Press Releases

It is a great honour and a pleasure to be addressing the esteemed participants of this excellent initiative, which once again highlights the strong and enduring relations between Cyprus and Israel.

I would, therefore, like to start by extending my deepest gratitude for its organisation to the Cyprus Chamber of Commerce and Industry and the Cyprus – Israel Business Association, and, of course, to you dear friend, Ambassador of the State of Israel to Cyprus, for your tireless efforts towards further enhancing the bond between our nations. It is through such collaborations that we continue to build and expand the possibilities of shared success.

We are all here today, because we realise that Cyprus and Israel are two countries that not only share geographical proximity, but also a vision for the future rooted in innovation, technology, and sustainable growth.

The government of Cyprus is pleased to note that Israeli businesspeople are present in many sectors of the Cypriot economy, with activities and investments in transport, tourism, information and communications technology (ICT), energy, health, real estate, and other industries. Moreover, in recent years, our two countries have made significant strides in enhancing bilateral trade in both goods and services.

In fact, Israel today is one of the main trading partners of the Republic of Cyprus, as well as the second most important market for the tourism sector. Domestic exports of Cypriot products to Israel reached €94 million in 2024, recording an increase of 53% compared to 2023, whilst exports of services from Cyprus to Israel reached €450 million in 2023, for an increase of 25% compared to 2022. Foreign Direct Investment from Israel to Cyprus, in 2023 stocks, reached €6.75 billion.

The plethora of Israeli companies that are active in Cyprus benefit from the modern and simple tax, legal and regulatory frameworks, including the Cyprus Intellectual IP Box Regime that is particularly beneficial for high-tech companies. These frameworks are conducive to doing business and increase the island’s international competitiveness, with Israeli technology companies, especially the ones operating in industry verticals such as Fintech, Cybersecurity and Software-as-a-Service (SaaS), considering the business environment in Cyprus to be favourable for continuous growth.

Ladies and gentlemen,

As you are well aware, Israel is one of the most important partners of the Republic of Cyprus in the field of energy, currently involved in several projects of crucial importance to our country. Inter alia, an Israeli company, NewMed Energy, is part of the consortium active in the development and commercialisation of the Aphrodite gas field in the Cypriot Exclusive Economic Zone, whereas our two countries are also working together to promote the Israel – Cyprus – European Union (EU) electricity interconnection.

Moreover, we maintain close cooperation on gas issues, at bilateral and multilateral level, as member countries of the East Mediterranean Gas Forum.

Baromar, another company from Israel, which is doing very promising work on sustainable, underwater Compressed Air Energy Storage, is collaborating with The Cyprus Institute on a pilot project in Cyprus, utilising their storage solution to store energy from renewables.

From the blossoming cooperation in the energy sector to the collaborative efforts in research and innovation, we continue to find new avenues to grow together. In particular, the potential for collaboration in the field of digital transformation is immense, as Israel’s groundbreaking achievements in areas such as cybersecurity, artificial intelligence, and life sciences, are widely recognised.

Within this framework, the Cyprus – Israel state cooperation in research and innovation programmes, involving businesses and research organisations, reinforces ties between the research communities of both countries, driving scientific research and joint development of innovative solutions in the fields of digital technologies, advanced materials, agri-food, marine and maritime systems, renewable energy, space technologies, health, and the environment. This cooperation is actively maintained under the Cyprus Research and Innovation Foundation (IDEK), the Israel Innovation Authority, and the Israeli Ministry of Innovation, Science and Technology, and through the aforementioned initiatives, we aim to foster an environment conducive to further collaboration, with a particular focus on cutting-edge technologies that drive economic development.

Dear friends,

Developments in the turbulent region of the Middle East pose major challenges to security, economic stability, and social cohesion. As such, the importance of economic cooperation between states, based on credibility, trust, and predictability, becomes even more evident. The further deepening of the Cyprus – Israel cooperation, as well as its expansion through participation in multilateral formats, such as the tripartite with Greece and the 3+1 with the US or, potentially, in projects related to East – West interconnection, like the India – Middle East – Europe Corridor initiative, strengthen ties between countries and their citizens, creating prospects for growth, prosperity, and peace.

I am confident that through continued dialogue, partnerships, and joint ventures, we will not only increase bilateral trade, but also contribute to regional stability and prosperity. In this regard, the partnership between Cyprus and Israel stands as a model for what can be achieved when two countries with shared goals unite their efforts. There is much to be gained by continuing to invest in innovation and entrepreneurship.

Once again, I would like to thank you for your participation. I look forward to working together towards a prosperous future for our countries.

(GA/NZ/GS)