Cyprus startup ecosystem grows fivefold since 2020 as island courts regional hub role
Cyprus has recorded a fivefold increase in companies entering its startup ecosystem between 2020 and 2025, Chief Scientist Demetris Skourides said on Thursday, adding that the island now has the foundations to become a strong regional innovation hub.
Addressing a forum in Limassol, Skourides said Cyprus is open for business and aims to build a two-way value flow with companies by facilitating their access to Europe while positioning the country as a platform for international expansion. He attributed the rapid expansion of the ecosystem to trust in innovation, transparency and institutional change, calling confidence in the system a key growth factor.
Skourides highlighted capabilities in research and development across sectors ranging from microchips and shipping to healthcare, and said companies are beginning to form clusters that strengthen the wider ecosystem. He added that Cyprus is no longer focused on whether it will become a hub in ten years, arguing that structural components are already in place to support its transformation into a strong regional hub.
On the broader economy, he said unemployment is below 4.5 per cent and GDP growth is around 3.4 per cent and continuing. Key sectors include technology, gaming and entertainment, fintech, trade and maritime logistics.
Skourides said Cyprus ranks third in Europe and tenth globally in the fastest growing shipping management services segment, and that the country is ranked among the top three for attractiveness in securing European investment and funding. He described Cyprus as a bridge extending as far as Australia rather than a small island economy.
Cyprus Chamber of Commerce and Industry (Keve) president Stavros Stavrou said the country is positioning itself as a destination for innovation, research, entrepreneurship and investment, stressing that internationalisation is essential for small and medium-sized enterprises.
He said the chamber leverages international partnerships and European and global business networks to connect local companies with opportunities, working with organisations such as the Research and Innovation Foundation (RIF) and Invest Cyprus.
RIF director general Theodoros Loukaidis said Cyprus is evolving into a dynamic innovation ecosystem, currently ranked 25th among 130 economies in the Global Innovation Index and 16th globally in innovation outputs, which he said underscores a strong ability to convert inputs into results.
He added that Cyprus has improved its startup performance for two consecutive years and is now the fastest-growing startup ecosystem in the European Union. Speakers said continued collaboration among government, industry and research bodies will be central to sustaining the momentum and to supporting companies that use Cyprus as a springboard into European and international markets.