Within ten years, Cyprus has nearly doubled its Information and Communication Technology (ICT) professionals, thanks to targeted policies, Deputy Minister of Research, Innovation, and Digital Policy Nikodimos Damianou stated in his opening address at the 2nd Tech Summit 2025.

“Over the past decade, the number of ICT professionals in Cyprus has almost doubled, the result of policies designed to attract and retain talent. These complement initiatives to attract technology companies. A key role is played by the Minds in Cyprus program, aimed at repatriating Cypriot professionals abroad, particularly in the tech sector,” he said.

Damianou emphasized the crucial role of technology in driving growth and competitiveness for nations and organizations in the intelligence age—the era of Artificial Intelligence.

He pointed to today’s Cyprus, with more than 800 technology companies and a nearly 15% contribution to the country’s GDP, describing it as “a growing and recognized ecosystem.”

Technology, he stressed, is not just a growth driver but a force that can make life better, simpler, and fairer. For Cyprus, it is also one of the main pillars of Vision 2035, which aims to position the island as a genuine hub for innovation, technology, and digital entrepreneurship.

At the same time, Damianou acknowledged that the digitalization of the public sector had remained “in an infant stage at several levels” for many years, requiring substantial investment to meet strategic goals.

“Our interventions serve this dual purpose: to strengthen Cyprus’ competitiveness as an innovation and technology destination, while also advancing the digital transformation of the State,” he added.

Among the projects under way are upgrades in system and data architecture, the transition to a government cloud environment, the reinforcement of cybersecurity mechanisms, and the rollout of digital economy enablers such as electronic ID, e-signatures, and e-invoicing.

Through the Digital Citizen program, citizens are being provided with new digital tools and services. At the same time, major vertical projects are being implemented across key public sectors, which, starting this year, will significantly elevate the level of digitalization.

High on the agenda is also investment in AI. By the end of 2025, the National AI Taskforce is expected to complete a new Artificial Intelligence Strategy, with measures for AI adoption in both the public and private sectors. Cyprus’ Digital Assistant—the first generative AI application in government—continues to expand its features, now covering tax-related topics relevant to businesses.

The AI in Government funding program invites the private sector to collaborate with public institutions to develop solutions for real challenges. Meanwhile, the Deputy Ministry is working on support tools for businesses seeking to integrate AI into their operations.

Cyprus is also preparing to join the European AI Factories network through the Pharos initiative, giving the local ecosystem access to computing power, expertise, training, and further investments in AI infrastructure and know-how.

Still, Damianou noted, “expertise and talent remain perhaps the greatest challenge we face and an essential prerequisite for success.”

He reiterated that the ICT workforce has nearly doubled in a decade, highlighting again the importance of talent attraction and retention, alongside initiatives such as Minds in Cyprus.

“All of this is interconnected,” he said. “The key challenge is to act with speed, focus, and collective effort. Government action is fundamental—but businesses, academia, research institutions, and technology companies must also contribute.” He concluded that only through such collaboration can Cyprus build an ecosystem that evolves, innovates, and grows.