Cyprus and Greece set sights on Arab and Balkan markets

Countries push joint tourism and investment driveCyprus and Greece are preparing new joint business initiatives aimed at opening doors to Arab and Balkan markets, following talks in Nicosia this week between Greek Deputy Foreign Minister Harry Theoharis and the leadership of the Cyprus-Greece business association. The talks formed part of Theoharis’ September 14-15 visit to Cyprus, during which economic diplomacy, investment and the expansion of businesses into third markets featured prominently in meetings with government officials and the business community. According to the Cyprus-Greece business association, Theoharis told its leadership that economic cooperation between the two countries had grown considerably in recent years, making it increasingly easier for Cypriot and Greek companies to establish a presence in each other’s markets. Attention is now turning beyond the two domestic markets, however, with Cyprus being viewed as a possible route for Greek companies seeking to expand into Arab countries, while Greece could provide Cypriot businesses with easier access to the Balkans. The approach builds on discussions held earlier in the week between Theoharis and Foreign Minister Constantinos Kombos, when the two sides focused on economic diplomacy, investment and jointly pursuing opportunities in third markets, as reported on Tuesday. The Greek foreign ministry said after the visit that the discussions had centred on the next steps for strategic cooperation between the two countries, particularly exports to third countries, investment and energy. During his meeting with the business association, its president Iosif Iosif proposed taking that cooperation a step further through joint tourism packages aimed at long-haul markets, including the US, China and Japan. Rather than promoting Cyprus and Greece separately in those markets, the proposal would see the two countries marketed together, allowing overseas visitors to combine both destinations within the same trip. The idea is not entirely new. Cyprus and Greece have previously discussed joint travel packages aimed at markets such as the US and China, including during bilateral tourism talks in 2025. Iosif has also advocated the concept for several years, arguing that combining the two destinations could make the long journey to the eastern Mediterranean more attractive to visitors from distant markets. This time, however, the proposal was raised within a wider push to bring the two economies closer and expand their international reach. Iosif also proposed joint investment packages and coordinated promotion abroad, presenting Cyprus and Greece together to potential investors rather than approaching international markets separately. According to the association, Theoharis backed both proposals, while the two sides agreed to work on further initiatives aimed at strengthening their economic and business links. The meeting was also attended by Greek ambassador to Cyprus Konstantinos Kollias. Iosif used the talks to outline some of the association’s previous initiatives, including its long-running support for restoring the Cyprus-Greece passenger ferry connection and for the electricity interconnection between the two countries. The association had campaigned for the maritime link for years before passenger services between Cyprus and Greece were restored. It has also continued to support closer physical and economic connectivity between the two markets. The latest discussions come as bilateral trade has already reached substantial levels. Trade in goods between Cyprus and Greece amounted to €3.3 billion in 2025, according to Energy Minister Michalis Damianos, who also met Theoharis during his visit. Cypriot domestic exports to Greece reached €163 million, up 12.3 per cent, while Cyprus’ exports of services to Greece exceeded €1 billion. Theoharis also said during his visit that Cyprus was the third most important destination for Greek exports in 2025, while describing Cyprus as one of Greece’s longstanding investment partners. His two-day programme included talks with Kombos, Damianos, Invest Cyprus, the Cyprus Chamber of Commerce and Industry (Keve) and representatives of the wider business community. The Greek foreign ministry said the broader aim was to move towards more concrete projects and investment, with the two countries looking to use their existing economic relationship as a platform for a stronger joint presence in international markets. The Cyprus-Greece Business Association operates under the auspices of Keve and was established in 2005 to promote economic, commercial and business relations between the two countries. Its current leadership includes deputy president Panayiotis Papaphilippou and vice-president Xenia Photiou, who also attended the meeting with Theoharis.