Alpha News

Cyprus' Defense Industry Poised for Double-Digit GDP Contribution

Published February 16, 2026, 09:26

The Cyprus Defense Industry Council held a meeting chaired by the President of the Republic, Nikos Christodoulides, to review its work during its first year of operation. The President expressed his confidence in the potential of the Cypriot defense industry, emphasizing the importance of strengthening the extroversion of Cypriot companies and utilizing the SAFE program. He also referred to the 15% clause in equipment purchases from third countries and his planned participation in exhibitions in Athens to support the sector. Nikos Christodoulides expressed optimism that the Cypriot defense industry could make a significant contribution to the country's GDP in the coming years, reaching a double-digit figure. He stressed that this sector represents a promising new facet of the Cypriot economy, alongside strengthening the country's deterrent power. The meeting discussed the progress made in implementing the set goals, as well as the areas that require further strengthening. Emphasis was placed on the creation of a register of Cypriot companies in the defense sector, with the aim of better organizing and promoting their activities. The purpose of the meeting was to evaluate the achievements of the first year of the Council's operation, identify challenges, and determine the next steps for the further development of the Cypriot defense industry. The government is committed to continuing to support the sector, considering it strategically important for the economy and security of Cyprus.