Cyprus Business Now: jobs, cost-of-living, shipping, travelling, innovation

An EU-backed entrepreneurship scheme in Cyprus is expected to support the creation of around 800 new businesses and more than 1,600 jobs, as the island continues to channel cohesion-policy funding into business development, research, transport and urban projects. The figures were emphasised by Themis Christophidou, Director-General of the European Commission’s Directorate-General for Regional and Urban Policy, during the Cyprus Forum 2026 in Nicosia. However, official funding data show that the projected 800 businesses and 1,600 jobs relate to the full €50 million New Entrepreneurship Activity Scheme, rather than the €30m allocation alone. According to the official THALIA 2021–2027 programme, the scheme was split into two calls: €30m launched in 2021 and a further €20m in 2024. The programme estimates that the combined funding will generate 800 new businesses and more than 1,600 jobs. The Cyprus government is preparing further measures to tackle the rising cost of living, while insisting it is already making full use of the options available without putting public finances or European obligations at risk. The Finance Ministry said on Monday that it was assessing geopolitical developments and their impact on households on a daily basis, while a range of measures aimed particularly at vulnerable groups remained in force. These include zero VAT on a number of basic products, including fresh fruit and vegetables, meat, poultry and fish, baby milk, nappies for children and adults and feminine hygiene products. A reduced 5 per cent VAT rate on electricity is also applied to around 33,000 low-income households and single-parent families, according to the ministry. The Cyprus Information Technology Enterprises Association (CITEA) and Invest Cyprus signed a memorandum of understanding (MoU) aimed at strengthening links between international investors and Cypriot technology companies, while expanding cooperation in artificial intelligence, investment and international outreach. The agreement sets out a framework for closer institutional cooperation and joint initiatives, with particular emphasis on connecting foreign companies choosing Cyprus with technology businesses already operating on the island. For CITEA, the memorandum also forms part of the direction being pursued by its new board, which is seeking to bring the domestic technology ecosystem closer to organisations, businesses and institutions that can create new opportunities for its members. Cyprus’ deep-tech ecosystem has grown to more than 150 start-ups, backed by almost €1 billion in competitive research and innovation funding over the past decade, according to ecosystem mapping presented at the University of Cyprus. The figures were unveiled during the 7th DeepTech CY Meetup, held on September 23 at the university’s Faculty of Engineering, marking the first time the community event has taken place inside a university and placing the discussion directly within one of the institutions producing the research the ecosystem is seeking to commercialise. The gathering brought together students, researchers, professors, founders and investors to examine how scientific work carried out in Cyprus can move beyond academia and develop into commercially viable companies. The meetup series was launched earlier in 2026 by Andrei Yarantsaeu and Oleg Reshetnikov as a grassroots community event for people building technology on the island. Cyprus’ Research and Innovation Foundation (RIF) has more than tripled the number of EU state aid provisions it uses to fund research and innovation, expanding from three key articles in 2016 to ten today, officials said this week. The development was emphasised during a meeting between State Aid Control Commissioner Stella Michaelidou and RIF director general Theodoros Loukaidis, as the two bodies discussed the design of funding schemes and changes to the EU’s General Block Exemption Regulation (GBER). According to the official announcement, RIF relied on just three main GBER articles in 2016 when launching funding programmes. It now uses ten different provisions, extending support beyond conventional research projects to areas including research infrastructure, process and organisational innovation, professional training, innovation clusters, investment and regional aid, and companies participating in international exhibitions. The rapid development of AI is beginning to affect the entire global technology supply chain, according to George Malekkos, president of Cyprus Information Technology Enterprises Association (CITEA), who has called for the creation of a European RAM Index to monitor memory prices, supply and strategic dependencies. Malekkos pointed to the memory chip market as a characteristic example, noting that increased demand created by investment in AI infrastructure is absorbing enormous quantities of DRAM and SSDs, limiting available supply for smartphones, PCs and other devices. The impact, he noted, is already significant. Citing recent forecasts, Malekkos said IDC expects global smartphone shipments to decline by 16.7 per cent in 2026, while the average selling price is expected to increase by 27.6 per cent. At the same time, he referred to Gartner forecasts showing that DRAM and SSD prices could increase by approximately 130 per cent by the end of 2026, with corresponding increases in PC and smartphone prices. KLM will operate 164 destinations across 64 countries this winter, increasing capacity on a number of European and long-haul routes as it prepares to introduce its first Airbus A350. The winter programme, running from October 25 to March 27, will cover 93 destinations in Europe and 71 intercontinental destinations, according to the airline. For Cyprus, KLM’s seasonal daily Larnaca-Amsterdam service, KL462, is scheduled to run until October 24, immediately before the winter timetable begins. Cyprus will nevertheless remain connected to KLM’s Amsterdam network during the winter, with the airline’s booking platform offering Larnaca-Amsterdam journeys in December and onward connections across its wider international network. WISTA International president Elpi Petraki completed a series of visits across Denmark, Sweden and Estonia, meeting maritime professionals, students and industry representatives as the organisation strengthens links across its international network. The trip took Petraki from Copenhagen to Malmo and Estonia, combining meetings with national WISTA associations with discussions on maritime education, technology, leadership and the skills needed by the industry in the years ahead. In Copenhagen, she met representatives of WISTA Denmark, continuing the organisation’s longstanding engagement with its national associations and exchanging views on regional priorities and opportunities for closer cooperation. Founded in 1974, WISTA International now connects more than 6,000 professionals across the maritime sector, with national associations active in around 60 countries. These associations provide networking, business and skills-development