Marios Tannousis: International companies establishing a base in Cyprus have brought in skills that were previously lacking

Marios Tannousis, CEO of Invest Cyprus, sets out the organisation’s vision for the future of the island and reiterates its commitment to achieving a robust, diverse and sustainable business future, supported by foreign investment. He was speaking on the occasion of the 12th Cyprus International Invest Awards, which were hosted in July by GOLD magazine and organised by Invest Cyprus.​

With the Invest Cyprus International Investment Awards now in their 12th edition, what are the biggest positive changes that you have observed during this period as regards foreign investment in Cyprus?

We are honoured to organise this event and award international investors. Over time, we have seen significant and positive changes regarding foreign investment in Cyprus, which has diversified into new sectors such as education, healthcare, technology, ICT and renewable energy. This has boosted our economy’s resilience and global competitiveness, increased employment and introduced vital technical expertise to the island, as international companies establishing a base in Cyprus have brought in skills that were previously lacking. Recently, Moody’s, S&P and Fitch have upgraded Cyprus’ credit rating with a positive outlook, reflecting the successful collaboration between the Government and private stakeholders. Additionally, regulatory reforms have streamlined business procedures and increased transparency, creating a more investor-friendly environment.

In addition to the greater visibility that such recognition offers, what other benefits accrue to the recipients of prestigious Invest Cyprus International Investment Awards?

This event celebrates the winning companies’ exceptional contributions and achievements, which have greatly benefited Cyprus. We honour their dedication, innovation and leadership across various sectors and the Awards underscore Invest Cyprus’ commitment to fostering collaboration and growth, emphasising our shared achievements and paving the way for future opportunities. Cyprus remains dedicated to maintaining a welcoming environment for international businesses and cultivating lasting relationships.

How does Invest Cyprus leverage collaborations and partnerships with local and international entities to enhance its efforts in attracting foreign investment?

Invest Cyprus envisions Cyprus becoming one of the world’s best countries to live, work and do business in, and an established international business centre. As a comprehensive one-stop shop, we provide tailored support throughout the investment cycle. We promote Cyprus, facilitate investor relocation, offer aftercare services and advocate for business reforms. Collaboration with local and international entities is key to our strategy and we therefore work closely with the Energy, Finance, Foreign and Interior Ministries and the Innovation, and Tourism Deputy Ministries to attract foreign investment.

Our active participation in networks like the ANIMA Investment Network, the World Association of Investment Promotion Agencies (WAIPA), and the World Association of Public-Private Partnerships (WAPPP) reinforces our efforts. We have also established the Euromed i-House in Nicosia as a collaboration hub and engage in global webinars and high-level meetings to strengthen ties with businesses worldwide. These initiatives underline our commitment to making Cyprus a dynamic and attractive investment destination.

The tech sector has been a resounding success in attracting foreign capital and has made a significant contribution to the country’s GDP. How would you assess the impact of this sector on the real economy?

The tech sector in Cyprus has proven remarkably successful in attracting foreign capital and significantly contributing to the country’s GDP. According to Eurostat, Cyprus ranks second in the provision of ICT services in the EU, with its share of gross value added reaching 8.9%. The latest KPMG report estimates the total economic impact of the ICT sector at approximately €4 billion (direct impact: €2.46 billion and indirect impact: €826 million). This demonstrates the sector’s substantial economic influence and its pivotal role as a driver of growth in Cyprus.

That said, more ICT specialists are needed to meet the expanding demands of the sector, highlighting opportunities for further skill development and training initiatives. Ensuring the further adoption of advanced technologies such as artificial intelligence, cloud computing, machine learning, IoT and data analytics has been instrumental in enhancing productivity and efficiency across various sectors.

Cyprus offers a competitive tax regime, a robust legal framework and benefits stemming from its EU membership, all of which are well-documented attributes of its business environment. Invest Cyprus remains dedicated to promoting Cyprus as an outstanding investment destination, supported by its ongoing efforts to nurture an ecosystem that supports diverse sectors. This strategic approach aims to capitalise on the momentum of the tech sector and further diversify its impact throughout the economy.

What other sectors or regions is Invest Cyprus focusing on to attract further foreign investment?

Invest Cyprus is dedicated to diversifying the economy in line with the Government’s long-term growth strategy. From 2024 to 2026, our focus is on three key areas for attracting foreign investment. (1) We aim to establish Cyprus as a premier International Business and Financial Hub by attracting foreign companies to set up regional headquarters and outsource critical functions here; (2) We are creating a dynamic high-tech centre by nurturing sectors like agritech, e-health, green technologies, fintech and software development to keep Cyprus at the forefront of innovation; and (3) We are seeking investment in sustainable projects in the sectors of renewable energy, light industry, education, healthcare, hospitality, agriculture and more. Additionally, we are exploring opportunities in shipping and filming, supported by initiatives like the ‘Olivewood’ scheme. National institutions play a crucial role in advancing reforms and the Vision 2030 agenda, while initiatives such as the Blue Card and business environment improvements are essential for enhancing competitiveness and attracting investors. Collaboration and coordination are key to overcoming regulatory challenges and facilitating new investments. We are committed to working with stakeholders to ensure sustainable economic growth and prosperity for Cyprus.

(This article first appeared in the July issue of GOLD magazine. Click here to view it)