Christodoulides sees Cyprus as key link in new trade corridors

President highlights economic potential of Eastern MediterraneanPresident Nikos Christodoulides on Monday called for greater regional economic cooperation, stronger trade corridors and investment in energy and transport infrastructure, saying Cyprus could play a significant role in connecting Europe with the Middle East and Asia. Addressing the Economists Enterprise 22nd Annual Cyprus Summit, Christodoulides said the Eastern Mediterranean had considerable economic potential in shipping, energy, tourism, technology and digital services, but warned that geopolitical tensions were increasingly affecting international trade, energy supplies and investment prospects. He said economic resilience was no longer simply a matter of national security, but also depended on economies being able to absorb external shocks, diversify their energy sources and trading relationships, protect critical infrastructure and attract investment. The president highlighted the strategic importance of the Eastern Mediterranean as a commercial crossroads linking Europe with the Middle East, North Africa and Asia, arguing that regional cooperation could turn its geographical advantages into tangible economic opportunities. “Energy interconnections, trade corridors and port infrastructure are not simply technical or economic projects,” Christodoulides said, adding that they also carried clear political and geostrategic significance. He warned that decisions taken today would shape both the region’s economic prospects and its geopolitical balance over the coming years. Among the initiatives he highlighted was the India-Middle East-Europe Economic Corridor (IMEC), which he said could strengthen trade and transport connections while creating new opportunities for investment and economic security. “Our country has an important role to play in its implementation,” he said. Christodoulides also referred to the expected signing of the EU-India Free Trade Agreement in Brussels next December, on the sidelines of the European Council, in the presence of Indian Prime Minister Narendra Modi. He said the agreement made the implementation of IMEC even more pressing, given the potential to deepen commercial relations between Europe and India. Cyprus was already taking steps to strengthen its position in this emerging trade relationship, he said, referring to his recent visit to India, the opening of a commercial office in Mumbai and ongoing consultations on improving air connectivity between Cyprus and India. President Nikos Christodoulides at the Economists Enterprise’s 22nd Annual Cyprus Summit He also highlighted Nicosia’s initiative to establish an IMEC Group of Friends within the European Union, aimed at promoting the corridor and securing wider European support for its development. The president’s remarks came against a backdrop of growing geopolitical uncertainty, which he said was having consequences well beyond the borders of the countries directly affected. He referred particularly to tensions surrounding the Strait of Hormuz and Bab el-Mandeb, as well as Russia’s continuing invasion of Ukraine, saying these developments were affecting European security, energy flows and international trade. He warned of the dangers posed by the obstruction or weaponisation of critical commercial passages, arguing that disruptions to strategic routes could have far-reaching consequences for economies and supply chains. Christodoulides also stressed that sovereignty, territorial integrity and respect for international law were principles that could not be applied selectively. He said Europe needed to strengthen its resilience, competitiveness and strategic autonomy, while taking greater responsibility for its own security. However, he clarified that strategic autonomy did not mean isolation, but rather building a stronger Europe capable of working effectively with international partners. Within this broader approach, Cyprus was seeking to move beyond what he described as a traditionally single-issue foreign policy, positioning itself instead as a stable, reliable and predictable bridge between the European Union and the wider Middle East and Gulf region. “As a country, we seek to be part of the solution and not part of the problems and challenges in our region,” Christodoulides said. He added that the Republic of Cyprus’ positive agenda was not directed against any country, but sought to identify common interests and establish conditions for mutual benefit. As an example, he referred to the informal European Council meeting held in Cyprus in April, during which EU leaders and representatives of European institutions met, for the first time in that format, with leaders from countries in the wider region. President Nikos Christodoulides at the Economists Enterprise’s 22nd Annual Cyprus Summit Participants included representatives from Egypt, Jordan, Lebanon, Syria and Arab countries of the Gulf, with discussions focusing on specific regional cooperation projects. Christodoulides said the meeting demonstrated the potential for Cyprus to facilitate dialogue between Europe and its neighbouring regions, helping translate diplomatic engagement into practical cooperation. He also highlighted the Cyprus Regional Initiative on climate change, which brings together 13 countries to strengthen collective capacity to adapt to and mitigate the effects of climate change. The initiative, he said, formed part of wider efforts to build regional resilience and address challenges that increasingly affected economic development and long-term stability. The president further stated that the Eastern Mediterranean faced a choice between remaining an area characterised by crises and competition or developing into a region of meaningful cooperation, economic growth and mutual benefit. The Republic of Cyprus would continue using its relationships with neighbouring countries, its membership of the European Union and its geographical position to promote dialogue and regional cooperation, he said. “We extend a hand of cooperation to all those who wish to participate in this effort and become partners in the goal of building a region that is safer, more interconnected, more resilient and more prosperous,” Christodoulides concluded.