Cyprus parliamentary committee reviews foreign investment screening mechanism

On Wednesday, the House Standing Committee on Institutions and Meritocracy in Cyprus conducted a self-initiated review of the national mechanism for screening foreign direct investment (FDI). The session focused on evaluating whether the current institutional framework provides adequate guarantees for independence, transparency, and the prevention of conflicts of interest during the approval process for international investments.

DISY Member of Parliament Nikoletta Konstantinou opened the discussion by emphasizing the need for objective criteria, clearly defined responsibilities, and effective oversight. She clarified that the primary objective of the review is not to hinder foreign investment, but to ensure that the legislative framework is robust enough to protect national security and public order. The current law, which introduced these specific screening procedures, has been in effect since April 2, 2026.

Representing the Ministry of Finance, Elena Zachariadou briefed the committee on the structural aspects of the existing legal framework. The committee’s ongoing deliberations reflect a broader effort to ensure that Cyprus maintains an attractive climate for investors while upholding strict safety standards. No further specific actions or upcoming court proceedings were detailed beyond the committee's commitment to monitoring the efficacy of the established regulatory mechanisms.