Cyprus Business Now: AI, CBC, housing. shipping, fintech, energy, Cyta

Artificial intelligence is already reproducing human biases and gender stereotypes, making the participation of women in the design and development of technology increasingly important, Gender Equality Commissioner Josie Christodoulou said the Cyprus Forum in Nicosia. “We start by confirming that indeed AI is biased,” Christodoulou said during the fireside discussion “AI and Equal Participation: Who Shapes the Digital State?”, pointing to the data on which AI systems are trained and the people involved in creating them. The discussion was chaired by Andreas Demetriou, founding member and Legal Advisor of AI³, and Rodoula Papalambrianou, Scientific Coordinator at Hope For Children CRC Policy Center. Christodoulou explained that AI models do not develop their assumptions in isolation, but learn from existing material that can already contain deeply rooted social stereotypes. The Central Bank of Cyprus (CBC) imposed a €750,000 fine on Banque SBA Cyprus over failures to comply with anti-money laundering and counter-terrorist financing requirements identified during an inspection carried out in 2023. The decision was taken on September 29, as part of the CBC’s supervisory responsibilities under Cyprus’ legislation on the prevention and suppression of money laundering activities. According to the Central Bank, the fine followed findings from its 2023 inspection concerning the bank’s failure to comply with specific provisions of the relevant law and the CBC’s directive to credit institutions on the prevention of money laundering and terrorist financing. The CBC said that under section 59(6) of the Prevention and Suppression of Money Laundering Activities Law of 2007, as subsequently amended, it may impose measures where a supervised entity fails to comply with Part VIII of the legislation or related Central Bank directives. Cyprus’ slow response to climate change and delays in the energy transition could pose a growing risk to the sustainability of public debt, Fiscal Council chairman Andreas Charalambous warned, pointing to shortcomings in energy storage, infrastructure and environmental policy. Speaking during a discussion at the Cyprus Forum in Nicosia, Charalambous said the Fiscal Council had placed significant emphasis on the economic consequences of climate change in its recently published 2026 interim report, treating the issue as a potential risk to the sustainability of the public finances. “Generally, the situation is concerning,” he said, adding that Cyprus is “behind on storage”, an area considered particularly important if renewable energy is to account for a larger share of electricity production. He also pointed to weaknesses in recycling, waste management and energy efficiency, saying Cyprus had fallen behind the targets it has set itself. Cyprus needs closer coordination between regulators and clearer consumer safeguards as digital banking, cryptoassets and fintech increasingly blur the boundaries between financial services, industry and policy experts said at the Cyprus Forum. Financial Commissioner Valentina Georgiadou, Institute of Certified Public Accountants of Cyprus (ICPAC) general director Andreas Papadatos and Glafkos Clerides Institute vice-president Irena Georgiadou examined how supervision can keep pace with rapidly changing technology without holding back innovation. Valentina Georgiadou noted that financial services are changing at a pace that makes it difficult for the regulatory framework to adjust at the same speed, placing greater emphasis on effective consumer protection and stronger coordination between supervisory authorities. She stressed that “security and trust” remain fundamental to the sector’s development, as consumers are more willing to invest when they know there is a mechanism to protect them if something goes wrong. Cyprus will seek to strengthen links with Kazakhstan in artificial intelligence, digital technologies and innovation during an official visit by Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou to Astana from October 1 to 3. Damianou will take part in the AI & Digital Bridge Forum, an international gathering bringing together government officials, technology industry representatives, investors, researchers, experts and start-ups from a number of countries. According to the Deputy Ministry of Research, Innovation and Digital Policy, discussions at the forum will focus on developments in artificial intelligence and emerging technologies, digital transformation and the use of innovation to support economic growth and competitiveness. During the visit, Damianou will hold talks with his Kazakh counterpart, Deputy Prime Minister and Minister of Artificial Intelligence and Digital Development Zhaslan Madiyev. Artificial intelligence is set to fundamentally reshape retail banking in Europe by 2030, with early adopters expected to pull significantly