Nicosia businesses seek reforms as government steps up investment drive

Efforts to attract investment, reduce bureaucracy and improve business conditions in Nicosia were discussed between Deputy Minister to the President Irene Piki and the capital’s Chamber of Commerce and Industry (Evel), as businesses continue to press for reforms. The meeting brought together Piki and the president of the Nicosia Evel, Michalis Mousiouttas, alongside members of its board of directors, with discussions focusing on the challenges facing local enterprises and opportunities for further economic development. In a statement posted on X on Sunday, Piki stressed the importance of closer cooperation between the government and business community in addressing obstacles to investment and improving competitiveness. She said meaningful dialogue and cooperation between the public and private sectors were essential to creating a more competitive business environment, describing the Cyprus Chamber of Commerce and Industry (Keve) and its district chambers as valuable government partners. The discussions come as the Nicosia chamber continues to raise concerns about bureaucracy, labour shortages, infrastructure and rising operating costs, while calling for greater support for businesses in the capital. At the chamber’s general assembly in November 2025, Mousiouttas called for a more predictable and stable operating environment, warning that administrative delays and complicated procedures were holding back business activity. He also identified traffic congestion, energy costs and water shortages as important concerns, while supporting development plans involving the former state fair grounds and the Sopaz area. The chamber has since continued its discussions with government officials on matters affecting local businesses. In July, it met Labour Minister Marinos Mousiouttas to discuss labour shortages, pension reform and the implementation of the EU Pay Transparency Directive. A further meeting with Transport Minister Evi Tsolaki in September focused on development and infrastructure issues affecting Nicosia. Meanwhile, the government has introduced measures intended to simplify procedures and make Cyprus more attractive to domestic and foreign investors. Among these is the Business Support Centre, launched in May 2025 as a central point of contact for investors seeking to establish or expand their operations. The centre brings together government services responsible for business facilitation, investment promotion and licensing, allowing investors to obtain guidance and assistance without dealing separately with multiple departments. For qualifying strategic developments, the government has introduced a fast-track mechanism under which planning and building permits are expected to be issued within 12 months, supported by dedicated project coordinators. The initiative forms part of a wider effort to reduce administrative delays and improve the country’s investment environment. For Nicosia, investment also involves efforts to revive commercial activity in the historic city centre. The municipality has secured €10.8 million for the redevelopment of Ledra and Onasagorou streets under the Green Line revitalisation programme. The project covers improvements to building facades and public spaces, although concerns have been raised by shopkeepers about the potential disruption to their businesses during construction. In September, the municipality said consultations were taking place with affected businesses and residents, with measures being considered to limit disruption. Separately, a government scheme worth €10m was established to encourage new businesses to operate within Nicosia’s walled city, support existing enterprises and create employment opportunities. The scheme, structured around annual funding allocations, was designed to support the economic regeneration of the historic centre and remains scheduled to run until the end of 2026. The chamber has also previously highlighted government support for industry, including €226m in schemes under the Thalia 2021 – 2027 programme and a further €137m through European recovery and energy-related funding. These measures are intended to support manufacturing, innovation, digital transformation and the energy transition, although businesses have continued to call for simpler procedures and faster implementation. Piki’s latest discussions with the chamber therefore form part of a broader dialogue over how national investment policies can translate into practical improvements for businesses operating in the capital. No specific new investment commitments, funding allocations or reform deadlines were announced following the meeting.