Cyprus makes its case to Israeli investors seeking a foothold in Europe

Cyprus is stepping up efforts to attract Israeli businesses and investors looking to expand into Europe, with investment officials, leading banks and financial regulators setting out new opportunities for cooperation at a business summit in Tel Aviv on Tuesday. The 8th Cyprus-Israel Business & Investment Summit brought together representatives of the two countries to explore ways of strengthening commercial ties, attracting investment and helping companies establish a presence in European markets. Among the speakers, Invest Cyprus CEO Marios Tannousis presented the island as a strategic gateway to the European Union, particularly for Israeli companies considering relocating operations, establishing regional headquarters or expanding their activities abroad. He linked these opportunities to the government’s Vision 2035 strategy, which seeks to strengthen Cyprus’ competitiveness through research, technology, innovation and entrepreneurship, while attracting more international businesses and skilled professionals. Access to the EU single market remains a central advantage, although companies looking to establish operations abroad also need reliable banking services and practical support. This was among the issues discussed by representatives of Bank of Cyprus (BoC), Eurobank and Alpha Bank Cyprus, who examined how the island’s banking sector can help Israeli businesses establish and expand their European operations. The panel brought together George Charalambous of Alpha Bank Cyprus, Panayiotis Chrysostomou of Eurobank and Marina Timotheou Rossou of BoC, who presented the services available to international companies and investors. They drew attention to the sector’s strong liquidity and capital adequacy, alongside specialised international banking units that cater to businesses operating across borders. In particular, the discussion covered financial services for companies in fintech, trade, technology and property development, as well as opportunities in wealth management, private banking and investment services for high-net-worth individuals and family offices. The executives also addressed the practical challenges of relocating to Cyprus, explaining how banks can assist international clients with matters extending beyond everyday transactions, including housing and schooling for their families. Meanwhile, Eurobank senior general manager Stephanos Kassianides said the bank was considering opening a representative office in Israel, a move that would bring it closer to the country’s business community and help develop new commercial relationships. Such a presence could also strengthen support for companies pursuing cross-border activities, particularly as business cooperation between Cyprus and Israel expands into sectors such as trade, technology and innovation. Kassianides went on to discuss the India-Middle East-Europe Economic Corridor (IMEC), expressing confidence in its prospects and pointing to Israel’s importance in the proposed route connecting Asia, the Middle East and Europe. The initiative, he explained, could create further opportunities for trade and investment across the region, with financial institutions also positioned to benefit from closer economic links. The drive for stronger business ties was accompanied by a call for closer regulatory cooperation from Cyprus Securities and Exchange Commission (CySEC) chairman George Karatzias, who addressed the summit through a video message. Karatzias referred to the existing agreements between CySEC and the Israel Securities Authority, which allow the two regulators to exchange information, assist one another and address risks arising from financial activities that cross national borders. Such cooperation has become increasingly important, he said, as artificial intelligence, digital assets and new financial technologies change the way businesses operate and investors access financial markets. At the same time, geopolitical uncertainty, cybersecurity threats and the growing interconnectedness of markets are placing additional demands on regulators, making effective supervision and communication between authorities all the more necessary. Against this background, Karatzias pointed to the EU’s Markets in Crypto-Assets Regulation (MiCA) and Digital Operational Resilience Act (DORA), which have introduced common rules for crypto-asset activities and strengthened financial institutions’ preparedness for digital and cybersecurity risks. He also referred to European efforts to integrate capital markets and strengthen anti-money laundering supervision, arguing that regulation must keep pace with developments without placing unnecessary obstacles in the way of innovation. For Karatzias, the challenge is to encourage investment and technological progress while ensuring that investor protection and market integrity are not compromised. Ultimately, he stressed, trust, transparency and effective supervision are essential to attracting capital and maintaining confidence in financial markets, particularly as businesses and investment flows become increasingly international.