Opening Remarks of the Deputy Minister to the President, Ms Irene Piki, titled “Cyprus Investment Landscape and Capital Markets: Growth and Opportunity” at the Bloomberg event titled “Future of Markets: Cyprus’ Economic and Capital Markets Outlook”

From:

Presidency of the Republic

01/07/25 17:01 | Speech / Address | President of the Republic / Presidency

It is a pleasure to join you today at this important Bloomberg event here in Lemesos – a city that captures the spirit of Cyprus’ transformation into a modern hub for international business and innovation.

Allow me to start by extending my sincere congratulations to Bloomberg, and especially to Mr Constantinos Cotzias, for the excellent organisation of today’s event. The conference comes at a particularly timely moment and creates a valuable platform for open and forward-looking dialogue on the future of investment and financial markets in Cyprus.

Cyprus has entered into a new era; one of transparency, credibility, and strategic reform. An era where change is not just promised, but delivered.

This transformation is underpinned by a strong and stable economy. Despite successive global shocks and the fact that many European economies are in turmoil, Cyprus has stayed the course, recording a Gross Domestic Product (GDP) growth of 3.4% in 2024 and 3% for the first quarter of 2025, one of the highest in the European Union (EU); unemployment below 5%; and a fiscal surplus exceeding 4% of GDP in 2024 and estimated at 3.5% in 2025. Prudent fiscal policy has resulted in public debt falling below 65% of GDP, with the aim to fall below 60% in the next year.

These fundamentals have strengthened investor confidence and brought renewed recognition. Over the past year, all major credit rating agencies have upgraded Cyprus to the A category, citing our commitment to sound fiscal management and for structural reforms, all recognising the economy’s strong growth potential.

Our economic policy is based on three pillars: responsible fiscal policy, stable and healthy macroeconomic sector, and continuous structural reforms. Regarding reforms, we are moving forward with the first comprehensive tax reform in over two decades, modernising our public administration to deliver faster, more citizen-focused services, and implementing long-awaited reforms to enhance the efficiency and independence of our judicial system. Together, these changes are creating a more transparent, competitive, and resilient economic environment.

At the same time, we are fully aware of the broader regional context. The Eastern Mediterranean is facing renewed geopolitical tensions and growing uncertainty. In this complex environment, Cyprus acts as a pillar of stability, predictability, and democratic resilience. Ensuring a growing and sustainable economy is not only a matter of national prosperity. It is a strategic imperative for regional security and for strengthening Cyprus’ role as a reliable partner within the EU and beyond. This imperative becomes even more critical as Cyprus prepares to assume the Presidency of the Council of the EU in January 2026, a responsibility that underscores our commitment to regional leadership, unity, and stability.

Our vision is to prepare Cyprus for the future, to build an economy that is open, fair, and competitive. One that offers long-term value to investors and meaningful opportunity to citizens. Based on these strong fundamentals, our Government is forging ahead with a deep structural transformation for our country, guided by a clear political mandate and a strategic long-term vision.

Let me refer briefly to five core reform pillars that are central to the ongoing transformation of our country.

First Pillar – Modern Governance and Institutional Reform

We are transforming the way government works, through institutional reforms that enhance strategic coordination, transparency, and rule enforcement.

In September 2023, we established the Secretariat for the Coordination and Support of Government Work. Operating under my supervision in the Presidential Palace, the Secretariat serves as the backbone of our new governance model – one that is grounded in strategic planning, institutional alignment, and focus on implementation with measurable results. The Secretariat supports the President through evidence-based policy making, coordinates the annual action plans of all Ministries, monitors the implementation of our Government Programme, and ensures consistency of initiatives and tracks legislative priorities.

Another institutional reform is the creation of the National Sanctions Implementation Unit – a new structure under the Ministry of Finance, responsible for the national coordination and enforcement of EU and international sanctions. The new unit will ensure timely, consistent, and credible implementation of sanctions, reinforcing Cyprus’ standing as a reliable jurisdiction.

To complement this, we are also setting up a Single Supervisory Authority for fiduciary and corporate service providers, closing institutional gaps, and reinforcing oversight and transparency on anti-money laundering (AML) issues.

Second Pillar – Taxation and Investment

We are modernising the regulatory and fiscal environment, making Cyprus more attractive.

A cornerstone of this effort, as I already mentioned, is the first comprehensive tax reform in over two decades. This reform simplifies compliance, promotes fairness, aligns with international standards, and preserves incentives for investment and entrepreneurship. We aim to build a system that rewards productivity, investment, innovation, and long-term planning. The main elements of the reform were presented earlier this year, and we are now finalising the relevant bills, aiming for full implementation by January 2026.

