The investment funds sector in Cyprus has surpassed €9 billion in assets under management, as reported during the Cyprus Investment Funds Association’s (CIFA) Annual General Meeting (AGM) held on 10 April. This milestone reflects the industry’s ongoing development and robustness within the European financial landscape.
In her address at the AGM, CIFA President Maria Panayiotou highlighted that more than 330 licensed investment entities are now operational in Cyprus. This figure underscores the nation’s desirability as a regulated and professional jurisdiction within the European Union. Panayiotou attributed this growth not only to favourable market conditions but also to the strategic collaboration between public and private sector stakeholders alongside a stable and transparent legal framework.
“We are committed to fostering responsible capital flows, enhancing investor confidence, and creating an environment that allows the Cyprus investment funds industry to grow sustainably and competitively,” Panayiotou stated.
Looking to the future, Panayiotou indicated that the sector is well-positioned for further expansion, buoyed by anticipated legislative reforms. Significant changes, including the forthcoming Fund Administration Law and updates to the Alternative Investment Funds Law and Partnership Law, are expected to enhance the regulatory framework and competitiveness of the sector.
The AGM also highlighted CIFA’s efforts to enhance international visibility and attract investment. Following the success of its 2024 roadshow in Athens, the Association plans to engage in high-impact promotional events in strategic markets, including Germany and the Middle East—regions identified as having significant investment potential and increasing interest in Cyprus as a fund domicile.
In her remarks, Panayiotou emphasised the importance of ongoing education and capacity-building within the sector. CIFA has considerably broadened its member-training programme, offering more tailored workshops and accredited sessions to address the evolving demands of the industry.
CIFA is actively involved in national initiatives to promote financial literacy through its participation in the Cyprus Financial Literacy and Education Committee (CyFLEC). The aim is to equip individuals and households with the knowledge and skills necessary to make informed financial decisions and engage confidently in long-term investment strategies.
During the meeting, a panel discussion focused on ESG (environmental, social, and governance) investment trends, highlighting the growing significance of sustainable finance in shaping the future of the global funds industry. This focus reflects a broader commitment across the financial sector to integrate sustainability considerations into investment strategies.
As Cyprus’s investment funds industry continues to grow, CIFA remains dedicated to supporting its members and enhancing the overall framework for investment in the region.
Source : CNA
