Christodoulides links economic stability with Cyprus’ fintech ambitions

Cyprus aims to become European gateway for fintech investmentPresident Nikos Christodoulides said on Tuesday that Cyprus aims to strengthen its position in financial innovation, presenting the country as a gateway to the European market for international businesses and investors at the Forbes Cyprus’ Next Gen Banking & Fintech Summit in Limassol. Addressing the event, Christodoulides said Cyprus’ economic stability, European Union membership, skilled workforce and growing technology sector gave it a strong foundation to attract investment in financial technology. “Our ambition is to strengthen Cyprus’ position as a reliable, agile and internationally connected European gateway for financial innovation,” he said. He added that the government wanted Cyprus to become a place where fintech companies could establish substantial operations, develop new solutions, attract investment and talent, and expand into European and international markets. The president pointed to Cyprus’ economic performance and improving public finances as foundations for achieving that ambition, despite geopolitical uncertainty and economic challenges affecting Europe and the wider region. The economy had grown by approximately 10 per cent over the past three years, he said, while the government had presented a budget with a fiscal surplus for the third consecutive year. The surplus is projected to reach approximately 4 per cent of gross domestic product in 2027, while public debt is expected to fall below 50 per cent of GDP in 2026 and to around 45 per cent by the end of 2027. Christodoulides also referred to the recent upgrade of Cyprus’ sovereign credit rating by Standard & Poor’s from A- to A, with a positive outlook, describing it as evidence of renewed confidence among international investors and financial markets. “These strong fiscal indicators are the result of deliberate policy choices,” he said, adding that these choices reflected an economy that had strengthened its resilience, restored international confidence and improved its ability to invest in the future. “This is the Cyprus we are building. A country whose stability creates trust, whose European identity provides credibility and whose international outlook opens up new opportunities for investment and growth,” he said. Banking competitiveness was another key priority, with Christodoulides arguing that the strength of local banks should translate into wider economic benefits. “Today, our banks are among the best-capitalised in Europe, with Cyprus and Luxembourg standing out among EU member states for the strength of their banking systems, according to the European Banking Authority,” he said. The government wanted to ensure that banks’ financial strength supported the wider economy, he added, calling for a more competitive banking environment that offered appropriate returns to depositors, improved access to financing and supported productive investment. The president said Cyprus’ advantages included its membership of the EU and the eurozone, strategic geographical position, skilled workforce, established professional services sector and expanding technology ecosystem. These strengths, he argued, made the country a credible entry point to the EU single market, particularly for businesses and investors from the Middle East, Asia and other international markets seeking to establish or expand their European presence. Financial technology represents an opportunity to diversify the economy, Christodoulides said, as changes in financial services create opportunities for both established banks and emerging businesses. Real-time payments, artificial intelligence, digital assets and other financial technologies were fundamentally changing how financial services were developed and delivered, he said. For Cyprus, these developments offered opportunities to attract investment, support business growth and develop new areas of economic activity. Christodoulides said the government had introduced various initiatives and measures and that Cyprus could contribute to the EU’s wider financial transformation by offering a stable and reliable European environment for financial innovation, supported by international connections extending beyond Europe. “Our ambition is not simply to adopt the next generation of financial technology. Our ambition is to help create it,” he said. He added that the government would remain an active partner in efforts to strengthen economic stability, advance reforms and improve conditions for investment and innovation. The aim, he said, was to support agile banks that responded to the needs of the economy, alongside fintech companies developing innovative and secure financial solutions, attracting investment and creating high-value jobs. “We have proved that Cyprus can provide stability even in the most difficult international circumstances,” he stated. “Our next responsibility is to turn this stability into prospects, investment, innovation, international opportunities and lasting competitiveness,” he concluded.