Cyprus fund sector grows into key pillar of economy, says CIFA head

Cyprus Investment Funds Association (CIFA) president Maria Panayiotou on Wednesday detailed the progress achieved in Cyprus’ investment fund ecosystem over the past 12 years.

Panayiotou highlighted the new level of maturity seen in the sector, with recent developments underscoring the country’s ambition to position itself as a credible European investment hub.

According to Panayiotou, the recent enactment of the Fund Administrators Law “further enhances the regulatory framework, reinforces transparency, and reflects the maturity of a sector that has been built over the past decade through sustained effort, strategic policymaking, and close collaboration between the State, CySEC, and the private sector.” 

She recalled that back in 2013, the idea of Cyprus evolving into a credible European investment fund centre “was ambitious.”  

Yet, she added, “today, that vision is materialising.” With more than 320 licensed fund entities and Assets Under Management exceeding €10 billion, the sector has become “one of the most dynamic pillars of the Cypriot economy.”

The introduction of new structures such as the RAIF, the alignment of legislation with European directives, and the expansion of a robust ecosystem of service providers were highlighted as key drivers of this transformation.  

As she noted, “further enhancements [are] already underway to broaden the structuring options available to fund managers.” 

Established in 2013, CIFA has played a central role in this evolution. Panayiotou said the association “has consistently promoted legislative improvements, promoted Cyprus in key international markets, and collaborated with stakeholders at all levels to position the country as an attractive, competitive and fully compliant fund jurisdiction.” 

She emphasised that this was achieved “without any financial support from the Government,” stressing that every initiative, from international campaigns and roadshows to policy development and regulatory consultation, was “funded through CIFA’s own resources, contributed entirely by our members.”  

These, she explained, are companies and professionals “who believe in the long-term potential of Cyprus as an investment destination and actively invest in the future of their industry.” 

This investment, she said, is carefully channelled with the aim of attracting new fund structures, enhancing the local ecosystem, and positioning Cyprus as a credible option for institutional investors and international fund managers.  

In this respect, Panayiotou expressed appreciation for the “unwavering support of Invest Cyprus, a key strategic partner since day one.” 

She also stressed that the investment funds sector makes a tangible contribution to the real economy.  

“Funds support vital sectors such as tourism, renewable energy, healthcare, education, and technology,” she said, explaining that “these are not abstract capital movements, they are tangible investments that generate jobs, infrastructure, and long-term value.” 

While the Fund Administrators Law represents a significant step forward, Panayiotou made it clear that the work is ongoing.  

CIFA, she noted, is “actively engaged in promoting the modernisation of the Partnership Law and proposing targeted amendments to the AIF and AIFM Laws.”  

Moreover, the association is “working closely with the Ministry of Finance and CySEC to shape a modernised tax framework, one that enhances Cyprus’ competitiveness while ensuring legal certainty and regulatory clarity.” 

In this direction, she confirmed, CIFA has already submitted “targeted and well-justified proposals to the Economics Research Centre of the University of Cyprus,” which is leading the Comprehensive Tax Reform project. 

Panayiotou concluded by stating that Cyprus competes with leading fund jurisdictions “not by replicating their models but by offering a unique blend of regulatory quality, responsiveness and cost-efficiency.”  

In this ongoing effort, she affirmed, “CIFA remains fully committed to representing the sector responsibly and contributing meaningfully to the sustainable development of the Cypriot economy.”