The Cyprus Association of Large Investment Projects has backed a bill to establish a national mechanism for the control of foreign direct investments (FDI), saying it will bolster the credibility of the state and the economy without deterring foreign investors.

Covering key sectors such as energy, financial services and defence, the bill aligns with Cyprus’ wider strategy to attract international capital for major projects that support long-term growth. 

The association said that “the need for a formal control framework emerged after a series of large-scale acquisitions in public utilities, which revealed the risk of strategic infrastructure being transferred to investors from third countries”.

“Given the small size of the Cypriot economy, such developments could affect critical sectors such as banking and port operations,” the association added.

“Even so”, it explained, “Cyprus has long been defined by its openness to foreign capital, an approach that fuels growth, employment and the exchange of know-how.”

“The aim is to maintain the dynamic flow of quality investments, particularly in technology and the digital economy,” the statement read.

“The new bill”, it concluded, “provides a transparent and functional framework to safeguard strategic sectors while reinforcing Cyprus’ reputation as an attractive destination for international investment.”