Cyprus Business Now: banks, tech, trade corridors, cars, trade deficit, AI

Cyprus is becoming rather good at attracting international technology companies. Its latest economic figures suggest the country is changing faster than many people realise. The more interesting question, though, is whether that success can benefit the wider economy, rather than simply the businesses that have chosen to move here. According to the statistical service’s (Cystat) revised national accounts, information and communication activities generated €4.64 billion in value added in 2025, almost twice the €2.32bn produced by accommodation and food services. For a country that has spent decades selling sunshine, beaches and hotel rooms, that is quite a change. President 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 European Central Bank (ECB) has urged greater public awareness of the Single Euro Payments Area (SEPA), warning that households across south-eastern Europe continue to rely on costly money transfer services despite the availability of cheaper cross-border payment options. In a recent blog post, the ECB said that SEPA now connects 41 European countries, allowing euro transfers between participating countries to be made as easily and inexpensively as domestic payments, yet many consumers remain unaware of the system and its benefits. The findings have particular relevance for countries such as Cyprus, where digital payments and instant transfers have expanded rapidly, but where the wider transition towards integrated European payment services continues to evolve. India has introduced a rather unusual new face to its diplomatic presence in Cyprus, and she comes with a name, a digital personality and a touch of artificial intelligence. Meet Amara, the first AI-powered digital avatar launched by the High Commission of India in Nicosia, designed to bring diplomatic communication into a more accessible, modern and distinctly technological age. Unveiled on Sunday, November 8, to coincide with Diwali, the Festival of Lights, Amara will feature in videos and digital messages, helping the High Commission communicate with the Indian community in Cyprus and the wider public. The Cyprus Stock Exchange (CSE) on Monday warned investors and members of the public about misleading emails impersonating the exchange, urging recipients to check senders’ addresses carefully before responding. The CSE said it had become aware of cases in which emails were being circulated that appeared to originate from the exchange but had not, in fact, been sent by it. The exchange stressed that its official email address is [email protected], advising the public and market participants to be particularly cautious of messages using names or email addresses that resemble its own. Cyprus can register a new company in as little as two to four working days, but the process is far from automatic, with sanctions, foreign ownership and national security concerns potentially standing between an applicant and the certificate of incorporation. Energy, Commerce and Industry Minister Michael Damianou has confirmed that the authorities aim to complete company registrations within this timeframe, depending on whether applicants pay an additional fee for faster processing. The clarification came in a written response to a parliamentary question submitted by MP Efrem Christou, who sought details on how long it takes to establish a business in Cyprus and what checks are carried out before approval is granted. The Bank of Cyprus on Monday announced the launch of DANAI, the island’s first AI banking assistant, giving customers access to instant answers to everyday banking questions through its mobile application. The new service is available from the app’s home screen and operates 24 hours a day, seven days a week, providing customers with an additional way to obtain banking information whenever they need it. Customers can ask DANAI questions in natural language, without having to navigate different menus or sections of the app, the bank said. Used vehicles continued to drive growth in Cyprus’ motor market during the first ten months of 2026, while registrations of new vehicles declined, according to figures released by the statistical service (Cystat) on Monday. A total of 48,624 motor vehicles were registered between January and October, marking an 8.7 per cent increase compared with 44,732 during the same period last year. The gap between new and used vehicles widened further. Used registrations climbed by 19.2 per cent, from 25,680 to 30,619, while new registrations fell by 5.5 per cent to 18,005, from 19,052. Cyprus’ trade deficit widened to €6.86 billion in the first nine months of 2026, despite stronger export growth, according to provisional figures released by the statistical service (Cystat) on Monday. The deficit increased by 10.2 per cent, from €6.23bn during the corresponding period of 2025, as the value of imports continued to exceed exports. Total imports rose by 12.1 per cent to €11.76bn between January and September, compared with €10.49bn a year earlier. The Cyprus Chamber of Commerce and Industry (Keve) on Monday reviewed its participation in last week’s annual American Chamber of Commerce in Cyprus (AmCham) conference, highlighting the need to turn strategic partnerships into investment and new business opportunities for the island’s economy. The conference, titled “Strategic Corridors & Alliances – Transatlantic