Cyprus Business Now: economy, shipping, tourism, TechIsland, Eurobank, energy

Business & economy wrap-up from the day beforeCyprus’ short-term economic outlook returned to marginal growth territory in August, according to the latest Composite Leading Economic Index (CCLEI) from the Economics Research Centre of the University of Cyprus (CypERC), although external pressures continue to weigh on the economy. The CCLEI recorded a year-on-year increase of 0.02 per cent in August 2026, based on revised data, following declines in the previous months. The return to positive territory was driven mainly by stronger performance across several domestic indicators, including property sales contracts, credit card transactions by Cypriots, retail sales volumes and temperature-adjusted electricity production. These developments provided a counterbalance to weaker external conditions, with Brent crude oil prices remaining significantly higher than a year earlier and tourist arrivals lower on a year-on-year basis. Investment and access to financing will be central to the future development of Cyprus’ healthcare sector, according to Eurobank, which participated in the 9th Cyprus Healthcare Conference in Nicosia. The conference, which took place on Thursday, examined the challenges and opportunities facing healthcare, with discussions focusing on digital transformation and artificial intelligence and the development of a sustainable healthcare services ecosystem in Cyprus. Speaking at the event, Eurobank Wholesale Banking general manager Phivos Stasopoulos said that a modern healthcare system could not develop without investment and access to capital. He argued that banks’ role extended beyond conventional lending, with financial institutions acting as strategic partners supporting growth, innovation and transformation across the sector. The Cyprus Employers and Industrialists Federation (Oev) and non-profit association TechIsland on Friday signed a memorandum of understanding aimed at strengthening cooperation on technology, innovation and entrepreneurship in Cyprus. The agreement establishes a structured framework for collaboration and coordination between the two organisations and their members, with the shared objective of creating conditions that can strengthen Cyprus’ innovation ecosystem and the growth potential of the economy. Under the memorandum, Oev and TechIsland will develop joint initiatives and policy proposals in areas directly affecting the business environment and the development of innovation. These will include efforts to improve the regulatory and tax framework, develop physical and digital infrastructure, and create more favourable conditions for attracting and retaining investment, businesses, entrepreneurs and skilled workers. Cyprus ranked fourth from last in the European Union for the share of electricity generated from renewable sources in the second quarter of 2026, according to a report from Eurostat. Only France, Malta, the Czech Republic and Slovakia recorded lower shares than Cyprus, placing the island towards the bottom of the EU renewable electricity rankings. Across the EU as a whole, 54.1 per cent of electricity generated in the second quarter of 2026 came from renewable sources, slightly below the 54.3 per cent recorded during the same period of 2025. Solar was the leading source of renewable electricity in the EU, accounting for 41.6 per cent of all renewable electricity generated during the quarter. Its share increased significantly from 37.0 per cent in the second quarter of 2025. Cyprus has emerged as part of a four-country Mediterranean bloc pressing for changes to the proposed global shipping decarbonisation framework, as divisions between major maritime states and Brussels deepen ahead of crucial negotiations at the International Maritime Organisation (IMO). The disagreement has sharpened in recent weeks, with Greece, Cyprus, Italy and Malta raising concerns over the economic consequences of the proposed rules, particularly the cost of alternative fuels, emissions pricing and the competitiveness of European shipping. Newmoney reported on Friday, citing Euractiv, that the European Commission was pressing for a united EU position ahead of the next round of IMO negotiations, while Greece continued to resist the current approach. The report said Cyprus, Italy and Malta had also voiced reservations during European discussions, placing the four Mediterranean shipping countries increasingly on the same side of the argument. Invest Cyprus and Greece are looking to turn their close economic ties into new investment and business opportunities, following talks between the investment promotion agency’s leadership and Greek Deputy Foreign Minister Harry Theoharis. Invest Cyprus chairman Evgenios Evgeniou and chief executive Marios Tannousis met Theoharis for discussions on strengthening investment and business cooperation between Cyprus and Greece, the agency said. The meeting