President Christodoulides announced Wednesday that the cabinet will approve establishing a National Foreign Direct Investment Screening Mechanism.
Speaking before a cabinet session, Christodoulides described the reform as an institutional breakthrough that strengthens the country’s protective framework whilst maintaining openness to credible investments.
The mechanism integrates Cyprus into a unified European investment framework based on transparency, strategic assessment and protection of critical infrastructure, the president said.
The new legislation replaces an initial proposal submitted by the previous government in 2022, which was discussed in parliament in 2024 and faced objections. Extensive consultations with stakeholders followed, leading to substantial improvements approved in the session.
The president noted that the mechanism’s decisions will be made promptly and transparently, describing this as essential for attracting credible and quality investments.
The reform forms part of Cyprus’s broader strategy to upgrade the country’s credibility and international reputation, Christodoulides said.
Cyprus joins other European Union member states that have implemented similar foreign investment screening mechanisms following increased scrutiny of foreign acquisitions in strategic sectors.
The European Union established a framework for screening foreign direct investments in 2019, encouraging member states to develop national mechanisms to assess potential risks to security and public order.
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