Cyprus wants fintech’s jobs and investment, not just its company registrations

Attracting another international fintech company is no longer enough for Cyprus. The government wants the jobs, expertise and investment that come with it, as it looks to turn the island’s growing financial technology industry into a more substantial contributor to the economy. Energy, Commerce and Industry Minister Michael Damianos delivered that message at the Cyprus Fintech Summit 2026 in Nicosia on Thursday, where business leaders, investors and technology specialists gathered to examine the future of financial services, artificial intelligence and international investment. Cyprus, he argued, has the opportunity to become a European gateway connecting companies with India, the Gulf and emerging African markets. But its success will depend on what those connections actually produce. “The value of these connections becomes clear when a company finds a partner, enters a new market or builds a team here,” he told delegates, drawing attention to the commercial opportunities behind the country’s international ambitions. The distinction is particularly relevant for Cyprus, which has spent years attracting overseas financial services and technology businesses through its EU membership, international connections and business environment. Now, the government wants more of those companies to put down roots. “Our ambition is for Cyprus to be a trusted, internationally connected European gateway for financial innovation,” Damianos said, explaining that the objective was for businesses to establish substantive operations, develop new solutions and use the island as a base for growth. The minister linked those ambitions to the wider transformation of the Cypriot economy, pointing to the European Commission’s 2026 Country Report, which highlighted the contribution of increasingly diversified service exports and high-value-added activities to economic growth. Financial technology, he explained, offers opportunities ranging from digital payments and regulatory technology to secure financial services serving international markets. But the economic benefits depend on more than the number of businesses choosing Cyprus as their European base. “The value for Cyprus lies in turning innovation into productive investment, skilled employment and stronger demand for local expertise,” Damianos said, adding that the country needed an environment in which established financial institutions and technology businesses could work together. “Success is not simply a matter of attracting more companies, but of building capabilities and lasting economic relationships here,” he added. His remarks come as Cyprus’ financial technology sector continues to expand, particularly in payments, an area in which the island has developed an increasingly international business presence. Preliminary industry research presented in October estimated that Cyprus was approaching 200 fintech companies, with approximately 55 per cent operating in payments. That expansion has created opportunities for financial services, professional advisers and technology specialists, although it also raises questions about how the industry can diversify, develop local expertise and support businesses capable of competing internationally. These questions were reflected in the summit programme, which brought together representatives of the Central Bank of Cyprus (CBC), Cyprus Securities and Exchange Commission (CySEC), Bank of Cyprus (BoC), IBM, PwC, KPMG, EY and international technology companies. One of the central issues was how Cyprus can encourage innovation without compromising the financial oversight and consumer protection required of an EU jurisdiction. Damianos acknowledged that businesses needed clear rules and reliable guidance before committing to a new market, with the government seeking to simplify the process of establishing and expanding operations. That effort forms part of the forthcoming Strategy for Businesses and Talent for 2027–2030, which is intended to strengthen the country’s appeal to international investors and skilled professionals. “As we develop our Strategy for Businesses and Talent for 2027–2030, our vision is for Cyprus to be a place where businesses and talented people choose to establish themselves, stay and grow,” he said. The strategy envisages simpler digital procedures, more coordinated business support and stronger connections between companies, universities and research institutions. For fintech businesses, the practical implications could be considerable. Companies entering a new market must understand which authorities they need to approach, what regulatory requirements apply and whether the necessary expertise is available locally. “A business should be able to understand which governmental authority to approach, what requirements apply, and where to obtain reliable guidance from,” Damianos said. The ministry’s Business Support Center is intended to provide more coordinated assistance to businesses establishing or expanding their activities, although the minister made clear that investment support and financial supervision must remain separate responsibilities. The government, he explained, wanted to help businesses establish roots in Cyprus while respecting the authority of the institutions responsible for financial regulation. “Clarity and effective support must go hand in hand with robust supervision and consumer protection,” he said. The balance between innovation and regulation was also examined during a summit discussion involving Evgenia Christodoulou, executive director of the Central Bank of Cyprus, and Evi Rossidou Antoniadou of Ellinas Finance and Abio Group. For a sector developing increasingly sophisticated digital products, regulatory clarity is especially important. Companies must be able to