Greece and Cyprus eye regional energy, investment, and tech hub status, GSI hailed as 'Game Changer'
"Greek Deputy Minister Harry Theoharis emphasized that Athens and Nicosia are strategically aligning to become a formidable regional hub for energy, investment, and technology, anchored by the Great Sea Interconnector (GSI). Beyond ending Cyprus's energy isolation, this deepening bilateral cooperation will leverage evolving tech sectors and trade initiatives like the IMEC corridor to fortify Eastern Mediterranean supply chains amid geopolitical instability."
EU Directive 2019/790 Article 15 Attribution • Verified Energy Document
Athens and Nicosia are poised to become a formidable regional hub for energy, investment, and technology, with the Great Sea Interconnector (GSI) playing a pivotal role, according to Greece's Deputy Minister of Foreign Affairs for Economic Diplomacy and Extroversion, Harry Theoharis. In an exclusive interview with InBusinessNews, Theoharis outlined a shared strategic vision aimed at deepening economic and business ties, leveraging new geopolitical and economic dynamics in the Eastern Mediterranean.
During his visit to Cyprus, Theoharis held discussions with Foreign Affairs Minister Constantinos Kombos and Energy, Commerce, and Industry Minister Michael Damianos, alongside meetings with prominent business leaders and Greek professional associations. These engagements underscore the expanding scope of bilateral cooperation between the two nations.
Theoharis emphasized the critical importance of the GSI, an electrical interconnector linking Greece, Cyprus, and Israel, calling it a "game changer." The project is set to significantly alleviate Cyprus's energy isolation, bolster regional energy supply security, and facilitate greater utilization of renewable energy sources (RES). For Greece, the GSI will enhance its position as a key energy gateway connecting the Eastern Mediterranean to Europe, eventually enabling Israel's integration into the European electricity market. The recent acquisition of a majority stake by Meridiam, coupled with US and EU support, injects new investment momentum and reinforces the project's international dimension.
Economic relations between Greece and Cyprus are already robust, with Cyprus ranking as the third most important destination for Greek exports in 2025 and Greece being the largest supplier to the Cypriot market. Theoharis identified significant potential for further collaboration in traditional sectors such as agri-food, cosmetics, pharmaceuticals, construction, tourism, and shipping, as well as rapidly evolving fields like information and communication technologies, artificial intelligence, and cybersecurity. Both countries aim to attract high-value-added investments and foster innovation, utilizing their skilled workforces to become reliable partners in a volatile region.
Greece's economic diplomacy strategy, particularly its Strategic Plan for Extroversion 2026-2030, prioritizes attracting foreign direct investment from markets including the USA, Germany, Switzerland, Japan, China, and the UK. For exports, key markets are identified as Germany, USA, Cyprus, UK, Italy, China, UAE, and the Netherlands. Theoharis highlighted the role of the India-Greece-Cyprus Business and Investment Council (IGC) in strengthening trilateral economic cooperation.
Addressing geopolitical instability in the Middle East, Theoharis acknowledged its impact on trade, energy costs, and supply chains. Greece's strategy involves positioning itself as a pillar of stability and a reliable hub connecting Europe with the Middle East and Asia. The nation is actively diversifying trade partnerships and leveraging new EU free trade agreements, such as those with India, Mercosur, and Australia, to expand its export footprint and ensure supply chain resilience.
The Eastern Mediterranean, including Greece and Cyprus, is increasingly vital as an alternative supply chain hub amid global disruptions. Initiatives like the India-Middle East-Europe Economic Corridor (IMEC), which integrates transport, energy, and digital infrastructure, are key. Greece aims to be a primary European gateway for IMEC, with its ports connecting flows to the Balkans, the Black Sea, and wider Europe. Cyprus, due to its strategic location, can also play a crucial role in the corridor's connectivity architecture, fostering diversification and resilience in European supply chains.