**Digital Funding and Global Growth Top CITEA Agenda**
Cyprus' technology sector is at a critical juncture, as local companies express the urgent need for enhanced financial support to compete on a global scale. This sentiment was echoed during a recent meeting between a delegation from the Cyprus Information Technology Enterprises Association (CITEA) and Trade Minister Michalis Damianos. The discussions primarily revolved around the themes of business digitalization and the international expansion of Cypriot technology firms.
CITEA has highlighted that local businesses require quicker access to funding to adapt to the rapid pace of digital transformation. The association is advocating for streamlined procedures under existing digital transformation support schemes, along with increased budgets that would enable more companies to invest in modern technologies. Such investments are seen as essential for improving productivity and maintaining competitiveness in an increasingly digital marketplace.
A recent digital support scheme, which featured a budget of €14 million, exemplifies the demand for financial assistance. This initiative, which opened on May 20, 2025, offered grants covering 50% of eligible investments, capped at €50,000 per company. However, the scheme was fully subscribed by the following day, underscoring the high demand for financial backing among local firms.
While the conversation addressed the need for technological adoption, CITEA also expressed concerns regarding the practical support available for Cypriot technology companies aiming to enter international markets. Participation in major exhibitions is crucial for smaller firms seeking to connect with new clients, investors, and commercial partners. However, the associated costs—covering exhibition space, travel, accommodation, and promotional activities—can be prohibitive for many local businesses.
CITEA President George Malekkos emphasized the potential of Cypriot technology companies, stating, “They have developed valuable products, expertise, and strong growth prospects abroad.” Yet, he pointed out that the current financial support for participation in international exhibitions only covers about 10% to 15% of the actual costs, which he deemed insufficient for fostering substantial international expansion.
As the technology sector awaits clearer commitments from the government, Malekkos expressed hope for a specific announcement regarding new and increased funding for digital transformation schemes before the end of the year. He described the discussions with Minister Damianos as constructive and reaffirmed CITEA's commitment to collaborating with relevant authorities to support innovation, business growth, and the global reach of Cyprus' technology sector.
The outcome of these discussions and the subsequent actions taken by the government will be crucial in determining the future trajectory of Cyprus' technology landscape. As the demand for digital solutions continues to grow, the ability of local companies to secure the necessary funding and support will play a pivotal role in their success both domestically and internationally.