Cypriot defence and dual-use companies have attracted about €48 million in direct funding, strengthening their technological capabilities, product development and industrial capacity, while helping establish Cyprus as “a reliable and credible co-producer within Europe’s defence supply chain,” President of the Republic Nikos Christodoulides said on Thursday.
Addressing the opening of the 3rd International Defence and Security Conference “Battlefield ReDEFiNED 2026”, held under the auspices of the Cyprus Presidency of the Council of the EU, the President said the past five years have seen “remarkable growth and resilience” in the sector.
The conference is organised by the Cyprus Chamber of Commerce and Industry (CCCI), the Cyprus Association of Research and Innovation Enterprises and C.D. Multimedia Services Ltd at Pavilion Hall in Nicosia.
Turbulent times
The President noted that with the support of the Ministry of Defence, 18 Cypriot companies have secured participation in 44 European Defence Industrial Development Programmes and European Defence Fund projects, with a combined total project budget of approximately €600 million dedicated to next-generation European defence systems.
“We live in turbulent times,” President Christodoulides said, citing the ongoing war in Ukraine and conflicts in the wider region, which he said “underscore the fragility of peace” and highlight the “critical importance of preparedness.”
Referring to Cyprus, he added that the country, “still suffering from Turkish military occupation, recognizes the defense industry’s vital role in enhancing our deterrence capabilities and fortifying our country’s role in regional and European security.”
Strengthening resilience
He said Europe must strengthen resilience while remaining “Innovative, Competitive, and Connected to trusted partners,” arguing that investing in defence and dual-use technologies “is not only a responsibility” but “a strategic necessity” in an era of hybrid threats, cyber challenges and a contested space domain.
“I really believe in the Cyprus Defence Industry. I believe in its prospects, and I believe in its potential,” the President said, adding that behind the sector’s progress stand “visionary founders and entrepreneurs, dedicated engineers, researchers, scientists and technicians.”
He also assured the industry that the Government “will continue to stand firmly by your side,” stressing that “your success is not only an industrial achievement; your success is a strategic asset for Cyprus and for Europe. And your success is our success.” He said he believes the defence industry’s contribution to Cyprus’ GDP “can reach double digits in the years ahead.”
Shaping EU defence landscape
President Christodoulides said Cyprus’ ambition is to move beyond being “a consumer of defence solutions and become a producer,” becoming a force that helps shape the European defence landscape “through innovation, through cutting-edge technologies, through high-quality manufacturing.”
He recalled that at last year’s conference he announced six concrete policies to strengthen the sector and said that, today, these are “not just visions” but existing realities.
He said Cyprus is drafting a National Defence Industry Strategy together with the European Commission, aiming to align regulation, industrial capabilities and innovation, strengthen readiness, integrate into European defence supply chains and support the transition “from innovation to deployable capabilities.”
He added that the Government is promoting international industrial collaboration on defence programmes, starting with the SAFE programme, with the goal of establishing a formal framework to secure meaningful participation by Cypriot companies in armament contracts, facilitate technology transfer and enhance self-sufficiency. In this context, he said Cyprus has set a target threshold of 15% for meaningful participation of Cypriot companies in major defence procurements.
International presence
The President also said a National Registry of Cypriot Defence Industry Manufacturers, developed with the Cyprus Chamber of Commerce and Industry, will shortly enter into force, serving as the official reference framework for authorised national manufacturers, enhancing transparency and compliance with standards.
He noted that the Government has increased funding to support the transition from Research and Development to Defence Industry Development.
To bolster international presence and export readiness, President Christodoulides said Cyprus is funding National Pavilions at major international defence exhibitions annually, noting that this is already in effect with Cyprus participating in DEFEA 2025 in Athens, while adding that the Government intends to fund “at a much larger scale” the national pavilion at EUROSATORY 2026 in Paris.
Geopolitical role
He said the conference would also witness the signing of the SOLIS project, a satellite communications contract which he described as “a significant strategic milestone” and “a concrete investment in the future of national and European security,” through cooperation with Hellas Sat, the French National Space Agency (CNES) and industrial partners, linked to the future Hellas Sat 5 satellite.
“At a time when space has become a critical domain of defense and strategic autonomy,” he said, the initiative strengthens Cyprus’ national security, strategic autonomy and geopolitical role.
He said Cyprus is “gradually evolving from a participant to a meaningful contributor to Europe’s defense and dual-use technological ecosystem.”
“Battlefield ReDEFiNED 2026” brings together European institutions, national authorities, innovation actors and industry to examine how policy and technology translate into deployable capability and readiness.
CNA