Press Releases

It is a great pleasure to be addressing today’s Technology Summit, the first event of its kind in Cyprus and a truly unique opportunity to bring together some of the most influential people, to share views on a critical issue for our country’s future: Cyprus’ digital transformation.

One of the top priorities of the Deputy Ministry of Research, Innovation and Digital Policy is to exploit Cyprus’ potential to emerge as a technology and innovation hub in the Mediterranean. To this end, we are committed to implementing the National Digital Strategy which sets- forth the aspirational vision for Cyprus to become a fit-for-the-future society, a competitive regional player and a knowledge-based economy, enabled by digital technologies.

Targeted action towards digitizing Cyprus across three dimensions - government-society-economy - is at the heart of this strategy. In the area of eGovernment, projects in excess of €300 million are in progress. These include citizen-friendly services that respond to their real needs and facilitate their daily life, such as the digital platform gov.cy which will comprise all government websites and digital services, the European personal digital wallet, which will enable the citizen to securely request and receive, store, select, combine and share certificates issued by government agencies , the digitization of the judicial system, electronic identities and signatures as well as the installation of modern information systems in key government services, such as public hospitals, the Registrar of Companies, Land Registry, Urban Planning, for the reliable and easier operation of the digital economy.

These new information systems in vital government services and the digitization of the relevant processes and services will significantly upgrade the operation of the public sector as well as user experience, and also drastically reduce the processing time of tasks.

As far as digital infrastructure is concerned an array of projects are being implemented. To this end, the Government is financing the coverage of all remote areas of Cyprus with ultra-highspeed broadband networks, as well as the implementation of smart-city solutions in all municipalities.

In the area of digital economy, actions aimed at facilitating the digital transformation of businesses and encouraging innovative activity are being implemented. For the period 2021-2027, a financing scheme with a total budget of 30 million euros will support the digital transition of businesses, including the use of cutting-edge technologies such as artificial intelligence, blockchain and cloud computing. Moreover, The Deputy Ministry co-finances the Cyprus Digital Innovation Hub, aiming, among others, to accelerate the digital transformation of small and medium enterprises and the public sector.

Additionally, to create a truly digital society, the Deputy Ministry implements actions to upgrade the skills of the entire population, for an economy without social exclusions. In the context of the National Action Plan for Digital Skills, it is envisaged to develop the Citizens’ Digital Academy platform where citizens will have free access to educational material. A number of actions aim at reshaping school curricula, promoting science and technology careers and cultivating an entrepreneurial mindset.

Meanwhile, a comprehensive framework of measures has been adopted to attract high-tech companies. A particularly strong incentive is the new intellectual property tax regime, the so-called 'IP Box'. According to this, every company that owns intellectual property and transfers its rights to Cyprus gets an 80% tax relief on the corporate tax, which means that their taxable income is reduced from 12.5% to 2.5%.

Other tax incentives include the extension and expansion of tax exemption for investment in innovative companies, the expansion of the existing tax benefit applicable to non-domicile employees and the incremental (compared to the actual) tax deduction for research and development expenditure.

In addition, a Business Facilitation Unit has been established for companies operating or wishing to operate in Cyprus. Through this unit we achieve a significant reduction in the operational costs of businesses and the state, while making the country an attractive destination for international companies. To help these businesses increase their visibility so as to attract investments, we are in the process of creating an online platform for start-ups, innovative and high-tech companies.

It is worth noting that the government itself is already utilizing high technology such as blockchain, AI and cloud systems. Artificial intelligence will be used for fraud detection mechanisms in social security systems. Blockchain is used in a pilot project aiming at simplifying the certification of academic qualifications. Also, Government IT systems will be running in a hybrid cloud environment in the near future.

Dear friends,

Considering that the Summit is focusing on three areas: digital transition, cybersecurity and smart cities, allow me to refer to the steps and initiatives taken in this respect.

The Deputy Ministry is coordinating the development of the "CY Smart City Platform", a project of €35 million, financed by the Recovery and Resilience Facility. In the first stage, three smart solutions will be implemented: smart parking, smart lighting, and smart waste management. The tender documents have been submitted to the Public Procurement Department for the required approval, to be followed by the request for proposals.  The "Smart Cyprus" project is expected to contribute to the optimal use of the country's resources, the protection of the environment and the implementation of the circular economy, always aiming to improve the quality of life of citizens. The Permanent Secretary of the Deputy Ministry will elaborate on this project later during the panel discussions.

At the same time, particular emphasis is placed on cybersecurity.

In today’s unstable geopolitical context, cyberattacks have been intensified. I think we all agree that no organization or government is immune. Our continuously growing reliance on digital technologies necessitates action against cyberattacks, as their effects can be more damaging than ever before, posing a viable threat for key areas of our lives. Hackers are now using AI, machine learning, and other emerging technologies to launch increasingly sophisticated attacks.

According to the World Economic Forum’s Global Risk Report 2023, cybercrime and cyber insecurity are ranked among the top 10 global risks in the next two to ten years. In 2020 alone, the FBI estimated more than $4 billion was lost to cybercrime in the United States.

 Allow me to quote the Prime Minister of Albania Edi Rama who stated that “if cybercrime was a state, it would be the third largest economy in the world after the US and China.”

It is therefore crucial for both the private and public sectors to strengthen our cyber resilience.

I am afraid I can confirm that over the last couple of months, we felt here in Cyprus how imperative this need is.

We have thus embarked on an expanded yet practical program to enhance our security capabilities in the entire spectrum of security processes and controls. In the framework of the National Cyber Security Strategy, the National Coordination Center has been established in December 2021 to finance cybersecurity measures by Small and Medium Enterprises.   

In an effort to close the education gap, the Deputy Ministry has recently launched a campaign to raise awareness on cybersecurity by providing guidelines to citizens and businesses for prevention against cyberattacks.

One of the lessons learned after the recent incidents is that: in order to ensure resilience, collaboration is fundamental. The government is forming strong partnerships at all levels. For instance, the Deputy Ministry signed a memorandum of understanding with Poland to address common challenges. We are also capitalizing on opportunities offered by the various European funding programmes, such as Digital Europe and the Connecting Europe Facility.

Dear friends,

To conclude, I would like to congratulate the organizers and the sponsors of the 1^st Cyprus Technology Summit. I am sure that very interesting and fruitful conversations will take place in the next few hours which will contribute to further promoting and taking advantage of technology advancements in Cyprus. I can reassure you that the government does recognize the pivotal role of technology in the economy and will continue to put forward policies to further support all relevant activities.

Thank you.

(MH)