Cyprus can attract investors. Keeping them is the real test

Cyprus must pay greater attention to retaining international companies already operating on the island, TechIsland general manager Tanya Romanyukha said on Tuesday, welcoming remarks by Invest Cyprus chairman Evgenios Evgeniou on the importance of regulatory certainty and long-term investor support. Her comments followed the Economist’s 22nd Annual Cyprus Summit in Nicosia on Monday, where Evgeniou addressed the challenges of attracting investment in an increasingly uncertain international environment. Romanyukha, who attended the conference, singled out his observation that “regulation is not the enemy of competitiveness, uncertainty is”, describing it as a particularly important message for businesses operating in Cyprus. Writing on her personal social media account, she added that “Investors do not come for the laws, but they stay or leave because of them.” For the TechIsland general manager, the discussion touched on an issue the technology industry has been raising with policymakers for some time. Attracting international companies is important, but ensuring they have the conditions to remain, expand and continue investing is equally crucial. Romanyukha was particularly specific about what businesses need once they have established themselves on the island. “What decides whether companies stay: housing, schooling, skills, energy costs, and an investor facilitation that does not stop at the entry point and goes beyond,” she said. Her intervention followed Monday’s investment panel, titled Investing in turbulent times: Make it simple, which brought together Evgeniou, European Investment Bank vice-president Ioannis Tsakiris, Cyprus Chamber of Commerce and Industry (Keve) president Stavros Stavrou, PwC Cyprus chairman and chief executive Andreas Yiasemides, and Christina Ioannidou, a partner at Ioannides Demetriou. The discussion examined the challenges facing investors during a period of geopolitical and economic uncertainty, with participants addressing administrative delays, complicated procedures, financing and the predictability of regulatory decisions. Evgeniou stressed the importance of foreign direct investment in diversifying the Cypriot economy, creating employment and attracting international expertise. However, he also acknowledged that businesses expect more efficient dealings with public authorities, clear procedures and the confidence to make long-term investment decisions. The discussion extended to the practical difficulties facing companies, including coordination between government departments, approval deadlines, digital procedures and the handling of commercial disputes. For businesses considering a long-term presence in Cyprus, these issues can carry as much weight as the country’s taxation system, geographical position or access to the European market. Romanyukha also drew attention to the country’s economic achievements, writing that “Cyprus is one of the fastest growing economies in the EU for 4 years running, investment grade is back for the country.” Indeed, Cyprus’ economy expanded by 3.8 per cent in 2025, while the European Commission’s forecast published in May projected growth of 2.3 per cent in 2026 and 2.7 per cent in 2027. The country’s international credit standing has also strengthened considerably since it regained investment-grade status in 2018. Most recently, Fitch Ratings upgraded Cyprus from A- to A in November 2026, revising its outlook from positive to stable. Nevertheless, stronger public finances and favourable credit ratings do not automatically resolve the difficulties businesses encounter in their daily operations. The availability of suitable accommodation for employees, places in schools, skilled workers and affordable electricity can determine whether an international company expands its presence or begins considering alternatives. These concerns have become increasingly important as Cyprus has established itself as a destination for international technology companies. According to figures from FT Locations, presented at Invest Cyprus’ recent 20th anniversary event, software and IT services accounted for 43 per cent of inbound greenfield foreign investment projects between 2018 and 2025, compared with just 6 per cent during 2004 – 2011. TechIsland has also estimated that the technology sector contributes approximately 16 per cent of Cyprus’ GDP, reflecting the increasing importance of international technology businesses to the local economy. Their contribution extends beyond their direct operations, generating employment, demand for professional services and opportunities for local suppliers. At the same time, the growth of the sector has placed additional demands on housing, education, infrastructure and specialist skills, reinforcing the need for government policies that extend beyond attracting new investors. Romanyukha’s remarks also came just days after TechIsland welcomed the government’s decision to revise the registration framework for companies with foreign interests. The revised registration framework, approved by the Council of Ministers on October 27, places greater emphasis on genuine economic activity and the contribution businesses make to Cyprus, regardless of the origin of their capital.