was also attended by Greece’s ambassador to Cyprus, Konstantinos Kollias, and the head of economic and commercial affairs, Eva Vokou. Discussions focused on creating new investment opportunities, bringing the two countries’ business ecosystems closer together and exploring joint initiatives in sectors considered strategically important. Cyprus expects a stronger flow of French tourists in 2027 as airlines add capacity between the two countries, Tourism Deputy Minister Kostas Koumis said after talks with tour operators at the IFTM Top Resa exhibition in Paris. The expectations come after a difficult year for the French market, which has been among the hardest hit of Cyprus’ main tourism sources during 2026. In August alone, arrivals from France almost halved to 8,453, down 46 per cent from 15,663 a year earlier, according to figures released this week by the statistical service (Cystat). French arrivals were also almost 50 per cent below August 2024, when Cyprus welcomed 16,798 visitors from the country. The wider tourism market has also remained below last year’s levels, with 2.82 million visitors arriving in Cyprus between January and August, 7 per cent fewer than during the same period of 2025. Cyprus is moving to overhaul the legal framework governing which ships can join its register, widening access to the Cyprus flag while tightening sanctions rules and updating ship-finance provisions under a draft law now open for consultation. The Shipping Deputy Ministry has put forward changes to legislation whose foundations date back to 1963, saying practical difficulties encountered under the existing system have created obstacles in some cases for vessels seeking registration. The proposed amendments would make some of the most significant changes to ship ownership eligibility, opening the register more widely to owners outside the European Union while also updating rules covering mortgages, financing, provisional registration and parallel registration. Under the existing legislation, more than 50 per cent of a vessel must generally be owned by Cypriot citizens or citizens of another EU member state, subject to the conditions set out in the law. The draft would extend eligibility to British and Swiss citizens, as well as nationals of other countries with which Cyprus has reciprocity or mutual-recognition arrangements. Cypriot firm Athlos Capital on Friday announced the launch of a new actively managed investment product aimed at retail investors with a balanced risk profile, giving them exposure to fixed income, equities and alternative investments through a single portfolio. The Athlos Balanced Strategy Retail Actively Managed Certificate (AMC) is designed to combine several asset classes under one professionally managed investment strategy, with Athlos Capital’s investment team able to adjust the portfolio in response to market conditions and investment opportunities. The product is intended to give retail investors access to an approach traditionally associated with institutional and professional investors, without requiring them to select and manage investments across different asset classes themselves. The AMC is issued by UBS, combining the financial institution’s product infrastructure with Athlos Capital’s portfolio management expertise. A tourism-led environmental initiative launched in Cyprus will expand to Greece this year, bringing businesses and organisations from both countries together for a cross-border clean-up campaign on September 25, 2026. ‘Tourism Cares: Unite for Cleaner Destinations‘ will bring together tourism workers, visitors, diving centres, local communities, environmental organisations and volunteers in Cyprus and Greece for clean-up and awareness activities ahead of World Tourism Day on September 27. The initiative has also been included in the UN Tourism programme of events for World Tourism Day 2026, giving the Cyprus-born campaign an international platform. Almost 100 tourism businesses and organisations from Cyprus and Greece have already registered for this year’s initiative, according to the organisers. The campaign will focus on reducing waste and encouraging more responsible choices within the tourism sector, with activities taking place in locations including beaches, coastlines, seabeds, parks, forests and nature trails. Petrolina (Holdings) Public Ltd will review its first-half 2026 results and the possibility of a second interim dividend at a board meeting on September 28, 2026, the company announced on Friday. The company’s board will meet at its Larnaca offices at 10.30am to examine and approve, among other matters, the results for the six months ended June 30, 2026. It will also consider whether to pay a second interim dividend for the 2026 financial year. The board’s decisions, together with the reviewed condensed interim consolidated financial statements for the six months to June 30, will be announced before trading begins on the Cyprus Stock Exchange (CSE) on September 29. Demetra Holdings Plc announced on Friday that it repurchased 3,570 of its own shares through the Cyprus Investment & Securities Corp Ltd (CISCO) on September 17, 2026. The transaction was conducted at a price of €1.40 per share, according to a regulatory filing released to the investment public. The company carried out the buyback in accordance with the relevant regulations of the Cyprus Stock Exchange and the circulars of the Cyprus Securities and Exchange Commission. The share purchase was executed pursuant to a specific authorisation granted by shareholders at the company’s annual general meeting held on June 30, 2026. Cyprus’ construction material prices rose again in August, with electrical fixtures, plastics and aluminium products recording some of the sharpest annual increases, according to figures released by the statistical service (Cystat). The price index of construction materials reached 123.09 units, with 2021 acting as the base year set at 100. This represented a marginal 0.07 per cent monthly increase and a 3.39 per cent rise compared with August 2025. Across the first eight months of the year, construction material prices were 2.06 per cent higher than during the corresponding period of 2025. Metallic products and products covering wood, insulation materials, chemicals and plastics recorded the largest annual increases among the five main categories, with both rising by 4.6 per cent. Lena Panayiotou has been promoted to deputy director-general of the Cyprus Employers and Industrialists Federation (Oev), capping a career of more than two decades at the organisation and placing her in one of its most senior executive posts. The promotion will take effect on January 1, 2027, following a unanimous decision by Oev’s board at its meeting on September 17. Panayiotou joined Oev in 2004 as an officer in its Labour Relations and Social Policy Department, beginning a steady rise through the federation’s ranks. She was promoted to director of the department in 2017, having previously served as a senior officer and deputy director, before becoming assistant director-general in January 2024. Cyprus brought together leading figures from the Greek and Cypriot maritime communities in Athens this week to emphasise the growing role of women in shipping and the industry’s long-standing contribution to society. The event, “Women – Shipping – Social Contribution”, was organised by the Shipping Deputy Ministry ahead of World Maritime Day and held under the auspices of First Lady Philippa Karsera Christodoulides. Shipping Deputy Minister Marina Hadjimanolis, Cyprus Union of Shipowners (CUS) president Polys V. Hajioannou and Cyprus’ ambassador to Greece Stavros Avgoustides attended alongside women from the Greek shipping community. Hadjimanolis said Cyprus regarded shipping not simply as one of the country’s most important economic sectors, but as a community whose contribution stretched well beyond ships and business. The Cyprus Stock Exchange (CSE) announced on Friday the listing of 101,410,900 additional ordinary shares of MHV Mediterranean Hospitality Venture Plc on its market. The decision was taken in accordance with Article 58(1) of the Cyprus Securities and Stock Exchange Law, covering the new shares which carry a nominal value of €1.00 each. The exchange confirmed the simultaneous insertion of the shares into the Central Depository and Central Registry of the CSE, following Articles 10(1) and 10(3) of the corresponding registry legislation. The new equity was issued and allocated through a private placement at nominal value to Prodea Real Estate Investment Company S.A. Transport Minister Evanthia Tsolaki visited DP World Limassol’s terminal at Limassol Port on Friday, meeting representatives of DP World Limassol and P&O Maritime to discuss their operations at the port. The visit was Tsolaki’s first to the terminal since taking over the Transport, Communications and Works portfolio. “We were delighted to welcome the minister to Limassol Port and to have the opportunity to present the breadth of our operations and our plans for the future,” DP World Limassol chief executive officer Simon Pitout said. “Limassol Port is a vital gateway for Cyprus, supporting trade, tourism and connectivity, and we are proud of DP World Limassol’s contribution to the country’s economy,” he added. Tsolaki toured DP World Limassol’s facilities and was briefed on the terminal’s infrastructure, daily operations and services supporting commercial, maritime and tourism activity. Alkis H. Hadjikyriacos (Frou Frou Biscuits) Public Ltd reported a 28.5 per cent rise in net profit to €2.57 million for the first half of 2026, as higher sales, increased dividend income and lower financing costs lifted earnings. The company’s net profit stood at €2m during the corresponding period of 2025. Turnover rose by 3.8 per cent to €12.56m, with the company attributing the increase mainly to selective price