Cyprus Business Now: shipping, Demetra, tourism, property, state workforce

A Cyprus-flagged container ship remained disabled off Oman, with one Indian seafarer still missing, after an Iranian strike sparked an engine-room fire, forced the crew to abandon the vessel and triggered another large-scale US attack on Iran. The GFS Galaxy was struck near its stern at about 22:40 UTC on Saturday while travelling eastwards through the Strait of Hormuz, according to maritime reports. The impact caused extensive damage to the engine room and left the ship unable to continue its voyage. The UK Maritime Trade Operations centre placed the incident about nine nautical miles east of Oman, while Oman’s Maritime Security Centre said authorities responded to a distress call when the vessel was around 4.4 nautical miles off Musandam, the Omani peninsula overlooking the strait. Omani authorities rescued 23 of the 24 crew members, provided them with medical care and continued searching for the missing sailor. India’s government said 11 Indian nationals had been aboard, with ten rescued and one still unaccounted for. Its embassy in Muscat was coordinating with Omani authorities during the search operation. Demetra Holdings announced on Monday that it repurchased 5,163 of its own shares following a meeting of its board of directors held on July 10, 2026. The company carried out the transactions through the Cyprus Investment & Securities Corp Ltd (CISCO) in accordance with the relevant regulations of the Cyprus Stock Exchange (CSE) and the circulars issued by the Cyprus Securities and Exchange Commission. Moreover, this acquisition was completed under the authorisation granted during the annual general meeting held on June 30, 2026. The shares were purchased at a price of €1.545 each, the company reported. Cypriot beverage maker Keo is awaiting final government approvals to proceed with a €50 million investment in a new distribution and spirits bottling centre in Limassol, one of the largest private industrial projects planned for the district in recent years. According to Entrepreneurial Limassol, a periodical published by the Limassol Chamber of Commerce and Industry (Evel), the company has been waiting for more than two years for the necessary planning and building permits, despite applications having already been submitted to the relevant authorities. The planned development will bring together Keo’s principal production, processing and logistics operations in a single state-of-the-art Distribution and Spirits Bottling Centre. Cyprus could redirect money from its Thalia 2021-2027 programme to support tourism businesses affected by the conflict in the Gulf and wider instability in the Eastern Mediterranean, the European Commission confirmed. The clarification followed a parliamentary question by Cypriot MEP Michalis Hadjipantela, who warned that the regional crisis had already led to booking cancellations, weaker demand and growing uncertainty across the tourism sector. Hadjipantela said that “the disruption was placing pressure on hotels and smaller tourism businesses, while threatening a sector that remains one of the main pillars of the Cypriot economy.” He called on the Commission to examine whether existing European funding instruments could be activated and whether greater flexibility could be provided under EU state aid rules to help affected companies. Cyprus’ Scientific and Technical Chamber (Etek) has called for immediate measures to tackle severe labour shortages in the construction sector during a meeting with the labour minister, warning that the problem is delaying projects, increasing building costs and making affordable housing more difficult to deliver. According to an announcement issued by Etek, the meeting with Labour Minister Marinos Mousiouttas also covered workplace health and safety, practical training for newly qualified engineers and the licensing process for tower cranes. The chamber said acute shortages of workers, skilled tradespeople, foremen and site supervisors continue to affect the construction industry, with particular shortages among steel fixers and formwork carpenters. It warned that these shortages are disrupting the smooth delivery of construction projects, increasing project costs and having wider consequences for the energy upgrading of buildings, affordable housing and the economy’s development prospects. The total number of state employees in Cyprus reached 55,162 in June 2026, according to figures released by the statistical service (Cystat) on Monday, representing an increase compared with the same month a year earlier. The latest data showed that the state workforce grew by 333 employees, equivalent to 0.6 per cent, from 54,829 in June 2025. Employment in the civil service fell by 1.2 per cent, while the number of employees in the security forces declined marginally by 0.1 per cent. By contrast, employment in the educational service rose by 3.5 per cent, accounting for the overall increase in state staffing. The civil service remained the largest of the three services, employing 23,096 people, down