In the fourth quarter of 2025, the total assets of investment organizations in Cyprus demonstrated moderate growth, reaching 7.89 billion euros. For comparison, at the end of September 2025 this indicator amounted to 7.892 billion euros. Thus, the quarterly increase turned out to be insignificant, however it confirms the stability of the collective investment sector against the background of a volatile international financial environment.
According to official statistics from the Central Bank of Cyprus, published on Wednesday, February 18, the number of investment organizations in December 2025 amounted to 350 compared to 351 in September 2025. A slight reduction in the number of structures alongside growth in total assets may indicate market consolidation and redistribution of capital in favor of larger funds.
Structure of investment organization assets
According to the regulator, the structure of investment organization assets at the end of December 2025 included deposits and issued loans totaling 827.4 million euros, while in September 2025 this figure was 860.2 million euros. The decrease in the volume of liquid funds and credit instruments may indicate capital redistribution into more profitable assets.
The volume of debt securities decreased to 605.6 million euros compared to 613.4 million euros at the end of the third quarter of 2025. At the same time, there was growth in investments in shares and related instruments, the total value of which reached 5.87 billion euros compared to 5.84 billion euros previously. Of this amount, 1.24 billion euros were in listed shares traded on regulated markets, and 2.99 billion euros were in unlisted shares, which highlights the significant share of private investments and funds’ participation in direct equity.
Trends in the Cyprus investment fund market
The financial sector of Cyprus in 2025 continued to strengthen its position in asset management despite ongoing geopolitical risks and changes in interest rate policy in the eurozone. Moderate asset growth of 0.09% for the quarter demonstrates the resilience of investment structures and a gradual recovery of interest in risk instruments, primarily equities.
Experts note that Cyprus remains an attractive jurisdiction for international funds thanks to its tax system, compliance with European regulation, and flexible legal infrastructure. Registration of investment organizations on the island is actively used by management companies focused on the EU, Middle East, and Asian markets.
Outlook for 2026
Taking into account the dynamics of the fourth quarter of 2025, it is expected that in 2026 the investment organization sector in Cyprus will continue moderate growth provided a stable macroeconomic environment. Investor attention will likely focus on private company shares, technological projects, and direct investment instruments.
The growth in the share of equity investments to 5.87 billion euros confirms a diversification strategy and funds’ intention to increase portfolio returns. If the positive dynamics of assets continue, the Cyprus investment fund market may strengthen its role as one of the key financial hubs of the Eastern Mediterranean region.