rises and new product launches. The rise in profits was considerably stronger than the increase in sales. Profit before tax climbed by 33.2 per cent to €2.95m, while operating profit increased to €2.97m, from €2.64m in the first six months of 2025. The proposed pension reform was discussed by Labour Minister Marinos Mousiouttas and International Labour Organisation (ILO) actuary Costas Stavrakis with the board of the Employers and Industrialists Federation (Oev) on Thursday. Mousiouttas and Stavrakis attended a regular meeting of the Oev board at the federation’s offices, where they briefed board members on the pension reform being advanced by the government and provided clarifications on individual aspects of the proposals. Oev president George Pantelides reiterated that adequate pensions and the long-term sustainability of the system were priorities for the business community. While recognising positive elements in the proposed reform, Pantelides stressed the need for sufficient time to allow for a meaningful assessment of the measures and their future impact. Cyprus used its first official national pavilion at SMM Hamburg 2026 to put the island’s maritime technology and services before a record international audience, as local companies sought new business and partnerships at one of the shipping industry’s biggest gatherings. The four-day exhibition, held in Hamburg from September 1 to 4, attracted more than 50,000 participants from 134 countries, marking the highest attendance in SMM’s history. Around 2,300 companies from 66 countries exhibited across more than 90,000 square metres in 12 exhibition halls, while more than 70 per cent of exhibitors came from outside Germany. The figures are preliminary, according to the organisers, and are based on an extrapolation carried out during the final day of the exhibition. SMM also hosted 26 national pavilions, with Cyprus, India and Brazil among the countries represented with their own pavilion for the first time. Transport Minister Evanthia Tsolaki visited the Eurogate Container Terminal Limassol (Eurogate CTL) at Limassol port on Friday, meeting company executives to discuss issues affecting Cyprus’ maritime trade sector. The visit followed Tsolaki’s assumption of the Transport, Communications and Works portfolio in August and was intended as an introductory meeting with Eurogate CTL executives. Tsolaki was accompanied by her office director Elena Theodoulou, ministry representative on the ports concession agreement Chrysalla Solomou and acting director of the Public Works Department Stelios Zervos. Eurogate CTL chief operating officer Alexandros Demetriades briefed the minister on current issues facing the company and the operation of the container terminal. The meeting was followed by a tour of Eurogate’s facilities, during which Tsolaki was briefed on investments made to upgrade the terminal’s infrastructure. Cyprus Cement Public Company Ltd has announced that it bought back 600 of its own shares on September 16, 2026, in line with a decision approved by shareholders earlier this year. The company said the purchase was carried out through ProChoice Chrimatistiriaki Ltd at a price of €1.365 per share, giving a total transaction value of €819. The buyback was executed pursuant to a decision taken at the company’s extraordinary general meeting of shareholders on June 18, 2026. The University of Cyprus and the Sievert Larsson Scholarship Foundation have renewed an agreement providing 20 scholarships worth a total of €20,000 to students facing financial difficulties. The scholarships will be awarded through the University of Cyprus Student Welfare Association on the basis of academic and socioeconomic criteria. The scheme is aimed at supporting students who demonstrate strong academic performance while also experiencing financial difficulties that could affect their ability to continue their studies. The agreement was signed on behalf of the University of Cyprus by rector Professor Tasos Christofides and on behalf of the foundation by its founder, Sievert Larsson. The Central Bank of Cyprus (CBC) has confirmed that all banks in Cyprus will be closed on Thursday, October 1, 2026, for Cyprus’ independence day. The closure means customers will not be able to carry out routine in-branch banking services on the day, although digital and online banking services are expected to remain available. Businesses should also take the closure into account when planning payments, cash deposits and other transactions that require access to physical bank branches. The Cyprus property market remains strong but faces structural weaknesses and rising costs that could affect its future development, according to speakers at this year’s Cyprus Property Show, where the government also outlined plans to revise key planning frameworks. The conference, held under the title “The present and future of property in Cyprus”, brought together government officials and representatives