from 23,366 a year earlier. The Larnaca Chamber of Commerce and Industry (Evel) and Gender Equality Commissioner Josie Christodoulou discussed ways to strengthen women’s participation in business and promote equal opportunities during a recent meeting. The meeting, held on July 10, brought together Evel president Nakis Antoniou and Christodoulou, with both sides highlighting the importance of cooperation in developing initiatives that support gender equality and create a more inclusive modern workplace. According to Evel, discussions focused on advancing gender equality in the business sector, increasing women’s participation in entrepreneurship and decision-making positions, and adopting practices that encourage fairer working environments. The chamber said that the meeting provided an opportunity for a constructive exchange of views on the challenges still limiting equal participation in the economy. Limassol-based maritime professional and investor Jesper Weller has acquired Berg & Larsen, a Danish maritime supplier founded more than 230 years ago, linking Cyprus’ shipping centre with one of Denmark’s oldest maritime businesses. The ownership transition sees Weller take over the company from Soren Kristiansen, who has owned and led the business for the past 20 years. However, Kristiansen will remain as chief executive, providing continuity as Berg & Larsen begins its next phase. Founded in Copenhagen’s Nyhavn district in 1794, Berg & Larsen has operated through more than two centuries of change in shipping. Today, it supplies technical spare parts for essential equipment aboard commercial vessels, serving shipowners, managers and operators internationally. Under Kristiansen’s ownership, the company expanded beyond its traditional Danish market and developed a wider international customer base. Meanwhile, the company said its strategy under Weller would focus on further international expansion, attracting new customers and developing its product range in line with the changing requirements of global shipping. The Pancyprian Cooperative Society for Participation and Promotion of Cooperativism Ltd entered its share sale phase last week, with its prospectus revealing a series of risks facing the ambitious plan to establish a new cooperative bank in Cyprus. The prospectus, approved by the Cyprus Securities and Exchange Commission (CySEC) on July 8, 2026, warns potential investors that they could lose all or part of their investment, while outlining challenges ranging from regulatory approval and capital requirements to the company’s existing financial position. The initiative aims to create the Pancyprian Cooperative Bank through a public offering of up to 42 million new shares, with the fundraising period running from July 22 to November 17, 2026. The participation company, which will act as the vehicle through which citizens and organisations acquire shares, said the funds raised would support the creation of a cooperative credit institution subject to approval from the Central Bank of Cyprus (CBC) and the European Central Bank (ECB). Eurobank announced on Monday that it repurchased a total of 2,273,500 of its own shares between July 6 and July 10, 2026, as part of its ongoing buyback programme. The transactions, which took place on the Euronext Athens exchange, were conducted through the member firm Eurobank Equities Single Member Investment Firm S.A. The bank confirmed that the shares were acquired at an average purchase price of €4.3050 per share, resulting in a total cost of €9,787,363.47 for the week. The programme was originally approved during the annual general meeting of shareholders held on April 28, 2026. Following these latest acquisitions, Eurobank now holds a total of 42,011,285 of its own shares. Cypriots are among the strongest supporters of tougher action against tax evasion and avoidance in the European Union, with 64 per cent saying it should be the bloc’s top tax priority. The figure, contained in the European Commission’s annual report published last week, was the second highest in the EU, narrowly behind France at 65 per cent. Portugal followed with 61 per cent and Finland with 60 per cent. Across the EU, 54 per cent of citizens placed tackling tax avoidance and evasion above every other tax policy objective, according to the accompanying EU tax survey. Preventing double taxation between member states was selected by 26 per cent, resolving cross-border tax disputes by 23 per cent, supporting the green transition through taxation by 19 per cent and further digitalising tax and customs procedures by 16 per cent. Estonia was the only member state where preventing double taxation ranked first, supported by 40 per cent of respondents, compared with 36 per cent who prioritised action against tax avoidance and evasion. The findings come as the European Commission estimates that the EU’s VAT compliance gap reached €128 billion in 2023, representing the difference between expected VAT revenues and the amount actually collected. Its latest tax gap report also estimates that the average corporate income tax