Cyprus took the spotlight at the Investopia Global Mediterranean Forum in Limassol this week, with Energy Minister George Papanastasiou reaffirming the country’s commitment to building closer ties with the United Arab Emirates, particularly in areas such as energy, innovation, tourism and sustainable development.
In a panel alongside UAE Minister of Economy Abdulla bin Touq Al Marri, Papanastasiou said the time is right to deepen the partnership.
“Now is the time to do business,” he stated, stressing that Cyprus has moved away from acting as a ‘supermarket’ economy and is now pursuing targeted investments, with the UAE a key priority.
He laid out four main pillars guiding the Cyprus-UAE relationship, economic complementarity, shared geopolitical interests, sustainability, and a common vision for the Eastern Mediterranean. “
The Eastern Mediterranean can be seen as a space of peace and prosperity,” he said, noting that both countries are aligned on this goal.
Referring to sustainable investments, he described a “corridor for their connection” as essential to future cooperation, while also emphasising how Cyprus, after lessons learned from European overdependence, is now aiming for greater independence and resilience.
“There is great dynamism,” the Minister said.
“We can use this relationship to upgrade what we are already doing.” He also pointed to B2B partnerships as a key next step, and identified digital transformation, tourism, luxury developments and sports as promising areas of collaboration.
Energy remained on the agenda, with Papanastasiou saying there is scope to cooperate on solar and wind, though he emphasised that hydrocarbons “should not be the focus”, especially given the UAE’s advanced experience in sustainable energy.
Cyprus, he said, is well positioned to host international headquarters and now operates a dedicated investor support centre, a ‘one-stop shop’, for companies seeking to establish a presence in the country.
He also acknowledged the important role played by organisations such as Invest Cyprus and the Cyprus Chamber of Commerce and Industry (Keve), noting that strategic sectors include education, healthcare, energy, connectivity and tourism.
During his opening remarks, Papanastasiou described it as “an honour for Cyprus” to be part of the Investopia platform.
He warned that “no state can face uncertainty alone,” and called for deeper knowledge-sharing and joint initiatives.
Speaking on the Cyprus-UAE bond, he added, “They are not just diplomatic relations, they are partnerships,” citing cultural exchanges and business collaboration.
He described Cyprus as “a reliable partner”, with a flexible economy, growing GDP, falling unemployment and strong investment in innovation and tech.
The forum also featured a roundtable titled ‘Investment Frontiers: Connecting Markets Across the UAE and Mediterranean’, which explored how Cyprus could serve as a strategic hub for Gulf capital moving into the region.
UAE Deputy Minister of Investment Mohamed Al Hawi outlined five pillars supporting the UAE’s investment ecosystem, a competitive tax regime, transparent regulation, high quality of life, access to global talent, and strong connectivity. “There are rarely surprises, and when they arise, they are positive,” he said of the regulatory landscape.
Keve president Stavros Stavrou said the chamber is committed to ensuring that foreign businesses in Cyprus feel supported.
He noted that Cyprus is now pursuing ‘targeted investments’ and offers advantages such as strong education, healthcare and quality of life.
He also mentioned the “cultural proximity” with the UAE, and described Cyprus as a natural bridge in the Eastern Mediterranean.
EY Cyprus partner Andreas Anastasiou agreed, describing Cyprus as an increasingly attractive destination for international professionals.
He pointed to the stable political climate, transparent legal system based on English law, and competitive tax structure.
He also referred to incentives for investment in R&D and other high-value sectors.
The discussion was moderated by Invest Cyprus CEO Marios Tanousis.
Banking transformation was also on the agenda, with Bank Audi’s Mouayed Makhlouf warning that banks must adapt or risk becoming irrelevant.
“If we don’t adapt, we will become obsolete,” he said during a session on the future of banking.
He argued that the traditional model of visiting a physical branch is “a thing of the past”.
Customers now want banking to work like Netflix or Amazon: fast, seamless, and all-in-one. “Security, loan, payments: I want everything in an app that’s easy to use,” he said.
Makhlouf noted that digital banking has grown globally by over 30 per cent and cited his own experience helping to launch neo Bank Audi in Lebanon, which attracted 120,000 customers in just six months.
Hellenic Bank’s deputy CEO Haris Hambakis also took part in the discussion, flagging key challenges such as overregulation, fierce competition, and cybersecurity.
While younger generations demand fully digital services, he noted that banks must also cater to an ageing population with more specialised needs.
Hambakis spoke of Eurobank’s recent investment in Cyprus, calling it no coincidence.
“We can play a central role in supporting and facilitating,” he said.
“We are very, very optimistic. It is a challenge but also an excellent opportunity for both our country and the region in general, to cooperate.”
Another highlight came from Cyprus’ Chief Scientist for Research, Innovation and Technology, Demetris Skourides, who presented the country’s long-term vision for tech and sustainability.
“Cyprus is the bridge that shapes the digital economy of tomorrow,” he said, referring to the government’s ‘Vision 2035’ strategy.
He outlined over 240 national initiatives spanning innovation, digital transition, education, green growth and more, with more than €228 million already committed and a further €45 million in Research and Innovation Foundation (RIF) funding due in 2025.
Over €28 million has been channelled to more than 100 start-ups, alongside new tax breaks for angel investors and founders.
Public services have already been digitalised, with full 5G coverage nationwide since 2022, and 100 per cent fibre coverage expected by 2025.
Digital adoption among Cypriot businesses and SMEs exceeds the EU average, while uptake of public e-services is rising by over 16 per cent annually.
Skourides described Cyprus as ‘a hub country’ connecting Abu Dhabi, Dubai, the wider Middle East and Europe.
He stressed that innovation is not a standalone policy but a tool for long-term development and international competitiveness.
“The challenge is not to follow developments, but to shape them,” he said.
In another discussion, Hellenic Bank chairperson Petros Christodoulou presented Cyprus as a reliable, mature and stable platform for sustainable investments.
“Cyprus is ready. Our systems, our people and our institutions are aligned to transform investment momentum into progress,” he said.
He emphasised the island’s financial and political stability, legal transparency, and full alignment with EU energy and investment policies.
Green transition, digitalisation and cross-border energy projects are central to Cyprus’ strategy, he noted, pointing to interconnections with Greece, Israel and Egypt that reinforce regional energy resilience.
“Cyprus is a regional laboratory,” he said, citing innovation efforts in energy storage, desalination and green hydrogen.
Christodoulou described the recent €1.3 billion acquisition of Hellenic Bank by Eurobank Group as “a practical demonstration of confidence in the Cypriot system”.
He said the merged entity, Eurobank Ltd, will be a “single banking organisation with reach and multiple growth potential”.
Eurobank, with operations in Greece, Bulgaria, the UK and Luxembourg, is expanding its cross-continental footprint, including a planned representative office in India to facilitate capital flow between Asia and Europe.
He also referred to Eurobank’s collaboration with LTI Mindtree and the launch of the Agentic AI and Digital Centre at the CYENS Centre of Excellence in Nicosia.
