Bilateral economic ties between the United Arab Emirates and Cyprus are gaining momentum, with non-oil trade rising sharply and new institutional links strengthening private-sector cooperation, UAE Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi said on Saturday.
Addressing a business roundtable in Nicosia alongside Cyprus’ Minister of Energy, Commerce and Industry Michael Damianos and other government officials and business leaders from both countries, Al Zeyoudi said bilateral non-oil trade reached $176 million in the first nine months of the year, representing “nearly 40 percent growth on the same period last year” and approaching the value recorded for the whole of 2024.
The forum was co-organised by the government of Cyprus, the Cyprus Chamber of Commerce and Industry (CCCI) and Invest Cyprus, with the UAE delegation led by the Minister of Foreign Trade. During the event, a Memorandum of Understanding was signed between the CCCI, Invest Cyprus and the Federation of UAE Chambers of Commerce & Industry, which provides for the establishment of the UAE–Cyprus Joint Business and Investment Council.
Al Zeyoudi described the meeting as an opportunity to build on the “many synergies between our two nations and two economies,” focusing on sectors of mutual interest and on expanding networks between investors, entrepreneurs and business leaders.
'Fintech Centres'
Al Zeyoudi pointed to a series of recent initiatives underscoring the deepening partnership. Last month, the Cyprus Business Council was launched in Dubai, aimed at strengthening private-sector collaboration in areas including finance, green technologies, tourism and logistics. Earlier this year, in June, the UAE-founded investment platform Investopia held its first global events in Cyprus, a development he said reflected “the role that Cyprus plays as a gateway to Europe for many investors from the Middle East.”
The minister drew parallels between the two countries’ economic models, saying Cyprus had developed “a model for trade and investments very similar to our own.” He cited streamlined company registration and licensing processes, incentives for innovation-led businesses and research and development, and the EU’s lowest corporate tax rate.
“We're both important centres for the maritime and fintech sectors,” Al Zeyoudi said, adding that both countries continue to attract strong foreign direct investment into real estate, technology and renewable energy.
Encouraging closer two-way engagement, Al Zeyoudi invited UAE companies to explore opportunities in Cyprus, while also calling on Cypriot businesses to look to the UAE as a base for regional expansion. He urged Cypriot firms to “visit us in the UAE and discover the platform for expansion into not only our high-market growth, but also of Asia and wider Middle East.”
'Major Step Forward'
Speaking at the forum, Cyprus’ Minister of Energy, Commerce and Industry Michael Damianos said the signing of the Memorandum of Understanding for the establishment of the Joint Business and Investment Council marks a major step forward in institutionalising economic cooperation between the two countries. The Council will serve as a structured platform through which Cypriot and Emirati businesses, investors, and innovators can engage in a more systematic and results-orientated manner. It can enable knowledge exchange, facilitate the development of joint ventures, and promote collaborative projects that advance sustainable growth, technology transfer, and share prosperity.
Damianos said that while trade and capital flows between the two countries were encouraging, they still represented “only a fraction of what our economies can achieve through more extensive business-to-business partnerships, joint ventures, and investment alliances.”
He placed the discussions in the context of a rapidly changing global environment marked by geopolitical uncertainty, technological disruption and shifting economic dynamics, arguing that “sustainable growth now depends fundamentally on the ability to share expertise, pool resources, and forge partnerships that unlock value across borders.”
Cyprus' 'Significant Economic Transformation'
Highlighting Cyprus’ regional positioning, the minister said the country’s role as a bridge between the Gulf, the Eastern Mediterranean and the European Union was “one of our country’s most important assets,” noting that Cyprus had consistently served as “a reliable partner for Gulf-based companies, seeking a stable, efficient, and well-regulated gateway into the European Union, while maintaining deep links to the Middle East.”
Damianos also outlined recent economic performance, saying Cyprus had undergone a “significant economic transformation” over the past decade. GDP grew by 3.4% in 2024, compared with an EU average of 0.9%, while unemployment fell to 4.6%.
He pointed to Cyprus’ National Development Strategy Vision 2035, which aims to steer the economy toward greener, more digital and more competitive growth.
The minister said the moment offered “a genuine opportunity for Cyprus and the United Arab Emirates to advance our transition from a traditional cooperation to a comprehensive, long-term strategic alliance,” stressing that Cyprus offered stability, access to regional and European markets, a highly skilled workforce and a regulatory environment tailored to international business.
He concluded by inviting Emirati and Cypriot companies “to explore the full potential of this collaboration.”
Cyprus Positions Itself as EU Hub for UAE Business
Welcoming the UAE delegation, CCCI President Stavros Stavrou said their presence demonstrated “the strength, the depth, and the potential of Cyprus and UAE economic cooperation,” noting that the partnership had been built over time on “mutual respect, shared strategic interests, and common ambition to foster stability, prosperity, and innovation.”
Stavrou pointed to a marked increase in bilateral activity this year, including business missions and high-level exchanges, describing the growing interest between the two sides as “not theoretical, it's practical, it's immediate, and mutually beneficial.” He pointed out the alignment between UAE expertise in areas such as artificial intelligence, advanced technologies, renewable energy, maritime services and logistics, and Cyprus’ own long-term economic priorities.
Positioning Cyprus as “a reliable, innovative, and well-regulated European hub,” Stavrou said the country aimed to serve both as “a gateway to the EU” and “a bridge to the Middle East and North Africa,” adding that complementarities between the two economies were “clear and compelling.” He identified scope for cooperation in joint ventures, co-investments, technology transfer, clean energy, smart infrastructure, AI and emerging sectors, stressing that the chamber’s role was “to turn potential into progress.”
FDI and Tech
Chairman of Invest Cyprus Evgenios Evgeniou said the roundtable and subsequent meetings could prove “a decisive step towards fostering closer bilateral business relations,” against the backdrop of strong economic performance in Cyprus. He noted that the country was experiencing strong growth, full employment, and continuous upgrades by the international rating agencies, underpinned by a targeted foreign direct investment strategy.
“At the core of this positive trajectory is foreign direct investment,” Evgeniou said, outlining a policy focus on attracting high-skilled companies and promoting investments that support sustainable, long-term growth. He pointed to the rapid expansion of Cyprus’ technology ecosystem, saying the ICT sector now contributes “14% of GDP,” exceeding shipping and approaching the contribution of tourism. Cyprus, he added, ranks third in the EU for growth in the technology sector, with technology FDI rising by more than 200% in 2024.
Evgeniou said Cyprus’ stability, regulatory innovation tools and access to the EU’s 450 million consumers strengthened its appeal as a European base for Middle Eastern companies. He said the signing of the UAE–Cyprus Business and Investment Council was expected to “act as a catalyst” for deeper cooperation.
CNA