ahead of competitors, according to new research from Visa. The study, authored by Visa Consulting and Analytics (VCA), was based on responses from 325 senior decision-makers across 17 European markets and points to a clear shift from experimentation to execution. According to the findings, 86 per cent of European banking leaders believe AI will reshape retail banking by 2030, while 61 per cent expect early movers to dominate their markets. At the same time, more than 90 per cent of European banks are already using some form of AI across their major business functions. However, the research points to a growing divide between banks using AI mainly to optimise today’s operating model and those embedding it into the decisions that will shape future growth and customer outcomes. Global air passenger demand fell by 0.8 per cent year-on-year in August 2026, as a sharp contraction in the Middle East weighed on overall traffic, according to figures released by the International Air Transport Association (IATA). Excluding Middle Eastern carriers, however, total passenger demand increased by 0.6 per cent compared with August 2025. At the same time, total capacity, measured in available seat kilometres, rose by 0.3 per cent, while the global passenger load factor fell by 0.9 percentage points to 85.1 per cent. International passenger demand also weakened, falling by 0.9 per cent year-on-year. Excluding the Middle East, however, international demand increased by 1.3 per cent. Capacity on international routes was unchanged from a year earlier, while the load factor slipped by 0.8 percentage points to 85 per cent. Cyprus’ house prices rose at a faster annual pace in the second quarter of 2026, while also increasing compared with the previous three-month period, preliminary figures from the statistical service (Cystat) showed on Wednesday. The House Price Index stood at 105.46 points in the second quarter of 2026, up 2.4 per cent from the first quarter and 7.9 per cent higher than a year earlier, according to Cystat. That compared with annual increases of 2.9 per cent in the second quarter of 2025, 4.2 per cent in the third, 6 per cent in the fourth and 3.4 per cent in the first quarter of 2026, before the rate accelerated to 7.9 per cent in the latest period. After falling by 1.8 per cent in the second quarter of 2025, the index rose by 3.7 per cent in the third quarter, was unchanged in the fourth and increased by 1.6 per cent in the first quarter of 2026, before rising by 2.4 per cent in the second. George Metzakis, CEO of Cyta, joined the board of directors of TechIsland, bringing more than 17 years of telecommunications experience across Cyprus and international markets. Metzakis assumed the role of CEO of Cyta in May 2026, having joined the organisation in 2023 as Chief Commercial Officer with responsibility for its overall commercial strategy. From September 2025, he also served as co-Acting CEO, contributing to the organisation’s operational continuity. His experience spans commercial strategy, marketing, sales, revenue growth and customer experience, while at Cyta he has contributed to advancing the organisation’s digital transformation and strengthening its customer-centric approach. This has included initiatives that leverage technology to enhance services, continuously improve the customer experience and reinforce Cyta’s connection with society and its evolving needs. Cyprus has stepped into the European debate over how shipping and ports can remain competitive while meeting increasingly demanding energy, security and decarbonisation requirements, with Shipping Deputy Minister Marina Hadjimanolis joining senior policymakers and industry leaders in Brussels. Hadjimanolis took part in the high-level plenary “Gateways to Europe and the World: Ports and the Maritime Sector in Transition” at Connecting Europe Days 2026, following an official invitation from European Commissioner for Sustainable Transport and Tourism Apostolos Tzitzikostas. The Shipping Deputy Ministry said Hadjimanolis discussed the challenges and prospects facing European shipping alongside Irish Minister of State Timmy Dooley, with the conversation covering geopolitical developments, the energy transition, competitiveness, resilience and decarbonisation. The debate comes at a particularly significant point for the European maritime sector, as Brussels moves from policy design towards implementation of its new framework for ports, shipping and maritime manufacturing. The European Commission adopted its EU Ports Strategy and Industrial Maritime Strategy in March, seeking to strengthen Europe’s maritime industrial base while reducing vulnerabilities created by global competition, geopolitical tensions and dependence on shipbuilding capacity outside the bloc. Cyprus industrial output prices rose by 4.2 per cent year-on-year in August 2026, according to figures released by the statistical service (Cystat) on Wednesday. The