Cyprus tech sector matures into a significant economic pillar

Cyprus is transitioning its technology and innovation ecosystem from a period of unrealized potential to a durable engine of economic growth. Over the last decade, the island has expanded its research and development funding and cultivated a robust network of accelerators, universities, and industry bodies, facilitated by organizations like the Research and Innovation Foundation (RIF).

The information and communication technology (ICT) sector now contributes over €4 billion annually to the national GDP, representing roughly 15 per cent of the economy and supporting nearly 70,000 jobs. Notably, Cyprus recorded the fastest ICT growth in the European Union between 2016 and 2025. This growth is bolstered by the presence of international technology firms, which serve as a training ground for local entrepreneurs and angel investors. In the first ten months of 2026, startups connected to Cyprus raised more than €112 million, an amount nearly equal to the total funding recorded throughout 2025.

While the relocation of international companies has been a major priority, the current challenge lies in scaling homegrown businesses locally. The ecosystem is increasingly interconnected, with the government and private sector collaborating to ensure that the infrastructure supports sustainable innovation rather than just serving as a temporary destination for foreign firms.