Cyprus Business Now: maritime, Keve, forex, CySEC, CBC, defence, housing, FDI

Cyprus, Greece, Malta and Italy have agreed to strengthen their common front on European shipping, signing a joint declaration in Limassol on Wednesday as they seek greater influence over decisions on competitiveness and decarbonisation in Brussels and at the International Maritime Organisation (IMO). The agreement came at the ninth maritime meeting between Cyprus, Greece and Malta, held for the first time in an expanded 3+1 format with Italy, bringing together four Mediterranean countries with some of the EU’s strongest shipping interests. Cyprus Shipping Deputy Minister Marina Hadjimanolis hosted Greece’s Maritime Affairs and Insular Policy Minister Vassilis Kikilias and Malta’s Minister for Sustainable Mobility Chris Bonett at the Parklane Hotel in Limassol. Italy’s Deputy Minister for Infrastructure and Transport Edoardo Rixi participated online, while Italy was represented at the meeting in Limassol by Ambassador Antonella Cavallari. Cavallari has served as Italy’s ambassador to Cyprus since January 2026. Speaking after the meeting, Hadjimanolis said the declaration reflected what she described as common concerns over the future and competitiveness of European shipping, alongside the challenge of decarbonising the industry. The value of substantive foreign direct investment (FDI) in Cyprus rose by around 10 per cent in 2025, compared with the previous year, President Nikos Christodoulides said on Wednesday, as he outlined the government’s ambition to establish the country as a European and regional hub for investment, technology, energy, transport and trade. Addressing the EY Cyprus Future Realised Forum in Nicosia, Christodoulides said the increase in investment activity was strengthening confidence in Cyprus’ long-term prospects, while international companies were showing growing interest in a range of higher value-added sectors. “Over recent years, we have seen increasing interest from international companies across a wide range of sectors, such as information and communications technologies (ICT), fintech, innovation, business services and other knowledge-intensive activities,” he said. Christodoulides said the growing presence of the ICT sector demonstrated the transformation of Cyprus’ economic model towards higher value-added activities, which could contribute to stronger productivity growth. The Cyprus Chamber of Commerce and Industry (Keve) has called for a serious review of Cyprus’ competitiveness following reports that technology company BrainRocket has closed its Limassol offices and offered most remaining employees relocation packages abroad. In a statement, the chamber said the reported scaling back or possible termination of BrainRocket’s Cyprus operations should be approached carefully, while warning that an outcome of this scale should prompt wider discussion about the conditions facing businesses on the island. “Without official and comprehensive information from the company itself, it would not be right to draw conclusions about the reasons behind its business decisions,” Keve said. “At the same time, however, an event of this magnitude should not go unnoticed or rule out a serious public dialogue about the competitiveness of our country,” it added. BrainRocket has reportedly closed all its Limassol offices and other leased facilities over the past month, with its signs removed from at least two locations. Candidates with years of brokerage experience can still struggle to secure dealing positions because they often lack the practical understanding needed to apply their knowledge under pressure, according to Marios C. Kyriakou, head of the Cyprus-based FX Dealer Academy. Kyriakou explained that the main gap was often not experience but whether candidates could connect what they knew to how a dealing desk actually operated. In an piece of analysis released this week, the academy examined why candidates with established brokerage backgrounds can falter during dealing interviews, an issue of particular relevance to Cyprus given the country’s sizeable FX and contracts-for-difference (CFD) brokerage sector and workforce. It pointed out that candidates can arrive at interviews with experience at recognised brokers, several years of desk exposure and relevant qualifications, but can struggle when questions move beyond basic terminology and into practical situations. Kyriakou drew on around a decade of experience working on dealing desks at mid-sized retail brokers, where he progressed from junior positions to senior and managerial roles before moving into training new dealers, running desks and assessing candidates for senior positions. George Karatzias is set to return to the Cyprus Securities and Exchange Commission (CySEC) as its new chairman, just over two years after leaving the regulator to join the Central Bank of Cyprus (CBC). According to information published on Wednesday, Karatzias has been selected to succeed George Theocharides, who has headed the securities watchdog since September 2021. The appointment, however, has not yet been formally announced. For Karatzias, the move would mark a return to familiar ground. He served as CySEC vice-chairman from September 2021 until May 2024, when he left the Commission to become an executive member of the CBC’s board. Karatzias was appointed to the CBC board in May 2024, where he has since been one of its executive members. Panikkos Vakkou is expected to move from the Cyprus Securities and Exchange Commission (CySEC) to the Central Bank of Cyprus (CBC) as