Philenews

Worsening Picture of Foreign Investments

Published January 16, 2026, 08:26
Worsening Picture of Foreign Investments

The overall picture of Foreign Direct Investments (FDI) in Cyprus has worsened in 2024, with the total balance amounting to -€41.864 million, compared to -€34.856.7 million in 2023. This deterioration is due to a larger decrease in outgoing FDI compared to incoming FDI. The report by the Central Bank of Cyprus highlights this trend and provides an analysis of the distribution of FDI by economic activity. According to the report, the net position of FDI remained negative in 2024, while net FDI transactions were negative for the sixth consecutive year. The stock of FDI invested from and to Cyprus comes mainly from/to Europe. Importantly, the largest part of the FDI invested in/from Cyprus concerns the tertiary sector, specifically financial and insurance activities. The analysis also shows that the net position of FDI - classifying Special Purpose Entities (SPEs) as non-residents - decreased in 2024, remaining at a negative level. The stock of incoming and outgoing FDI is dispersed across all continents, with Europe holding the dominant position. Outgoing FDI to Europe amounted to €202.635.7 million in 2024, decreased compared to 2023, while to America it amounted to €60.040.4 million, also decreased. Regarding incoming FDI, it is mainly channeled from Europe and to a lesser extent from America. The stock of inflows of FDI from Europe reached €295.287.2 million in 2024, decreased compared to 2023, while from America it amounted to €73.150.9 million, showing a slight decrease. The majority of incoming FDI was directed towards the tertiary sector, specifically financial and insurance activities. The report emphasizes the need for continuous monitoring and analysis of FDI trends, as well as for taking measures to attract and retain foreign investment in Cyprus.