Cyprus Business Now: weekly wrap-up

Here are the top business stories in Cyprus from the week starting August 3: Organising a holiday is one of the few ways I can turn five days of rest into a part-time administrative position. I open seventeen browser tabs, compare the same flight six times and eventually return to the first one after its price has risen. There will be an airline tab, a hotel tab and several restaurants I save with great enthusiasm before forgetting they exist. Somewhere in the middle, I will send screenshots to a WhatsApp group in which everybody has an opinion but nobody wants to make the booking. From Cyprus, spontaneity also has geographical limits. We cannot board a train after work and wake up in another country. Nearly every escape begins with a flight, an airport and the careful calculation of whether a 6am departure is worth the emotional damage. Limassol-based Lemissoler Navigation has named MV Lem Azalea and MV Lem Plumeria, the first two vessels in its four-ship dual-fuel methanol newbuilding programme. The naming ceremony took place end of July. The two 65,000-dwt carriers were built by CSSC Huangpu Wenchong Shipbuilding in cooperation with China Shipbuilding Trading Co. Both vessels will operate under charter to Cargill. The vessels originated from Lemissoler’s operational experience and its ambition to develop efficient and competitive dry bulk carriers with the flexibility to meet present requirements and the evolving demands of the maritime energy transition. Bringing the concept to life was a joint effort. Shanghai Merchant Ship Design and Research Institute translated Lemissoler’s operational requirements and continuous owner input into the vessel design and detailed engineering, while the American Bureau of Shipping contributed its classification expertise and technical guidance. A Cyprus Chamber of Commerce and Industry (Keve) member association representing property valuers has warned that online property valuation tools and automated valuation systems should only be treated as indicative estimates and cannot replace assessments carried out by qualified professionals. Specifically, the property valuers’ association, responding to the growing use of digital platforms and automated systems to estimate property values, said the public should understand both the benefits and the limitations of these services before relying on them. It explained that technological systems and online valuation platforms can serve as useful supporting tools by providing an initial indication or approximation of a property’s likely value. Cypriot shipping executive Thomas Kazakos has taken the International Chamber of Shipping’s (ICS) campaign for a toll-free Strait of Hormuz to Bahrain’s Foreign Minister, as the industry steps up pressure for the restoration of safe and unrestricted passage through one of the world’s most important maritime routes. The ICS Secretary General met Bahrain’s Foreign Minister Abdullatif bin Rashid Al Zayani at the kingdom’s embassy in London last week, with discussions focusing on the continuing conflict, maritime security and the protection of seafarers. Reflecting on the talks, ICS said that “it is vital we continue supporting the preservation of freedom of navigation as the foundation of international maritime governance”, stressing that, in the context of the continuing conflict in the Strait of Hormuz and the surrounding region, “no tolls should be imposed”. More products became cheaper than more expensive on the e-kalathi price tracking platform during the second half of July, although wide price differences between supermarkets continued to raise questions over the strength of competition in Cyprus’ grocery market. According to the Consumers Association’s latest review, prices increased across 805 products between July 16 and 31, with an average rise of 10.6 per cent. At the same time, 908 products became cheaper, recording an average reduction of 11.9 per cent. The findings therefore point to prices moving sharply in both directions, rather than a uniform increase across the market. The largest category-level increases were recorded in frozen pasta and pizzas, where prices rose by 7.6 per cent, followed by fruit juices at 6.6 per cent. Prices for chocolates and pasta increased by 6.3 per cent. Temu has denied receiving foreign subsidies that gave it an unfair advantage in Europe, pushing back after the European Commission accused the online retailer of failing to cooperate fully during an inspection at its European headquarters. The Commission sent a Statement of Grounds to Temu’s parent company PDD Holdings and its subsidiary WhaleCo Technology Limited following an unannounced inspection at WhaleCo’s premises in Dublin between December 2 and 5, 2025. However, the document does not amount to a finding that Temu received subsidies or distorted competition. It concerns the company’s conduct during the inspection, while the underlying subsidy investigation continues separately. Temu said it disagreed with the Commission’s preliminary conclusions and maintained that it had cooperated fully and responded to every request made by investigators. The company will now examine the document and submit a formal response, expressing confidence that Brussels will reconsider its position. The European Central Bank (ECB) has reported that negotiated wage pressures across