Cyprus Business Now: CBC, venture capital, technology, AI, tourism, euro notes

Business & economy wrap-up from the day beforeA Cyprus-based venture capital firm is positioning itself ahead of anticipated landmark IPOs in the artificial intelligence sector, with its leadership arguing that the flotations could reshape global valuation benchmarks. FinSight Ventures, which operates internationally while being anchored in Cyprus, has built a portfolio spanning generative AI unicorns such as Databricks and Scale AI, alongside fintech investments in markets including Uzbekistan and India. The firm’s general partner Alexey Garyunov said the expected listings of Anthropic and OpenAI could mark a turning point for the sector. “Putting two AI leaders into public view sets that anchor for the first time,” Garyunov said. “Once it does, I’d expect a repricing of private-market reference points,” he added. Speaking to the Cyprus Mail, Garyunov highlighted Cyprus’ growing role as an innovation hub, pointing to its unique position at the intersection of global capital flows. A major international crackdown on botnet infrastructure has failed to reduce cyber risks facing businesses in Cyprus, according to new data released by cybersecurity company Qrator Labs for the second quarter of 2026. The report found that the largest distributed denial of service (DDoS) botnet monitored by the company shrank dramatically from 13.5 million devices in the first quarter of 2026 to 2.09 million devices in the second quarter, a decline that may reflect the impact of an international law enforcement operation. According to the company, authorities in the United States, Canada and Germany disrupted infrastructure used by several major botnets, including the Aisiru and Kimwolf networks. However, the report said the reduction in the size of the largest botnet did not translate into lower cyber risks, with attackers continuing to launch increasingly powerful assaults. During the second quarter of 2026 alone, Qrator Labs mitigated 12 DDoS attacks exceeding one terabit per second (Tbps), twice as many as it handled during the whole of 2025. The European Central Bank (ECB) left its key interest rates unchanged earlier this week, with Central Bank of Cyprus (CBC) governor Christodoulos Patsalides warning on Friday that the broader effects of the recent energy shock remain contained for now but that risks to inflation continue to point upwards as the conflict in the Middle East persists. Patsalides, who sits on the ECB’s Governing Council, said the decision reflected continued uncertainty surrounding the economic outlook and the potential consequences of higher energy prices. “We kept key interest rates unchanged,” Patsalides said. “So far, broader effects from the energy shock remain contained,” he added. The CBC chief further explained that “the economic outlook continues to be shaped by heightened geopolitical uncertainty“. “Risks to inflation continue to be tilted to the upside, whereas risks to growth remain on the downside,” he continued. The Central Bank of Cyprus (CBC) on Friday called on citizens to take part in a Europe-wide survey launched by the European Central Bank (ECB), inviting the public to help choose the design of the next series of euro banknotes. The online consultation follows the ECB’s unveiling of ten shortlisted design proposals, marking the next stage in what will become the first complete redesign of euro banknotes since their introduction in 2002. In a statement, the CBC encouraged people in Cyprus to participate in the ECB’s online survey and contribute their views on the future appearance of Europe’s common currency. The CBC said the shortlisted proposals emerged from a European Union-wide design competition that attracted more than 1,200 graphic designers. From those entries, 25 designers were invited to develop proposals based on one or both of the two selected themes, European culture and Rivers and birds. Trade unions representing hotel and leisure-centre workers in Cyprus have called for immediate workplace inspections, warning that the use of temporary workers supplied on a “rental” basis is rising sharply and undermining labour protections across the hospitality sector. Trade unions Ouxeka-Sek and Syxka-Peo raised the alarm in letters sent to labour minister Marinos Mousiouttas, Labour relations department director Andis Apostolou and Labour department director Alexandros Alexandrou. The unions said a significant increase in temporary or “rented” workers had recently been recorded in hotels and leisure centres, describing the practice as a serious and growing concern. Air transport prices in Cyprus fell in June while average air fares across the European Union continued to rise, according to figures released by Eurostat this week. The EU statistical agency said the price of air transport services, including plane tickets, has fluctuated significantly since January 2025, reflecting changes in travel demand, seasonal patterns and the impact of recent geopolitical developments. In Cyprus, air transport prices were 1.8 per cent lower in June 2026 than in the same month a year earlier. This contrasted with the wider EU trend, where air transport prices were 3.1 per cent higher in June 2026 than in June 2025. The June decline followed a mixed pattern