Cyprus Business Now: Keravnos, BoC, crypto, fuel, poverty, AI, Sir Demis Hassabis

The International Monetary Fund (IMF) raised its growth forecast for Cyprus to 3.2 per cent in 2027, a revision welcomed on Thursday by Finance Minister Makis Keravnos, who pointed to the economy’s resilience despite continuing international uncertainty. According to the IMF’s October 2026 World Economic Outlook, growth for this year has been revised slightly downwards, from 3 per cent to 2.9 per cent, reflecting the impact of ongoing conflicts. However, the Fund has raised its 2027 projection from 3 per cent to 3.2 per cent. The Finance Ministry, meanwhile, maintains its own 3.1 per cent growth forecast for 2026, supported by statistical service (Cystat) figures showing economic expansion of 3.2 per cent during the first half of the year. In a statement, Keravnos said the latest projections followed similar assessments by international and European institutions, which “emphatically confirm the resilience of the Cypriot economy” despite the pressures created by international developments. Cyprus is moving to strengthen oversight of its cryptocurrency market, with proposed legislation providing for penalties of up to €15 million for serious breaches and expanded enforcement powers for the Central Bank of Cyprus (CBC) and the Cyprus Securities and Exchange Commission (CySEC). The Markets in Crypto-Assets Bill of 2026, submitted to the House of Representatives on October 8, seeks to establish the national enforcement framework for the European Union’s Markets in Crypto-Assets Regulation, known as MiCA. The proposed legislation follows its approval by the cabinet on September 10 and forms part of efforts to introduce more consistent supervision of digital assets, strengthen investor protection and address misconduct in a sector that has expanded considerably in recent years. According to parliamentary records, the bill was formally tabled alongside other financial legislation, bringing Cyprus closer to completing its domestic arrangements for enforcing the EU rules. A central feature of the framework is the introduction of substantial financial penalties for companies and individuals that fail to comply with regulatory requirements. Cyprus could face continued pressure on fuel prices, transport costs and business expenses well into 2027, as the International Energy Agency (IEA) warned that global oil markets would remain tight despite falling demand and a recovery in production. In its latest Oil Market Report, published this week, the agency warned that oil supply would remain insufficient to meet demand until the end of 2026, while shortages of diesel and other middle distillates could persist for a substantial part of next year. The findings raise fresh concerns for Cyprus, where dependence on imported petroleum products leaves households and businesses exposed to international energy prices, particularly in transport, shipping and electricity generation. According to the IEA, global recorded oil inventories were 509 million barrels below pre-war levels at the end of September, with onshore stocks falling to their lowest levels since at least 2016. The decline came despite a recovery in oil shipments from the Gulf, as 103m additional barrels held at sea were more than offset by a 113m-barrel reduction in onshore inventories. Almost half of Cyprus households could be at risk of poverty by the end of the century, as increasingly severe heatwaves and droughts threaten incomes and deepen inequality, according to a new study published in the academic journal Global Environmental Change. The research, emphasised by the Cyprus Institute (CyI) on Thursday, found that the proportion of households at risk of poverty could rise from 14.9 per cent to 49 per cent if global temperatures increase by 2.7 degrees Celsius above pre-industrial levels and Cyprus fails to introduce substantial climate adaptation measures. Even if global warming is limited to 2 degrees Celsius, the proportion could still reach approximately 25 per cent, highlighting the economic consequences of rising temperatures even under a less severe climate scenario. The findings are particularly concerning for Cyprus, where income losses caused by heatwaves and droughts have already exceeded the European average. Cyprus and Brazil have established a joint business and investment council to strengthen economic cooperation and create new opportunities for companies in both countries, following three years of efforts by Invest Cyprus to develop closer ties with the Brazilian market. The Cyprus–Brazil Business and Investment Council was established through a Memorandum of Understanding (MoU) between Invest Cyprus, the Cyprus Chamber of Commerce and Industry (Keve) and Brazil’s Fecomercio Goias, during the Cyprus – Brazil Business Forum and B2B Networking Event held in Nicosia on Thursday, October 15. The forum also welcomed the first organised Brazilian business delegation of its kind to visit Cyprus, reflecting Invest Cyprus’ continued efforts to strengthen bilateral investment relations and expand cooperation with the wider Latin American market. Under the agreement, the new council will provide a permanent platform for investment promotion, business partnerships and institutional cooperation, while helping Brazilian companies gain access to European and Middle Eastern markets through Cyprus. At the same time, it is expected to open new opportunities for Cypriot businesses seeking to expand into Brazil and Latin America, strengthening commercial links between