the euro area remain stable through 2026 and into early 2027, while separate data from Cyprus showed workers’ earnings continued to rise in the first quarter of the year, although the majority of employees still earned well below the national average. The ECB’s latest wage tracker, updated with collective bargaining agreements signed up to the first week of July 2026, showed negotiated wage pressures with smoothed one-off payments at 2.3 per cent for 2026, based on agreements covering 44.3 per cent of employees in participating countries, rising slightly to 2.7 per cent in the first quarter of 2027, when coverage currently stands at 28.4 per cent. The central bank also extended the tracker’s forward-looking horizon to March 2027, adding that the September 2026 update will extend coverage further into the second quarter of 2027 as additional wage agreements are concluded. UBS has raised its price target for Eurobank to €5.10 from €4.90, maintaining its ‘buy’ recommendation after the lender delivered stronger-than-expected second-quarter results and upgraded its outlook, with Cyprus continuing to play a significant role in the group’s profitability. The investment bank said the revised target implies upside potential of approximately 14.6 per cent, while an estimated dividend yield of 6.1 per cent brings the total prospective return to 20.7 per cent. The upgrade follows Eurobank’s first-half results announced last week, when the group reported net profit of €738 million, or €776 million on an adjusted basis, and raised its guidance for the full year after outperforming expectations. The group’s operations in Cyprus contributed €231 million in adjusted net profit during the first six months of the year, accounting for a substantial share of the €361 million generated by its international operations, which represented 46.5 per cent of overall group profitability. The Deputy Ministry of Tourism recently launched a public consultation on Cyprus’ National Strategy for the Development of Diving Tourism, inviting stakeholders and the public to submit feedback before the strategy is finalised. The consultation covers the study, “Development of a Strategy aiming at the Product Development of Diving Tourism in Cyprus”, together with its accompanying implementation plan, both of which were prepared as part of efforts to strengthen and expand the island’s diving tourism sector. The consultation aims to gather opinions, suggestions and comments from industry professionals, organised groups, businesses and members of the public so they can be taken into account before the nationalsStrategy is finalised and the accompanying action plan is prepared. Cyprus’ property market remained firmly on an upward path in July, with sale contracts passing 2,000 in a single month and activity exceeding last year’s levels in every month of 2026 so far. A total of 2,040 sale contracts were lodged with Land Registry offices during July, up 11 per cent from 1,832 a year earlier, according to the latest official figures. July was the strongest month of the year, exceeding the 1,964 contracts recorded in June. It was also the first month in 2026 in which the national total crossed the 2,000 mark. Consequently, contracts filed between January and July reached 12,047, compared with 10,561 during the same period of 2025, representing growth of 14 per cent and an additional 1,486 contracts. The Bank of Cyprus (BoC) on Tuesday reported profit after tax of €252 million for the first six months of 2026, a 7 per cent increase year-on-year. It also announced a 20 per cent higher interim dividend, with the lender pointing to strong lending growth, resilient asset quality and a robust capital position. Specifically, the bank said it will pay an interim dividend of €0.24 per ordinary share, equivalent to approximately €105m, reflecting a 44 per cent payout ratio on first-half earnings and marking a significant increase from the previous year. “We delivered excellent financial results in the first half of 2026, reflecting our diversified and efficient business model and continued strong performance,” group chief executive Panicos Nicolaou said. Cyprus recorded a higher-than-average rate of online event ticket purchases in 2025, according to figures released by Eurostat on Tuesday, as digital buying continued to gain momentum across the European Union. The figures showed that 34.1 per cent of people in Cyprus had purchased tickets online for events during the three months preceding Eurostat’s annual survey on information and communication technology (ICT) usage in households and by individuals. This placed Cyprus well above the EU average of 26.8 per cent, highlighting the island’s relatively strong uptake of digital ticket purchasing. Across the European Union, 26.8 per cent of people bought tickets online for events during the three-month reference period in 2025. Cyprus’ Nissi Beach has been ranked the second best beach in Europe for 2026, offering another boost to the island’s tourism appeal as officials say the sector has returned to a stable recovery path despite recent regional challenges. The ranking, compiled by UK travel insurance specialists Quotezone, placed Nissi Beach second only to Mogren Beach in Montenegro, with Cyprus outperforming many of Europe’s better-known holiday destinations. The recognition comes less than a week after Deputy Minister