in Cyprus over recent months. Air transport prices in Cyprus had risen by 7.8 per cent in May 2026, after falling by 0.7 per cent in April and 0.4 per cent in March on an annual basis. Demetra Holdings Plc on Friday announced to investors that it purchased more of its own shares during the trading session on July 23, 2026. The share repurchase was executed through the Cyprus Investment & Securities Corporation Ltd (CISCO), which acts as the designated broker. A total of 4,570 ordinary shares were acquired by the firm during the session, at a price of €1.495 per share. Cyprus wants to become a trusted regional artificial intelligence hub in the Eastern Mediterranean, using technology to improve people’s lives and strengthen the economy without allowing it to weaken human judgement, dignity or control, Chief Scientist for Research, Innovation and Technology Demetris Skourides said. Outlining the proposed National Artificial Intelligence Strategy 2032, Skourides, who also chairs the National AI Taskforce, said the country’s direction was built around one central principle, with “AI must serve people. People must remain in control.” That principle shaped the Taskforce’s discussions from the outset, as its members considered how AI could strengthen people rather than diminish their role, raise productivity and contribute to economic growth, better serve citizens and customers, and remain trustworthy and appropriately governed. However, the strategy is not presented simply as a plan for new systems and infrastructure. Instead, it begins with the people whose everyday lives could be changed by them. Power cuts are “unacceptable” and inconsistent with the profile of Cyprus as a modern European tourist destination, the association of Cyprus Tourist Enterprises (Stek) said on Friday. Stek expressed its concern over recent power cuts, saying that they inevitably affected hotel units and caused operational problems, negatively impacting the experience of tourists visiting the island. The association spoke of an “unacceptable” situation for a tourist destination which sought to internationally strengthen its competitiveness. Five hundred million euro worth of new roads and improvements in Limassol to ease congestion will be presented and discussed on Friday by Transport Minister Alexis Vafeades during a meeting with the mayors of urban Limassol areas. The minister’s plan includes projects to be implemented immediately or over a length of time, including targeted improvements and new projects, as well as smart traffic management systems, such as Urban Traffic Control (UTC) to coordinate traffic lights, optimise traffic flow and prioritise public transit. According to philenews, the proposed projects for Limassol can be implemented with a budget of €493 million, with the lion’s share going to new motorways and circulars. Cyprus had one of the lowest levels of precision farming adoption in the EU in 2023, with only about 1 per cent of farms using such technology, according toa report from Eurostat. The figures also show that about 43 per cent of EU farms had internet access in 2023, with northern and central European countries such as Denmark, Germany, Slovakia, Latvia, the Czech Republic and Austria all recording rates above 90 per cent. Eurostat said farm management information systems, meaning digital platforms used to run farm operations, were used by about 11 per cent of EU farms. France recorded the highest use of those systems, at about 60 per cent, the report added. By contrast, the adoption of robotics remained limited across the bloc, covering about 7 per cent of all farms. Cyprus implemented 25 per cent of its 2026 development budget during the first half of the year, maintaining the same pace as in the corresponding period of 2025 and running above the 22 per cent average recorded over the past decade, according to the state treasury. Total development expenditure budgeted for 2026 stands at €1.62bn, of which €412.39m had been implemented by the end of June. Meanwhile, state revenue reached €4.44bn, corresponding to 41 per cent of the annual target, compared with €4.21bn and the same implementation rate a year earlier. Actual expenditure rose to €4.63bn, representing 40 per cent of the annual budget, from €4.41bn and 40 per cent in the first half of 2025. The increase in revenue was mainly driven by higher tax receipts, with indirect taxes rising by €170m and direct taxes by €90m. At the same time, higher spending largely reflected increases of €110m in transfers and grants, €80m in operating and other expenses and €50m in social benefits. Cyprus brought together 27 Port State Control inspectors from 11 Mediterranean countries for specialist training on cargo securing, strengthening regional cooperation on maritime safety and ship inspections. The two-day seminar, held on July 15 and 16, was jointly organised by the Deputy Ministry of Shipping and the Secretariat of the Mediterranean Memorandum of Understanding on Port State Control, known as the Med MoU. Training focused on the Concentrated Inspection Campaign on Cargo Securing, preparing inspectors from Med MoU member states for coordinated checks in this area. The seminar was attended by inspectors from Egypt, Albania, France, Israel, Jordan, Croatia, Cyprus, Lebanon, Malta, Morocco and Tunisia.