Cyprus Business Now: housing, banks, fintech, tourism, Lukoil, Japan, RIF

Cyprus’ construction sector continued to expand strongly in June 2026, with 751 building permits authorised during the month, an increase of 18.3 per cent compared with June last year, according to the statistical service (Cystat). The permits had a combined value of €469.5 million and covered 394,717 square metres, providing for the construction of 2,122 dwelling units. During the January to June period, the number of permits reached 4,401, compared with 3,399 a year earlier, representing an increase of 29.5 per cent. Meanwhile, their total value rose by 48.2 per cent to €2.57 billion, from €1.73bn, while the authorised floor area expanded by 47.1 per cent, from 1.43m to 2.10m square metres. The number of planned homes recorded an even stronger increase, climbing by 67.8 per cent to 11,100 units, compared with 6,616 during the corresponding period of 2025. The prospect of a major energy deal involving Russia’s Lukoil could create new strategic opportunities for Cyprus and Greece, while also changing how Washington approaches the war in Ukraine, international relations expert Charalambos Chrysostomou has said. Chrysostomou told the Cyprus News Agency (CNA) that a potential agreement between the United States and Russia over Lukoil’s international assets could become a bridge between the two countries and influence the course of the war in Ukraine. Reports have suggested that the administration of US President Donald Trump has included a multi-billion-dollar oil deal in its negotiations with Moscow over ending the war. The reported agreement concerns a broad portfolio of oil fields, refineries and fuel stations in several countries owned by Russian energy group Lukoil, although any such deal would require formal approval by the two countries. Nicosia is seeking to attract more visitors from Greece by promoting its culture, gastronomy, events and surrounding countryside as part of a year-round tourism offering, according to Nicosia regional tourism board (Etap Nicosia) president Theodoros Kringou. Speaking to Greek tourism and business representatives during a recent event in Athens, Kringou highlighted the close travel links between the two countries and argued that Nicosia could offer Greek visitors a combination of short city breaks, cultural experiences, food, nature and professional travel. More than 12,000 visitors from Greece travelled to Cyprus in July 2026, while more than 80,000 Cyprus residents travelled to Greece during the same month, according to figures from the Cyprus Statistical Service (Cystat) cited by Kringou. Moreover, Cyprus welcomed 4.53 million tourists in 2025, an increase of 12.2 per cent compared with the previous year. Global commodities trader Gunvor has rebranded as Centalion Group and announced plans to move its corporate headquarters from Cyprus to Singapore, marking a significant change for one of the international energy trading groups that has used the island as its legal base. The employee partnership that owns the company approved the name change and the planned redomiciliation as part of a broader restructuring following a management buyout completed in December 2025. The move means that, subject to regulatory approvals and documentation, Centalion’s corporate headquarters will leave Cyprus for Singapore, where the group has maintained a presence since 2006. The company said the decision reflected Singapore’s established legal and business environment, financial and trading infrastructure and international business community. For Cyprus, the departure represents the loss of the corporate headquarters of a major global commodities trader, although the company’s announcement does not indicate that all of its Cypriot operations will disappear. Cyprus’ current account deficit nearly doubled in the second quarter of 2026, while the country’s net external debt position improved, according to provisional data released by the Central Bank of Cyprus (CBC) on Monday. The current account deficit widened to €1.31 billion in Q2 2026, up from €697.20 million in the same quarter of 2025, according to the CBC’s latest external statistics. The figures, released on Monday, cover Cyprus’ balance of payments, international investment position and external debt for the second quarter. The deterioration in the current account means that Cyprus recorded a substantially larger gap between its transactions with the rest of the world than it had a year earlier. Cyprus households are earning relatively little on their bank deposits while facing a renewed rise in mortgage borrowing costs, according to new Central Bank of Cyprus (CBC) data that puts the country’s deposit rates among the lowest in the euro area. The CBC’s latest analysis, covering August 2026, found that the interest rate on new household deposits with an agreed maturity of up to one year rose to 1.35 per cent, from 1.27 per cent in July, while the average rate on new house purchase loans increased sharply to 4.16 per cent from 3.78 per cent. The figures raise questions over the extent to which Cypriot savers are benefiting from higher interest rates compared with borrowers, particularly as the CBC found that deposit rates in Cyprus are an outlier at the lower end of the euro area. The central bank’s analysis also found that the transmission of interest rate changes to deposits has been weaker in Cyprus than in almost all other euro area countries, both for households and businesses. Cyprus and Japan are moving to deepen cooperation across shipping, business, technology and higher education, following talks in Tokyo between Foreign Minister Constantinos Kombos and his Japanese counterpart Toshimitsu Motegi on Monday. Kombos described his working visit as opening a “new chapter” in Cyprus-Japan relations, noting that it marked the first visit by a Cypriot foreign minister to Japan in eight years. He described his meeting with Motegi as excellent, saying the two sides had reaffirmed their shared objective