Cyprus Business Now: banks, inflation, real estate, Hassabis, GDP, Sainni

Cyprus’ construction sector maintained strong growth momentum in the first half of 2026, supported by a robust pipeline of new projects, rising property demand and continued investment activity, according to a report by Eurobank Research. The report said that first quarter data confirmed the sector’s resilience, with building permits, construction output, mortgage lending and business confidence all pointing to sustained expansion. However, it also cautioned that the latest building permit figures covered the period from January to March 2026, before the recent escalation of tensions in the Middle East. As a result, the analysis explained that future data releases will provide a clearer picture of whether developers’ investment intentions remain as strong following the regional conflict. Google parent Alphabet has overhauled the leadership of its artificial intelligence operations, moving Nobel laureate Demis Hassabis from the day-to-day running of Google DeepMind into a newly created group-wide science role, while four senior figures behind Gemini leave to launch their own company. The changes come at a sensitive time for Google, with the most powerful version of its latest Gemini model still unreleased despite an initial June launch date. The delay has raised concerns among investors that the company could lose ground to OpenAI and Anthropic, both of which recruited senior Google researchers this summer. Alphabet shares fell 4 per cent following Wednesday’s announcement. Hassabis, who has Greek Cypriot roots through his father, whose family comes from Famagusta, will become chief scientist of Alphabet and chair of Google DeepMind. He will step away from his main managerial duties at the AI laboratory but remain closely involved in its research and long-term strategy. Cyprus’ inflation rate eased to 2.9 per cent in July 2026, down from 3.1 per cent in June, as lower fuel prices and a sharp fall in clothing and footwear brought the consumer price index down on a monthly basis, figures released on Thursday by the statistical service (Cystat) showed. The Consumer Price Index (CPI) decreased by 0.68 points, reaching 102.32 units in July compared with 103.00 units in June. This represented a monthly decline of 0.66 per cent. However, prices remained 2.93 per cent higher than in July 2025, while inflation for the first seven months of the year stood at 1.87 per cent compared with the corresponding period of 2025. Petroleum products continued to record the strongest annual increase among the main economic categories, rising by 12.19 per cent compared with July last year. Agricultural goods followed with an increase of 8.20 per cent, while electricity and water prices were up by 7.36 per cent and services rose by 3.41 per cent. The gross domestic product of Cyprus accounted for 0.2 per cent of the European Union’s total economic output in 2025, according to official statistical figures published by Eurostat on Thursday. The statistical office revealed in its ‘Key figures on Europe 2026 edition’ that the entire EU economy was valued at €18.8 trillion during the same period. The annual publication provides a comprehensive overview of recent developments across the EU, covering key areas ranging from population and society to the economy, business, environment and natural resources. The new figures show that Cyprus remained near the bottom of the European ranking in terms of absolute economic scale, alongside several other smaller member states. Cyprus stood at the same level as Estonia and Latvia, with each of the three nations contributing 0.2 per cent to total European Union gross domestic product. Industrial producer prices in Cyprus rose by 0.3 per cent in June of this year, according to a report from Eurostat. The modest monthly increase in Cyprus followed a sharp gain of 3.2 per cent recorded in May 2026. Prior to that, industrial producer prices on the domestic market in Cyprus grew by 0.3 per cent in April 2026, after contracting by 0.6 per cent in March 2026. Across the wider euro area, industrial producer prices decreased by 0.3 per cent in June 2026 compared with the previous month. Throughout the entire European Union, producer prices fell by 0.2 per cent over the same period. Artificial intelligence is reshaping the way businesses sell, but a Cyprus-based startup believes the next step is moving beyond automation and into real-time decision making. Sainni, founded by chief executive Briken Bufi and chief operating officer Christina Anastasiadou, has developed an AI sales assistant designed to support the entire sales process, from identifying prospective customers to coaching representatives during live calls and completing post-meeting administrative tasks. In this exclusive interview with the Cyprus Mail, the founders explain why they chose to build the company from Paphos after spending eight years in Vienna, and why they believe Cyprus has provided the ideal environment for an ambitious technology startup. They also discuss the advantages of the island’s fast-moving business ecosystem, their participation in the Plug and Play Tirana accelerator programme, and the company’s plans to secure its first recurring subscribers. The Cabinet on Wednesday brought into force the law establishing the Cyprus Business Development Organisation and appointed the new body’s first board of directors, marking a key milestone in efforts to improve access to finance for businesses across the island. Speaking after the first Cabinet meeting following the government’s reshuffle, Finance Minister Makis Keravnos said the organisation’s mission is to improve access to financing for small and medium-sized enterprises, startups and self-employed professionals, while addressing financing gaps in the market. “The government continues consistently and decisively to implement its programme and the commitments it has announced,” Keravnos said. He recalled that the legislation was approved by the House of Representatives on July 14, with Wednesday’s Cabinet decision formally setting the law’s commencement date. Morgan Stanley has updated its outlook for Greece’s major banks following their second-quarter results, raising price targets for Alpha Bank and the National Bank of Greece while maintaining a positive stance on the sector and favouring Alpha Bank, Eurobank and Piraeus Bank over the National Bank of Greece in terms of investment appeal. In its latest report, the findings of which were shared by Greek business outlet Insider, the US investment bank raised its price target for Alpha Bank to €5.00 from €4.90 and increased its target for the National Bank of Greece to €17.60 from €17.20, while leaving its target for Eurobank unchanged at €4.90. It also reiterated its ‘overweight’ recommendation for Alpha Bank and Eurobank and maintained an ‘equal-weight’ rating for the National Bank of Greece. Morgan Stanley had previously increased its target price for Piraeus Bank to €11.50 from €11.30 while also retaining an overweight recommendation. For Alpha Bank, the investment bank said it sees the greatest potential for positive surprises ahead of the lender’s investor day in November. Demetra Holdings Plc purchased 3,656 of its own shares on August 5, 2026, according to an official announcement published by the investment company on Thursday. The transaction was carried out in compliance with Cyprus Stock Exchange (CSE) regulations and official circulars issued by the Cyprus Securities and Exchange Commission. Moreover, the share buyback was executed following explicit approval granted by shareholders during the company’s annual general meeting held on June 30, 2026. Cyprus-based IT distributor ASBISc Enterprises Plc, commonly known as Asbis, on Thursday reported its most profitable quarter on record after net profit more than tripled during the second quarter of 2026. According to the company’s half-year report, this was driven by booming demand for AI infrastructure, smartphones and servers across its international markets. The Limassol-headquartered firm said that net profit reached a historic $44.3 million in the second quarter, compared with $12.1 million in the corresponding period of 2025, marking the highest quarterly profit in its 36-year history. For the first half of 2026, Asbis generated net profit after tax of $80.6m, compared with $19.4m in the same period last year. The company also delivered record revenues, with second-quarter sales rising 78.7 per cent year-on-year to $1.69 billion, up from $949.3m a year earlier. Retail trade volume in Cyprus contracted by 1 per cent in June 2026 compared with the previous month, according to a report released on Thursday by Eurostat. The monthly drop in Cyprus followed a sharp expansion of 3.7 per cent recorded in May 2026. Prior to that, the island’s monthly retail trade volume had fallen by 0.9 per cent in April 2026, after expanding by 0.6 per cent in March 2026. Despite the monthly pullback, Cyprus recorded a solid year-on-year increase of 5 per cent in retail trade volume in June 2026 when compared with June 2025. The annual performance in June followed a robust year-on-year surge of 8.4 per cent in May 2026, a 2.7 per cent gain in April 2026, and a 6.1 per cent growth rate in March 2026.