Press Releases

It is with great pleasure that I join you today for the 12th Invest Cyprus International Investment Awards, a celebration for foreign investors in our country.  I would like to extend my warm congratulations to Invest Cyprus for their long-lasting commitment in facilitating investors who seek opportunities in Cyprus. And I would also like to thank all the investors for their continuous trust in our country’s potential and for contributing to our country’s diversity and growth.

Τhe Government approaches you as our partners in our joint mission to unlock opportunities, foster innovation, and drive sustainable growth that benefits all citizens.

Over the last years, our country has embarked on a transformative journey, a journey marked by challenges, but also remarkable opportunities. We have remained steadfast in our determination to forge ahead.

Our target is clear: a thriving and resilient economy characterised by high competitiveness, ease of doing business, and sustainability. An economy that is adaptable to the continuous changes demanded by our very complex global system.

Our economic policy is anchored on three core pillars. To ensure a stable macroeconomic environment, which is the foundation of a successful economy, we adhere to a responsible fiscal policy, this is the first pillar of our policy. Particularly, at times of growth, the implementation of a responsible fiscal policy allows us the flexibility to take corrective measures when external shocks have an impact on the economy. Our planning for the next year’s budget has begun and, indicatively, I will mention that already this month we have planned an extensive discussion at the Council of Ministers regarding the budget of 2025, as we want to ensure that it reflects our policy priorities for the year in the most effective way and always within the remits of our fiscal position.

At the same time, we focus on enhancing the conditions for a stable financial sector, this is the second pillar of our policy. An important step in that direction was the bolstering of the foreclosures framework in December 2023, after years of discussion in the Parliament, enabling banks to reduce non-performing loans and to attract new capital. Thus, through a prudent fiscal approach and supported by a robust financial system, we foster a resilient and dynamic macroeconomic environment that can support microeconomic activity.

And this brings me to the third pillar of our policy which is the continuous implementation of structural reforms. Our priorities are in line with the long-term strategy “Vision 2035”, focused on the green and digital transition of the country, as well as on established and new sectors that hold prospects to support strong and diversified economic activity on the island. In this framework, our government focuses on key reforms and policies that enhance the competitiveness of the economy. To name but a few:

• the revision of the tax system, which will reduce the administrative burden for taxpayers and businesses and ensure a fairer taxation,
• the recent adoption of a new spatial policy for renewable energy sources, which together with the one stop shop for energy projects will simplify the relevant licenses through an integrated digital platform,
• and the launch of the strategic projects law through which licensing will be streamlined.

Our coordinated continuous efforts, as outlined, have significantly bolstered the performance of the Cypriot economy. This is underscored by recent upgrades from two- three major international rating agencies.

Additionally, a clear indicator of our economic strength was the successful issuance of a €1 billion seven-year bond last week in international markets. This bond achieved a favourable interest rate, reflecting strong investor confidence in Cyprus's economic trajectory. Notwithstanding the fact that the European Commission’s projections show Cyprus as one of the frontrunners in economic growth in the years to come.

While we focus on measures and policies that bolster our competitiveness, we recognise that maintaining continuous and direct communication with foreign investors on the island, at the highest level, is very crucial. In this light, the Presidency, again, in collaboration with Invest Cyprus has organised two flagship events with investors in the past year, which have resulted in the revision of the Strategy for Attracting Business and Talent. This proactive engagement allows us to tailor and put forward policies that are not only impactful, but also aligned with market needs and realities.

We are committed to continuing this open dialogue with you, in order to gain valuable insights into bottlenecks and challenges that we face and to address them swiftly, ensuring that our economic environment remains conducive to growth and innovation.

As we reflect on the comprehensive approach we follow to boost Cyprus’ competitiveness internally, through responsible economic policies, ambitious reforms and an open dialogue with investors. It is evident that growth is fundamentally linked to our global standing. It is our firm belief that a robust foreign policy complements and amplifies our internal efforts, ensuring that our country not only thrives domestically, but also demonstrates leadership and brings a positive impact on the wider region and globally.

The Government has worked, for example, closely with the United States of America (USA), the United Arab Emirates (UAE), the European Union and others to deliver the Amalthea Cyprus maritime corridor initiative as an important supplementary route to deliver desperately needed humanitarian aid to civilians in Gaza. Amalthea is the embodiment of Cyprus’s role as a strategic pillar of security and stability in the turbulent region of the Eastern Mediterranean.

In addition, we have been further deepening our partnership with the United Kingdom of Great Britain and Northern Ireland (UK) and the USA on a range of issues, including on security, while we have been actively exploring opportunities for investment cooperation with the Gulf countries and aiming to focus more on the Indian market. Only last month, in Washington DC Foreign Minister Kombos and the USA State Secretary established a strategic dialogue with the USA, a milestone step in our foreign policy, with the first dialogue taking place in Nicosia in September.

Furthermore, recognising the need to increase awareness for the changes that are taking place in our country and its immense potential as a business and investment destination, the Presidency in collaboration with Invest Cyprus has launched an international campaign for the branding of the country. In this campaign, we invite you to join us as key partners, leveraging your firsthand experience of what Cyprus has to offer. Your unique insights make you the ideal ambassadors and representatives for this campaign. We believe that your support and active participation will be invaluable in showcasing Cyprus's strengths and opportunities to the global business community.

Concluding, I want to reiterate our heartfelt gratitude to each and every one of you. Your unwavering trust in Cyprus and your contributions have been instrumental in our journey towards economic resilience and growth. We have shared our vision for a thriving, competitive, and sustainable economy, and we have highlighted the critical role that your investments play in this mission.

Your support in our upcoming international branding campaign will be pivotal. Together, we can ensure that Cyprus not only continues to thrive domestically but also stands as a beacon of stability, innovation, and leadership on the global stage.

Thank you for your continued trust and partnership and congratulations to all the awardees tonight.  

(RM/MS)