Skills shortage tops concerns for Cyprus business leaders

Skills shortages have overtaken cyber risks and economic volatility as the primary concern for business leaders in Cyprus, according to the 15th Annual PwC Cyprus CEO Survey.

The survey gathered responses from 77 business leaders in Cyprus, offering insight into the evolving challenges shaping the local business environment.

The findings reflect CEO sentiment prior to the outbreak of the war in Iran, providing a snapshot of business concerns before the latest geopolitical developments.

For Cyprus-based CEOs, the availability of key skills was identified as the leading threat, with 43 per cent of respondents viewing it as a major risk over the coming year.

This was followed by geopolitical conflicts at 30 per cent, technological disruption at 22 per cent, and cyber risks at 21 per cent, marking a divergence from trends seen among eurozone and global CEOs.

In contrast, business leaders in the eurozone and globally ranked cyber risks and macroeconomic volatility as their primary concerns.

At the same time, the ability to attract high-quality technical AI talent has emerged as a critical challenge for organisations operating in Cyprus.

The survey found that 45 per cent of CEOs in Cyprus believe their organisation cannot attract high-quality technical AI talent, pointing to a widening gap in specialised skills.

By comparison, 42 per cent of global CEOs and 28 per cent of eurozone CEOs believe their organisations are able to attract such talent.

These findings underline intensifying competition for skilled professionals and highlight the growing importance of investment in talent development, upskilling and employer positioning.

They also reflect the need for businesses to build capabilities that allow them to fully leverage Artificial Intelligence technologies.

Beyond talent issues, trust-related risks are becoming increasingly prominent for companies in Cyprus.

CEOs reported that their organisations experienced trust concerns to a large or very large extent over the past year.

These concerns were primarily linked to increased scrutiny of leadership decisions at 13 per cent, greater demands for transparency at 10 per cent, and issues surrounding AI safety and responsible AI at 9 per cent.

In comparison, CEOs in the eurozone at 14 per cent and globally at 16 per cent most frequently cited concerns related to data use and privacy.

This contrast highlights differing trust dynamics across markets, with Cyprus showing a stronger focus on leadership accountability and transparency.

As businesses navigate geopolitical uncertainty and rapid technological change, the coming year is seen as a pivotal moment for CEOs to refine strategy and adapt to shifting conditions.

“Today’s business environment is defined by constant change and increasing complexity,” said PwC Cyprus CEO Philippos Soseilos.

“The fact that CEOs in Cyprus identify skills, technology and geopolitical developments as their key concerns reflects the reality that transformation is no longer optional, it is a necessity,” he added.

Soseilos further stated that “what is particularly important is that these insights were captured before the latest geopolitical developments, which suggests that these challenges are structural rather than temporary”.

“Given the current conditions of full employment, solutions for addressing the skills shortages need systemic thinking and strategic actions,” he said.

“Organisations that invest in people, embrace innovation and strengthen their resilience will be best positioned to navigate uncertainty and create sustainable value in the long term,” the PwC Cyprus CEO concluded.