of strengthening the partnership between Cyprus and Japan. The talks covered bilateral relations, with particular emphasis on the prospects for stronger economic ties, maritime connectivity, shipping and higher education, as well as the Indo-Pacific strategy and the next steps in EU-Japan relations. The two ministers also discussed key regional and international developments and reaffirmed the two countries’ commitment to international law. The government approved an additional €2 million to ensure that all young people who have expressed interest in entering Cyprus’ primary sector can benefit from a new support scheme, President Nikos Christodoulides has announced. Speaking at the 10th Rural Culture Festival organised by the Cyprus Agricultural Payments Organisation (CAPO) in Protaras, Christodoulides said interest in the sector, particularly among younger people, had increased significantly and pledged continued government support. “I know that the funds under the new scheme have been exhausted and that another €2m is needed so that everyone can benefit. Our government is approving this €2m so that all young people who have expressed an interest will be eligible,” he said. At the same time, Christodoulides said the primary sector was facing a series of pressures, including the effects of climate change, the need for a green transition, the protection of natural resources and growing requirements for safe and high-quality food. Sustainable debt is becoming a more significant part of Cyprus’ financial market, although the country remains heavily dependent on a small number of government and banking issuances and has yet to develop some important parts of the market, according to a piece of analysis published by the Central Bank of Cyprus (CBC). Sustainable securities accounted for 11.5 per cent of all debt securities held by Cyprus residents in the first quarter of 2026, while they represented 9.5 per cent of debt securities issued by Cyprus-resident entities, The figures were presented in an article by Antonis Michis, Head of Monetary Policy Operations at the CBC, which examined the development of sustainable debt holdings and issuance in Cyprus and compared them with trends across the euro area. The analysis found that Cyprus residents held €3.40 billion in sustainable debt securities at the end of March, against around €2.00 trillion held by euro-area residents. Cyprus has taken its research and innovation agenda to the global stage, with Chief Scientist Demetris Skourides representing the country at the ministerial roundtable of the 23rd Science and Technology in Society Forum in Kyoto, Japan. The forum, which runs from October 4 to 6, brings together political leaders, senior government officials, scientists, academics and business figures to discuss the opportunities and challenges created by rapid advances in science and technology. Representing Cyprus on behalf of the Deputy Ministry of Research, Innovation and Digital Policy, Skourides set out the country’s position on the increasingly close links between technological change, social needs and geopolitical developments. He stressed the need for policies that allow countries to make better use of emerging technologies while ensuring their benefits are felt across society and the economy. Particular emphasis was placed on basic research, the faster transfer and use of knowledge, and stronger international cooperation. The second ECT Forum will bring together academics, researchers, technology specialists and industry representatives in Nicosia on October 8 to examine how artificial intelligence and emerging technologies are changing the skills needed in the labour market. The ECT Forum 2026, organised by the Cyprus-based non-profit European Centre for Emerging Competencies and Technologies (ECECT), will take place at the UNESCO Amphitheatre of the University of Nicosia from 9am to 5pm. The forum is intended to strengthen cooperation between education, research and the private sector at a time when rapid technological change is creating new demands for knowledge and skills. Technology giants such as Apple, Amazon and Google may pose a greater long-term threat to traditional banks than fintech companies, London Business School professor Costas Markides said, warning that control of the customer relationship is becoming the key battleground in financial services. In an interview with Forbes Cyprus, ahead of the first Forbes Next Gen Banking & Fintech Summit, which will be held at the Four Seasons in Limassol on October 13, Markides said fintech companies have fundamentally changed banking but are unlikely to displace traditional banks altogether. Instead, he expects the sector to move towards a hybrid model, combining competition and cooperation between established lenders and fintech firms. Markides said that “fintech companies have been particularly successful in separating individual services from the traditional banking package and offering them more quickly, cheaply or conveniently.” Services accounted for more than half of the EU’s business economy value added in 2024, with the sector also employing more than half of the bloc’s business workforce, according to Eurostat data highlighting the importance of services to economies including Cyprus. There were around 34 million enterprises in the EU in 2024, employing 164.5 million people and generating more than €38.7 trillion in net turnover. These enterprises generated €10.9 trillion in value added, with the data showing a significant difference between the number of businesses and their respective contributions to employment and economic output. Large enterprises, employing more than 249 people, represented just 0.2 per cent of all enterprises in the EU’s business economy. Cyprus and India are preparing the next phase of their maritime cooperation, with a business forum planned in Mumbai in November and Shipping Deputy Minister Marina Hadjimanolis expected to travel to India with a maritime business delegation. Indian High Commissioner