Cyprus Business Now: shipping, banks, UCy, tourism, CySEC, housing

Global shipping remains in “crisis mode” as fighting between the US and Iran disrupts the Strait of Hormuz, forcing companies to reconsider routes, absorb rising costs and protect crews operating near conflict zones, Cyprus Shipping Deputy Minister Marina Hadjimanolis warned. In an interview with journalist and international author Andrea Busfield for The European, Hadjimanolis described an industry whose responsibilities have expanded far beyond the traditional management of vessels. “When routes become unsafe, ship managers become crisis coordinators,” she told Busfield, noting that while public attention focuses on military and geopolitical developments, “the critical work undertaken by the civilian maritime sector often remains less visible”. Commercial traffic through the Strait of Hormuz, which normally handles around a fifth of the world’s oil and gas supplies, has been severely disrupted. At the same time, continuing instability in the Red Sea has complicated one of the principal trade routes connecting Europe and Asia. A family of four could spend around €120 on a single day at an organised beach in Cyprus, as higher charges for beach equipment, expensive food and drinks and the journey to the coast place another popular summer outing beyond the reach of tighter household budgets. The estimate, based on prices reported by Politis, does not involve luxury spending. It covers two sunbeds, one umbrella, a meal and drinks for two adults and two children, a couple of coffees and the petrol required for the return journey. Add a beer, a cocktail or another round of snacks and ice creams, and the cost can move closer to €140 or €150. The calculation shows how Cyprus’ long-standing answer to an inexpensive family day out is becoming increasingly difficult to describe as affordable. The first €10 is spent before the family has ordered anything. Following recently approved increases, sunbeds at organised beaches are now priced at €3.50 each, while an umbrella costs €3. A third sunbed would immediately lift the charge further. A quote of €2,500 for four days in Protaras is pushing some Cypriot families to look beyond the island, as the August 15 holiday rush leaves fewer rooms available and sends prices higher. “They asked us for €2,500 for four days in Protaras. With this money, I prefer to take the children and go to Greece”, a Cypriot said to Politis. It is a complaint increasingly heard among families still trying to organise their summer break, turning the familiar choice between Cyprus and abroad into a calculation of airfares, hotel nights and what remains to be spent after arrival. Greece remains the clear favourite. The latest official figures show that 35.3 per cent of Cyprus residents returning from an overseas trip in June had travelled from Greece, far ahead of the United Kingdom at 8.3 per cent, Italy at 6.3 per cent and Poland at 3.5 per cent. Overall, overseas trips by residents increased by 7.4 per cent from a year earlier. “We cannot say that the market is bad. We are at about the same levels as last year,” Antonis Orthodoxou, spokesman for the Association of Cyprus Travel Agents (ACTA), said. The University of Cyprus and the Association of Cyprus Banks (ACB) recently signed a memorandum of understanding establishing a structured framework for cooperation in education, research, innovation and stronger links between academia and the financial services sector. The agreement was signed by University of Cyprus rector Tasos Christofides and Association of Cyprus Banks director general Marios Skandalis. According to an announcement by the Cyprus Banks Association, the agreement provides for joint scientific and educational initiatives, collaborative research projects, and joint participation in European programmes. In addition, it also includes partnerships in applied research, the provision of specialised scientific support, as well as the active involvement of representatives from both organisations in conferences, workshops, seminars and other activities of shared interest. On a small island, clothes have long memories. A dress can be worn for a few hours and photographed into permanence, recognised months later across another room by someone who remembers not only the woman, but the occasion. For years, fashion offered one response: buy another. Elina Lemis offers a more interesting one: give the dress back. Her company, Wear the Runway, was the first digital designer rental platform introduced in Cyprus. However, its appeal lies less in being first than in the contradiction it understands. Women have not stopped wanting glamour, novelty or the small transformation that occurs when the right dress changes how they enter a room. They are simply becoming less convinced that every transformation requires permanent ownership. Lemis told the Cyprus Mail that “the biggest shift has been in how women view ownership”. When Wear the Runway launched, designer rental was