Cyprus Business Now: employment, shipping, banks, fuel, CSE, CySEC

Cyprus shipping further strengthened its position as one of the island’s most important economic sectors in 2025, contributing around 7 per cent of GDP, approximately €1.9 billion, according to the Cyprus Shipping Chamber’s (CSC) annual report. The sector, which operates without direct state investment, continued to support the wider economy while reinforcing the international standing of the Cyprus flag, which remains recognised for its reliability and prestige. At the same time, Cyprus maintained the fifth largest merchant fleet in Europe and the fourteenth largest worldwide, while controlling more than 4 per cent of the global fleet. The island also remained one of the world’s leading shipmanagement centres, with Cyprus-based companies carrying out more than 20 per cent of global third-party shipmanagement activity. Prominent British Cypriot entrepreneurs Theo Paphitis and Touker Suleyman recently shared their experiences and views on entrepreneurship, artificial intelligence and the role of the diaspora during a special event organised by the Cyprus Forum London at the Cyprus High Commission in London. The event aimed to highlight the contribution of the Cypriot diaspora to British society and its role in supporting the country’s economic development. The discussion also touched on the challenges facing modern businesses, the impact of artificial intelligence, support for young entrepreneurs and the future of relations between Cyprus and the United Kingdom. Both businessmen reflected on their families’ arrival in Britain and the opportunities they found despite the difficulties of adapting to a new country. Retail fuel prices in Cyprus are expected to fall further in the coming days, following a series of reductions over the past month, according to Consumer Protection Service director Constantinos Karagiorgis. Karagiorgis told the Cyprus News Agency (CNA) that retail prices had been moving downwards over the past month, with diesel falling by an average of 13.5 cents per litre and unleaded 95 petrol by 2.4 cents per litre. He said the downward trend was linked to recent declines in refinery prices, which were now being reflected in fuel shipments arriving in Cyprus. “This is expected, based on the data we have before us today, to have an impact on retail fuel prices in the coming days with significant additional reductions,” he said. However, Karagiorgis cautioned that the outlook remained uncertain, particularly given renewed threats concerning the possible closure of the Strait of Hormuz. The Cyprus Securities and Exchange Commission (CySEC) has issued an urgent directive requiring all regulated entities to submit specific information to support the identification of firms for future direct supervision by the Anti-Money Laundering Authority (AMLA). This new reporting process represents a vital step in preparing for the first selection cycle of entities that will fall under direct oversight from 2028. The requirement applies to a broad range of regulated entities, including investment firms, crypto-asset service providers, and various collective investment management companies that held an authorisation as of December 31, 2025. Entities that were authorised by this date but have not yet commenced operations are also strictly required to participate in this submission. Many people long-expected technology and remote working to make physical offices redundant, but the market has taken a different direction, according to Cyprus Property Developers Association chairman Yiannis Misirlis. Although the pandemic reinforced this belief, Misirlis mentioned that “offices have not disappeared”, instead, they are being transformed to meet the needs of new professionals and companies seeking to attract talent. He said leading businesses worldwide are no longer looking simply for office space, but for modern workplace ecosystems that support collaboration, innovation, talent attraction and quality of life. This shift, he explained, is reflected in the Urban Knowledge Campus model, where work, housing, education, services and daily life coexist within the same environment. Cyprus’ status as a stable destination for investment and tourism was highlighted by the Employers and Industrialists Federation (Oev) during the annual conference of the International Labour Organisation (ILO) in Geneva, where the organisation’s Director General Michalis Antoniou addressed delegates on behalf of Cypriot employers. Speaking before the plenary session of the conference, whose proceedings conclude on June 12, Antoniou said that Cyprus has remained a safe and stable destination despite successive crises. He stated that the country benefits from strong institutions, the rule of law, and its equal standing within the European Union, factors which continue to underpin its attractiveness for both investment and tourism. According to a statement issued by the federartion, this year’s conference agenda includes a number of issues of major importance for the modern world of work. Alpha Bank announced on Wednesday that it will distribute 4.2 million treasury shares free of charge to executives and employees under its 2025 Combined Bonus Plan (CBP). The decision was taken by the bank’s board of directors as part of the implementation of the performance-based remuneration programme covering the 2025 financial year. According to the bank, a total of 4,209,501 own common dematerialised shares will be allocated to 1,260 beneficiaries, comprising members of management and employees. The measure was approved during a board meeting held on May 27, 2026, in line with the provisions of the Combined Bonus Plan. Cyprus Stock Exchange (CSE) chairman Marinos Christodoulides on Thursday held a meeting with the Ambassador of Kazakhstan to Cyprus Nikolay Zhumakanov at the exchange’s offices in Nicosia. The discussions took place in the context of the recent visit of the President of the Republic of Cyprus to Kazakhstan and formed part of wider efforts to strengthen bilateral economic and investment relations between the two countries. Both sides exchanged views on the prospects for cooperation between the stock markets of Cyprus and Kazakhstan, as well as broader investment opportunities linked to the developing strategic relationship. The dialogue also focused on ways to enhance cross-border financial collaboration, with emphasis on potential mechanisms that could facilitate market connectivity and investor engagement. Cyprus tested the revised Sounio Plan at the port of Limassol on Thursday, during the Nikitis- Dimitra 2026 exercise, in a move aimed at strengthening the country’s ability to keep key maritime infrastructure operating during periods of crisis. Deputy Minister of Shipping Marina Hadjimanolis attended the exercise, which focused