Manish Manish, emphasising the outcome of a series of maritime engagements held in Cyprus from September 28 to October 1, said preparations for both initiatives were discussed as the two countries seek to expand commercial and institutional links in shipping. The programme followed the first India–Cyprus Joint Maritime Committee meeting, held in Limassol on September 29 under the bilateral Agreement on Merchant Shipping signed in 2017. The meeting was co-chaired by Theodoulos Mesimeris, Acting Permanent Secretary of the Shipping Deputy Ministry, and Venkatesapathy S., Joint Secretary for International Cooperation at India’s Ministry of Ports, Shipping and Waterways. Eurobank repurchased more than 1.05 million of its own shares between September 28 and October 2 at a total cost of €5.02 million, as part of its ongoing share buyback programme. The bank announced on Monday that it had purchased 1,053,884 shares on Euronext Athens during the five-day period, at an average price of €4.7675 per share. The purchases form part of a share buyback programme approved by the bank’s shareholders at its annual general meeting on April 28, 2026. The programme was launched following a decision by the bank’s board on April 29 and was announced publicly on June 10. Cypriot investment firm Demetra Holdings Plc bought back 1,507 of its own shares on October 2, 2026, as part of its ongoing share buyback programme, according to an announcement issued on Monday. The transactions were executed through the Cyprus Investment & Securities Corporation Ltd (Cisco) at a price of €1.38 per share. The company carried out the transactions in accordance with the relevant regulations of the Cyprus Stock Exchange (CSE) and the directives of the Cyprus Securities and Exchange Commission. Alpha Bank S.A. purchased 1,772,090 of its own shares on Euronext Athens between September 28, 2026 and October 2, 2026, for a total consideration of €8,142,149.75, the lender announced on Monday. The transactions were executed as part of the bank’s ongoing share buyback scheme, following an initial announcement made on July 31, 2026. Shareholders previously approved the repurchase initiative during the annual general meeting of shareholders held on June 26, 2026. The total volume of shares acquired during the period traded at an overall average purchase price of €4.5947 per share. Cyprus’ Industrial Turnover Index rose by 5 per cent in July 2026, reaching 168.8 units, as stronger turnover in the local market outweighed a sharp fall in exports, according to figures released on Monday by the statistical service (Cystat). For the first seven months of the year, the index increased by 3.9 per cent compared with the corresponding period of 2025. The figures are calculated using 2021 as the base year, set at 100 units, meaning the index measures monthly turnover changes against the average monthly turnover recorded during that year. Manufacturing, the largest component of the index, reached 164.5 units in July, recording an annual increase of 4.8 per cent. Turnover in the sector was also up 3.9 per cent during the January to July period. The Research and Innovation Foundation (RIF) on Monday launched a public consultation on Cyprus’ proposed research and innovation funding portfolio for 2028 to 2034, with stakeholders invited to submit their views by November 2. The consultation is intended to help shape the country’s next generation of investment in research, innovation and technological development. RIF is inviting the research community, businesses, organisations and citizens to submit views and suggestions through its online consultation tool before the consultation closes on November 2, 2026. The proposed portfolio is intended to create a coherent support framework through which talent, knowledge, technologies and innovative ideas can be developed and translated into measurable economic and social benefits. Bernhard Schulte Shipmanagement (BSM) has appointed Andreas Solomonides to lead its integrated ship management operations in Cyprus and Greece from January 1, 2027, bringing BSM Cyprus and BSM Hellas under a single leadership structure. Solomonides, currently managing director of BSM Cyprus, will take charge of the integrated Ship Management Centre covering both locations. BSM said bringing its Cyprus and Hellas operations together under one leadership would strengthen collaboration and allow the company to make better use of their combined capabilities. According to its statement, customers will continue working with their existing contacts and will retain access to the same services and local expertise, the company added. Cyprus’ securities regulator has ordered the suspension of trading in the shares of four companies listed on the Cyprus Stock Exchange (CSE) because they failed to publish required financial reports. The Cyprus Securities and Exchange Commission (CySEC) said on Monday that its board had decided to ask the CSE to suspend trading in the shares of Toxotis Investments Public Ltd, A. Tsokkos Hotels Public Ltd, Dome Investments Public Company Ltd and Karyes Investment Public Company Ltd. The decision was taken at a CySEC board meeting on September 28 and the suspensions took effect on October 2, 2026. The regulator said the suspensions would remain in place until the companies meet their reporting obligations, and in any event no later than December 11, 2026. CySEC said the action was necessary because investors had not been given the financial information required to assess the companies’ financial position. Allwyn AG purchased 1,019,473 of its own shares on Euronext Athens between September 28, 2026 and October 2, 2026, for a total consideration of €11,633,881.62, the company announced. The transactions were executed as part of an ongoing share buyback programme that was originally announced on June 4, 2026. The buyback activity began on September 28, 2026, when the firm acquired 252,056 shares at an average price of €11.3535 per share, representing a total outlay of €2,861,717.80.