In recent years, Cyprus has been positioning itself as a model of economic resilience and opportunity in the Eastern Mediterranean, achieving remarkable milestones in 2024 that solidify its position as a thriving investment destination.
Projected to achieve the third-highest growth rate in the eurozone, we’ve coupled this progress with a decline in inflation and an exceptional fiscal performance.
A particularly significant moment this year, was Moody’s upgrade of Cyprus’ credit rating to A3 – the highest since 2011. This achievement is a testament to our commitment to fiscal responsibility, financial stability and transformative reforms, which should translate into tangible advantages for businesses, households and our investment environment.
Vision 2035, a comprehensive blueprint for sustainable growth, lies at the heart of our strategy and is built on three pillars: fostering a green and digital economy, bolstering a knowledge-driven ecosystem and implementing critical structural reforms aligned with EU priorities.
Our digital transformation initiatives have redefined governance in Cyprus. We have already achieved a remarkable 16.3% improvement in digital governance, far surpassing the EU average. We are transforming bureaucracy into efficiency through digitised services and we are progressing with the issuance of 100,000 e-IDs and electronic signatures. These advances are not just technological; they are tools to empower businesses and citizens alike.
Energy independence and sustainability are central to our plans. Our energy policy is built on three foundational pillars: integrating natural gas into our energy mix, expanding renewable energy sources alongside energy efficiency initiatives, and establishing robust electricity interconnections. These measures aim to strengthen energy security, advance sustainability and reduce energy costs for both households and businesses.
In early 2025, we will be presenting a comprehensive tax reform proposal developed by leading experts. This initiative aims to refine our already competitive tax framework while introducing targeted incentives to attract productive investments in key sectors and support the green and digital transitions.
To further empower Cypriot businesses, we are improving access to financing, fostering growth and narrowing the investment gap. With a strengthened banking sector that is better positioned to meet financing needs, we also utilise instruments such as the Cyprus Entrepreneurship Fund and the Cyprus Equity Fund. Additionally, we are advancing plans for a National Development Agency to provide SMEs with favourable loan options and to foster innovation in startups. These measures address a critical concern for investors: high interest rates and tightening financial conditions.
Earlier this year, we strengthened our Strategy for Attracting Companies and Talent, originally introduced in 2022. The Strategy’s highlights include streamlining procedures for hiring highly skilled workers from non-EU countries, targeted tax incentives and further expanding our Business Facilitation Unit to provide a seamless experience for companies operating in Cyprus.
Finally, we are set to launch a dynamic rebranding campaign for Cyprus at the start of next year. This initiative aims to elevate the country’s global profile, attract even more high-value investments and establish Cyprus as a premier hub for innovation, sustainability and opportunity.
Cyprus offers unparalleled opportunities with a highly skilled workforce, cutting-edge infrastructure and thriving, dynamic sectors ranging from ICT and renewable energy to agritech and tertiary education. Our Government remains steadfast in ensuring economic and social stability while advancing our role as a regional and international hub for investment and innovation.
The exceptional investment climate in Cyprus has led to a steady rise in investor interest and an increase in major projects and investments. These developments are driven by state funding, private financing and collaborative public-private partnerships.
Cyprus’ future is one of progress and prosperity, where opportunities abound for those ready to invest in our journey.
(Original photo by TASPHO)
This article first appeared in the December edition of GOLD magazine. Click here to view it.