the two regions. Cyprus has put AI safety, cybersecurity and scientific research at the centre of its discussions with international technology leaders, following warnings from Google DeepMind co-founder Sir Demis Hassabis that recent AI-related hacking incidents could be a sign of more serious threats ahead. Chief Scientist Demetris Skourides, who led the Cypriot delegation to the International AI Summit in Dublin on Wednesday, said the discussions reinforced the need for stronger safeguards as Cyprus develops its national approach to artificial intelligence. Accompanied by Cyprus’ ambassador to Ireland, Louis Telemachou, Skourides met Hassabis, recently appointed chief scientist of Alphabet, Google’s parent company, and discussed Cyprus’ priorities in AI research, science and safety. Writing on his personal social media account, Skourides said, “I had the honor of meeting and congratulating Sir Demis Hassabis on his appointment as Chief Scientist of Alphabet and to share Cyprus’ priorities in AI research, science and safety.” Cyprus wants to become a leading artificial intelligence hub in the Eastern Mediterranean by 2032, with the government focusing on how the technology can improve public services and strengthen five of the island’s main industries, Deputy Minister of Research, Innovation and Digital Policy, Nicodemos Damianou said. Speaking at the Digital Agenda Cyprus Summit in Nicosia, Damianou set out the thinking behind the country’s new AI strategy, which puts practical adoption ahead of technology for its own sake. In a post on his personal account, he said “AI can expand what Cyprus is capable of.” He added, “Our responsibility is to turn that potential into progress people can see and trust.” That approach, he explained, is reflected in the strategy’s central focus, “Applying and Adopting AI where it can deliver the greatest national value.” Bank of Cyprus (BoC) has extended the tenure of group chief executive Panicos Nicolaou until December 31, 2031, following a decision by the boards of BoC Holdings at their respective meetings on Wednesday. According to the bank’s announcement, Nicolaou will sign an amendment to his existing employment contract, formally extending his appointment until the end of 2031. The decision follows an earlier extension approved in November 2024, which had secured his position until December 31, 2028. The impact of artificial intelligence on education, employment and future career prospects was at the centre of a Bank of Cyprus (BoC) event this week, bringing students together with experts to discuss how technology is changing the skills needed in the workplace. Held as part of the bank’s ‘Young People Ask’ initiative, the discussion gave pupils an opportunity to raise concerns about AI, question its growing influence on traditional professions and explore how they can prepare for an increasingly technology-driven labour market. The initiative forms part of the bank’s corporate social responsibility programme, which aims to encourage dialogue between young people and specialists on issues affecting their education and future careers. Leading the discussion was Elpidoforos Anastasiou, head of educational innovation for STEAM and emerging technologies at Globeducate and head of innovation at Pascal. Girls aged 14 to 16 from across Cyprus will have the opportunity to explore coding, technology and future career options when the free BridgeSTEAM programme returns to Nicosia on November 14 and 15 for its sixth year. Organised by Girls in STEAM Academy, the two-day programme will take place at the PwC Experience Centre, bringing together students interested in science, technology, engineering, arts and mathematics, including those with no previous experience in these fields. The initiative aims to encourage more girls to consider studies and careers in technology-related sectors by offering practical experience, professional guidance and opportunities to meet women already working in the industry. Participants will take part in hands-on coding and digital skills workshops, alongside career guidance sessions exploring different educational and professional routes. They will also hear directly from women working in STEAM professions, gaining an insight into their studies, career decisions and experiences in the workplace. In 2021, I came up with the name TechIsland as a country brand for Cyprus. The idea was simple: bring together two things that make this place special, the island lifestyle and a growing tech ecosystem. A place where you can build globally while enjoying life on an island. I still believe the words we use shape what we aim for. So today I want to bring that same local perspective to another word, one I hear at almost every pitch, panel and dinner: unicorn. The Cyprus Chamber of Commerce and Industry (Keve) has drawn attention to European funding opportunities available to Cypriot SMEs and startups through the Cascade Funding mechanism, particularly for businesses working in technology, innovation and the green transition. In a circular to its members, Keve said the European Commission’s Cascade Funding mechanism could provide smaller businesses with access to financial support and other assistance through open calls launched by projects funded under European programmes. The mechanism, also known as Financial Support to Third Parties (FSTP), is designed to broaden access to European funding by allowing organisations involved in EU-funded projects to provide support to businesses and organisations that were not part of the original project.