In parallel, we are updating our legal infrastructure with two key initiatives. First, the introduction of a Funds Administrators Law – currently under discussion in Parliament – that strengthens the framework for investment funds through licensing and standardisation. Second, we are preparing a legal framework for the establishment and operation of Limited Partnerships with separate legal personality, expanding options for investors, and enhancing Cyprus’ legal competitiveness.

Third Pillar – Investor Experience and Business Facilitation

We are redefining how we facilitate investors, both local and foreign, by simplifying procedures, eliminating red tape, and improving access to public services.

Last May, we launched the Cyprus Business Support Centre, a single point of contact in Lefkosia for licensing, permitting, and facilitation of strategic investment. This initiative symbolises our shift from complexity to clarity, from fragmentation to coordination.

In the same spirit, we are reducing bureaucracy through digital transformation. Significant work is underway across Ministries, and new digital services are continuously being added to the central national platform, gov.cy, creating a modern, user-centric public administration for both citizens and businesses.

Fourth Pillar – Unlocking Capital and Supporting Small and Medium-sized Enterprises (SMEs)

We are improving access to capital, particularly for innovative businesses and SMEs, through new financing mechanisms.

The Government has decided to proceed with the privatisation of the Cyprus Stock Exchange. A draft bill has already been submitted to the Parliament. Once enacted, the Ministry of Finance will initiate an international tender to identify a reputable and recognised strategic investor to acquire the Cyprus Stock Exchange. The Government aims to conclude the process within 2026, including the signing of a Sale and Purchase Agreement (SPA) with the successful bidder.

This privatisation will enable the Exchange to operate in a more flexible and efficient manner, enhancing its capacity to attract new listings, as well as increased investment from both domestic and international institutional and retail investors. The overall goal is to bolster the Cypriot securities market, fostering greater economic growth, and creating new opportunities for businesses and investors.

We are also at an advanced stage of establishing a National Development Organisation, with the aim to enhance the competitiveness of Cypriot SMEs, by facilitating access to funding, providing technical and financial support for green and digital investments, and enhancing the country’s overall investment ecosystem. Together with new grant schemes for green and digital investments, this initiative will support SMEs that often face difficulties with traditional bank lending.

At the same time, the Cyprus Equity Fund, the first public-private fund of this nature, has officially launched its investment activity. Co-financed by the EU Recovery and Resilience Facility and managed by the European Investment Fund in partnership with 33East, the fund targets early-stage businesses and startups, with an envelope of €40 million. It is already deploying capital to close the equity financing gap.

Fifth Pillar – Internationalisation and Talent Attraction

Finally, we are strengthening Cyprus’ international profile, attracting strategic investment, talent, and global partnerships.

President Christodoulides recently led a roadshow in the United States, with stops in New York, Houston, and Silicon Valley. The message was clear: Cyprus is becoming a credible hub for innovation and high-tech investment.

The roadshow was the first international effort and forms part of a purposeful rebranding, not just to improve visibility, but to create real, lasting opportunities. Opportunities for partnerships, for access to expertise, and for strategic synergies.

With new emerging technology at the forefront of growth, we recognise that talent is key. In May, we launched the “Minds in Cyprus” campaign in London, inviting Cypriots abroad to return and contribute to the country’s transformation. We are removing barriers and offering practical tools for their reintegration into the local economy.

At the same time, we are staying close to the needs of foreign investors and maintaining strong bilateral relations to ensure Cyprus remains outward-facing, connected, and competitive. A recent example is the roundtable co-chaired in Lemesos by President Christodoulides and Prime Minister of India, Mr Narendra Modi, a landmark moment that highlighted the growing depth of our economic and strategic partnership with one of the world’s largest and fastest-growing economies.

Ladies and Gentlemen,

All these efforts are aligned with Cyprus’ Long-Term Economic Strategy 2035. Our objective is clear: to evolve into a knowledge-based, innovation-driven economy, more competitive, more sustainable, and more resilient to future challenges.

Cyprus is changing. From macroeconomic management to institutional reform, from investor services to regulatory credibility, we are laying the foundations for sustainable and resilient long-term growth.

These reforms are not always visible. They do not always make headlines. But they matter, because they build trust. They open doors. And they shape the conditions for a more competitive, more credible, and more confident Cyprus.

As Deputy Minister to the President, I can assure you that our government is fully committed to continuing our work towards a sustainable future for our economy, always in close partnership with the private sector, the investment community, and our international allies.

Cyprus has stepped into a new era. And we invite you to be part of it.

Thank you.

(RM/KA/GS)

Opening Remarks of the Deputy Minister to the President, Ms Irene Piki, titled “Cyprus Investment Landscape and Capital Markets: Growth and Opportunity” at the Bloomberg event titled “Future of Markets: Cyprus’ Economic and Capital Markets Outlook”

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