Investment Survey 2025: Cyprus overview (European Investment Bank)

Summary

• In Cyprus, 94% of firms reported investing in the last financial year, compared to 84% in EIBIS 2024.p.7
• A net balance of 10% of Cypriot firms expect to increase investment in the current financial year, up from 3% in EIBIS 2024.p.7
• Tangible assets accounted for 62% of total investment by Cypriot firms over the past financial year.p.7
• A total of 81% of Cypriot firms engage in international trade, compared with the EU average of 66%.p.7
• Half of Cypriot firms (50%) invest in developing or introducing new products, processes, or services.p.8
• Generative AI tools such as ChatGPT, Bard, or Copilot are systematically used by 23% of Cypriot firms.p.8
• The share of finance-constrained firms in Cyprus declined to 6.8%, down from 16.7% in EIBIS 2024.p.8

Key insights

1. Service sector firms in Cyprus expect investment to decrease in the current financial year, showing a net balance of -8%.p.7
2. 52% of Cypriot firms believe their business will be unaffected by the transition to stricter climate standards and regulations.p.8
3. Availability of skilled staff is identified as an investment obstacle by 89% of firms in Cyprus.p.8
4. 94% of Cypriot firms receiving external finance obtained it from a bank.p.8
5. Energy audits have been performed by 44% of Cypriot firms in the past three years.p.8
6. Adequate transport infrastructure is cited as an investment barrier by 74% of Cypriot firms compared to 45% across the EU.p.8