opportunities at both national and regional level. Freight rates for very large crude carriers (VLCCs) surged by more than 800 per cent over the past year, with the sharp rise now feeding directly into second-hand vessel values, according to an analysis by Xclusiv Shipbrokers. The acceleration has been particularly pronounced since late July, with geopolitical disruption surrounding Iran and the Strait of Hormuz, reduced effective vessel availability and high earnings creating a particularly strong environment for VLCC values. The freight market figures emphasise the scale of the shift. According to the Baltic Exchange, the average VLCC market stood at around $198,000 per day in July, rising to $272,000 in August and then to nearly $449,000 per day during the first half of September. Petrolina’s first-half net profit more than tripled to €9.94 million in 2026, as the acquisition of eWise Cyprus, formerly ExxonMobil Cyprus, sharply increased revenue and lifted the contribution from associated aviation-fuelling companies. Net profit for the six months to June 30 rose from around €3m in the corresponding period of 2025, according to the company’s latest interim results. At the same time, turnover climbed by 56 per cent to €415.5m, with the increase driven mainly by the inclusion of eWise Cyprus in the group following completion of the acquisition on January 30. Higher international petroleum-product prices also supported revenue during the period. The acquisition brought the former ExxonMobil Cyprus business, which operates the Esso network in Cyprus, fully into the Petrolina group. International Chamber of Shipping (ICS) secretary general Thomas Kazakos put freedom of navigation and the need for a predictable global regulatory framework at the centre of talks in Washington last week, as an ICS delegation met senior US officials on trade, maritime policy and decarbonisation. Led by ICS Shipping Policy Committee chair Kenneth Lam, the delegation met representatives from several U.S. government agencies, including the Department of State and the office of Arizona Senator Mark Kelly. The ICS secretariat also met the US Coast Guard, including Assistant Commandant for Prevention Policy Rear Admiral Robert C. Compher. Discussions covered the International Maritime Organisation (IMO) Net Zero Framework, freedom of navigation, the currently suspended USTR Section 301 fees on Chinese-linked and foreign vessels, and the SHIPS for America Act. Cyprus Investment Firms have been told they cannot retain interest generated on client funds held with banks, after Cyprus Securities and Exchange Commission (CySEC) adopted a new European supervisory position and withdrew its previous guidance with immediate effect. In a circular issued this week, the CySEC drew firms’ attention to a newly published ESMA Q&A on the safeguarding of client assets. The issue concerns whether investment firms covered by MiFID II may earn interest on client money deposited in savings accounts with credit institutions. The European Commission’s answer, published by ESMA on September 21, was unequivocal ‘no’. It said MiFID II rules preventing firms from using client funds for their own account also mean they cannot retain interest accrued on those funds. The Cyprus Cement Public Company saw first-half profit rise to €5.4 million, driven largely by a stronger contribution from associate Vassiliko Cement Works, according to the company’s latest financial results. Net profit for the six months to June 30 increased from €4.64m a year earlier, while basic earnings per share rose to 3.94 cents from 3.38 cents. The increase came mainly from Cyprus Cement’s share of profit from Vassiliko Cement Works, which reached €5.9m, compared with €4.9m in the corresponding period of 2025. The results were approved by the company’s board on September 28 as part of its interim condensed consolidated financial statements for the first half of 2026. The board meeting had been announced at the end of August. Greece’s shipping policy has helped prevent additional energy costs from feeding through to the wider economy, Shipping and Island Policy Minister Vassilis Kikilias said in an interview with Real News. Kikilias spoke about marine fuels, ferry ticket prices, passenger traffic and the work of the Hellenic Coast Guard, while also touching on migration and wider economic pressures. Referring to the effect of international disruption on households, he said society, particularly its most vulnerable members, is facing inflationary pressures, high energy costs and rising food prices. “The difficulties are unfortunately being felt across the world because of the war in Ukraine, the war in Iran with the closure of the Strait of Hormuz, international disruption and the Middle East,” he said. Cyprus is hosting the official launch of MEDCONNECT, a three-year EU-funded project led by the Cyprus Marine and Maritime Institute (CMMI) that will test 15 innovative solutions aimed at restoring marine and coastal ecosystems across the Mediterranean. The launch event is taking place on Tuesday, September 29, at the Limassol Chamber of Commerce and Industry (Evel), bringing together representatives of the Cyprus government, European institutions, project partners and the wider blue economy community. MEDCONNECT, short for Mediterranean Lighthouse Connectivity Platform for Scaling Up Solutions and Regional Partnerships, is coordinated by CMMI and funded through the EU’s Horizon Europe programme. Bank of Cyprus (BoC) ranked 19th among the world’s mid-sized banks in Forbes’ first World’s Top Performing Banks ranking, making it the only Cypriot lender to feature on the global list of 500 banks across 89 countries. The bank placed 19th out of 102 institutions in Tier 4, the category covering mid-sized banks with total assets of between $20 billion and $50 billion, according to the Forbes ranking. It was also the only bank from Cyprus included in the ranking. Forbes’ new list, produced in partnership with market research firm Statista, assesses banks using financial performance rather than customer surveys. It is separate from the publication’s existing national and global bank rankings, which rely primarily on customer evaluations. The 2026 World’s Top Performing Banks ranking covers 500 banks from 89 countries, divided into six groups according to the size of their balance sheets to allow institutions of a broadly comparable scale to be assessed against one another. The statistical service (Cystat) on Tuesday reported that the Industrial Production Index recorded an annual increase of 1.5 per cent in July 2026. The index reached 129.2 units during the month, using 2021 as a base value of 100 points. Over the first seven months of the year, spanning from January to July 2026, the index showed an overall growth of 1.6 per cent when compared against the corresponding period of 2025. When evaluated against the same month of the previous year, the manufacturing sector recorded an increase of 1.5 per cent. Water supply and materials recovery registered the strongest annual growth among the main industrial sectors, rising by 8.2 per cent.