The Cyprus Information Technology Enterprises Association (CITEA) has warned that the domestic ICT sector’s momentum may stall without urgent investment in skills and institutional support.

The association delivered this message during a conference held this week, where it also reaffirmed its central role in the island’s digital economy.

Founded in 1987, CITEA now represents more than 100 technology companies, including international firms, and remains the main industry stakeholder in Cyprus.

It is also an active member of Digital Europe and the Cyprus Employers and Industrialists Federation (Oev), and collaborates closely with a number of national bodies and organisations.

These include the Ministry of Energy, the Ministry of Finance, DMRID, MECI, the Digital Security Authority (DSA), the office of the commissioner of electronic communications and postal regulation (OCECPR , the Research and Innovation Foundation (RIF), academia and other public institutions.

At the conference, the association noted that the local ICT sector already contributes over 10 per cent to Cyprus’ GDP—9.6 per cent in 2022, according to an IDC report—and includes more than 1,200 companies, 800 of which are foreign-owned.

Moreover, the market is valued at €856 million (€365m in IT and €491m in telecoms).

However, CITEA warns that critical challenges are holding the sector back.

Among the most pressing are a shortage of skilled professionals, the very low percentage of women in the field, and the slow pace of digital transition across both enterprises and public services.

Additionally, cybersecurity threats are becoming more frequent and severe, while outdated public procurement procedures further hinder progress.

Government support for export activities is also seen as insufficient, and the general population’s basic digital skills remain weak.

“Basic digital skills in the general population need significant improvement,” said Demetris Nissiotis, president of CITEA.

He explained that “Without serious investment in upskilling and reskilling, we risk missing out on the targets of Europe’s Digital Decade.”

In response, CITEA has launched a range of initiatives designed to bridge the skills gap and drive digital transformation.

Among them is the CITEA survey and index, an annual benchmarking tool based on responses from around 500 enterprises.

Now in its third year, the survey is presented at the Digital Cyprus Conference and discussed further in dedicated workshops and media appearances.

It offers a valuable snapshot of digital readiness across sectors and is intended to shape both national policy and private-sector priorities.

CITEA is also spearheading the Level Up EU Project, in partnership with the Ministry of Labour and other stakeholders, including DMRID and the DSA.

The initiative focuses on retraining employees and medium-sized enterprises (SMEs) for the digital economy.

A pilot bootcamp in analytics has already reskilled 15 participants, with further programmes expected later this year.

Efforts are also being made to tackle the gender imbalance in tech. CITEA established a Women in Tech committee and introduced a corresponding award to raise awareness and encourage more girls and women to pursue careers in technology.

So far, 13 women have joined the committee, which also promotes mentoring schemes and school outreach activities.

The association is behind Cyprus’ main tech event—the Digital Cyprus Conference—now entering its fourth year in June 2025.

The conference attracts more than 600 attendees and over 25 speakers from Cyprus and abroad, offering a platform for sharing insights, policy discussion and networking.

International exposure has become another key priority. In 2024, CITEA led the Cypriot delegation to GITEX in Dubai, with participation from 14 local tech firms and government officials.

Following the signing of a new contract, another mission is already planned for 2025.

Business delegations have also been organised with Oev, including a visit to Greece in 2023 and a forthcoming mission to Qatar.

CITEA continues to work closely with EU and local institutions on matters such as cybersecurity, public procurement reform and innovation support.

A QA-style booklet co-authored with Huawei, EIT Digital and the Global Digital Foundation promotes cybersecurity awareness among SMEs and will be distributed through Oev.

Meanwhile, the association has contributed to shaping national government schemes, including MECI’s Digital Upgrade programme, by offering feedback and facilitating engagement from its members.

It also works with the Treasury to improve procurement procedures and with RIF to promote research and innovation.

CITEA’s focus on skills development remains at the heart of its strategy. A study conducted by EY on the training needs of its members has informed free courses offered by the Human Resource Development Authority (HRDA).

These insights have also fed into national skills evaluations and EU reviews.

As part of its broader awareness efforts, CITEA maintains a strong digital presence and regularly contributes to public discourse through interviews, opinion pieces, event speeches and social media.

In total, it has delivered more than 20 speeches and taken part in over 10 interviews across TV, radio, print and online media.

Looking ahead, Cyprus will host a Digital Europe NTA meeting in October 2025—another opportunity for CITEA to align national strategy with European digital priorities and explore future EU projects for revenue generation.

Still, the association is calling for broader participation and responsibility across the board. “Think digital. Use technology to innovate, not to simply computerise,” Nissiotis said.

“To remain competitive and resilient, both businesses and society must embrace smarter, more sustainable solutions,” he concluded.