Cyprus Business Now: tourism, Eurobank, Keve, startups, construction, CBC, LNG

All signatures have been obtained for the memorandum of understanding (MoU) covering the sale of all recoverable natural gas from Cyprus’ Aphrodite field to the Egyptian Natural Gas Holding Company (EGAS), NewMed Energy Management Ltd announced on Wednesday. In a statement filed with the Tel Aviv Stock Exchange and addressed to the Israel Securities Authority, NewMed said the MoU was signed on July 22 by the Aphrodite field partners, the Cyprus Hydrocarbons Company and EGAS. The company said the agreement covers the sale of all quantities of natural gas that can be produced from the Aphrodite field, located in Block 12 of Cyprus’ exclusive economic zone. It added that the parties expect to complete, in the coming weeks, the signing of the Host Government Agreement (HGA) with the Egyptian government. The agreement concerns the development of offshore infrastructure to transport natural gas from the Aphrodite field to Egypt. Cypriots continued shifting towards digital payments during the second half of 2025, with the country recording the highest share of card payments in the euro area, according to a report published by the Central Bank of Cyprus (CBC) on Wednesday. The report found that the total volume of non-cash payments in Cyprus rose by 8 per cent year on year to 174 million transactions during the second half of 2025, while the total value increased by 9 per cent to €148 billion. Across the euro area, the number of non-cash payments also increased by 7 per cent to 83 billion transactions, although the total value remained broadly unchanged at €118 trillion. “Cypriots continue to shift towards digital payment methods, with non-cash payment transactions increasing in both volume and value during the second half of 2025,” the CBC said. The central bank described the payments market as “the engine of the economy”, explaining that it is shaped by a range of payment methods serving the different needs of consumers and businesses. The report is based on data collected from all Cyprus-resident payment service providers, including credit institutions, payment institutions and electronic money institutions, and examines payment volumes, values and broader developments in the country’s payments ecosystem. Eurobank cardholders in Cyprus and Greece can earn 5 per cent cashback on summer purchases in Greece under a seasonal offer running until August 20. The promotion, which began on July 6, applies to purchases made at participating businesses across Greece, both in physical stores and online, through Eurobank’s €pistrofi card rewards programme. Customers can take advantage of the offer at more than 8,500 partner businesses, ranging from major retailers such as Attica, Sephora and Hondos Center to hotels, restaurants, museums and other establishments. Cyprus is not the Mediterranean’s cheapest holiday destination, but it remains less expensive than many of its best-known rivals for the two things travellers often notice most, a hotel room and dinner out. The latest Eurostat data, puts Cyprus’s restaurant and accommodation price index at 85.2, against an EU average of 100. That leaves the island fractionally cheaper than Spain and Greece, while Slovenia, Croatia, Malta, Italy and France are progressively more expensive. Portugal remains the notable western Mediterranean bargain, while Albania and Montenegro offer lower prices farther east. Beyond the Mediterranean, the same figures place Bulgaria, Romania, Serbia, Bosnia and Herzegovina and North Macedonia below Cyprus for both general consumer prices and hospitality. Germany, Austria, Belgium, the Netherlands and the Nordic countries, meanwhile, are markedly more expensive. The wider picture is similar. Across the full household basket, which includes everything from groceries and clothing to transport and services, prices in Cyprus were 10.8 per cent below the EU average. The island was cheaper than Spain, Malta, Italy and France, although Greece, Portugal and Croatia came in lower. The Cyprus Chamber of Commerce and Industry (Keve) on Wednesday signed a memorandum of cooperation with the Elpida Charitable Foundation for Children with Cancer and Leukaemia, marking the start of a strategic partnership aimed at strengthening health, social cohesion and humanitarian support in Cyprus. According to the announcement, the agreement confirms the two organisations’ shared commitment to promoting initiatives that enhance human health, social solidarity and humanitarian assistance. The chamber explained that the memorandum is founded on the common principles of protecting every person’s right to health, prevention, medical and psychosocial care, and a dignified standard of living without discrimination. Under the partnership, the two organisations will develop joint initiatives in the fields of public awareness, education, humanitarian assistance, medical and psychosocial care, as well as palliative support. Eurobank announced on Wednesday that it will release its financial results for the second quarter of 2026 on July 30, with investors set to receive a further update on the group’s performance following a series of strategic developments across Cyprus and the wider region. The bank said its second quarter 2026 results will be announced on Thursday, July 30, 2026. A conference call to present and discuss the results will follow later the same day at 6pm local time, providing investors and analysts with an opportunity to hear management’s assessment of the group’s latest financial performance and outlook. The forthcoming results come at a busy period for the banking group, which has continued to strengthen its presence in Cyprus through new business initiatives, international partnerships and shareholder returns. Cyprus startups and scaleups have been invited to take part in the European Startup Pitch Session in Rome on September 22 and 23, 2026, with the Cyprus Chamber of Commerce and Industry (Keve) informing members about the opportunity. Keve said the event will take place as part of Rome Future Week 2026 and aims to showcase innovative business ventures while creating networking opportunities with investors, companies, institutional bodies and representatives of Europe’s innovation ecosystem. The initiative is open to startups and scaleups based in or operating from a European country, offering participants the opportunity to present their projects to a wider