Cyprus, with Limassol at the forefront, is emerging as a start-up hub in the Eastern Mediterranean, surrounded by Asia, Europe, and Africa. This development is giving momentum both to synergies between local start-ups and foreign companies and to capital raising, as highlighted by the CEO of Invest Cyprus, Mr. Marios Tannousis. The Chief Executive Officer of the National Investment Promotion Authority of Cyprus was invited by “Entrepreneurial Limassol” to comment on the fact that around 140 start-ups are registered on platforms such as StartupBlink — a number that corresponds to 45% of all start-ups in Cyprus — positioning Limassol as the country’s leading hub.
Mr. Tannousis explained that Cyprus (and Limassol in particular) offers an integrated ecosystem for international investors, enabling them to develop their ideas, establish companies, and strengthen them. This, he noted, is due to the fact that major technology companies are already operating in the city. At the same time, the state offers tax and other incentives aimed at fostering the growth of start-ups and innovative enterprises.
The CEO of Invest Cyprus reminded that Limassol has always been an international business center, not only in shipping — a sector in which it holds a prominent position globally and across Europe — but also in the financial services industry. With the arrival of technology companies, many of which are based in Limassol, a dynamic ecosystem has been created that supports the growth of innovative businesses and start-ups.
Summarizing the city’s advantages, Mr. Tannousis referred to the business environment, the tax framework, the specialized and multilingual human capital with a wealth of education and training opportunities, the strategic geographic location with access to the markets of Europe, the Middle East, and Africa, as well as the high quality of life. In terms of state support, he cited the Research and Innovation Foundation, the Chief Scientist, the Deputy Ministry of Innovation, and the Government more broadly.
The role of Invest Cyprus, he said, can be described as a “triptych”: “First, the promotion of Cyprus as an investment destination. Second, the attraction of new companies that will invest, create jobs, and contribute to economic growth. Third, advocacy and support for those investors who have already chosen Cyprus, helping them find solutions to potential challenges and continue the development of their operations smoothly.”
He also stressed that the positive impact on the Cypriot economy is reflected both in the indicators and in the upgrades by international credit rating agencies such as Standard & Poor’s, Fitch, and Moody’s. For the first time, Cyprus is ranked in the “A” category. Regarding the prospects for attracting new technology companies and start-ups, Mr. Tannousis pointed out that investors have immediate and continuous access to information about the conditions in each country. “Cyprus offers a very attractive framework, and the market is dynamic. We are hopeful that it will remain positive and that we will continue to see new investments, even though no one can predict the future with certainty.”
Cypriot start-ups, according to Mr. Tannousis, demonstrate extroversion through programs and events aimed at raising capital. He also noted that in recent years Cyprus has become a magnet for Indian start-ups. “Indian companies are coming, especially to the ‘Reflect Festival’ — which has now been renamed to ‘Doers’ — to present their ideas and explore synergies with Cypriot start-ups,” he said. “At the same time, cooperation has begun with Saudi Arabia, so that through the DCO — a global organization headquartered in Saudi Arabia, of which Cyprus was the first member state — synergies with start-ups from there are also strengthened.”
The CEO of Invest Cyprus concluded that technology companies and start-ups are a key part of the “engine” of the Cypriot economy. He welcomed the initiative of the Limassol Chamber of Commerce & Industry to establish a Technology Committee on its Board, emphasizing: “This is very important. Due importance is being given, and certainly the future, as experts say, lies in technology. The sooner we enter this field, keeping up with developments, the more our country will benefit.”
It is worth noting that Cyprus is ranked 40th globally and as the fastest-growing ecosystem in the EU for the second consecutive year, with an annual growth rate of 28% and a 71% increase in start-ups compared to 2024. Limassol, in particular, stands out, ranking 8th in Southern Europe in the blockchain sector (a technology that enables secure and decentralized data recording in ‘chains’ of blocks) and 5th in the EU.
