The Information Technology (IT) sector in Cyprus has demonstrated notable growth in recent years, contributing more than 10% to the country’s GDP in 2023, according to Demetris Nissiotis, President of the Cyprus Association of Information Technology Enterprises (CITEA). He noted that the combined value of the IT and telecommunications market in Cyprus is estimated at €856 million in 2025, based on a report by an international consulting firm.

Nissiotis emphasized that the digital transition is “a one-way street” for both the private sector and the state, adding that there is strong momentum around Artificial Intelligence (AI) from both the government and businesses.

In a presentation outlining CITEA’s work, initiatives, and role in promoting technology and innovation in Cyprus, Nissiotis explained that the sector’s contribution to GDP includes companies established in Cyprus through Invest Cyprus and government initiatives aimed at attracting high-tech firms. Of the 1,200 companies currently operating in the IT sector in Cyprus, around 800 have relocated or expanded to the country under such efforts.

Referring to a comprehensive survey conducted by CITEA over the past three years, which includes the CITEA Index measuring the digital maturity of Cypriot companies, Nissiotis said that 56.8% of firms are either just beginning their digital transformation or are in the early stages of experimenting with digital tools.

According to the index:

• 18.8% of companies report a solid understanding of IT technologies,

• 12.9% claim to be actively innovating and optimizing digital processes, and

• 11.5% consider themselves as leading in digital transformation and trend-setting.

The survey also found that:

• 89% of companies believe they need to improve their digital presence,

• 87% see a need to adopt cloud infrastructure,

• 83% require technological solutions for management and organizational purposes,

• 82% emphasize the importance of cybersecurity technologies and practices, and

• 71% recognize the need for automation and AI implementation.

On cybersecurity, Nissiotis highlighted that one in four businesses experienced a cyber-attack in 2023, a figure that dropped to 18% in 2024.

As for AI adoption, only 9% of companies rated their AI knowledge as very high, 22% as quite high, 34% as medium, 31% as low, and 4% admitted having no knowledge at all.