Cyprus’s defence industry could account for a double-digit share of GDP within the coming years, President Nikos Christodoulides said at the Battlefield Redefined defence and security exhibition in Nicosia — provided the state and industry work closely together.
Speaking at the Pavilion Hall, where Cypriot companies are displaying products ranging from unmanned aircraft and anti-tank missiles to specialist vehicles and vessels, Christodoulides said Cyprus no longer aims to be a consumer of defence solutions but a producer and active contributor to European defence architecture.
Over the past five years, he said, 18 Cypriot companies have taken part in 44 projects under the European Defence Industrial Development Programme and the European Defence Fund, sharing a combined budget of approximately €600 million.
Direct funding to Cypriot firms reached approximately €48 million. That participation, he said, had gradually shifted Cyprus from a peripheral partner to a meaningful contributor to the European defence and dual-use technology ecosystem.
The two-day conference, which brings together European institutions, national authorities, industry and innovation bodies, is focusing on its first day on EU defence industrial readiness, the transition from strategy to operational capability, and the role of hybrid threats, cyber and space as force multipliers.
The second day will cover financing Europe’s defence transition and the mechanisms for scaling innovation from prototype to mass production.
Six policies moving from announcement to action
Christodoulides recalled that at last year’s conference he had announced six policies to strengthen the defence industry, and said all six had now moved into implementation:
- A National Defence Industry Strategy being developed with the European Commission
- International industrial cooperation, with a 15% participation target for Cypriot companies in arms procurement programmes
- A National Registry of Cypriot Defence Manufacturers
- Increased funding for the transition from research and development to production
- State-funded national pavilions at DEFEA 2025 and EUROSATORY 2026
- The SOLIS satellite communications project, which he described as a strategic milestone for national and European security
Ukraine, occupation, and the case for rearmament
The war in Ukraine, conflicts across the wider region, and the Turkish military occupation of Cyprus all make it urgent to strengthen deterrence and defence readiness, Christodoulides said.
Defence, he added, now extends into cybersecurity and space — areas where Cyprus aims to play an active role.
He closed with a call for “a stronger future for Cyprus and for Europe.”
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