Keynote Address by the Chief Scientist for Research, Innovation and Technology Demetris Skourides “Unveiling Cyprus: Emerging as a Leading Tech Hub for Regional Innovation” 9th International Funds Summit & EXPO | 23 October 2023

Dear President of the Cyprus Investment Funds Association,
Dear CEO of Invest Cyprus,
Dear Vice Chairman of the Cyprus Securities and Exchange Commission,
Distinguished Speakers and Guests,
Ladies and Gentlemen, 

It is a great pleasure to address you today at this year’s International Funds Summit & EXPO. It may be my first time standing here at this event, but I am delighted that this initiative is being held for the 9th year, with the aim of discussing the changing regulatory environment and increasingly competitive landscape of the global asset management sector.

As Chief Scientist for Research, Innovation and Technology of the Republic of Cyprus, and Chairman of the Research and Innovation Foundation, it is truly an honor to not only attend this event, but even more so to support it as a Technology and Innovation Partner. Something we take particular pride in doing, as it gives us the opportunity to open our doors to the world, and engage with leading fund managers and administration specialists.

To the organizers, the Cyprus Investment Funds Association and Invest Cyprus, I extend my gratitude and congratulations for the immaculate organization of this event, which brings together senior finance and investment professionals from all over the world and for your dedication to attract and facilitate Foreign Direct Investment to Cyprus, by promoting our island as an international business headquartering hub.

The various figures are themselves a testament to the impact of your efforts. Cyprus is witnessing impressive growth in the investment funds sector with an increasing number of internationally recognized fund service providers being established on the island. According to the latest data, total assets under management amounted to €10.7billion in the second quarter of 2023.

I would also like to extend my warm greetings to all the participants and esteemed fellow speakers. I am confident that this year’s summit will achieve its cause, just like the summits that preceded it, proving ideal for networking and helpful for acquiring in-depth information about Cyprus’ capabilities as a world-class investment fund center.

Ladies and Gentlemen,

In this fast-paced, ever-evolving era we live in, we cannot hold back the tide of change. The only way is to move forward, and innovation and technology are the only future-proof tools we have to ensure that we will unlock a new economy.

We firmly believe that research, innovation and technology are key drivers of a thriving and resilient economy. That is why we keep our focus on attracting tech companies to Cyprus, an EU Member state with a population of less than a million, a geostrategic location, a projected growth rate of 2.8% for 2023-2024, and an economy that was recently upgraded to investment-grade status by international rating agencies.

Being home to a fast-growing community of start-ups and innovative enterprises, manned by a well-educated, highly-skilled, multilingual and tech-savvy workforce, Cyprus was listed as a strong innovator for a second consecutive year according to the European Innovation Scoreboard, with the 2023 edition of the Scoreboard clearly indicating that the island achieved the most significant improvement, whilst ranked 11th globally in greenfield Foreign Direct Investment.

Cyprus’ strengths also include:

  • linkages with innovative SMEs collaborating with others, a sector in which our country marked the highest performance EU-wide,
  • attractive research systems,
  • strong innovation in product development and,
  • business process innovation.

At the same time, Cyprus ranks 28th out of 132 economies in the latest Global Innovation Index and 2nd in North Africa and the Middle East. 

Esteemed Guests, 

In a bid to maintain this momentum, the government of Cyprus has committed to establish Cyprus as a regional innovation and tech hub through a series of policies, that strive to create an environment that will enable the development and growth of tech companies and startups. Central to this, is the country’s long-term strategy, Cyprus Vision 2035, which aims to turn the island into a powerhouse of innovation, supported by digitalization and thus, one of the world’s best countries to live, work and do business in.

To name just a few of the initiatives that were taken towards this aim, Cyprus offers an attractive tax framework and incentives with a favorable IP regime offering a maximum effective tax rate of 2.5%. The island also offers attractive corporate and income tax provisions, such as a 50% tax exemption for new non-domiciled employees earning less than €55.000 annually, and a 50% tax exemption for investment in certified innovative companies, applicable for individuals and corporate investors alike.

In addition, the Cyprus Government has introduced the National Recovery and Resilience Plan, code-named “Cyprus Tomorrow”. Through targeted reforms and investments, the Plan aims to help Cyprus become more sustainable, resilient, and better prepared for the challenges and opportunities of the green and digital transition.

Furthermore, the government has established a Business Facilitation Unit that functions as the central point of contact for all companies of international interest, including companies that are currently operating in Cyprus and those that wish to do so in the future.

Meanwhile, the “Cyprus Startup Visa” Scheme has been introduced, allowing talented entrepreneurs from third countries to enter, live and work in Cyprus, in order to establish, operate or develop a Startup with a high potential for growth. The Scheme’s goal is clear: Create new jobs, promote R&I, develop the business ecosystem and hence, the country’s economy.

It’s within this very same framework that was also set in motion the concept of the Digital Nomad Visa for individuals who wish to live in our country while working for foreign companies.

Similarly, the establishment of the Cyprus Equity Fund has also created major opportunities, offering alternative financing for innovative companies and Cy-based startups, supported by public resources. Moreover, a funding scheme for the digital transformation of enterprises has been introduced, while an Equity-free funding program was announced by the Research & Innovation Foundation to advance research commercialization, innovative entrepreneurship and internationalization.

Ladies and Gentlemen, 

No vehicle can move without an engine. And the Research and Innovation Foundation is the driving force behind Cyprus’ journey to becoming a major tech hub.

RIF is providing the Cypriot ecosystem with a much-needed boost through its wide range of funding programs and support services. A wide range of innovation tools that aim to facilitate:

  • the creation and initial development of innovative start-ups,
  • the rapid growth of those who intend to develop globally competitive innovative products and services, and
  • the development of innovative products or services with potential for quick global market penetration.

The figures speak for themselves: RIF launched a new framework of funding programs for the period 2021-2027, allocating another €150m to targeted investments in various sectors including research, collaboration, knowledge transfer, innovation, infrastructure and capacity development, as well as internationalization.

In addition, it also supports collaborative opportunities between research organizations and enterprises to jointly develop solutions in specific areas, while it offers funding opportunities for R&I projects carried out by PhD candidates in Cypriot enterprises. Furthermore, it offers opportunities to connect enterprises with cutting-edge innovation to VCs.

It’s worth noting that RIF has also been running a Central Knowledge Transfer Office for about a year now, which aims to enhance links between our research community and businesses, and transfer the results of scientific and technological research to the economy as well as society, further supporting the acceleration of economic growth.

Distinguished Speakers and Guests,

Cyprus has twelve universities, seven centers of excellence, private and public research institutes, and over 400 startups and innovative businesses. Moreover, it has more than 417 Patent Applications in WIPO and a high absorption of R&I funds from EU funding programs. Startups and scaleups here have managed in 2022 alone to raise 130M Euros in venture capital and have been able to make their products and services available in international markets.

I assure you that Cyprus is well on its way to becoming a regional tech hub, able to attract investors from abroad, create links with international VCs and facilitate access to high-risk capital. A standout destination for doing business, offering great prospects and high-quality services.

I would like, once again, to express my gratitude for being here today, and especially the organizers of the event for giving us this unique opportunity to present our country’s rapid progress in the field of innovation, research, and technology.

I am confident that the following presentations and discussions will be inspiring and beneficial for everyone.

Thank you.