of Tourism Kostas Koumis said Cyprus tourism is now on a stable recovery path, following the publication of the latest tourism revenue figures by the Statistical Service. Quotezone’s 2026 European Beach Index assessed ten beaches across popular holiday destinations using criteria including sea and air temperatures, five-star visitor reviews, accommodation costs, drink prices and proximity to the nearest airport. Cyprus’s appetite for low-cost online shopping has produced an unexpectedly large return for the state, with the new €3 customs duty generating almost €2 million in July alone. During the first month of the measure, Customs processed 650,000 chargeable items contained in 160,000 parcels, according to customs department spokesman George Constantinou, speaking to the Cyprus News Agency (CNA). At €3 for each chargeable item category, the figures point to revenue of approximately €1.95m, equivalent to an average customs charge of just over €12 per parcel. The result is particularly striking when set against the department’s earlier estimate of roughly €15m in annual revenue. July alone produced about 13 per cent of that projection. If collections remained at the same level, they would exceed €23m over 12 months, although customs has cautioned that the first month cannot be treated as a reliable guide to longer-term shopping habits. Cyprus Airways has signed a new agreement with Bird Aviation for the provision of heavy aircraft maintenance services, further strengthening the long-standing partnership between the two Cyprus-based aviation companies as both continue to expand their operations. The airline said the agreement will see Bird Aviation continue providing heavy technical support for the Cyprus Airways fleet through a range of scheduled maintenance services carried out at its facilities in Larnaca. These services include periodic inspections and other scheduled technical work, ensuring that aircraft remain available for operations while meeting the highest technical and safety requirements. Cyprus Airways said the renewed agreement reflects its continued investment in maintaining the highest technical standards, while ensuring the ongoing efficiency, reliability and availability of its fleet. Cyprus may have built one of Europe’s largest shipping centres, but its next competitive test will be decided by the number of young people willing to build a life at sea and whether the industry can draw from the whole talent pool, rather than continuing to overlook much of its female half. The island’s shipping sector supports more than 9,000 people ashore and over 55,000 seafarers working aboard vessels across international supply chains, according to government figures. Maintaining that position, however, will increasingly depend on whether maritime students reach the bridge and engine room, qualify as officers and remain in the profession. Cyprus placed those priorities at the centre of the Lefkosia Declaration, signed by EU maritime ministers in April during the island’s presidency of the Council of the EU. The declaration calls for stronger seafarer education, retraining for the green and digital transitions, better promotion of maritime careers and the equal participation of women. Cyprus has found its way onto National Geographic’s reading list, and this time the essential holiday packing begins with a novel. A seven-night escape to Larnaca inspired by Elif Shafak’s The Island of Missing Trees has been included among seven literary retreats recommended by National Geographic Traveller UK for 2026. Under the rather lovely title “Fig trees and vine leaves”, the Cyprus retreat appears alongside literary journeys to Provence, Yorkshire, Zermatt, Svalbard, the Nile and Morocco. At its heart is Shafak’s 2021 novel, which moves between Cyprus and London and follows the love story of Greek Cypriot Kostas and Turkish Cypriot Defne. Their lives are shaped by the island’s division, loss and inherited memories, while one of the book’s most memorable narrators is not a person at all, but a fig tree that has witnessed far more than anyone realises. The Bank of Cyprus (BoC) has updated its corporate financial calendar, setting key milestone dates for its forthcoming interim dividend distribution and future earnings announcements following a strong first-half financial performance. The updated schedule outlines the precise timeline for investors to receive the newly announced interim payout following the release of the half-year results. According to the lender, the ex-interim dividend date has been scheduled for September 21, 2026, meaning investors acquiring shares from this date onwards will not be entitled to the upcoming payout. The record date for interim dividend beneficiaries has been fixed for September 22, 2026, establishing the official list of eligible shareholders. Public interest in acquiring shares in Cyprus’ proposed new cooperative bank has been encouraging despite the August holiday period, according to the president of the Pancyprian Cooperative Holding and Cooperative Promotion Company Panicos Hambas. Speaking to the Cyprus News Agency (CNA), Hambas said the response so far had been positive, even though many potential investors were away on their summer holidays. “There has been a positive response from the public, while discussions are also taking place with companies interested in investing in