European audience. Keve said the event is designed to promote emerging businesses and help strengthen connections between entrepreneurs, investors and key players in the European innovation community. ASBISc Enterprises Plc this week reported that estimated consolidated revenues for June had risen to approximately $649 million, up by roughly 74 per cent from June 2025, in a trading update from the Cyprus-based IT distributor. The board of directors said the estimate was published after its decision to disclose monthly consolidated revenue information, as set out in a previous report. Columbia Group chief executive Andreas Hadjipetrou has set out a strategy of measured expansion, tighter internal cooperation and greater seafarer support, three months after taking charge of one of the world’s largest ship-management groups. Hadjipetrou said this week that Columbia would continue expanding its core ship-management business and wider services, but insisted that growth must be “measured, profitable and meaningful”. His comments, published by Ship Management International, offer the clearest indication yet of his plans since replacing Mark O’Neil in April. His promotion was accompanied by the appointment of Demetris Chrysostomou as deputy chief executive, while Chrysostomou retained responsibility for Columbia’s operations in Asia. The company said the appointments would strengthen its leadership and support its growing presence in the region. Cyprus’ construction sector recorded strong growth in 2024, with value added rising by 10.7 per cent and production expanding across residential, non-residential and civil engineering projects, according to the findings of a survey released on Wednesday by the Cyprus Statistical Service (Cystat). The survey showed that the production value of the broad construction sector increased by 7.4 per cent to €6.70 billion in 2024, compared with €6.23 billion in 2023. At the same time, value added at current prices climbed by 10.7 per cent to €1.75 billion, up from €1.58 billion a year earlier, reflecting another year of robust activity across the industry. The survey also found that new construction reached €3.82 billion in 2024, representing an annual increase of 6.4 per cent. Residential buildings led the expansion, with output rising by 8.6 per cent, while non-residential buildings increased by 2.6 per cent and civil engineering projects by 2.0 per cent compared with 2023. Cyprus was among the euro area countries where banks increased deposit rates less aggressively following the European Central Bank’s (ECB) interest rate hikes, according to a new ECB working paper examining how banks priced deposits between 2007 and 2024. The research found that banks in Cyprus and other southern euro area countries generally passed on a smaller share of ECB rate increases to savers than banks in northern Europe, highlighting significant differences in how monetary policy reached depositors across the currency bloc. The paper examined both the supply and demand factors shaping deposit pricing and concluded that changes in depositor behaviour played a larger role than differences between banks themselves. According to the study, the pass-through of ECB policy rates to overnight deposit rates has been consistently low, has declined over time and has varied depending on the monetary policy environment. Cyprus Cement Public Company Ltd on Wednesday announced that it had proceeded with a purchase of its own shares following a prior decision by shareholders. Specficially, during the session on July 21, 2026, Cyprus Cement acquired a total of 1,800 shares at a price of €1.30 per share. The overall value of the transaction, which was completed through ProChoice Chrimatistiriaki Ltd, amounted to €2,340.00. Demetra Holdings Plc on Wednesday announced it had completed a purchase of its own shares following a recent shareholder authorisation. During the session of July 21, 2026, Demetra Holdings purchased a total of 4,730 shares at an average price of €1.519 per share through the Cyprus Investment & Securities Corporation Ltd (CISCO). The transactions included 13 shares purchased at €1.51 and 676 shares at €1.515 on July 21, 2026. Environmental tax revenue in the European Union increased by 6.1 per cent in 2024, while Cyprus collected a total of €718.72 million during that time, according to figures released by Eurostat. The data showed that Cyprus households accounted for €355.46m of the country’s environmental tax revenue during 2024, while non-residents contributed €35.08m. Overall, environmental tax revenue in the EU reached €371.9 billion in 2024, up from €350.4 billion in 2023, representing an increase of €21.4 billion, or 6.1 per cent. Despite the higher revenue, the importance of environmental taxes within the wider economy continued to decline over the longer term. Eurostat said that environmental taxes accounted for 2.1 per cent of EU gross domestic product (GDP) in 2024, down from 2.5 per cent in 2014. The Cyprus Stock Exchange (CSE) on Wednesday announced that it had accepted the listing of 50,000 13-week Treasury Bills of the Republic of Cyprus, following an auction held on July 20, 2026. The bills form the seventh issue, Series 2026, running from July 24, 2026 to October 23, 2026. Each bill has a nominal value of €1,000, taking the total issue value to €50 million. The exchange also approved the simultaneous entry of the bills into the Central Depository and Central Register, in line with the relevant provisions of the law governing those systems. Cyprus recorded one of the European Union’s highest annual increases in fuel prices in June 2026, even as retail prices continued to ease from the peaks triggered by geopolitical tensions in the Middle East, according to Eurostat data and recent statements from Cypriot officials. The latest Eurostat figures showed that the price of fuels and lubricants for personal transport in Cyprus increased by 18.6 per cent in June 2026 compared with June 2025, placing the island among the countries with the sharpest annual rises in the bloc. Across the EU, fuel and lubricant prices increased by 13.7 per cent year on year in June 2026, following even stronger annual increases of 20.8 per cent in April and 20.7 per cent in May. Although prices continued to rise in every EU member state compared with a year earlier, the pace of annual inflation slowed in June, after four countries had recorded increases exceeding 30 per cent in May.