The 12 Foreign Investments That Have Defined 2024 in Cyprus

In recent years, Cyprus has been steadily reinventing itself, particularly through significant foreign direct investment (FDI) that has diversified its economic foundation beyond the traditional pillars of real estate, tourism, and services. Now, technology stands as a new pillar of economic activity in Cyprus.

Currently, the tech sector contributes over a tenth of Cyprus’ €32 billion GDP and employs approximately 17,000 individuals, constituting around 3.5% of the nation’s workforce. This sector’s resilience was particularly noted during the pandemic, highlighting the benefits of having a strong tech foundation.

By mid-2024, over 270 companies, including 70 international tech firms, successfully managed relocation through the Ministry of Energy, Commerce & Industry’s Business Facilitation Unit. This efficiency has been a key selling point for Cyprus to attract more global FDI.

In July 2024, at the 12th Invest Cyprus Investment Awards, President Nikos Christodoulides stressed the significance of foreign investors as partners in fostering sustainable growth. Over recent years, more than 10,000 foreign employees relocated to Cyprus, often with their families, indicating the island’s growing appeal as a business hub.

According to Invest Cyprus data, the country attracted €3.2 billion in FDI in 2023, positioning it second within the EU on a per capita basis, and among the top ten globally.

Profile of 12 Significant FDI Deals in 2024

1. Kassatly Group Holding: A Lebanese beverage producer established a modern manufacturing facility in Ypsonas, Limassol. Named Boutique Beverage Bottling International Ltd (BBBI), it became operational in March 2024, expanding the Group’s bottling capabilities and promoting its FREEZ brand internationally.
2. ECM Partners: They acquired a 75% majority stake in Ygia Polyclinic. This aligns with Cyprus’ healthcare evolution, as private hospitals integrate into the national health system, mirroring broader trends in the healthcare sector.
3. Eurobank: They fortified their Cyprus presence through acquiring a 93.47% stake in Hellenic Bank, resulting in one of the largest corporate transactions in Cyprus valued at roughly €1.2 billion.
4. Solaar Hospitality & Accor Partnership: They introduced the Mercure brand to Cyprus, with properties opening in Larnaka, enhancing the island’s tourism industry with modern luxury accommodations.
5. Olympus (Hellenic Dairies Group): They invested €40 million in opening a factory to produce traditional Halloumi in Cyprus, marking a significant investment in the dairy market.
6. Hellenic Healthcare Group (HHG): They expanded within Cyprus’ healthcare landscape by acquiring shares in the American Medical Center in Nicosia, underlining the Group’s strategic moves in the sector.
7. Globeducate: They acquired Olympion Educational Group, responding to Cyprus’ need for expanded educational infrastructure given the influx of expatriate families.
8. Sklavenitis Group: Acquired Papantoniou Supermarkets, planning to revamp and expand further into central Europe, reflecting the Group’s robust growth strategy.
9. American University of Beirut (AUB): Established its first campus outside Lebanon in Paphos. This €29 million investment in Cyprus emphasizes the island’s appeal due to its academic freedom and growing student market.
10. Palm Beach Resort Transformation: A partnership led by Premium Access Group and Thanos Hospitality aims to redefine luxury in Cyprus with an investment exceeding €110 million, enhancing Larnaca’s tourism and real estate sectors.
11. Whitestreet Investments & LABS Tower Acquisition: Trastor REIC’s purchase of LABS Tower illustrates Cyprus’ attractiveness for strategic real estate investments, with the building valued at €39 million.
12. Krafton’s Investment in Eschatology Entertainment: This Nicosia-based startup attracted US$11.3 million in a Series A round, marking a significant milestone in Cyprus’ emerging startup ecosystem.

These strategic investments not only highlight Cyprus’ growing appeal as an FDI destination but also underscore the diverse opportunities across various sectors from technology to healthcare, and from education to real estate. As Cyprus continues to attract global interest, these investments are set to significantly shape the island’s economic landscape in the coming years.