on the resilience and safe continuity of operations at the Republic’s main ports, marinas and fishing shelters. According to the Deputy Ministry, the revised plan also covers the execution of strategic maritime transport in times of stress, crisis or emergency. The ministry said these issues are of vital importance, both for supporting the work of the security forces and for ensuring the continued smooth functioning of the state. Cyprus continues to experience an upward trend in the consumption of illegal cigarettes, according to a report released on Thursday by consulting and advisory firm KPMG. This annual report, conducted for Philip Morris International, highlighted that across the European Union, illicit cigarette consumption has surpassed 10 per cent of total volume for the first time since 2014. Within Cyprus, the proportion of illegal cigarettes is estimated at 16.3 per cent of total consumption, which represents a two percentage point increase compared to 2024. The report also revealed that a total of 160 million illegal cigarettes were consumed locally during the year. Lost revenue for public coffers is estimated at €27 million, compared to €22 million in 2024. Cypriot travellers heading to the Greek islands this summer now have a faster and more flexible way to move between Athens and some of Greece’s most popular holiday destinations, following the launch of a helicopter flight service by Zela Jet. The service, operated with Zela Jet’s own branded twin-engine Agusta 109C helicopter, is based in Athens and covers domestic flights within Greece, offering passengers a quicker alternative for reaching island destinations across the Aegean and Ionian Seas. The launch is expected to appeal particularly to Cypriot travellers, who have long been among the most frequent visitors to Greece, especially during the summer holiday season. For those planning to visit more than one island, the new service offers an additional option that can reduce travel time and make itineraries more flexible. Digital gender inclusion is not only about access to technology, but about ensuring that women and girls have a real role in shaping the digital world, according to gender equality commissioner Josie Christodoulou. Writing on her personal platform after taking part in a panel on digital gender inclusion, Christodoulou linked effective policymaking to a simple but often overlooked starting point: identifying the problem, looking at the data and asking who is absent from the discussion. “When designing policies, we must always start with questions such as ‘What is the problem? What does the data tell us? Who is absent from the discussion and decision-making?’” she said. The total number of state employees in Cyprus reached 55,382 in May 2026, according to figures released by the Cyprus Statistical Service (Cystat) on Thursday, representing a slight increase compared with the same month a year earlier. The latest data showed that the total state workforce increased by 77 employees, equivalent to 0.1 per cent, when compared with May 2025. Employment in the civil service fell by 1.2 per cent, while the educational service and the security forces recorded increases of 1.4 per cent and 0.6 per cent respectively. Compared with May 2025, the largest increase among employment categories was registered among staff with contracts of indefinite duration, which rose by 2.1 per cent. Visa has announced a strategic collaboration with OpenAI to facilitate secure payments within the rapidly evolving landscape of agentic commerce. The announcement was made during the Visa Payments Forum in San Francisco, where the companies revealed plans to leverage the global payment network and security infrastructure of Visa to support seamless, trusted transactions across OpenAI platforms. This initiative forms a core part of the Visa Intelligent Commerce programme, which aims to extend secure payment capabilities into diverse digital environments as artificial intelligence becomes a primary interface for human interaction. As part of this partnership, Visa will integrate its tokenisation and risk capabilities into OpenAI experiences, providing developers and merchants with a streamlined method to accept payments initiated by AI agents. Cyprus is among the EU member states recording a decline in agricultural input costs for the first quarter of 2026, according to Eurostat data, amidst a broader European trend of falling farm output prices across the bloc. The figures underline a period of easing agricultural price pressures, with Cyprus positioned within a group of countries where costs linked to farm production inputs have retreated. Across the EU, the average price of agricultural output fell by 2.9 per cent year on year in the first quarter of 2026, a deeper decline than the 1.7 per cent drop recorded in the final quarter of 2025, according to Eurostat. At the same time, the average price of agricultural inputs, covering goods and services used in farming such as energy, fertilisers and feedingstuffs, showed only marginal movement, slipping by 0.4 per cent, extending the relative stability seen through 2025. Shareholders of Top Kinisis Travel Public Ltd convened at the company’s head offices in Strovolos on Thursday to unanimously approve the firm’s financial statements and confirm a dividend payout. The annual general meeting saw the unanimous resolution of several key corporate items, including the examination and approval of the consolidated balance sheet and the profit and loss account for the year ended December 31, 2025. Following a review of the independent auditors’ report, the assembly moved to approve the recommendation of the board of directors to issue a dividend of €0.01 per ordinary share, bringing the total distribution to €122,120.11. This dividend payment is slated for July 24, 2026, and will be issued to beneficiary shareholders who are registered in the records of the Cyprus Stock Exchange (CSE) as of June 26, 2026. The Cyprus Stock Exchange (CSE) has announced a series of index composition changes affecting its main benchmarks, with adjustments due to come into effect on June 12, 2026 as part of rule-based revisions triggered by trading conditions. The exchange confirmed that Interfund Investments PLC will be removed from the General Index, the Alternative Market Index and the Investment Market Index, following provisions under Rule 4.3.1 of the CSE index management framework, which governs the treatment of securities traded under special trading conditions. The decision forms part of routine index maintenance designed to ensure that benchmark compositions accurately reflect market eligibility criteria and trading status. In a parallel adjustment to the flagship benchmark, the CSE also announced a change to the FTSE/CySE20 Index, where Interfund Investments PLC will also be removed.