New sector insights and research reveal why a rising number of UK and international infrastructure and energy companies are selecting Cyprus as their regional headquarters, with ongoing uncertainties affecting neighbouring markets.
The island is quickly establishing itself as the location of choice for organisations seeking security, connectivity and sustainable growth throughout the Eastern Mediterranean, North Africa and beyond.
Relocation Decisions Bolstered by Regional Stability
Instability in parts of the Middle East, North Africa and nearby regions is prompting many infrastructure and energy companies to reconsider their operational footprints. Cyprus stands out for its:
- Political predictability as both an EU and Eurozone member
- Legal frameworks based on English common law
- Robust financial services and business-friendly regulation
As global supply chains encounter new geopolitical headwinds, an increasing number of UK-based and international businesses view Cyprus as a pragmatic alternative. The island provides both the flexibility to serve markets further east and south, and the regulatory safety and certainty offered by the European Union.
Connectivity: Europe, Middle East and Africa Within Reach
Cyprus’s outstanding geography is a calculated business asset:
- Gateway to major energy corridors and shipping lanes
- Direct port and airport links to key international cities
- EU membership, which grants frictionless trade and legal protections
For firms weighing up relocation or expansion, being able to access several strategic markets without increased exposure to regional volatility is more important than ever. Cyprus’s infrastructure, especially at Limassol and Larnaca ports and its modern airports, underpins both operational flexibility and business continuity.
Incentives and Costs: A Competitive Edge
- Transparent regulation and an internationally aligned legal environment are key attractions
- Companies benefit from highly competitive tax rates and various investment incentives, helping to offset set-up and operating costs
- The government is continually refining processes for foreign direct investment, creating one of the most attractive business climates in the Mediterranean
Recent upgrades in digital administration, banking and professional services further bolster Cyprus’s reputation as a stable base for international entities.
Strategic Innovation and Sustainability
Cyprus is not content with stability alone. The government is proactively supporting sustainable infrastructure and energy initiatives:
- Major investment in renewables, smart grids, desalination and battery storage
- Flagship multinational projects such as the EuroAsia and EuroAfrica Interconnectors will connect the Cypriot grid with Israel, Greece and Egypt, boosting regional energy security
- Close alignment with the EU Green Deal and Digital Decade, unlocking opportunities for international collaboration on climate-resilient infrastructure
These ongoing projects present genuine opportunities for businesses engaged in next-generation infrastructure, from renewables to advanced grid solutions, all seeking a base that links Europe with the Middle East and Africa.
Talent Pool and Quality of Life
- A multilingual, internationally educated workforce offers expertise and proximity to both EU and regional talent pools
- Companies see cost savings with overheads typically lower compared to other major European hubs
- Cyprus’s high quality of life, safety and widespread English proficiency all play a part in talent attraction and retention, especially for expatriate professionals
UK-Cyprus Synergy: A Bridge for Growth
Trade and business collaboration between the UK and Cyprus continue to thrive, with nearly £3 billion in annual trade and robust projects in energy, technology and services. Both economies are capitalising on opportunities for:
- Knowledge-sharing in green technology, digital innovation and infrastructure management
- Joint ventures in offshore gas, renewables and specialist service centres
- Enhancing value chains that link the UK with the wider EMEA region
For firms already active in London, Cyprus offers access to new markets alongside continued connection with EU legal frameworks and digital infrastructure.
Addressing the Challenges
Of course, no location is without its challenges:
- Ongoing reforms in Cyprus’s judiciary and regulatory bodies are essential to further minimise administrative obstacles
- The energy sector’s transition from imported petroleum and recurring cost issues are being tackled through collaboration and investment in renewables
- Continued modernisation of infrastructure, especially power and digital connectivity, remains high on the agenda although signs of progress are clear
It is wise for companies to assess these factors closely and consult local advisers for a seamless move or expansion.
Future Outlook
Cyprus’s role as a prime relocation hub will only become more significant as changes in the region reshape infrastructure and energy landscapes. Companies like EY, Shanda Consult and Bollen Advisors continue to recommend Cyprus to companies in these industries as the island offers both a reliable operational base and a platform for sustainable, adaptable growth.
