Cyprus fund sector eyes Germany and Middle East for growth
The Cyprus Investment Funds Association (CIFA) held its Annual General Meeting (AGM) on Thursday, presenting a comprehensive review of the sector’s achievements and outlining strategic priorities for continued growth and competitiveness.
In her address, CIFA president Maria Panayiotou attributed the current momentum in the investment funds sector to “vision, consistency and collaboration”.
She reported that assets under management in Cyprus have now surpassed €9 billion, with more than 330 licensed investment entities operating in the country.
She described these figures as “clear indicators of growing confidence in Cyprus’ professional and regulatory ecosystem“.
Panayiotou also stressed the importance of CIFA’s active role in shaping the policy environment.
She noted that the association maintains “continuous and constructive dialogue” with state bodies, including the presidency, the Finance Ministry, and the House of Representatives.
The CIFA president explained that this dialogue helps to ensure that “the sector’s needs are represented in structural reforms currently underway”.
One of the most significant developments on the horizon is the much-anticipated legislation on fund administration, which is expected to be approved by parliament in the near future.
In addition, other key reforms include the proposed Foreign Direct Investment (FDI) Screening Law and a broader national tax reform, both of which are seen as pivotal to enhancing Cyprus’ position as a competitive international funds jurisdiction.
Panayiotou highlighted the association’s collaboration with the Cyprus Securities and Exchange Commission (CySEC), particularly on legislative updates to the Alternative Investment Funds Law and the Partnership Law.
She explained that these amendments “focus on clarifying the responsibilities of legal persons, aiming to ensure that Cyprus remains aligned with evolving EU regulatory frameworks”.
It was also noted that CIFA is working closely with Invest Cyprus to strengthen the international promotion of the sector.
The partnership includes the planning of a comprehensive gap analysis of the fund ecosystem to identify barriers to growth and explore untapped opportunities.
Moreover, following the success of CIFA’s 2024 roadshow in Athens, the association said that it has intensified its outreach efforts, planning upcoming promotional activities in Germany and the Middle East.
The association pointed out that it has identified these markets as having “strong investment potential and a growing interest in Cyprus as a funds domicile“.
On the domestic front, the association mentioned that education and capacity-building are at the forefront of its agenda.
CIFA has significantly expanded its member-training programme, offering an increasing number of targeted workshops and accredited sessions to support the evolving needs of professionals in the industry.
In this context, president Panayiotou extended her gratitude to the members of the technical committees for their “dedication and contribution to the association’s mission”.
Beyond the industry itself, CIFA continues to play an active role in national financial literacy efforts.
As a stakeholder of the Cyprus Financial Literacy and Education Committee (CyFLEC), the association stressed that it “supports initiatives designed to empower individuals and households with the knowledge required to make informed financial decisions and confidently engage in long-term investment opportunities”.
Panayiotou also expressed her “deep appreciation to the board of directors and all CIFA members for their ongoing support, professionalism and contribution to the growth of the sector.”
Furthermore, she reaffirmed CIFA’s pledge to “support responsible capital flows, strengthen investor confidence, and create conditions that allow the Cyprus investment funds industry to grow sustainably and competitively”.
The AGM concluded with a panel discussion dedicated to environmental, social and governance (ESG) investment trends, highlighting the “increasing relevance of sustainable finance in shaping the future direction of the global funds industry”.