still unfamiliar to much of the local market. Today, women are more open to the idea that “you don’t have to own something to enjoy it”. Cyprus tax inspectors are carrying out checks around the clock, targeting businesses in coastal areas where the summer season has brought a sharp rise in economic activity. The nationwide campaign is examining whether businesses issue legal invoices and receipts and allow customers to pay by card, Tax Commissioner Sotiris Markides told the Cyprus News Agency (CNA). Its purpose, he explained, is “to ascertain compliance with the legislative framework governing transactions, in relation to the issuance of legal invoices and receipts as well as the acceptance of card payment methods”. Although inspections are being conducted across the island, the Tax Department is currently placing greater emphasis on coastal businesses, including those serving the busy tourism and hospitality markets. “On-site inspections are carried out at all hours of the day and night, on a Cyprus-wide basis, with an emphasis at the present time on businesses operating in coastal areas, due to their increased seasonal economic activity,” Markides explained. Cyprus’ pledge to deliver 10,000 new homes marks an important step towards tackling the country’s housing challenges, but meaningful progress will ultimately depend on whether the country can create the conditions needed to translate political commitments into completed developments. After years of debate over rising rents, affordability and housing shortages, the national conversation has finally shifted towards increasing housing supply, the one factor most likely to bring lasting change to the market. The commitment by Cyprus’ political parties deserves recognition because it acknowledges that boosting supply, rather than simply managing demand, is essential if housing affordability is to improve over the long term. However, setting a target is only the beginning, with the greater challenge lying in removing the barriers that continue to slow residential development. Housing should no longer be viewed solely as a social issue, but increasingly as a matter of economic competitiveness. The Housing Finance Corporation (HFC) has launched a tender for external advisory services to support the sale of a non-performing loan (NPL) portfolio estimated at around €135 million, a move its management says is essential to strengthen the organisation’s position within Cyprus’ financial system. According to the tender documents, the contract is valued at €1.3 million and will run for 20 months. Speaking to the Cyprus News Agency (CNA), HFC general manager Christoforos Kaplanis said the proposed portfolio was initially identified during the preparation of the organisation’s 2026 budget using three specific criteria. He explained that loans had to be classified as non-performing, while either the underlying property had to be valued at more than €250,000 or the borrower had to be in arrears for more than 96 instalments, equivalent to eight years. Kaplanis said that, based on those criteria, the portfolio earmarked for sale was estimated at around €135 million, out of a total non-performing loan portfolio of approximately €270 million at the time the 2026 budget was being prepared. Eurobank announced on Monday that it has repurchased a total of 2,907,000 shares between July 13, 2026, and July 17, 2026, as part of its ongoing share buyback programme. The bank carried out these transactions on the Euronext Athens exchange through its subsidiary, Eurobank Equities Single Member Investment Firm, following approvals from its shareholders and board of directors earlier this year. The total cost for these share acquisitions amounted to €12,284,211.15, with the bank paying an average price of €4.2257 per share. On July 13, 2026, the bank acquired 413,500 shares at an average price of €4.3609, reaching a total value of €1,803,218.52. The activity continued on July 14, 2026, with the purchase of 521,000 shares at an average price of €4.2846, totalling €2,232,281.13. Shipping Deputy Minister Marina Hadjimanolis has paid tribute to Qatar’s late Father Amir Sheikh Hamad bin Khalifa Al Thani, after visiting the country’s embassy in Nicosia to sign the Book of Condolences. “I had the honour of visiting the Embassy of the State of Qatar in Cyprus to sign the Book of Condolences following the passing of His Highness the Father Amir Sheikh Hamad bin Khalifa Al Thani,” Hadjimanolis wrote on her personal social media platform. Extending her sympathy to the country’s leadership and people, she added, “I extend my heartfelt condolences to His Highness the Amir, the Royal Family, the Government and the people of the State of Qatar.” Hadjimanolis also recalled the late ruler’s role in shaping both modern Qatar and its relationship with Cyprus. “His Highness the Father Amir will be remembered for his remarkable contribution to the development of the State of Qatar and for laying the foundations of the close friendship between our