Cyprus startup ecosystem sees fivefold increase since 2020

Chief Scientist Demetris Skourides on Thursday said that Cyprus already has the foundations to become a strong regional innovation hub.

Addressing participants at a forum in Limassol, he stated that Cyprus is open for business and aims to build a two-way value flow with companies, facilitating their access to Europe, while positioning the country as a platform for international expansion.

“Many people often ask whether Cyprus can truly become a global or regional hub; the answer is yes,” he said.

He added that between 2020 and 2025 the number of companies entering the startup ecosystem has multiplied fivefold.

Skourides explained that the Cyprus ecosystem is expanding rapidly, driven mainly by trust in innovation, transparency and institutional change, stressing that confidence in the system is one of the key growth factors.

“The ecosystem is growing because people trust the value it creates, they trust innovation, they trust the innovation ecosystem, and they trust the way the country is changing, the new processes we are building and the transparency we are creating, which is very important,” he said.

He further mentioned that Cyprus has developed strong capabilities in research and development across multiple sectors, ranging from microchips and shipping to healthcare, noting that companies are now beginning to form clusters that strengthen the wider ecosystem.

The chief scientist pointed out that Cyprus is no longer focused on whether it will become a hub in ten years, adding that structural components are already in place to support its transformation into a strong regional hub.

On economic performance, he said unemployment in Cyprus is below 4.5 per cent while GDP growth is around 3.4 per cent and continuing, describing this as evidence of resilience and momentum.

He mentioned that key sectors include technology, gaming and entertainment, fintech, trade and maritime logistics, noting that Cyprus ranks third in Europe and tenth globally in the fastest growing shipping management services segment.

Cyprus is also ranked among the top three countries for attractiveness in securing European investment and funding, he said, adding that the country now functions as a bridge extending as far as Australia rather than a small island economy.

On his part, Cyprus Chamber of Commerce and Industry (Keve) president Stavros Stavrou said that Cyprus is firmly positioning itself as a destination for innovation, research, entrepreneurship and investment, actively shaping its future through collaboration and business support.

“For Cypriot businesses, especially small and medium-sized enterprises, internationalisation is not optional, it is essential.” Stavrou said.

“The local market alone is not enough for long-term growth. Businesses must look outward, explore new markets, build partnerships and compete at a higher level,” he added.

He also said that the chamber, through international partnerships and European and global business networks, provides companies with access to opportunities beyond Cyprus.

Stavrou explained that the chamber works closely with organisations such as the Research and Innovation Foundation (RIF) and Invest Cyprus to ensure businesses can access available tools and opportunities.

Meanwhile, RIF director general Theodoros Loukaidis said that Cyprus is evolving into a dynamic innovation ecosystem, currently ranked 25th globally in the Global Innovation Index among 130 economies.

He stated Cyprus ranks 16th globally in innovation outputs, highlighting its strong ability to convert inputs into results.

Loukaidis also noted strong progress in the startup ecosystem, saying Cyprus has improved its performance for two consecutive years and is now the fastest growing startup ecosystem in the European Union.

“We are very proud of what we have achieved in empowering people of action, those who dare to think big and act even bigger, placing us among the top 40 in the startup ecosystem report,” Loukaidis said.

“We have been improving for two consecutive years and we are the fastest growing startup ecosystem in the EU,” he added.

He further mentioned that Cyprus now hosts a rapidly expanding ecosystem of around 800 startups and scale-ups, spanning digital technologies, life sciences, shipping, maritime technology, energy technology and clean technology.

Loukaidis pointed out that the scale of innovation activity in Cyprus is significant for a small country, noting increasing investor interest and growing inflows of capital into local startups.

He added that Cyprus is supported by around 30 research organisations, universities and centres of excellence, both public and private, producing high quality research that underpins innovation development.

Loukaidis concluded by saying that that over recent years around 60 investors have invested in Cyprus-based startups and scale-ups, reflecting the growing maturity of the ecosystem.