Cyprus Business Now: energy, surplus, housing, CSE, tourism, shipping, banking

Cyprus tourism showed signs of stabilisation in official figures for May and June, Deputy Minister of Tourism Kostas Koumis told parliament on Tuesday during a House Trade Committee session examining the impact of Middle East tensions on the sector. The committee discussed the effects of the volatile regional situation on Cyprus’ tourism industry and possible support measures for affected businesses. “Under the circumstances and given the intense shock suffered by the tourism economy, the losses reflected in May data have been significantly contained,” he said. “The most important thing is that Cypriot tourism has returned to a stable path, that the measures taken appear to have worked effectively, and that once again the country’s tourism sector is demonstrating resilience,” he added. Koumis said 2026 would not be a record year, pointing to significant losses in March and April, but noted that May reduced the decline in tourist arrivals to 4.9 per cent compared with May 2025, while still showing an 8.1 per cent increase compared with 2024. Cyprus lacks a coherent long term energy strategy despite growing pressures from costs, climate targets and geopolitics, according to energy expert and former chief of the Cyprus Energy Regulatory Authority (CERA) Andreas Poullikkas. “Energy is one of the most complex issues of our time,” he said in a recently published piece of analysis, stressing that it extends far beyond production and consumption. He added that energy is tied simultaneously to security of supply, household costs, infrastructure investment, climate commitments and geopolitical stability, which pulls policy in multiple directions at once. “Some look at the bill at the end of the month, others focus on new generation units, others worry about emissions and others about strategic autonomy,” he said. He described complexity not as a detail but as the core of the problem in energy policy design. Two gas fields located in Cyprus exclusive economic zone (EEZ) were on Tuesday declared “marketable” by multinational energy corporations ExxonMobil and QatarEnergy. Both fields, the ‘Pegasus’ field and the ‘Glaucus’ field, are located in Block 10 of Cyprus’ EEZ, with ExxonMobil and QatarEnergy having already jointly acquired the rights to the natural gas in that block. The fields’ status as “marketable” was the subject of a joint declaration signed by executives from both corporations and the Cypriot government at the presidential palace, with President Nikos Christodoulides saying that the government was “excited” about the declarations. “It is clear evidence and a vote of confidence in the prospects of Cyprus’ EEZ, but also in the prospects of the eastern Mediterranean to develop as a potential energy corridor for Europe. We look forward to even more positive announcements in the near future,” he said. The Cyprus shipping sector and its European maritime agenda were discussed on Tuesday during a meeting between the Shipping Deputy Minister Marina Hadjimanolis and representatives of Polsteam Shipping Company, according to an official statement. The talks focused on key issues affecting Cyprus shipping, alongside a review of the priorities and main achievements of Cyprus’ six-month Presidency of the Council of the European Union in the field of maritime affairs. The two sides also exchanged views on upcoming developments in both national and international shipping markets, reflecting ongoing shifts in global maritime trade and regulation. The Cyprus Stock Exchange (CSE) announced on Tuesday that it has updated the trading status of several companies listed on the Emerging Companies Market following a review of their independent auditor reports for the year ending December 31, 2025. The council of the stock exchange, acting in accordance with the regulatory provisions of KDP 379/2014, decided that the titles of five specific companies will continue to carry a trading marker in market tables and price bulletins. Farmakeftiko Kentro A.E. remains marked due to an emphasis of matter in the auditors report, while Aihmi A.E. Investment Consultants is marked because of material uncertainty related to its ability to continue as a going concern. Aeonic Securities C.I.F. Plc continues to carry a marker due to a qualified opinion from its auditors. EU ministers have adopted the bloc’s first Council conclusions dedicated specifically to housing, in what Cyprus described as a new step towards closer European cooperation on one of the most pressing social issues facing the continent. The conclusions were approved in Luxembourg during the EPSCO Council, chaired by Interior Minister Constantinos Ioannou on behalf of the Cyprus Presidency of the Council of the EU. Titled ‘Housing: Shifting demographics and shaping policies’, the text calls on governments to take closer account of demographic change, urbanisation, climate pressures and economic challenges, as rising costs, limited supply and changing living patterns place growing pressure on households across Europe. The Council said housing needs are being reshaped by ageing populations, smaller households and rural-to-urban migration, while affordability problems are now affecting people across generations and income groups. Cyprus used its six-month Presidency of the Council of the EU to push forward key European files on digital policy, artificial intelligence, research and innovation, Deputy Minister Nicodemos Damianou said, arguing that the country had helped shape a more ambitious agenda for Europe’s technological future. Speaking on CyBC’s Apo Mera se Mera, Damianou said