of the property, construction, engineering and investment sectors to discuss the market’s performance and challenges. The event heard that 21,387 property transfers were recorded across Cyprus in 2025, broadly unchanged from 2024, while the total value of transactions increased by about 10 per cent to €4.73 billion. Interior Minister Konstantinos Ioannou said the property sector extended well beyond construction and sales, linking it directly with the economy, investment, urban and rural development and quality of life. The price of fuel at the pump is expected to increase further in the coming weeks, petrol station owners’ association chairman Savvas Prokopiou warned on Friday, with recent developments in the ongoing conflict in the Middle East having pushed the price of oil to its highest level since May this week. “We, as petrol station owners, are unfortunately monitoring the successive increases which generally affect both our industry and other industries. Based on experience, we expect a few more increases,” he told the Cyprus News Agency. He added that “we do not exactly know how many cents the price will increase by”, but said that “we have seen increases of one or two cents [per litre] in the past, so there may be a few more increases of this level”. Asked whether the government should make further interventions with the aim of keeping prices down, he answered in the affirmative, saying that “in our view, further intervention should be targeted for vulnerable groups”. Eating out has become significantly more expensive in Cyprus over the last three years, with a meal out that cost €100 in 2023 now amounting to an average of €126 – an increase of 26 per cent, date released on Friday showed. Secretary general of the hospitality venues association (Pasika) Fanos Leventis attributed the increased costs to a rising prices for energy and alcohol. “The fact that there are increases is indisputable. The fact that the increases are justified is also indisputable,” he said. According to Leventis, raw materials had increased in price following the pandemic, while geopolitical unrest had contributed to sharp increases in energy prices, adding that the zero VAT measure on some products does not seem to have helped the business sector. Meanwhile, he pointed out that significant increases were recorded in alcoholic beverages, which he said significantly ups the per capita spending of diners when eating out. The finance ministry is “monitoring the situation” with the cost of fuel continuing to increase in recent weeks amid developments in the conflict in the Middle East, its spokesman Michalis Papadopoulos said on Friday. “We are continuing to monitor the situation, and as and when it is judged to be necessary, we will take the requisite measures, as we have done in the past,” he told the Cyprus Mail, highlighting the 8.33-cent reduction on fuel consumption tax which was last week extended until the end of November. On this front, one tool which may be made available to the government, is a potential temporary reduction in value added tax on fuel. At present, as a European Commission spokesman has previously told the Cyprus Mail, cuts to VAT on fuel would not be compliant with European Union law. “While we fully understand the need to support citizens during these difficult times, it is important to note that the EU VAT directive does not provide for the possibility to apply a reduced rate on supplies of fuel,” a commission spokesman said. The Paphos Chamber of Commerce and Industry (Evep) is leading a new two-year Erasmus+ project focused on youth skills in blockchain, artificial intelligence and Web3, with its opening meeting taking place in Pescara, Italy. The project, titled “Enhancing Youth Education in Blockchain, AI and Web3 through International Exchange”, aims to strengthen young people’s education and skills in rapidly developing technologies through international cooperation, knowledge exchange and new training activities. Evep European programmes and educational training officer Stefanos Hadjiioannou and chamber associate and expert Paris Paraskevas are representing the chamber at the opening meeting. A two-day conference focusing on blockchain technology is also being held in Pescara alongside the partners’ meeting, allowing participants to exchange knowledge, experience and practices concerning emerging digital technologies and their use in education and youth skills development. The Cyprus Stock Exchange (CSE) announced on Friday the listing of 3,542,466 additional ordinary shares of Globalwealth Group Plc on its market. The decision was approved in accordance with Article 58(1) of the Cyprus Securities and Stock Exchange Law, covering shares with a nominal value of €0.001 each. The stock exchange confirmed the simultaneous insertion of the new shares into the Central Depository and Central Registry of the CSE under Articles 10(1) and 10(3) of the corresponding registry legislation.