Cyprus is shaping its identity as a regional technology hub. Its National AI Strategy drives the adoption of artificial intelligence across key sectors, while the fintech landscape has expanded significantly with international players setting up operations on the island.
In terms of attracting talent and investment, how is Cyprus positioning its tech and start-up ecosystem as a key driver of future growth and innovation?
Cyprus is positioning its technology and start-up ecosystem as a key driver of future growth, innovation, and global competitiveness. The country’s rapid progress is reflected in its ranking of 25th among 139 economies in the 2025 Global Innovation Index. These achievements underscore the island’s expanding capabilities, supported by a multi-dimensional innovation framework built on strong inputs and outputs across research, talent, investment, and entrepreneurship.
Much of Cyprus’ momentum is rooted in the advantages of its strategic location at the crossroads of Europe, Asia, and Africa, which provides access to diverse markets and a favourable time zone for international operations. This is complemented by growing institutional support. The government has established a dedicated Deputy Ministry for Research, Innovation and Digital Policy to guide national digital transformation, while the Research and Innovation Foundation (RIF) provides targeted funding, tax incentives, and talent-attraction initiatives to support the scaling of start-ups and innovative companies. The local ecosystem has expanded rapidly, now comprising over 500 start-ups and scale-ups, more than 12 incubators and accelerators, 12 universities, and seven centres of excellence.
Attracting talent and investment remains a core priority. The Cyprus Start-up Visa Scheme has enabled non-EU citizens to live and work in the country with the possibility of extension, while a competitive corporate and personal tax framework continues to draw foreign entrepreneurs and investors. The country is also pursuing policies to upskill the local workforce and build a stronger pipeline of technological expertise, complemented by the establishment of Digital Innovation Hubs that help emerging companies adopt advanced technologies and access specialised support.
Today, Cyprus is shaping its identity as a regional technology hub. Its National AI Strategy drives the adoption of artificial intelligence across key sectors, while the fintech landscape has expanded significantly with international players such as Revolut setting up operations on the island. The gaming sector has become a showcase for the country’s potential for innovation, with Cyprus now ranked second globally. Invest Cyprus is actively pursuing strategic investment collaborations worldwide to give Cypriot start-ups broader access to global markets.
The growth of the innovation ecosystem is supported by strong cooperation between government, academia, research institutions, the Chief Scientist, and the private sector. The Research and Innovation Foundation continues to play a central role, offering funding instruments designed to foster partnerships between enterprises and private investors. Organisations such as the Cyprus Association of Research and Innovation Enterprises (CARIE) and research institutions like the Cyprus Institute also contribute to the national research agenda, while international companies including Honeywell, Hanwa Q Cells, and IBM engage in partnerships that highlight the potential of industry-academia cooperation.
Together, these initiatives aim to drive economic expansion, strengthen Cyprus’ innovation ecosystem, and reinforce its ambition to become a regional hub for research, technology, and investment – leveraging its strategic location, talent base, and EU connections to compete globally.
