI field.

These are all important initiatives and missions, collectively aiming to promote and establish Cyprus as a premier destination for investments and business.

How do you assess the strengthening of relations between Cyprus and the United States, as well as the role of the US strategic dialogue in boosting investments and economic growth for Cyprus?

We greatly value the strengthening of our relationship with the United States. The strategic dialogue between the US and Cyprus and President Christodoulides’ White House visit are key milestones in this partnership. We participated in the strategic dialogue and organised a roundtable with US investors, in the presence of US Ambassador Julie Fisher, whom I want to thank for her support.

In 2025, we plan major initiatives in the US market to enhance business and investment relations with the US. The prospect of Cyprus’ inclusion in the US Visa Waiver Program will reinforce our country’s appeal as a regional hub for US companies. Finally, it is time to update the 1984 US-Cyprus double tax treaty to meet the current needs of businesses and investors, reflecting the strengthened ties between our countries.

Looking ahead to 2025, what will be Invest Cyprus’ key focus areas in driving Foreign Direct investment and improving the country’s competitiveness?

Our objective is to establish Cyprus as a leading business hub and investment destination in our region. In 2025, we will embark on a major project of enhancing the country’s reputation by repositioning Cyprus, presenting a narrative that reflects today’s realities, our progress and aspirations.

We will stick to our strategy and mandate in promoting Cyprus on the international stage, showcasing the benefits and incentives available to investors and businesses when they are considering Cyprus.

We will continue collaborating with all relevant ministries and private sector stakeholders to further reduce red tape and administrative burdens, ensuring that our recognised investor onboarding experience is accompanied by simplified procedures once they have established their presence in Cyprus.

Additionally, we will focus on attracting investments for larger projects, in partnership with Cypriot businesses, that support the country’s green and digital transformation. Aligned with Vision 2035, our 2024-2026 strategy prioritises positioning Cyprus as an international business and financial hub, as a centre for high-tech and innovation and attracting investments in sustainable projects.

In this context, we are targeting funds, companies seeking a regional base, specialised shipping companies, the development of new economic sectors, and large-scale investments in sustainable projects in education, tourism, energy and light manufacturing.

This interview first appeared in the December edition of GOLD magazine. Click here to view it.