expand and compete, but customers must also have confidence that their money and personal information are protected. And that responsibility becomes more complicated as artificial intelligence takes on a greater role in financial services. Cyprus Chief Scientist Demetris Skourides was among the participants examining the country’s technological ambitions and the opportunities presented by AI, which is changing how banks and financial institutions serve customers, manage information and assess risks. In comments released before the event, Skourides explained that “Cyprus’ AI Strategy 2032 focuses on productivity and customer experience,” while also seeking to unlock value across industries and the public sector. However, he placed particular emphasis on cooperation between businesses, investors and government, arguing that incentives such as the intellectual property tax regime and research and development allowances were only part of what companies needed to expand. He described the summit as an opportunity to build partnerships that allow businesses to use technology responsibly, comply with relevant requirements and reach new markets. The question is particularly important for Cyprus, where international technology companies operate alongside smaller businesses seeking investment and opportunities to expand. Skourides’ emphasis on partnerships also reflected the wider challenge of turning the country’s growing technology presence into commercial activity that benefits the local economy. A discussion involving IBM, Newcytech and PwC Cyprus explored the future of banking as businesses move towards more autonomous AI systems, with questions surrounding trust, accountability and financial inclusion becoming increasingly pressing. Other sessions focused on cybersecurity, including AI-assisted attacks, deepfake impersonation and the protection of financial infrastructure. Damianos connected those challenges to something more immediate: the experience of ordinary people using financial services. “Customers should understand what a service does, what it costs and how their information is used,” he said, arguing that technological development must be accompanied by transparency and public confidence. “Cybersecurity, consumer protection and financial literacy belong to the design and delivery of financial services,” he added. But technology and regulation are only part of the picture. Another challenge is ensuring that Cyprus has enough people with the skills needed to support a growing industry. The minister called for stronger cooperation between employers and educational institutions, particularly in developing practical experience among students and graduates. “Talent is just as important,” he said, explaining that companies expanding in Cyprus needed employees capable of developing products, understanding markets and managing risks. “Businesses can help develop these skills through paid work placements, scholarships and projects with universities,” he added, highlighting the benefits for students and employers alike. The issue was also reflected in the summit’s discussions about the future of work, with AI specialist Tariq Qureishy and Steyn Heckroodt examining how automation could change employment, corporate decision-making and the skills required across financial services. For smaller Cypriot companies, access to expertise is only one of the difficulties associated with international growth. A discussion involving Cyprus Chamber of Commerce and Industry (Keve) secretary-general Philokypros Roussounides, alongside representatives of Ellinas Finance, Klidi.io, KPMG Cyprus and EY Cyprus, examined the challenges facing businesses seeking to move beyond their early development stages. Access to investment, international business networks and the ability to expand into new markets were among the issues on the agenda. Roussounides had also stressed the importance of turning international contacts into practical business opportunities, particularly for Cypriot companies seeking access to larger markets. “Business happens when the right people sit around the same table and speak openly,” he said in remarks released before the summit, explaining that the Chamber wanted its international connections to produce partnerships that businesses could actually use. That ambition was reflected in the closed high-level investment round table, organised by the Chamber in cooperation with Nicosia Municipality for Friday, November 13, bringing together government representatives, investors and diplomatic officials. The discussions were designed to identify potential projects and investment opportunities involving India, Gulf countries and Kazakhstan, with the Chamber seeking to strengthen commercial relationships between Cyprus and those markets. Research also featured in the summit programme, with Alexander Apostolides of the Cambridge Centre for Alternative Finance presenting preliminary findings from a study examining the sector’s size, development and regulatory environment. However, the government’s ambitions are not confined to companies already operating on the island. The international opportunities were particularly apparent in the contribution of India’s High Commissioner to Cyprus, Manish, who addressed the summit on Thursday and drew attention to the scale of India’s digital transformation. According to a summary of his address released by the Indian High Commission, India’s Unified Payments Interface (UPI) processed more than 25 billion transactions in October 2026 alone. The latest figures put the total at 25.47 billion transactions, worth approximately 31.53 trillion Indian rupees, illustrating the scale of a payments system that has become central to everyday financial transactions across India. For Cyprus, the significance lies in the potential for closer cooperation