Filenews 11 January 2026 - by Evagoras Prokopiou
Cypriot universities, both public and private, are in the period 2024–2025 in a critical phase of transformation, during which higher education is redefining its role in relation to technology, innovation and the labour market.
Through upgraded curricula, research infrastructure, institutional reforms, and increased internationalization, institutions attempt to act as active hubs for the production of skills and knowledge, responding to the needs of an economy that is digitally and technologically transforming.
Higher education in Cyprus has evolved in recent years into one of the most important sectors of the national economy. More than 50,000 students currently attend universities and colleges in the country, with about half of them coming from abroad. This internationalization is not accidental, but the result of a systematic strategy that aims to establish Cyprus as a regional educational and research hub in the Eastern Mediterranean. According to estimates, the higher education sector contributes about 6% to GDP, demonstrating its increased economic and social role.
In this context, the period 2024–2025 is characterized by reforms and initiatives that attempt to establish a modern, dynamic and attractive educational environment, oriented not only to the academic production of knowledge, but also to the application of knowledge in the economy and innovation. The challenge, as it emerges from the public debate and the political choices of the period, is the formation of a system that more effectively connects studies, skills and employability, while at the same time strengthening research activity and international competitiveness.
Strategic reforms and institutional framework
In December 2024, the Cypriot government approved a new Strategic Plan for the Improvement and Upgrading of Higher Education, which sets the framework for the developments of the period 2024–2025 and beyond. The plan was developed in collaboration with educational institutions, other ministries and civil society and focuses on four main axes: quality and excellence, connection to the labour market, internationalization and incentives for international students.
The emphasis on quality and excellence includes modernizing legislation and enhancing science-based decision-making, with the aim of maintaining the competitiveness of Cypriot universities at the international level. At the same time, the connection with the labour market is emerging as a central priority, in an effort to address the phenomenon of skills mismatch observed in the Cypriot economy.
Internationalization, on the other hand, seeks to strengthen the international footprint of institutions through partnerships, participation in European networks and attracting students from third countries. Finally, incentives for international students include scholarships and employment opportunities, with the aim of expanding the multicultural character of universities and enhancing their international attractiveness. The strategic framework is accompanied by specific timetables and actions, with the aim of increasing the number of domestic and international students, creating new study programs and strengthening the image of Cyprus as a study and research destination in the Eastern Mediterranean.
Internationalization and new academic balances
Internationalisation is a central pillar of the education strategy for 2024–2025. The Directorate of Higher Education of the Ministry of Education implements targeted actions, such as the signing of memoranda of cooperation with other countries, mutual recognition agreements and participation in international educational exhibitions for the promotion of Cypriot institutions. In addition, financial support is provided to universities in Cyprus that are part of European University Networks, strengthening their interconnection with the European academic community.
Particular importance is attached to the establishment of a branch of the National and Kapodistrian University of Athens in Cyprus, a development that strengthens the academic ties between Cyprus and Greece and adds a new pole of competition and cooperation to the educational landscape. At the same time, changes in Greece's legislation on the establishment of private universities have led Cypriot institutions to consider or initiate the creation of branches in Greece, taking advantage of expansion opportunities, with some reporting that they have even received a license.
The message that emerges from this course is that the sector operates in an environment of increasing international competition. As noted, competition is seen as an opportunity for further progress, with universities being called upon to adapt to new conditions, using the international presence as a lever to upgrade quality and expand their role.
Public universities: Research, know-how and applied knowledge
In the public sector, the University of Cyprus and the Cyprus University of Technology (CUT) are key pillars of research and know-how production. Departments of Computer Science, Engineering, Data Science and related sciences are directly interconnected with research centers and international networks, enhancing Cyprus' participation in European and international research programs.
At the University of Cyprus, cooperation with research centers such as KIOS and the organization of industry days offer students the opportunity to participate in applied research and projects funded by the European Union or the private sector. These experiences often act as a prelude to professional rehabilitation, as many students enter the labour market through the research projects themselves in which they participated.
CUT, with a more applied orientation, systematically invests in liaison and career offices, through which students come into contact with companies in the fields of technology, construction and energy. Internships are a key element of several curricula, fostering the connection between theory and practice and facilitating the professional transition of graduates.
The Open University of Cyprus, although operating remotely, also develops mechanisms to connect with the labour market, focusing primarily on adult students and professionals seeking upskilling in fields such as IT and digital transformation.
Private universities and flexibility in the labour market
Private universities are moving with greater flexibility, emphasizing quick adaptation of study programs and direct contact with employers. The University of Nicosia has integrated internships into its programs through credit-based internships in fields such as IT, fintech, and cybersecurity, with internships often serving as a direct recruitment channel.
European University Cyprus and UCLan Cyprus organize annual career and internship fairs, with the participation of dozens of technology companies, consulting organizations and start-ups. These events are a key tool for connecting students and employers, enhancing the visibility of graduates in the labour market.
Frederick University, with a strong presence in engineering and computer science, maintains stable internship and international exchange mechanisms, enhancing the employability of graduates both in Cyprus and abroad.
Research, innovation and transfer of know-how
The promotion of research and innovation is a key pillar of higher education policy. In the period 2024–2025, legislative regulations are being promoted that allow the establishment of new Research Units and Centres of Excellence in public universities. The House of Representatives has approved regulations that institutionalize the operation of such Centers of Excellence, enabling universities to specialize in high-priority areas and attract external funding. A typical example is the "QSciTec" Center of Excellence at the University of Cyprus, which secured European funding for research in quantum technology.