compliance gap across 23 member states was equivalent to 10.9 per cent of collected corporate tax revenues. PwC Cyprus participated as Platinum Sponsor of the 14th Invest Cyprus International Investment Awards, marking thirteen consecutive years of support for one of the country’s most important institutions dedicated to recognising international investors. Held under the auspices of the President of the Republic and organised by Invest Cyprus, the awards honour international companies and business leaders that recognised Cyprus’ potential, chose to invest in the country and continue to make a meaningful contribution to the development of a modern, resilient and competitive economy. This year’s recipients, representing a broad range of sectors, reflect the strength and quality of the country’s investment environment, while reaffirming the international business community’s confidence in Cyprus’ prospects and its role as an attractive investment destination. The recipients of the 2026 Invest Cyprus International Investment Awards were Accor, Kraken, a Payward company, SayGames, RECONIQ Software Ltd, a member of the PLATH Group, Hartmann Group, Coral S.A. – Coral Cyprus and Premium Access Cyprus. During the ceremony, PwC Cyprus CEO Andreas Yiasemides emphasised the significant progress Cyprus has made in recent years as a credible and attractive investment destination, stressing that the country’s true strength lies in its ability to adapt, evolve and move forward. Nicosia continues to offer apartment prices well below those seen across much of western Europe, while neighbouring Athens remains one of Europe’s most affordable capitals despite years of strong property price growth. The findings come from a recently-published report by the Global Property Guide, an international property market platform comparing real estate data across 88 countries in Europe, Asia, the Middle East and Latin America. The report found that Athens records some of the lowest median asking prices among major European cities for one, two and three-bedroom apartments, particularly when compared with western European capitals. For Cyprus, the same report showed that the indicative median asking price for a one-bedroom apartment in Nicosia stands at €145,000, while a two-bedroom apartment costs €205,000 and a three-bedroom apartment €280,000. Allwyn AG announced on Monday that it repurchased a total of 698,166 of its own shares on the Euronext Athens exchange between July 6 and July 10, 2026. The transactions were executed as part of the share buyback programme that the company originally disclosed on June 4, 2026. The total consideration paid for these acquisitions amounted to €9,712,300.01. Following the completion of these latest market purchases, the company now holds a total of 36,789,758 treasury shares. This figure represents approximately 4.56 per cent of the total number of shares issued by the company. Cyprus on Monday confirmed its support for the second phase of the European Tech Champions Initiative (ETCI 2.0), joining all EU member states in backing a European investment drive that aims to mobilise up to €80 billion for fast-growing technology companies. The initiative was first presented in Brussels last week, on the sidelines of the Economic and Financial Affairs Council (ECOFIN) meeting, with the EIB Group, EU governments, institutional investors and fund managers backing its second phase. The finance ministry said Cyprus’ participation confirms the country’s commitment to strengthening European innovation and expanding access to growth capital for innovative businesses. The expanded programme is designed to address one of Europe’s key challenges, the shortage of late-stage funding available to technology companies that have moved beyond the start-up phase and require significant investment to compete internationally. The Limassol Chamber of Commerce and Industry (Evel) has highlighted its contribution to Cyprus’ Presidency of the Council of the European Union during the first half of 2026, saying it organised two flagship events while also taking part in a series of activities hosted by other organisations. The chamber outlined its activities in the latest edition of Entrepreneurial Limassol, its official periodical, saying the events supported the priorities and broader objectives of the Cypriot presidency. The first event took place on March 4, 2026, in the form of a gala dinner under the theme “Europe’s economy and competitiveness in a changing global arena, Cyprus and Greece’s strategic roles.” The event brought together representatives from the political, business and diplomatic communities to discuss Europe’s economic outlook and the strategic importance of Cyprus and Greece within the European Union. A panel discussion featured House foreign and European affairs committee chairman and former finance minister Harris Georgiades, former European Commission vice-president Margaritis Schinas, eWise Cyprus chief executive and former energy, commerce and industry minister Natasa Pilides, and payabl Group chief executive Ugne Buraciene.