Andreas Demetriades, chairman of the Association of Large Investment Projects, emphasised the critical role of foreign investment in Cyprus’ development sector during the 2025 forecast presentation this week.
He stated that foreign investment is not only beneficial but essential, explaining that it “drives liquidity, creates skilled jobs, and transfers valuable know-how to Cyprus—key factors in fostering economic prosperity.”
Despite global uncertainties, Demetriades highlighted the sector’s potential for growth, underscoring the importance of attracting foreign capital to sustain and expand Cyprus’ economy.
“Attracting foreign direct investment remains at the heart of our strategy,” he said, emphasising the ongoing effort to cultivate a more business-friendly environment.
As he explained, the association is keenly focused on adapting Cyprus to a sustainable, innovative, and digitally enhanced future.
He mentioned that the association’s vision includes crucial reforms.
“Speeding up licensing processes, improving judicial administration, and modernising the tax system are top priorities,” he said.
Looking ahead to the next year, Demetriades is optimistic about robust growth in the large-scale development sector, buoyed by potential easing of interest rates and more favourable financial conditions.
He also noted the necessity for increased competition in Cyprus’ banking sector, currently one of the most concentrated in the EU according to the European Central Bank.
Furthermore, Demetriades noted a shift in market demand towards sophisticated development projects.
“Consumers are increasingly seeking properties that offer comprehensive services alongside high quality,” he said, reflecting the evolving preferences of buyers.
The strategic goal, he explained, is to position Cyprus as a regional hub for business and medical services, with a focus on advancing sectors like education, technology, and energy.
“Utilising our strategic location and hydrocarbon reserves is important in shaping a resilient growth model,” Demetriades stated.
It should be noted that Demetriades’ stint as the association’s chairman was renewed in May of last year, following a decision made at the annual general assembly.
At the AGM, he detailed the association’s mission and the scope of its 16 registered members, which includes 19 projects valued at a total of €8 billion.
Moreover, Demetriades reviewed the association’s broad and influential role as a vital developmental entity within the country, aiming to establish Cyprus as a regional hub for business and high-quality healthcare services.
He also stressed the necessity for the country to “formulate a comprehensive strategy to increase productive foreign investment” to harness the potential of sectors like higher education, research, new technologies, and IT, along with digital and green skills.
Meanwhile, in November, the association called for the creation of “integrated tourism projects” in Cyprus.
It proposed such projects as a new category of construction to enhance the variety of tourist accommodation available on the island.
The aim is to “upgrade the experience of both domestic and international visitors” to Cyprus’ tourism hotspots.
The association recommended defining the term “integrated tourism projects” with specific criteria, which should include the requirement that such projects be “high-level developments” both functionally and aesthetically, self-contained, and part of a cohesive plan.
