Cyprus realised goal of becoming a business hub in 2022

Almost 10,000 specialised professionals have relocated to Cyprus

Information technology sector alone contributes €3 billion to economy

More than 1,200 international companies have relocated to Cyprus in 2022, alongside 9,800 specialised members of staff, according to the latest data by the Business Facilitation Unit (BFU), which is managed by the Ministry of Energy, Commerce and Industry.

The number of new companies and employees who moved to Cyprus during this time has boosted investments, and domestic consumption, while also elevating Cyprus’ GDP.

In addition, the information and communications technology (ICT) sector alone is estimated to have contributed approximately €3 billion to the Cypriot economy, allowing it to become both more diversified, relying less on traditional sectors such as tourism and shipping, and consequently more resilient.

The European Commission also acknowledged the rapid development of the technology sector and its contribution to the Cypriot economy, with the commission increasing Cyprus’ growth rate for 2022 by 2.4 per cent, for a revised forecast of 5.6 per cent.

“This is due to the better-than-expected performance of tourism and the impact of the growing technology sector,” the European Commission said in the latest post-memorandum audit report.

Meanwhile, in statements made to the Cyprus News Agency (CNA), Cyprus Investment Promotion Agency, commonly referred to as Invest Cyprus, president Evgenios Evgeniou, stressed the fact that the development of the technology sector is of great importance for Cyprus.

He explained that in addition to its contribution to the economy, it has a decisive contribution to the diversification of Cyprus’ economic model, while also helping to reduce the country’s trade deficit.

Based on the available data, the contribution of the ICT sector to the economy is estimated to have reached approximately €3 billion in 2022, marking an increase of 58 per cent year-on-year, having previously contributed €1.9 billion in 2021.

The sector also includes telecommunications companies, but the increase of more than €1 billion, especially in the midst of the crisis caused by the war in Ukraine, can be largely attributed to the relocation of foreign companies and the arrival of specialised members of staff to Cyprus.

Limassol has been the primary recipient of foreign companies and talentFurthermore, the plan for attracting highly specialised companies and international talent combines incentives proposed by the Ministry of Finance, voted by the House of Parliament and implemented through Invest Cyprus’ collaborative efforts with the Ministry of Energy, the Ministry of the Interior and the Deputy Ministry of Research, Innovation and Digital Policy.

“These achievements are nothing more than the fruit of the collective effort and action of the government, House of Parliament, as well as the public and private sector”, Evgeniou said, explaining that “this proves, therefore, that when we want, we can work collectively and bring positive results”.

“Despite the fact that in 2023 the economic challenges will continue to be particularly intense, we are optimistic that the interest of highly specialised international companies to relocate to Cyprus will remain undiminished,” the president of Invest Cyprus added.

Cyprus expected to continue attracting international firms

Based on the most recent data, more than 35 large foreign companies have expressed an interest in establishing or transferring their headquarters to Cyprus, according to written communication received by Invest Cyprus.

The majority of letters of intent concerning investments in Cyprus came from multinational companies, which are mainly active in the technology sector, with most of them already investing in Cyprus, while many others are in the pipeline.

These investments have also had a positive impact on other sectors of the economy such as education, healthcare, the hospitality industry, investment funds and asset management, energy, start-ups and entrepreneurship, as well as the real estate sector.

Additionally, more than 1,200 companies were served through the Business Facilitation Unit of the Ministry of Commerce, all of which comply with the relevant eligibility criteria.

Moreover, according to data provided by the Civil Registry and Migration Department, 9,800 work permits were issued for specialised personnel in 2022, alongside 8,100 family members, who also moved to Cyprus.

It should be noted that this is directly linked to the fact that the Greenfield FDI Performance Index showed that Cyprus is among the top ten countries for investment recovery after the Covid-19 pandemic.

In this particular category, Cyprus managed to record an increase of 150 per cent in the first half of 2022, compared to the corresponding period of 2019.

In addition, Cyprus recorded a massive 600 per cent increase in technology investment compared to 2019 during this time.