an executive director, in a reshuffle that would see him once again succeed George Karatzias. Vakkou, who has served as CySEC vice-chairman since May 2024, is expected to take the CBC position being vacated by Karatzias, who is in turn set to return to the securities regulator as its new chairman. The appointments have yet to be formally confirmed, with an official announcement expected following Thursday’s Cabinet meeting. When Karatzias left CySEC in May 2024 to become an executive member of the Central Bank’s board, Vakkou was appointed to succeed him as vice-chairman of the securities regulator. Two years later, Vakkou is now expected to follow Karatzias to the Central Bank, while Karatzias heads back to CySEC to take its top post. The government on Wednesday announced two new housing schemes aimed at expanding affordable housing options, allowing families to add an extra floor to existing homes and making state-owned plots available to eligible households. Interior Minister Constantinos Ioannou said the schemes formed part of a broader housing policy designed to increase the available housing stock and give people more opportunities to secure a home. “Our housing policy is a continuous and multi-level effort, with a clear goal, to expand housing options and create more opportunities for citizens to acquire a home,” Ioannou said. The first scheme will allow owners of existing homes, subject to specific conditions, to construct an additional floor for children or grandchildren, even where the existing building has exhausted its permitted building density. The Cyprus Defence and Space Industry Cluster (CyDSIC) held its first electoral general assembly on Tuesday, electing an eight-member board tasked with strengthening the island’s defence, security and space sectors. CyDSIC operates under the Cyprus Chamber of Commerce and Industry (Keve) and was originally established within the Cyprus Research and Innovation Enterprises Association. In an announcement on Wednesday, the assembly was described as a significant milestone in the development of Cyprus’ defence and space business ecosystem, with the cluster having expanded its activities since its establishment. CyDSIC said its work had contributed to strengthening Cyprus’ international presence in the strategic sectors of defence, security and space, while also increasing the participation of Cypriot businesses in major European programmes and initiatives. Cyprus and Australia are looking to deepen cooperation in artificial intelligence, research and emerging technologies, with Chief Scientist Demetris Skourides pointing to Australia’s forthcoming participation in Horizon Europe as a new route for joint projects. The discussions took place this week during a meeting between Skourides and Australian High Commissioner to Cyprus Emily Pugin, who took up her post in Nicosia earlier this year and is listed by the Australian government as the country’s current head of mission in Cyprus. Writing on his personal platform, Skourides described the meeting as a continuation of contacts established during his first mission to Australia in September 2025, when he held a series of meetings with government, scientific and academic representatives. The latest talks focused on strengthening links between the two countries’ research communities, universities and innovation ecosystems, while also exploring cooperation in climate resilience, sustainability and the application of emerging technologies to practical challenges. The Cyprus Securities and Exchange Commission (CySEC) has urged regulated entities to take part in an Anti-Money Laundering Authority (AMLA) public hearing on new EU rules for assessing money laundering and terrorist financing risks. The hearing will take place on Thursday, September 10, 2026, from 10am to noon Central European Time, with registration closing at 10am on the same day. The hearing concerns draft Regulatory Technical Standards (RTS) being developed by AMLA under Article 40(2) of the EU’s Anti-Money Laundering Directive. The standards are intended to establish a common methodology for assessing the inherent and residual risk profile of businesses covered by EU anti-money laundering rules in the non-financial sector. In simple terms, the methodology is designed to help regulators determine how exposed a business is to money laundering and terrorist financing risks before and after taking account of measures it has in place to control those risks. The Cyprus Scientific and Technical Chamber (Etek) has opened applications for its sixth participatory budget, offering members funding for projects designed to produce practical benefits for both the profession and wider society. A total of €100,000 is available under this year’s programme, with individual projects or actions eligible to receive grants of up to €20,000. According to the chamber, proposals must fall within Etek’s areas of activity and responsibility, reach beyond its membership and have a positive impact on professionals and the public. They must also lead to a practical outcome or usable deliverable capable of creating broader added value, rather than remaining solely at the level of research or discussion. Applications may be submitted by individuals or legal entities that are members of Etek. However, each proposal must also be countersigned by at least two additional chamber members. Cyprus recorded a rise in labour productivity in the first quarter of 2026, while productivity across the European Union accelerated in the second quarter, according to data published by