Cyprus is set to approve the creation of a national mechanism for the control of foreign direct investments (FDI).
This aims to enhance the country’s protective framework while aligning with European standards on transparency and critical infrastructure security.
President Nikos Christodoulides made the announcement on Wednesday ahead of a cabinet meeting, describing the move as a key institutional reform that contributes to the strategic upgrade of Cyprus’ credibility and international reputation.
He said the mechanism’s primary purpose would be to protect national security and public order, while continuing to welcome reliable investments that the government is actively seeking to attract.
The president noted that “with this decision, Cyprus joins a unified European investment framework, based on transparency, strategic assessment and the safeguarding of vital national infrastructure.”
He explained that the bill under discussion replaces an earlier proposal submitted by the previous government in 2022, which was debated in parliament in 2024.
That version drew objections, prompting broad consultations with relevant stakeholders.
According to the president, those talks led to substantial improvements now included in the revised bill set to be approved.
He stressed that decisions made under the new mechanism would be timely and transparent, factors he described as “essential in fostering trustworthy, high-quality investment in the country.”