How has Cyprus positioned itself to attract investment from Japan, and what key sectors or opportunities are you focusing on to further strengthen investment ties between the two countries?
As global markets evolve and face complex challenges, the importance of building economic partnerships to foster cross-border investments and foreign direct investment (FDI) has never been greater. In this shifting landscape, Cyprus has strategically positioned itself as a dynamic hub for international investment, particularly with key partners like Japan. Both nations are aligned in their values and shared goals of driving innovation, economic growth, and sustainable development.
Cyprus has strengthened its partnership with Japan, with a focus on collaboration in sectors like technology, innovation, research, and financial services. Cyprus has attracted significant investments in banking, asset management, shipping, healthcare, education, tourism, and energy. As a result of its favourable regulatory environment and strategic access to European and MENA markets, Cyprus is rapidly becoming a premier destination for international investment.
The year 2024 has marked a series of significant international milestones for Cyprus, further solidifying its reputation as a prime destination for investors and businesses. Credit rating upgrades from prominent agencies such as Moody’s, S&P, Fitch, and Morningstar highlight the country’s fiscal strength, while Scope Ratings’ recent A- rating underscores its economic resilience and upward momentum. Investor confidence is also evident in the continued oversubscription of government bonds and the presence of key European institutions, such as the European Investment Bank, which has established offices in Cyprus.
While Japan remains one of the world’s largest economies, with a GDP of €3.9 trillion, trade between Cyprus and Japan still presents considerable growth opportunities. According to Japan’s Ministry of Foreign Affairs, Cyprus imported €692 million worth of goods from Japan in 2023, while exports to Japan totalled €1.3 million. This imbalance highlights the potential for both countries to strengthen their economic ties and increase bilateral trade and investment.
Recent steps have already been taken to solidify this relationship. For instance, during an official visit to Kyoto, Deputy Minister of Research, Innovation and Digital Policy, Nicodemos Damianou, and Japan’s Minister of Education, Culture, Sports, Science and Technology, Toshiko Abe, signed a Memorandum of Cooperation to enhance collaboration in science and technology. Cyprus’ Chief Scientist for Research, Innovation and Technology, Demetris Skourides, also held a series of productive discussions in Japan, further exploring new avenues for cooperation.
Looking ahead, Invest Cyprus is committed to capitalising on these developments and expanding opportunities in key areas, such as technology and education, renewable energy, financial services and headquartering. By cultivating strategic partnerships and supporting cutting-edge research, Cyprus aims to become a leading regional hub for technological innovation and education. Driving investment in renewable energy and green technologies remains a top priority, aligning with Cyprus’ commitment to sustainable development. In addition, Cyprus is strengthening its role as a gateway to European and MENA markets, offering a favourable business climate and regulatory framework to attract more international businesses to base operations on the island.
Invest Cyprus continues to support companies and investors throughout the entire investment cycle, providing expert guidance to navigate challenges, seize new opportunities, and achieve success in today’s dynamic global market.
With a strong foundation already in place, Cyprus is eager to deepen its collaboration with Japan, recognising untapped potential for mutual growth. The country is poised to expand opportunities in innovation, technology, financial services, and sustainable energy, paving the way for increased trade, investment, and stronger ties between the two nations.