two countries,” she noted. Sheikh Hamad died on July 12 at the age of 74. He ruled Qatar from 1995 until 2013, when he handed power to his son, the current Amir Sheikh Tamim bin Hamad Al Thani, in a rare voluntary abdication by a hereditary Gulf ruler. Mitsides Public Company Limited has approved a final dividend of €0.05 per share, totalling €410,000 from the profits of the 2023 financial year, during the eighteenth annual general meeting held on July 17, 2026. According to an announcement released on Monday, the record date for determining the beneficiaries of this dividend is July 31, 2026. This record will include all transactions completed up to the end of the trading day on July 29, 2026, which is the final date for trading with dividend entitlement. The company’s shares will be traded ex-dividend from the start of the trading day on July 30, 2026, meaning they will no longer carry the right to participate in the dividend. The dividend will also be distributed to recipients of over-the-counter transfers that are fully registered in the Dematerialised Securities System by the record date. Cyprus-based fintech and iGaming companies expanding abroad are underestimating cyber risks, according to Andrey Leskin, CTO at Qrator Labs, who warned that firms entering high-growth regions may face targeted digital attacks from competitors and ideological groups. “Cyber risks simply are not top of mind during international expansion,” Leskin said, explaining that businesses focused on hiring, compliance and marketing often treat cybersecurity as secondary. He noted that because cybersecurity measures beyond basic data protection are rarely mandatory, many executives assume they are not an immediate priority. “Expanding into a new market already involves a lot of moving pieces, and cybersecurity often gets pushed down the list,” he stated. Leskin added that European companies, including those in Cyprus, are accustomed to relatively fair competition and may fail to anticipate more aggressive tactics elsewhere. Cyprus’ construction material prices rose further in June, driven by sharp increases in aluminium, plastics and electrical fixtures, according to figures released by the Statistical Service (Cystat) on Monday. The price index of construction materials reached 122.74 units, with 2021 acting as the base year set at 100. This represented a 0.55 per cent monthly increase and a 3.12 per cent rise compared with June 2025. Across the first half of the year, construction material prices were 1.62 per cent higher than during the corresponding period of 2025. Metallic products recorded the largest annual increase among the five main categories, rising by 5.02 per cent. The category’s index reached 111.90 units, up 0.52 per cent from May, while its average increase during the January-to-June period was 1.78 per cent. The rise was led by products made from aluminium and other metals, whose index climbed to 124.30 units. Prices increased by 0.32 per cent during the month, 7.56 per cent year on year and 4.14 per cent during the first six months. Iron and steel products, meanwhile, reached 106.43 units, following increases of 0.63 per cent monthly, 3.76 per cent annually and 0.60 per cent for the January-to-June period. The board of directors of Petrolina (Holdings) Public Ltd met on Monday at the company offices in Larnaca to decide on the distribution of an interim dividend for the current financial year. According to an announcement following the meeting, the board reached a formal decision to approve an interim dividend payment of 2.94 per cent, which equates to €0.01 per share. This payment will be issued to all shareholders registered in the records of the Cyprus Stock Exchange (CSE) as of July 30, 2026, which serves as the official record date. The Cyprus Securities and Exchange Commission (CySEC) has welcomed a follow-up review by the European Securities and Markets Authority (ESMA) that recognised significant improvements in the supervision of cross-border activities by investment firms. The ESMA Peer Review Committee (PRC) report highlighted progress made by CySEC in strengthening supervisory and enforcement practices following recommendations issued in a 2022 review of cross-border investment firm supervision. The follow-up report assessed actions taken by several national competent authorities, including CySEC, in areas covering authorisation, supervision, enforcement and cooperation with other supervisory bodies. The PRC found clear progress in integrating cross-border activities into risk-based supervisory frameworks across national authorities. CySEC was specifically highlighted for introducing regular and dedicated monitoring of cross-border activities, while ESMA also acknowledged the improved cooperation arrangements established by the Cypriot regulator. Demetra Holdings announced on Monday that it repurchased 4,960 of its own shares following a board session held on July 17, 2026. The company executed this buyback at a price of €1.53 per share.