Three years ago Cyprus was hit by a scandal related to its “golden passport” scheme known as the Cyprus Investment Programme (CIP). An investigation by Qatari state-owned Al Jazeera reported in 2020 that Cyprus sold passports to “criminals, wanted men and political figures regarded as high-risk for dirty money”. The scheme was closed a few months later. 

Marios Tannousis, who became CEO of Invest Cyprus earlier this year, tells fDi why Cyprus has been striving to move away from this image. In this vein, the country has made plans to attract more technology investments, while looking to promote sustainability through the launch of a new platform to support climate tech entrepreneurs.

Q: Last year Cyprus tracked a record number of greenfield projects, according to fDi Markets, with a significant increase in software and IT services. What are the key sectors Invest Cyprus has been targeting?
A: We have one priority sector, which has been in our strategic plan since 2018: technology. This includes the promotion of start-ups, research and development, innovation and entrepreneurship. We have invested a lot in promoting and giving incentives to companies that would like to invest in technology. This started in 2019 with some international tech companies establishing offices in Cyprus. As of 2022, the tech industry contributed an estimated €4.7bn to our GDP, surpassing for the first time tourism, real estate or financial services. 

Q: Was the CIP scandal a contributing factor in this shift towards the tech sector?
A: Invest Cyprus was not involved in that programme. But we try to explain to people that in terms of FDI, isn’t it better to have a multiplier effect? By that I mean that if an international company comes here, looks for offices and hires 30 to 50 people, this will then prompt the need for more residencies in the country. Now, we are looking at a more sustainable and serious way of promoting our country for [inward] investment. And this is what we are targeting as Invest Cyprus: sectors which provide multiplier effects for the economy and a sustainable future.

Q: What is the significance of the launch of the new hub Euromed iHouse?
A: This platform was launched in July in collaboration with Anima, a network of IPAs around the Mediterranean basin. It is a place for collaboration between Euromed countries and will help to facilitate innovation, specifically in climate tech. For example, it could be that start-ups come to [Euromed iHouse] to pitch to investors to raise funding. It could be that we put on a day event with lectures about sustainability in the Mediterranean region. We are looking at all these things and we plan to offer these programmes by the beginning of 2024.

Q: Is this the best place to put your energy when faced with the climate crisis?
A: In light of the climate disasters we’ve seen this summer, like the wildfires we saw here in Cyprus, we are going to do whatever we can to try to help these start-ups to help with the prevention of disasters, whether it be fires, storms or other weather events we are seeing across the Mediterranean. As Invest Cyprus, we are facilitators and we want to facilitate efficient prevention [measures].

Q: How has Invest Cyprus been using AI and to what extent is AI disruptive to economic development?
A: In our case, we are still at the beginning. We have not yet implemented a major investment into AI. We are looking into this, but I think we need some more tangible results before we make any investment due to our limited resources. AI is disruptive and it will lead to making investment promotion smarter and more efficient but still we need more time to understand it, and to make sure that we have accurate results for it to be used across promotion, facilitation and aftercare. 

The interview has been edited for clarity and brevity. 

Marios Tannousis is the CEO of Invest Cyprus.