George Theocharides: Significant interest from major companies to establish their European headquarters in Cyprus

The Cyprus Securities and Exchange Commission (CySEC) has observed increased interest from large companies looking to relocate their European headquarters to Cyprus, according to its Chairman George Theocharides, who added: “This is undoubtedly a challenge for us, but I believe we are prepared for it.”

He was presenting CySEC's 2023 annual report to President Nikos Christodoulides, where he expressed gratitude to the President for his continuous support of CySEC’s work. He noted, “We are witnessing healthy growth in the capital markets sector, which is what we aim for—sustainable growth. We place significant emphasis on preventive supervision.”

He added, “We face several challenges ahead, with numerous important European directives and regulations that we must be ready to implement immediately. One key regulation pertains to the oversight of the cryptocurrency sector, which comes into effect in the European Union starting 1 January. Over the past few years, CySEC has been preparing for this significant regulatory framework.”

Theocharides added, “Some very large companies are interested in establishing their European headquarters in Cyprus. This is undoubtedly a challenge for us, but we are confident in our readiness”. He also pointed out ongoing developments in the investment funds sector, which remains a focus for CySEC.

He explained that Cyprus’ two main industries under CySEC’s purview are investment firms and investment funds. Currently, there are over 300 entities under CySEC's supervision, including fund managers and various types of investment funds. The total assets managed by this sector amount to approximately €10 billion, with €2.6 billion invested directly in the Cypriot economy. These investments span diverse projects, entities, and companies within the country. He described this as an alternative form of financing that the Cypriot economy greatly needs.

From his side, President Christodoulides remarked, “I follow your initiatives closely; you are doing excellent work, which is why we will entrust you with additional responsibilities. For us, supervisory mechanisms are intrinsically linked to our major efforts to enhance the economy and competitiveness of our country. They are also integral to the rebranding process we have initiated. As part of this, we will grant you more authority as a unified supervisory body and provide you with the necessary resources to fulfil this new role effectively”.

He emphasised, “Cyprus’ reputation as a reliable investment destination is directly connected to the competitiveness of our economy. I am pleased to see gradual results, with upgrades being directly tied to our country’s name and the growing interest in foreign investments. For a country like Cyprus, such investments are crucial as they create new job opportunities. Within this framework, we view you as partners, working together to achieve our shared goal of further strengthening Cyprus’ economy. This, in turn, enables us to undertake social initiatives in education, healthcare, and welfare.”

Lastly, the meeting addressed the promotion and improvement of financial literacy, a subject the President described as critically important. He noted, “We began addressing this issue in our schools in 2024. The most crucial aspect is fostering a culture of financial literacy, which is why we’ve introduced this subject in our educational system—to safeguard our future citizens. Financial literacy also has a broader impact on society.”