index reached 127.9 units, using 2021 as a base value of 100 points, marking a 0.2 per cent increase compared with July 2026. Over the first eight months of the year, spanning January to August 2026, the index recorded overall growth of 1.6 per cent compared with the corresponding period of 2025. On a month-on-month basis, prices in water supply and materials recovery rose by 1.1 per cent, recording the strongest increase among the main industrial sectors. Electricity supply prices increased by 0.3 per cent, while manufacturing prices rose by 0.1 per cent. Cyprus and India are looking to strengthen cooperation in air connectivity, infrastructure and ports, following talks between Transport Minister Evie Tsolaki and Indian High Commissioner to Cyprus Manish Manish. Manish said on his personal platform that the meeting focused on ways to further strengthen India-Cyprus cooperation in connectivity, including air links, infrastructure projects and port infrastructure, alongside other bilateral issues. He said discussions also centred on deepening practical cooperation between the two countries as part of their wider strategic relationship. Tsolaki has served as Cyprus’ Minister of Transport, Communications and Works since August 2026, following her appointment to the Council of Ministers. Manish also welcomed Tsolaki’s planned visit to India in the first week of October, saying it would include bilateral meetings as well as her participation in ‘Sagarmanthan: The Great Oceans Dialogue 2026’. The Cyprus Securities and Exchange Commission (CySEC) has called on fund managers and self-managed investment funds to submit their third-quarter statistical returns by October 30, 2026, warning that late or incomplete filings may lead to administrative penalties. In a circular issued this week, CySEC said the requirement applies to Alternative Investment Fund Managers (AIFMs), UCITS management companies, internally managed AIFs and UCITS, AIFLNPs, their management companies and small AIFMs. All regulated entities authorised, or appointed to act as external managers, by September 30, 2026 must complete the latest QST-MC Version 26 form. The obligation also covers entities which had secured authorisation by that date but had not yet made use of it. The form must be submitted electronically through CySEC’s Transaction Reporting System (TRS), with firms responsible for checking that they receive an official feedback file confirming the submission. The Mall of Cyprus (MC) Plc increased first-half profit by 25.5 per cent in 2026, helped by higher income from commercial space and lower finance costs, while its cash position also strengthened. According to the company’s unaudited interim financial statements for the six months ended June 30, 2026, filed through the Cyprus Stock Exchange’s (CSE) official disclosure system, profit after tax rose to €5.96 million, from €4.75m a year earlier. Revenue from rights for the use of space and other income increased by almost 8 per cent to €10.39m, from €9.63m in the corresponding period of 2025. The rise was driven mainly by stronger income from the mall’s commercial spaces. Minimum licence fees increased to €7.75m from €7.34m, while additional licence fees rose to €185,118 from €151,837. Mitsides Public Company Ltd increased first-half profit by almost 14 per cent in 2026 despite a slight decline in sales, helped by a stronger gross margin and lower financing costs. According to the group’s newly published interim financial statements, profit after tax rose to €727,134 in the six months to June 30, from €640,011 a year earlier, an increase of about 13.6 per cent. Turnover, however, slipped 1.05 per cent to €18.92 million, compared with €19.12m in the corresponding period of 2025. The company produces and distributes flour and pasta, imports and distributes food products, trades grain and operates in Serbia through its wholly owned subsidiary Mitsides Point. The improvement in profitability came partly from a wider gross margin, which increased to 27.96 per cent from 26.7 per cent a year earlier. Greek food manufacturer E.I. Papadopoulos SA saw sales exceed €250 million in 2025, although higher costs weighed on profitability, as the company presses ahead with a €59.6m investment at its Volos plant, where Caprice wafers are produced. According to the company’s 2025 financial statements filed with Greece’s General Commercial Registry, turnover rose by 3.7 per cent to €252.52m, from €243.44m in 2024. However, the increase in sales was accompanied by weaker earnings. Pre-tax profit fell 12.95 per cent to €8.68m, while net profit dropped 17.36 per cent to €6.94m. Cost pressures were evident across the business. Cost of sales increased to €147.51m, from about €139.93m a year earlier, while gross profit rose more modestly to €105.01m. As a result, the gross margin narrowed to 41.6 per cent from 42.5 per cent, while operating profit fell to €9.21m from €10.65m.