At the same time, in collaboration with the Deputy Ministry of Research, Innovation and Digital Policy, bills were drafted to modernize the legal framework of universities, with the aim of making public universities more flexible in their participation in spin-offs, so that research results can be more effectively converted into products and services. The proposed amendments are reported to have been submitted to the Parliament and are expected to be examined.
The period is also characterized by discrimination. The KIOS Center of Excellence of the University of Cyprus was honoured in 2024 with the European Digital Water Award of Water Europe, for its research in digital water resources management. Through the Research and Innovation Foundation (RIF) and European programmes, funds are channelled to universities and collaborative research networks, with the aim of enhancing the participation of Cypriot scientists in cutting-edge projects. At the same time, it is pointed out that the country's overall innovation performance has improved since 2018, however recent data show a slowdown in the rate of improvement compared to the European average, which highlights the need for further investment.
The start-up ecosystem and the role of universities
The connection between higher education and innovation is also reflected in the rapid development of the Cypriot start-up ecosystem. According to the StartupBlink Ecosystem Index 2024, Cyprus recorded the largest increase globally, climbing nine places and conquering the title of the fastest growing start-up ecosystem in the European Union.
The country ranks fourth globally among countries with a population of less than two million. Among the indicators listed, the 6th place in the world in the number of start-up exits under $1 billion and the 9th place in the world in the number of investors per capita are also recorded, while it is reported that there are five times more start-ups than in 2020. It is also pointed out that this is the only country with a population of less than two million that has four cities listed in the global start-ups index.
Cyprus shows strong performance in sectors such as fintech and gaming. It is reported to be ranked 39th globally in the Fintech sector and 25th globally in the Gaming sector, with Limassol occupying the first place in Southern Europe.
The Director General of the RIF, Theodoros Loukaidis, has pointed out that success is based on combined state support, financial programs and investment incentives. "We are creating a favourable environment for start-ups to develop products, attract private investment, expand internationally and succeed," he said.
Skills, STEM, and Employability Challenges
Despite the ever-increasing demand for skills in STEM (science, technology, engineering and mathematics) fields and the policy initiatives taken in recent years, Cyprus continues to record one of the lowest student participation rates in STEM studies in the European Union, which intensifies skills mismatches in the labour market.
According to projections by the Human Resource Development Authority (HRDA), about 40% of the total employment demand in the period 2022-2032 is expected to be in STEM occupations. However, only 25% of the working population has received relevant education. In 2023, the share of tertiary education students enrolled in STEM programmes stood at 14.9%, compared to 26.9% in the EU, recording a decrease of 3.4 percentage points compared to 2015 and falling well short of the European target of 32% by 2030. In this context, the Council of the European Union recommended in 2025 that Cyprus increase student participation in STEM fields.
The majority of STEM students in Cyprus are directed to studies in engineering, manufacturing and construction (51.2%), a percentage close to the EU average, while participation in Information and Communication Technologies programs is higher than the European average (28.6%). On the contrary, enrolment in natural sciences remains lower. At the same time, it is pointed out that STEM programs in higher education do not fully meet the needs of the labour market, with the newly established National Graduate Tracking Mechanism expected to highlight further gaps and mismatches.
An obstacle to strengthening STEM studies is also the low performance of students in basic skills, as reflected in the results of the OECD's PISA 2022, which limit the possibility of excellence and innovation. To enhance the attractiveness of STEM, optional extracurricular programmes have been implemented in selected primary and secondary schools, but there is still no comprehensive national strategy exclusively for education in these areas.
The promotion of STEM is mainly part of broader policies for digital transformation. The national digital strategy 2020-2025 aims to increase the number of STEM graduates and improve their employability, while funds amounting to approximately €24 million from the Recovery and Resilience Plan finance digital education and relevant skills development actions. In parallel, the national strategy for artificial intelligence seeks to strengthen digital and AI skills in schools. However, there are no mechanisms for systematic monitoring and evaluation of the effectiveness of these interventions.
At the same time, Cyprus is consistently among the EU countries with the highest tertiary education completion rates. In 2024, 60.1% of people aged 25-34 held a tertiary education degree, well above both the EU average and the European 2030 target. The expansion of the sector, particularly after the establishment of private universities from 2007-2008, led to a 42% increase in enrolled students in 2015-2023 and a 125% increase in the number of graduates over the past decade.
Despite the improvement in the employment rates of recent graduates, which in 2024 stood at 83.8%, skills mismatches remain pronounced. In 2023, 30% of workers with higher education qualifications were employed in positions that did not require this level of qualification, while the gender gap in favour of women remains significant. At the same time, Cyprus records a particularly high outgoing student mobility, with almost one in three graduates obtaining their degree abroad.
As part of the sector's upgrade, a new strategic plan for higher education was adopted in December 2024, with a focus on improving quality and excellence, connecting more closely with the labour market and attracting international students. Among other things, it provides for the provision of undergraduate programs in foreign languages by public universities and the operation of branches of foreign universities as non-profit institutions.
Despite institutional reforms and the strong presence of higher education, the evidence shows that Cyprus is called upon to bridge the gap between high educational participation and the real needs of the economy, especially in the STEM sectors that are considered critical for the country's green and digital transition.
Perspectives and conclusions
Overall, in the period 2024–2025, Cypriot universities are strengthening their role as a bridge between education, technology, and the labour market. Through institutional reforms, internationalization, investments in research and closer interconnection with the innovation ecosystem, they attempt to shape human resources that meet the needs of a modern, digital economy.
This path is not without challenges.
However, the overall picture shows that higher education in Cyprus is in a maturation phase, with the prospect of playing a decisive role in sustainable development, economic diversification and the international positioning of the country as a hub of knowledge, research and know-how in the region.
