Information Technology
In recent years, Cyprus has seen remarkable growth in its Information and Communications Technology (ICT) sector. The industry contributed over €3 billion to the Cypriot economy in 2022, accounting for 13% of the country’s GDP. This is a significant increase from 7% in 2019 and 8.5% in 2020. The influx of international firms and specialized talent has been a key driver of this growth. Various organizations, including some of the largest tech associations in Cyprus, have played a crucial role in enhancing the business environment for tech businesses. Their efforts have not only boosted the sector’s growth but have also contributed significantly to the country’s economic prosperity.
The ICT sector in Cyprus is undergoing significant development, supported by initiatives aimed at strengthening the Cyprus technology ecosystem. Central to these efforts is the establishment of the Deputy Ministry of Research, Innovation, and Digital Strategy, dedicated to promoting scientific research and investing in innovative entrepreneurship. Additionally, the local tech industry benefits from public programs designed to cultivate local talent. These initiatives, coordinated by the Research & Innovation Foundation and Cyprus’ Recovery and Resilience Plan, involve collaborations between three public universities, the Nicosia municipality, and a range of international partners. Furthermore, the ecosystem has been enriched by the presence of startup accelerators, non-profit tech associations, and tech events such as hackathons, all of which contribute to a thriving tech community in Cyprus.
Real Estate
Cyprus is one of the greenest and most thriving islands in Europe, with excellent weather and an easy way of life. It is also in a unique geographic position between continents and trading routes. Business activities have flourished since the time of the Egyptian Pharaohs and Homer’s epics. However, there are more reasons for foreigners to invest in Cyprus property than the love of sunshine and history. The Cyprus property market has consistently grown in residential property prices over the past three years. In 2022, the Residential Property Price Index (RPPI) saw annual gains of 7,4%, reflecting strong demand and limited supply. With its robust economy and status as a European Union member, Cyprus presents a stable and attractive opportunity for investors. With rental yields averaging between 4-6% annually, the real estate market in Cyprus is up-and-coming, offering the potential for a steady passive income and a significant return on investment in the long term. The real estate sector in Cyprus is considered to be promising, with a projected market value of US$118.50 billion in 2024. The residential sector is the main driver of the market, and is expected to grow at a rate of 3.57% annually between 2024 and 2029Strategic location at the crossroads of Europe, Asia, and Africa is a significant factor for investment in Cyprus, as it serves as a gateway for businesses to access multiple markets. Its EU membership provides investors with the benefits of a European business environment, including trade opportunities and regulatory stability. The surge is driven by foreign investment, favorable tax policies, and a growing economy.
Education
Cyprus’ Higher Education sector is still comparatively young (the country’s first University – The University of Cyprus – was founded in 1989 and became operational in 1992), but it has nonetheless expanded substantially over the past three decades. The Higher Education System in Cyprus consists of Universities and Institutions of Higher Education, both Public and Private. Some of the Institutions of Higher Education, offer short term programmes, mostly for specific professions, that provide students with Certificates (1 year), Diplomas (2 years), and Higher Diplomas (3 years). Many courses include periods of placement at the workforce environment. There is also a significant number of Institutions of Higher Education that along with Universities, provide Bachelor and Master Degrees. Two private Institutions, namely the Cyprus Institute and the Cyprus Institute of Neurology and Genetics, provide PhD Programs. The Open University of Cyprus is the country’s only Public University devoted entirely to open and distance education and lifelong learning. Distance learning is also provided as an option from the majority of the Institutions of Higher Education. Cyprus ranks 1st in the region with the highest number of ranked institutions per 1M population (2021 QS World University Rankings for EECA). Growth of 55.4% in TNE Cyprus, with Cyprus becoming the leading nation worldwide in postgraduate UK TTE (UKKi TNE report 2018-2019). The higher education system in Cyprus is shaped by the European Higher Education Area as outlined by the Bologna Process. In line with the Bologna main objectives, the European Credit Transfer System (ECTS) and the Diploma Supplement are used by all public universities and most of the other institutions. Two independent bodies are responsible for quality assurance – the Council for Educational Evaluation and Accreditation (SEKAP), which is responsible for the evaluation and accreditation of programs of study of non-university level private institutions in Cyprus, and the Cyprus Council for the Recognition of Higher Education Qualifications (KYSATS), which is responsible for the recognition of qualifications awarded by institutions of higher education in Cyprus and abroad.
Finance & Investment Management
Cyprus is fast becoming one of the top emerging investment fund centres in Europe, offering unique access to high-growth markets. Determined to stay at the forefront of industry developments and continuously upgrading its legislative and regulatory regime, Cyprus has developed into a key regional domicile for setting up investment funds and establishing asset management companies for pan-European reach.On 3 July 2020, the Cypriot Parliament passed and brought in force new legislation entitled the Mini Alternative Investment Fund Managers Law (L. 81(I)/2020) (Mini-AIFM Law) creating a regime for the regulation and licensing of sub-threshold alternative investment fund managers based in the jurisdiction (Sub-threshold AIFMs or Mini-AIFMs). Prior to the enactment, Sub-threshold AIFMs were not independently subject to licensing in the Republic of Cyprus.
The investment funds sector in Cyprus is becoming one of the leading high-growth fund centers in Europe. This continuous growth and enhanced competitiveness is the result of transparency, well-developed supervision, and the burgeoning opportunities offered for international expansion. It is supported by the joint efforts of the regulator, the Government and the industry stakeholders all of which promote Cyprus as a reliable jurisdiction for investment funds and fund managers. This sustainable expansion of the sector is undoubtedly linked to a wider economic impact in the country. By enabling and supporting greater investment into and across the EU, the funds industry plays a pivotal role in showcasing what Cyprus has to offer. According to the latest data released by the Cyprus Securities and Exchange Commission (CySEC), the Cyprus fund industry has seen formidable growth.