Eurostat. Real labour productivity per person in Cyprus increased by 1.1 per cent in the first quarter compared with the same period a year earlier, while productivity measured by hours worked rose by 0.5 per cent. The figures put Cyprus among the EU countries recording productivity growth at the start of the year, although the available Cyprus figures relate to the first quarter while the latest EU-wide figures cover the second quarter. Labour productivity measures the amount of real economic output produced by each employed person or for each hour worked. Alpha Bank will publish its nine-month 2026 results and hold its investor day on November 5, as the Greek lender prepares to present updated targets and its future strategic direction. The bank confirmed this week that its investor day would take place on Thursday, November 5, 2026, in a hybrid format. Alpha Bank’s management team will use the event to outline its growth plan and revised targets, which it said would shape the group’s strategic direction in the years ahead. Dial-in details will be made available at a later date, while a more detailed agenda, presentations and a live webcast will be provided on the day of the event through the bank’s website. The board of directors of beverage company Keo plc will convene on September 22, 2026, at 9:30 am to evaluate and approve the company’s un-audited interim condensed consolidated financial statements for the six-month period ended June 30, 2026. The upcoming meeting follows the beverage company’s announcement on August 25, 2026, confirming that it had successfully completed the payment of its interim dividend to beneficiary shareholders after overcoming earlier software disruption. Management had previously disclosed on August 7, 2026, that technical issues with calculation software threatened to delay the distribution timeline. Shareholders had approved the total €1.69 million dividend during the annual general meeting on July 8, 2026, allocating four cents per fully paid share funded from 2024 profits held within the revenue reserve. Investment firm Demetra Holdings Plc repurchased 3,116 of its own shares on September 8, 2026, as part of an ongoing buyback strategy executed on the Cyprus Stock Exchange (CSE). According to an announcement on Wednesday, the transaction was carried out through the Cyprus Investment and Securities Corporation Limited (CISCO) at a price of €1.41 per share. The company completed the acquisition in accordance with the relevant regulations of the Cyprus Stock Exchange (CSE) and circulars issued by the Cyprus Securities and Exchange Commission (CySEC). Cyprus’ trade deficit widened sharply in the first seven months of 2026 as imports rose by 11.4 per cent, significantly outpacing the growth in exports, according to provisional data released by the Cyprus Statistical Service (Cystat) on Wednesday. The trade deficit reached €5.62 billion between January and July, compared with €4.80 billion in the corresponding period of 2025, an increase of €821.20 million. Total imports of goods reached €8.93bn in the first seven months, up from €8.02bn a year earlier. Exports, meanwhile, rose by a more modest 2.8 per cent to €3.31bn, compared with €3.22bn during the same period of 2025. The European Researchers’ Night will return to Nicosia on Friday, September 25, 2026, marking 20 years of bringing science and research closer to the public in Cyprus with an event at the Cyprus State Fair. The anniversary event, held under the theme “CELEBRATE 2.0 – Two Decades of STEAM-Powered Inspiration”, will invite children and adults to explore science, research and innovation through activities combining science, technology, engineering, arts and mathematics. The event will take place at the Cyprus State Fair grounds in Nicosia and is expected to offer a family-focused experience centred on the STEAM approach. The European Researchers’ Night has been organised in Cyprus by the Research and Innovation Foundation (RIF) since 2006, in collaboration with the main organisations forming the country’s research and innovation ecosystem. Safe Bulkers is looking to raise fresh capital through a private placement of approximately 12 million new common shares, with the proceeds earmarked for its newbuilding programme and potential further vessel acquisitions. The dry-bulk shipping company announced the proposed placement on Wednesday, just over three months after its shares began trading on Euronext Athens, alongside their existing New York Stock Exchange listing. Chief executive and largest shareholder Polys Hajioannou has committed to subscribe for 2m shares at the eventual offer price, although his allocation may be reduced to allow shares to be placed with other investors. According to a company announcement, the final number of shares and the price will be decided by the board in cooperation with the placement managers following an accelerated bookbuilding process. Beer deliveries in Cyprus fell by 2.3 per cent in August 2026 compared with the same month a year earlier, although exports recorded a sharp increase, the Cyprus Statistical Service (Cystat) said on Wednesday. A total of 4.41 million litres of beer were delivered in August, down from 4.51 million litres in August 2025. The decline was driven by the domestic market, where beer deliveries fell by 3.8 per cent year on year to 4,223,793 litres. Beer exports, however, rose substantially during the month, reaching 192,313 litres, compared with 127,522 litres in August 2025. This represented an increase of 50.8 per cent in beer exports over the year.