between Indian payment providers and European financial institutions. Manish discussed efforts to improve interoperability between India’s UPI infrastructure and Europe’s TARGET Instant Payment Settlement (TIPS) system, which could eventually make cross-border payments easier for businesses, tourists, students and workers. The High Commissioner also referred to opportunities involving GIFT City, India’s international financial services centre, and existing agreements intended to strengthen cooperation in capital markets, digital banking and financial technology. These relationships are already producing tangible developments. In May 2026, Ellinas Finance became the first Cypriot company admitted to India’s NSE International Exchange at GIFT City, following an agreement between the Indian exchange and the Cyprus Stock Exchange aimed at encouraging closer capital-market cooperation. The secondary admission was structured as a non-trading listing, leaving the company’s Cyprus Stock Exchange listing unchanged, but it provided a concrete example of the financial links being developed between the two countries. At the time, Ellinas Finance chief executive Nearchos Petrides described the move as a responsibility the company approached with discipline and a long-term perspective. “It reflects the strength of our governance, the maturity of our operations, and our ambition to position Ellinas Finance within a more globally connected capital markets environment,” he explained during the May listing ceremony. The development also illustrated how smaller Cypriot financial businesses could use international partnerships to improve their visibility and establish relationships with overseas institutions. India and Cyprus have separately pursued cooperation in digital payments, including an agreement between NPCI International Payments Limited and Eurobank Cyprus intended to support UPI-linked cross-border payment services. For Cyprus, such initiatives present opportunities to connect local financial institutions with a much larger market while providing Indian companies with potential access to European business networks. The High Commissioner also identified possibilities for closer cooperation through the India–Greece–Cyprus Business and Investment Council, particularly in financial technology, venture capital, trade finance and digital connectivity. Those ambitions carry into the summit’s accompanying Business & Investment Forum on Friday, November 13, where representatives from government, financial institutions and international businesses are scheduled to examine investment opportunities involving India, Kazakhstan, the United Arab Emirates, Saudi Arabia and emerging African economies. Discussions will cover cross-border banking, payments, investment funds, technology infrastructure and trade finance, alongside opportunities connected with the India–Middle East–Europe Economic Corridor. For Cyprus, stronger links with these markets could help local companies expand internationally while encouraging overseas businesses to establish a presence within the European Union. The summit’s organisers, Andreas Orphanos of novusalpha, Andreas Livadiotis of XValley Technologies and Xeni Anastasiou of Brain Cube Communications, have also emphasised the importance of moving beyond conference discussions. In a joint statement issued before the event, they explained that Cyprus already had many of the ingredients needed to develop its international business presence, including an established financial services industry, an expanding technology sector and commercial connections with Europe, India, the Gulf and Africa. What was missing, they argued, was a common platform bringing together the people capable of turning those advantages into business. Orphanos separately described the objective as building a business community where policymakers, investors and innovators could establish trusted partnerships extending beyond the summit itself. For the organisers, bringing the event to Nicosia for the first time was part of that effort, placing the discussions closer to the institutions responsible for economic policy and investment. And for Cyprus, those relationships could help turn its international connections into new sources of business for local firms. The opportunities are not limited to large international companies. A smaller Cypriot business selling products overseas, for example, needs reliable payment services, predictable transaction costs and access to customers in different markets. Damianos offered precisely that example, explaining that “A small business selling across borders needs to get paid quickly and know what the transaction will cost.” Financial institutions, meanwhile, need to protect customer information and manage risks as they expand, while technology businesses require specialised knowledge and an understanding of the rules governing unfamiliar markets. Each presents an opportunity for cooperation between companies, investors and service providers. But the measure of success will be what follows the introductions, from businesses choosing to establish themselves in Cyprus to new partnerships, employment opportunities and services reaching overseas markets. Cyprus has already demonstrated its ability to attract financial and technology companies. The more difficult task is ensuring that investment produces lasting economic benefits, from new products and skilled employment to opportunities for local firms and graduates. Damianos returned to that point in his closing remarks, urging participants to develop practical cooperation rather than allow promising ideas to remain confined to conference discussions. “We want Cyprus to be a place where financial innovation is not only discussed, but developed responsibly, put to work and taken to new markets,” he concluded.