Cyprus Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in cyprus, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Information Communication Technology (ICT)
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Overview

The ROC seeks to position itself as a regional tech hub for innovation, research, and ICT, serving the entire Eastern Mediterranean and acting as a gateway between Europe, the Middle East, and North Africa. It is making efforts to improve its ICT and cybersecurity infrastructure and promote the digital transformation of both the private and public sectors. The Deputy Ministry of Research, Innovation, and Digital Policy (DMRIDP) coordinates and leads the effort, with support from the Chief Scientist of the ROC. 

 The latter chairs the Research and Innovation Foundation (RIF), which is the national organization that designs and manages research and innovation funding programs, and supports and promotes research, technological development, and innovation. Aligning with the EU Artificial Intelligence (AI) Act, a National AI Taskforce was established in January 2025, chaired by the Chief Scientist, tasked with formulating a national AI strategy and focused on developing and integrating AI across different sectors in the ROC. It serves as an advisory body to the government. The Digital Security Authority (DSA) is responsible for cybersecurity and oversees the National Computer Security Incident Response Team (CSIRT). Moreover, the Office of the Commissioner of Electronic Communications and Postal Regulations (OCECPR) oversees all electronic communications regulations in the ROC. An accelerated digital transformation effort prioritized e-government and e-learning projects for both funding and execution, as well as increased related support in the private sector. To support the development of entrepreneurship, start-ups, and innovative projects, the ROC established a start-up visa regime, an IP Box regime, a tax relaxation scheme, and other incentives. In 2024, the ROC ranked 27th out of 133 economies in the Global Innovation Index. Under a municipal reform plan that took effect on July 1, 2024, major ROC municipalities intend to implement several smart city solutions. For more detailed information, interested companies can contact Embassy Nicosia’s Political and Economic Section at nicosiaecon@state.gov.

Leading Sub-Sectors and Opportunities

Digital Transformation and Cybersecurity

There is a growing demand for U.S. software, services, and platforms. Increased cybersecurity breaches led the private sector and the ROC government to seek out higher-quality security capabilities and consulting services. Digital skills in the local market remain somewhat limited, offering opportunities for U.S. consulting and training companies. Issued and upcoming tenders can be found on the ROC’s e-procurement website.

Transition to a Government Cloud Environment (G-cloud):

The Deputy Ministry of Research, Innovation, and Digital Policy (DMRIDP) issued a tender for the Creation and Operation of a Hybrid Government Cloud (G-Cloud) for which the bid submission deadline is October 31, 2025.  The Deputy Ministry will also need to procure Data Center Facilities to host the G-Cloud and is considering contracting the construction of new Data Center facilities to private companies.

Development and Operation of a Science and Technology Park in Pentakomo:

The Department of Public Works of the Ministry of Transport, Communications, and Works released a tender for the supply, installation, and integration of ITS hardware equipment for the primary and interurban road network of Cyprus. The aim is to develop and implement an intelligent transport system to improve the management of mobility in urban areas, through the connection of 300 sensors with a central control system. The deadline for bid submissions is November 3, and the estimated cost of the project is five million euro (approximately $5.3 million).

The Ministry of Energy, Commerce, and Industry issued a tender notice on July 11, 2025, for expressions of interest for the creation and operation of a Science and Technology Park in Pentakomo (STP), Limassol. The ROC aims for the park to serve as a platform and location for technological advancement and economic development. The park will foster collaboration between startups, enterprises, research institutions, and academia, to enable cross-sectoral partnerships, and foster synergies. According to the ROC plan, the park will establish a dynamic and interconnected ecosystem to integrate research, industry, and education and enable knowledge transfer, scaling, and innovation. The STP’s goal will be to reinforce Cyprus’s position as a research and innovation regional hub, enable knowledge-driven economic growth, and attract investment. The deadline for “Expressions of Interest” is November 12, 2025. The ROC will provide €10 million to the developer for initial logistics (road, fencing, electricity/water connection, etc.).

The ROC identified the following tech parks as examples of the project it seeks to emulate: Joist Innovation Park in Greece, DTU Science Park in Denmark, and Technopol in Estonia. The ROC is looking for a consortium of companies, including a strategic investor who will provide the funding, construction companies for STP’s development, and tech-oriented companies that operate similar projects.  

According to the tender documents, “The Government of the Republic of Cyprus is committed to offering a comprehensive package of incentives to the successful tenderer for the development and operation of the STP. These incentives are designed to encourage investment, streamline administrative processes, and ensure the long-term sustainability of the park. The package includes financial, tax, planning, and operational incentives, all within the framework of existing legislation and policies. Any financial aid provided under this framework will be deducted from the rent payable over the initial 33-year lease period, thereby supporting the successful tenderer in establishing a competitive and sustainable operation.”

Role of Strategic Investor:

  • Overseeing Development and Operations: Managing the Park’s growth, infrastructure development, and service provision to ensure its long-term success.
  • Defining Goals and Thematic Priorities: Establishing a dynamic framework aligned with Cyprus’s innovation and economic development objectives.
  • Ensuring Financial Viability: Implementing a sustainable business model to attract and support high-tech companies, research institutions, and start-ups.
  • Managing Stakeholder Engagement: Coordinating with industry, academia, and investors to foster collaboration and innovation.”

Resources

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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