the Presidency had received broad recognition from European partners, something he linked to the preparation, coordination and management shown throughout the six-month term. “The broad recognition that the Cyprus Presidency has received from our European partners reflects the serious preparation, collective effort and effective management that have characterised these six months,” he said in a statement following the interview. He added that, particularly in the areas of digital policy, research and innovation, the Cyprus Presidency had promoted an agenda with “tangible results for Europe’s competitiveness and technological autonomy”. For Damianou, the success of a Council Presidency is measured not simply by the number of meetings held, but by whether it delivers on the targets it sets. Cyprus’ current account deficit widened and its international investment position deteriorated during the first quarter of 2026, according to preliminary external sector data released on Tuesday by the Central Bank of Cyprus (CBC), which also showed that external debt increased by approximately €1.5 billion. The current account deficit expanded to €1.27 billion in the first quarter of 2026, compared with €1.01 billion in the corresponding period of 2025, representing a deterioration of €263 million. When adjusted to treat special purpose entities (SPEs) as non-residents, the current account deficit stood at €1.37bn, compared with €1.12bn in the first quarter of 2025. The CBC said the deterioration was mainly driven by a larger secondary income deficit and lower net exports of services, particularly in financial services and telecommunications, computer and information services. These developments were partly offset by an improvement in the goods balance and a smaller deficit in primary income, the central bank added. The European Union will begin charging a fixed €3 customs duty on small parcels imported from outside the bloc from Wednesday, July 1, in a move aimed at curbing the surge in low-cost online orders from platforms such as Shein, Temu and AliExpress. The measure will apply to parcels worth less than €150, which until now were exempt from customs duties, although they were still subject to VAT and customs declarations. The exemption, known as the de minimis threshold, has long allowed low-value goods to enter the EU duty-free, a system Brussels says has created unfair competition for European retailers and made customs checks harder to enforce. The new customs duty will not be calculated simply per parcel. Instead, it will apply per different type of item, based on the product’s customs classification. This means a package containing a T-shirt and a pair of shoes would face two €3 charges, while a parcel containing several T-shirts of the same type would normally attract one €3 charge. Cyprus recorded a general government fiscal surplus of €552.9 million during the first five months of 2026, according to preliminary figures released by the Cyprus Statistical Service (Cystat) on Tuesday, with higher tax revenues and social contributions offsetting increased public expenditure. The surplus for the January to May 2026 period was equivalent to 1.4 per cent of GDP, compared with a surplus of €544.5m, or 1.5 per cent of GDP, recorded during the corresponding period of 2025. According to Cystat, total government revenue increased by €282.5m, or 4.8 per cent, reaching €6.2 billion from €5.92 billion a year earlier. The increase was primarily driven by higher revenue from taxes on income and wealth, which rose by €115.2m, or 8.4 per cent, to €1.49bn, compared with €1.37bn during the corresponding period of 2025. The Cyprus Chamber of Commerce and Industry (Keve) has issued a call for small and medium-sized enterprises (SMEs) to participate in a European Commission survey regarding occupational safety and health and the protection of workers’ rights in subcontracting chains. The initiative falls under the framework of the Enterprise Europe Network and serves as preparatory work for the upcoming Quality Jobs Act, which seeks to align employment standards with the needs of the modern economy. The chamber explained that the European Commission aims to collect data and real-world experiences from businesses regarding current policies and practices applied to occupational health and safety. The survey also focuses on the protection of workers’ rights within subcontracting chains, as well as the benefits and costs associated with implementing these policies for individual businesses. Greek lender Alpha Bank announced this week that shareholders will receive a cash dividend following the approval of the distribution by the bank’s annual general meeting held on June 26, 2026. The total amount to be distributed stands at €148,005,238.21, which originates from internal dividend reserves and other non-taxed profits. Shareholders are set to receive a gross amount of €0.0655980839 per share, excluding the 59,018,043 treasury shares held by the bank. This payment follows a previous distribution of an interim dividend totalling €111,388,046.88, which was paid out in December 2025. The combined profit distribution for the 2025 financial year, inclusive of the interim payment, amounts to €259,393,285.09 AI is no longer simply a productivity tool, but is becoming one of the most important sources of operating leverage for companies that know how to use it, according to Yiannis Stavrianos, Senior Manager, Advisory Services at PwC Cyprus. Stavrianos said the shift is already visible among a small group of organisations that have moved beyond experiments and demos, and are now using AI to reshape their cost base, growth