President Nikos Christodoulides said the Cyprus defence industry could reach a double-digit contribution to the country’s GDP in the coming years, describing the sector as a promising new pillar of the economy and a key component of efforts to strengthen national deterrence.
Speaking during a meeting with members of the Cyprus Defence Industry Council, Christodoulides said the aim was to assess implementation of the goals set when the Council was established last year, referring specifically to the creation of a registry of Cypriot defence companies and the need to boost their outward orientation and export activity.
He highlighted opportunities arising from the EU’s Security Action For Europe (SAFE) loan programme, recently approved by the European Commission, as well as provisions allowing up to 15% of equipment procurement from third countries. The president also confirmed he would attend an upcoming defence exhibition in Athens to support Cypriot companies.
“I consider it entirely feasible that in the coming years the Cyprus defence industry will reach a double-digit percentage of GDP. This is not an exaggeration,” he said, adding that he was well aware of the sector’s capabilities.
Around 30 companies active in defence sector
In statements after the meeting, Defence Minister Vasilis Palmas said the prospects for the domestic defence industry are “excellent”. He noted that around 30 companies are currently active in the sector, many of them innovative firms participating in EU-funded programmes.
Palmas said coordination had been strengthened between the executive branch and advisory bodies representing the private sector, including the Cyprus Chamber of Commerce and Industry and the Employers and Industrialists Federation. The aim is to respond effectively to challenges and to capitalise on the five-year SAFE framework to further develop local companies, he added.
Beyond strengthening the country’s defence capabilities, the minister said the industry offers an opportunity to create a new growth sector that can contribute meaningfully to GDP. He stressed that defence production is not limited to the Defence Ministry, as products such as software and other innovative systems could also be used by other state services and developed in cooperation with third countries outside the EU.
Source: CNA