Government opens line of communication with new generation of business leaders

The prospects and challenges shaping the future of the Cypriot economy and entrepreneurship were at the centre of a discussion between the new generation of entrepreneurs and the President of the Republic, Nikos Christodoulides, during the 15th Nicosia Economic Congress.

The President announced the launch of a formal dialogue with young entrepreneurs. “I announce today that we will begin a dialogue, as a Council of Ministers, together with our young entrepreneurs,” he stated.

He added that the government is already in ongoing dialogue with the Federation of Employers and Industrialists (OEB) and the Cyprus Chamber of Commerce and Industry (CCCI), through the formation of working groups. This new initiative will now broaden the Presidential Palace’s engagement, he said.

Christodoulides also referred to the government’s meetings with the 25 largest foreign investors active in Cyprus, noting: “We listened to them; they told us about the challenges they face, and as a government we initiated dialogue and made decisions.” The dialogue is now being expanded to include the sphere of young entrepreneurship as well.

Participants spoke about the realities of doing business in Cyprus, the prospects for growth, and the key challenges they face. They also presented proposals to boost economic activity, attract talent, and create a more business-friendly environment.

President Christodoulides emphasised that although Cyprus previously had a negative image abroad, that perception is changing. The country is currently undergoing a "rebranding" process. During his recent meetings in the United States, he noted, there was no mention of Cyprus in a negative context.

He highlighted the need to connect the educational system with the labour market, especially by focusing on STEM fields. He reiterated that the closure of the Cyprus Technological Institute was a mistake and stressed the importance of a holistic approach to strengthening the productive base of the economy.

Michael Antoniades, General Manager of the Voici La Mode Group, remarked: “Our generation entered the job market during a crisis, then faced the 2013 financial crisis, and later the pandemic. We learned to adapt quickly, or else we would be left behind.”

He proposed the creation of a digital innovation hub similar to those in the United Kingdom, where government, businesses, and universities collaborate.

Chryssie Jacovides, Legal Advisor & Special Projects Executive at M.S. Jacovides & Co. Ltd, stressed that “as young entrepreneurs, we believe in the potential of the Cypriot economy to grow”. She highlighted the importance of collaboration between the state and businesses in driving digital transformation and called for greater flexibility in the regulatory framework, adaptation to evolving conditions, and simplification of procedures.

She also pointed to the need for flexibility in payment structures and the provision of dividend options to attract talent, underlining that modern competitiveness depends not only on innovation but also on responsiveness to talent expectations.

Michael Charalambides, CEO of ECOMMBX, emphasised the need to “protect our home first”. He noted that for years there has been an effort to move away from the perception that tourism is the only driving force of GDP, yet without making substantial improvements to the tourism product itself.

He expressed concern over the country’s failure to attract domestic tourism and the pressing need to upgrade infrastructure. Additionally, he stressed that foreign investments must be channeled effectively into the real economy, warning that if not, “they will be like fireworks”—brief and superficial rather than sustainable.

George Chrysochos, CEO of Cyfield Group, stated that growth comes when everyone is working and producing. He noted that the domestic market is supported by a positive stance from the banks. Cyprus, he said, continues to be an attractive destination for foreign buyers, particularly in the real estate sector, while the arrival of natural gas remains the greatest challenge ahead.

He underlined the importance of attracting a skilled workforce and described the current framework for public contracts as imbalanced, calling for its immediate revision to create fairer conditions for all stakeholders.

In his concluding remarks, President Christodoulides said that Cyprus must come to terms with the new international realities. He stated that he is not in favour of confrontation with the United States and that protectionism is not a solution.

On the topic of Cypriot businesses, he acknowledged a lag in cooperation with foreign companies and stressed that Cyprus has the potential to serve as a gateway to major international markets.

He also mentioned ongoing reforms in the taxation sector and the government’s active engagement with countries like India and Egypt to strengthen the island’s laboor force.

The discussion was moderated by Dr Cleanthis (Athos) Chandriotis, Chief Executive Officer of DEMETRA HOLDINGS PLC.