Cooperation & Europe’s Global Connectivity”, brought together business and government representatives to discuss international economic cooperation, investment and the changing geopolitical environment. In a statement, Keve said its president, Stavros Stavrou, had highlighted the importance of strengthening transatlantic economic cooperation and making better use of strategic partnerships to benefit Cyprus’ economy and businesses. Cyprus-based venture capital firm Kinisis Ventures has joined a $1.8 million pre-seed funding round in Janus Labs AI, a US startup developing contactless neural artificial intelligence technology designed to monitor the health and wellbeing of pets. The investment forms part of a round led by New York Angels, with participation from Harvard Business School Alumni Angels of Greater New York and SkyRiver Ventures, as Janus seeks to develop a new category of personalised pet health technology. The latest funding brings the company’s total capital raised to $2.6m, which will be used to advance its technology for monitoring the health of dogs and cats. Minerva Insurance Company Public Ltd on Monday announced that it had paid an interim dividend of €0.0003 per share for the 2024 financial year to shareholders. The company said the dividend had been distributed through two separate procedures, depending on how shareholders’ investments were held. For shareholders whose shares are managed by a member of the Cyprus Stock Exchange (CSE), the net dividend amount was transferred to the relevant member’s client bank account, in accordance with the exchange’s new cash distribution procedures. Eurobank S.A. repurchased 463,334 of its own shares for more than €2.07 million during the week ending November 6, 2026, as part of its ongoing share buyback programme, the bank announced on Monday. The purchases, carried out on the Euronext Athens exchange between November 2 and November 6, came at an average price of €4.4867 per share, with the total expenditure amounting to €2,078,832.02. The buyback programme was approved by shareholders at the bank’s annual general meeting on April 28, 2026, in accordance with Article 49 of Greek Law 4548/2018, and was subsequently authorised by a board resolution dated April 29. MPC Oceanic Group AG and the shareholders of Marlow Navigation Co. Ltd. have signed an agreement under which MPC Oceanic Group will acquire a 41 per cent stake in Marlow. The transaction builds on a relationship between the two groups spanning more than a decade and establishes a long-term strategic partnership, while preserving Marlow’s operational independence, established brand and existing leadership. Marlow’s existing shareholders will retain majority ownership in the company, which will continue to operate independently under its established brand and with its current leadership team. Alpha Bank repurchased almost 1.31 million of its own shares for €6.19 million during the first week of November, bringing its total treasury shareholding to more than 19.39 million shares, according to an announcement issued on Monday. The bank acquired 1,307,993 shares traded on Euronext Athens between November 2 and November 6, at an average purchase price of €4.7349 per share. Following the transactions, Alpha Bank held 19,391,065 own shares, representing 0.86 per cent of its total share capital. Cyprus’ house price-to-income ratio remained below its long-term average in 2025, according to Eurostat figures published on Monday. This suggests that the relationship between property prices and household incomes has not returned to the levels seen during earlier periods of pressure, despite continued concerns about the cost of buying a home. The standardised house price-to-income ratio for Cyprus stood at 91.61 in 2025, virtually unchanged from the 91.63 recorded in 2024 and below the benchmark of 100, which represents the indicator’s long-term average since 2000. Cyprus is stepping up its drive to modernise public services, digitise government operations and strengthen its technology sector, Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou said on Monday. The ministry’s €212.2 million programme for 2027 is aimed at building on what he described as the country’s “largest-ever public sector digitisation effort”. Of that amount, €150.2m is being allocated directly to the Deputy Ministry of Research, Innovation and Digital Policy, while a further €62m is being set aside for other government departments. Presenting the ministry’s budget to the House finance committee on Monday, Damianou said the government was building on two years of progress in its largest-ever public sector digitisation programme, with further projects planned to improve public services and support businesses. Cyprus’ six natural gas discoveries hold an estimated 20 trillion cubic feet, Energy Minister Michalis Damianos said on Monday, adding that the first gas from the Kronos field is expected in the first half of 2028. Speaking at the Economist’s annual conference in Nicosia, Damianos said Eni and TotalEnergies took the final investment decision on Kronos in July, with the main contracts being signed in October. The gas will travel through existing infrastructure in Egypt to international markets, mainly in Europe. Work on the Aphrodite field is also progressing, he said, with key agreements with Egypt completed. Partners in blocks 5 and 10 are weighing options for developing and selling their discoveries.