Address by the Minister of Energy, Commerce and Industry of the Republic of Cyprus, Mr George Papanastasiou, at CIBA’s Annual General Meeting

From:

Ministry of Energy, Commerce and Industry

16/04/25 15:31 | Speech / Address | Energy, Commerce and Industry

It is a great honour and a privilege to address CIBA’s Annual General Meeting, extending, at the outset, my warmest greetings and sincere appreciation to its members for your continued contributions to Cyprus’ growth as a leading international business hub.

As we reflect on the accomplishments of the past year, we also look into the future with optimism and determination. Our mission is clear: to ensure that Cyprus remains at the forefront of international business, innovation, and investment.

In today’s dynamic global economy, it is crucial for our country to remain competitive, resilient, and innovative. To this end, the Government is committed to positioning Cyprus as a top business destination, with a strong focus on attracting foreign direct investment (FDI). Our broader strategy focuses on diversifying our economy, while strategic investments drive the green and digital transitions.

To achieve these goals, the Government has introduced several key initiatives:

Economic Reforms: We have launched a comprehensive reform agenda to create a competitive environment for high-quality investments. This includes reinforcing our regulatory framework for financial and professional services, for example through the establishment of a Single Supervisory Authority and a National Sanctions Unit – demonstrating our commitment to virtuous governance and international cooperation.
Strategic Milestones: One of our major accomplishments has been the double upgrade of Cyprus’ credit rating in 2023, restoring our country to investment grade after 12 years. This accomplishment reflects the confidence we have regained in our economic stability. Additionally, Cypriot banks remain among the most profitable in the Eurozone, with a non-performing loan (NPL) ratio that is now reduced to 1.9%.
Rebranding Cyprus: The Government is actively pursuing a comprehensive rebranding initiative to highlight Cyprus’ progress in enhancing compliance, transparency, and governance. We aim to communicate our country’s unique competitive advantages to the international business community.
Attracting Investment and Talent: The Strategy for Attracting Investment and Talent, originally launched in 2022, remains a flexible and evolving tool. Since its introduction, over 2,640 companies have been registered with the Business Facilitation Unit – many of which are in the Information and Communication Technology (ICT) sector – demonstrating Cyprus’ growing appeal as an investment destination.
Investment in Innovation: We are investing significantly in digital infrastructure, human capital, and sustainable policies to drive economic growth. Our strategy for attracting investment and talent is continuously evolving, ensuring Cyprus remains responsive to the needs of both current and future investors.

Looking ahead, Cyprus is following a clear, strategic plan. In fact, we are focused on three core areas that will shape our country’s future:

Advancing the Green and Digital Transition: Cyprus is committed to adopting cutting-edge technologies to ensure businesses thrive in a digital-first economy. We are supporting emerging sectors, like artificial intelligence, blockchain and renewable energy solutions, to position Cyprus as a leader in these fields.
Enhancing Access to Finance: We are dedicated to facilitating access to capital for start-ups, small and medium-sized enterprises (SMEs), and larger enterprises. Our financial services sector will continue to be a cornerstone of our economy, with particular emphasis on investment funds, fintech, and private wealth management.
Securing Sustainable Energy Solutions: As a key pillar of our future, we are focused on creating a green economy. This includes initiatives for renewable energy, energy-efficient infrastructure, and supporting environmentally conscious businesses. Cyprus is embracing these changes with projects like energy communities and green technology incentives, all of which will lay the foundation for our future economic strategy.

Cyprus’ strategic location as a bridge between Europe, the Middle East, and Africa, makes it an ideal gateway for international trade and investment. Our favourable regulatory environment, skilled workforce, and attractive tax model position our country as an excellent destination for businesses looking to expand their global footprint.

Moreover, as a European Union (EU) member state, Cyprus has access to one of the world’s largest markets and we are committed to strengthening trade relations both within and beyond the EU. Our focus is on expanding ties with regions such as the Middle East, Africa, and Asia, and enhancing Cyprus’ role as a gateway to the European market.

We are investing in crucial infrastructure, from ports, airports and marinas to our energy grid and mixture, ensuring that businesses in Cyprus have the tools and connectivity they need to succeed in a globalised economy.

We fully realise, of course, that the global business environment is undergoing rapid transformation due to technological advancements, evolving trade dynamics, and shifting geopolitical realities. And while these challenges may be numerous, our commitment remains unwavering. We are embracing these changes, working hand-in-hand with stakeholders, such as CIBA, to build a resilient business climate that fosters investment, supports innovation, and creates new opportunities.

In conclusion, the future of international business in Cyprus is filled with immense potential. We must remain agile and proactive, adapting to global trends, and ensuring Cyprus continues to be a place where businesses, investors, and entrepreneurs can thrive. By focusing on our strengths and embracing innovation, by working together to overcome challenges and capitalise on available opportunities, we are confident that we can position Cyprus as a global leader in the business and investment community.

Allow me once again to express the Government’s gratitude for our mutually beneficial partnership and your unwavering dedication towards Cyprus’ success. I look forward to continuing our collaboration to ensure the country remains a thriving destination for businesses and investments.

I wish you all a productive meeting and continued success in your endeavours.

(GA/GS/NZ)

Address by the Minister of Energy, Commerce and Industry of the Republic of Cyprus, Mr George Papanastasiou, at CIBA’s Annual General Meeting

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