model and decision-making processes. “Every CEO has, by now, seen the demos,” he said, pointing to AI tools that summarise documents, draft emails and answer customer questions. However, he explained that the temptation over the past two years has been to treat these tools as “useful additions to the technology stack”, somewhere between “a better search engine and a cleverer assistant”. That view, he said, is “becoming increasingly difficult to defend”. According to Stavrianos, the turning point came in April 2026, when PwC published the results of its global AI Performance Study, based on a survey of 1,217 senior executives across 25 sectors. The study found that “nearly three-quarters of AI’s economic value is already being captured by just 20 per cent of companies”, he said. Global shipping will need almost 114,000 additional officers by 2030, as demand for qualified seafarers continues to outpace supply across the world merchant fleet, according to the new Seafarer Workforce Report 2026. The report, released by BIMCO and the International Chamber of Shipping (ICS), estimates that 2.57 million STCW-certified seafarers are currently serving on 85,148 merchant ships worldwide. However, the figures also point to a growing shortage of officers, with the industry facing an estimated shortfall of 39,100 STCW-certified officers this year, despite a surplus of 56,890 ratings. The report is published every five years and is regarded as one of the shipping industry’s most comprehensive assessments of the supply and demand balance for certified seafarers. Its latest edition comes at a time when the sector is dealing with fleet expansion, new fuels, digital technologies, geopolitical disruption and a more demanding regulatory environment. Eurobank announced on Monday that its board of directors decided to appoint John Arthur Hollows, an independent non-executive board member, as a new member of the audit committee. The appointment, which was finalised during a meeting held on June 26, 2026, was made to fill the vacancy that arose following the resignation of Jawaid Mirza. This move restores the five-member composition of the committee as originally determined by the annual general meeting of shareholders on July 23, 2024. Following the appointment, the audit committee reconstituted its membership and confirmed its leadership structure. Hotelier’s association Pasyxe will hold its annual general meeting in Nicosia on Tuesday, July 7, marking both the election of a new leadership and the association’s 90th anniversary. The meeting, scheduled for 12.15pm, will include elections for the new board of directors for the 2026-2029 term, with outgoing president Thanos Michaelides set to hand over to the association’s next leadership. President Nikos Christodoulides will address the meeting, which comes at a challenging time for the tourism sector, as Cyprus continues to assess the impact of regional instability and pressure on arrivals. In his own address, Michaelides is expected to review the performance of Cypriot tourism in 2025, refer to the challenges created by the crisis in the Middle East and underline the need for a comprehensive roadmap for the sector. The Cyprus Stock Exchange (CSE) announced on Tuesday that it will continue the suspension of trading for the shares of four public companies. This decision follows a directive from the Cyprus Securities and Exchange Commission (CySEC), which acted under the powers granted by Article 70(2)(ig) of the Investment Services and Activities and Regulated Markets Law of 2017. The affected firms are Tokotis Investments Public Ltd, A. Tsokkos Hotels Public Ltd, Dome Investments Public Company Ltd and Karyes Investment Public Company Ltd. The commission requested that the council of the stock exchange suspend trading of these shares starting July 1, 2026. This suspension is set to last until the companies comply with their disclosure obligations, or at the latest until September 30, 2026. The Cyprus Employers and Industrialists Federation (Oev) on Tuesday welcomed the outcome of Cyprus’ six-month Presidency of the Council of the European Union, saying it not only enhanced the country’s standing but also raised expectations for faster reforms to strengthen the domestic business environment. The federation said the presidency had been carried out during a period of heightened geopolitical instability and economic challenges, with the Republic responding to its responsibilities with seriousness, competence and effectiveness. “Oev congratulates the President of the Republic for the well-organised and effective management of the presidency, as well as all state and public service officials who contributed to this national success,” the federation said. It added that progress was achieved on a number of important European policy files during Cyprus’ presidency, particularly in areas affecting the competitiveness of the European economy, the strengthening of the Single Market, enlargement, migration, defence and security. The Cyprus Stock Exchange (CSE) announced on Tuesday that it has updated the trading status of several listed companies following an examination of their independent auditor reports for the financial year that ended on December 31, 2025. Acting under the authority provided by paragraph 2.2.6 of regulatory decision KDP 379/2014, the council of the exchange decided to retain the (S) warning marker for four issuers. These companies will continue to be presented with the (S) marker in trading tables and price bulletins on the Alternative Market due to the presence of material uncertainty regarding their ability to continue as a going concern.