As part of the Doers Summit 2026, TechIsland hosted a dedicated presentation by KPMG Cyprus on the impact of the technology sector on the Cypriot economy. The study provided a data-driven overview of how the sector has evolved over the past decade and the role it now plays in Cyprus’ growth, employment, investment and competitiveness.
The findings confirm that technology is no longer an emerging or niche part of the economy. It has become one of Cyprus’ most dynamic growth engines, contributing significantly to national output and supporting thousands of jobs across the wider economy.
According to the study, the tech sector contributed directly 16.2% of Cyprus’ GDP in 2025, equivalent to €5.9 billion. When indirect and induced effects are taken into account, the sector’s total economic impact reaches €11.9 billion, demonstrating its broader contribution across business services, employment, consumption and the wider economic ecosystem.
The study also highlighted the sector’s strong employment footprint. In 2025, the tech sector employed 48,200 people directly and supported approximately 79,000 jobs in total across the Cypriot economy. Employment in tech has grown steadily over the past decade, with total tech employees increasing at a compound annual growth rate of 9.7% between 2016 and 2025.
Cyprus also stands out at European level. The country ranks 1st among EU27 countries in terms of ICT sector growth between 2016 and 2025, with ICT GVA growth reaching 435% over the period. Cyprus also ranks 3rd in the EU27 in terms of ICT contribution to GVA, with ICT accounting for 12.5% of total GVA in 2025 — significantly above the EU27 average of 5.6%.
The presentation further underlined the growing importance of technology in attracting investment. ICT is now the 3rd largest contributor to inward FDI in Cyprus, accounting for 17% of total inward FDI stock, reflecting the sector’s increasing relevance as a driver of international investment activity.
Beyond the numbers, the study points to the strategic choices needed to sustain this momentum. Continued investment in local talent, digital skills, STEM education, infrastructure, connectivity, and a competitive business environment will be essential for Cyprus to further strengthen its position as a regional technology and innovation hub.
For TechIsland, these findings reinforce the importance of building the conditions that allow the tech sector to grow sustainably and contribute even more meaningfully to the country’s long-term economic development. The data presented by KPMG Cyprus confirms what the ecosystem has been demonstrating in practice: technology is already shaping Cyprus’ next chapter.
