Cyprus is stepping up as a leading destination for international investment, president Nikos Christodoulides said on Wednesday.
Speaking at the ‘EY Cyprus Attractiveness Forum 2024,’ the president outlined the government’s strategic plans to bolster economic growth and investor confidence.
Addressing industry leaders, Christodoulides reaffirmed the government’s dedication to fostering economic stability and enhancing the business environment.
He announced the launch of the ‘Digital Citizen’ application on Thursday, a significant step in Cyprus’ journey toward digital transformation.
“This pioneering platform will simplify administrative procedures and improve services for citizens by enabling the electronic issuance and secure storage of official documents,” he explained.
The president stressed the growing appeal of Cyprus to foreign investors, noting that foreign direct investment exceeded €3.5 billion in 2023.
“Key sectors such as information technology, professional services, renewable energy, agricultural technology, tourism, industry, and education offer outstanding opportunities for investors,” he said.
He pointed to a diversification in investment sources, with significant contributions from the United Kingdom, the United States, Ireland, Israel, and Lebanon.
“This shift reflects increasing global confidence in Cyprus as a competitive and reliable investment destination,” Christodoulides added.
Discussing the country’s economic performance, he described Cyprus’ trajectory as ‘remarkable,’ with 2024 projections indicating the third-highest growth rate in the eurozone at 3.8 per cent, while inflation is expected to drop to 2 per cent, down from 3.5 per cent last year.
He also said that fiscal remains robust, with a projected 4 per cent budget surplus and a significant reduction in public debt—now at 69 per cent of GDP.
The president mentioned that this represents the largest decline in the EU between the first and second quarters of 2024.
“Our aim is to bring this below 60 per cent by 2026,” Christodoulides said.
The president also referenced Moody’s recent upgrade of Cyprus’ credit rating to A3, the highest level since 2011.
“This upgrade is a resounding vote of confidence in the government’s policies and the resilience of our economy,” he stated.
Amid global uncertainties, including two ongoing wars, Christodoulides expressed pride in the resilience of Cyprus’ economy.
“Responsible fiscal policies and strategic decision-making are delivering tangible results,” he stated.
He mentioned that “the government’s Vision 2035 strategy serves as a roadmap for sustainable growth”.
The strategy focuses on attracting high-value investments, advancing green and digital transitions, implementing critical reforms, and leveraging the Recovery and Resilience Plan.
“Our commitment is to ensure economic stability and strengthen Cyprus’ regional and international role,” he emphasised.
Turning to energy challenges, Christodoulides outlined a three-pillar strategy. This includes importing natural gas, expanding renewable energy sources (RES), and improving energy sufficiency through enhanced interconnections.
These initiatives, he explained, aim to address high fuel costs and improve the island’s energy security.
In addition, the president announced plans for comprehensive tax reform in early 2025, designed to attract investment and support the digital and green transitions.
By the same year, he pointed out, the government plans to establish a single supervisory authority for administrative service providers and a national sanctions implementation unit, measures aimed at enhancing transparency and accountability.
He added that a “dynamic campaign” to promote Cyprus abroad will also launch early next year.
“Forums like this play a vital role in fostering collaboration and driving shared progress,” Christodoulides concluded.