the proposed bank,” Hambas said. The public share offer began on July 22, 2026, with the online sale of 42 million new shares issued by the Pancyprian Cooperative Holding and Cooperative Promotion Company Ltd. A last-minute rush by distressed borrowers has pushed applications to Cyprus’ mortgage-to-rent scheme beyond 4,200, prompting the government to extend the deadline for another two months. The state-owned asset management company Kedipes has received 4,269 applications since the scheme opened in December 2023, spokeswoman Chara Papakyriacou told the Cyprus News Agency (CNA) on Wednesday. Interest accelerated sharply as the July 31 deadline approached, with more than 300 applications arriving during the final five days. In total, 929 applications were submitted during the latest window, which opened in May. Cyprus’ registered unemployed rose by 5.8 per cent in July, with the increase driven mainly by administrative and support services, accommodation and food services, public administration and education, according to a report released on Wednesday by the state statistical service (Cystat). The number of unemployed persons registered at district labour offices reached 11,728 on the last day of July 2026, compared with 11,088 in the same month last year. This represented an annual increase of 640 persons, the statistical service reported. Eight leading maritime associations, including the International Chamber of Shipping headed by Cypriot secretary-general Thomas Kazakos, have urged the United Nations and the International Maritime Organisation (IMO) to prevent the introduction of compulsory tolls or service fees in the Strait of Hormuz. The joint open letter was sent on Monday to UN Secretary-General Antonio Guterres and IMO Secretary-General Arsenio Dominguez, reiterating the shipping industry’s concerns over proposals to charge vessels for using one of the world’s most important international waterways. The letter was co-signed by the Asian Shipowners’ Association, BIMCO, Cruise Lines International Association, European Shipowners | ECSA, Intercargo, Intertanko, the International Chamber of Shipping and the World Shipping Council. Only 141 of the 728 hotels operating across Cyprus currently hold an operating licence, Paphos hoteliers association president Evripides Loizides said, warning that the problem requires immediate state intervention. Speaking to the Cyprus News Agency (CNA), Loizides described licensing as one of the most serious issues facing the hotel industry, saying that it remained “at particularly low levels”. “The responsibility does not lie exclusively with the hoteliers,” Loizides said, explaining that several objective obstacles continued to prevent hotel units from obtaining their licences. In particular, he said that procedural and institutional problems needed to be addressed by the state, either through legislative intervention or amendments to the relevant regulations. Cyprus hotel bookings have returned to a more normal pace, but August remains around 10 per cent behind, with operators relying on last-minute demand and discounts to support occupancy, the heads of two tourism bodies told the Cyprus News Agency (CNA) on Wednesday. Akis Vavlitis, president of the Association of Cyprus Tourist Enterprises (Stek), and Christos Angelides, director general of the Cyprus Hoteliers Association (Pasyxe), spoke separately to the agency about the outlook for the remainder of the season. Vavlitis gave a more positive assessment, noting that “some hotel units may be behind, but, in general, we are in a satisfactory state compared to the previous period”. Although cancellations continue, they remain within normal levels, he explained, while some hotels in the Famagusta district may still be facing greater pressure. Cyprus and India should build a structured roadmap for cooperation in startups, research and technology, turning growing bilateral interest into measurable partnerships, Indian High Commissioner Manish Manish said. In a post on his personal online platform, Manish said he presented his views on the future of India-Cyprus innovation cooperation to members of KPMG Cyprus and Plug and Play Cyprus. “What stood out most during the discussion was that the opportunity is no longer theoretical,” Manish said. Freedom24 announced on Wednesday a long-term strategic partnership with the Anorthosis Football Academy, becoming its principal strategic sponsor as part of a broader investment in youth football development in Cyprus. The agreement focuses exclusively on the Anorthosis Football Academy, with the company saying it aims to strengthen youth development through strategic collaboration, international expertise and the implementation of modern training initiatives designed to nurture the next generation of Cypriot football talent. Freedom24 said the partnership builds on its previous involvement in youth football in Kazakhstan, where it has supported the QJ League, a competition it described as a successful model for improving player development pathways, raising competitive standards and introducing modern approaches to youth football. Google parent Alphabet has overhauled the leadership of its artificial intelligence operations, moving Nobel laureate Demis Hassabis from the day-to-day running of Google DeepMind into a newly created group-wide science role, while four senior figures behind Gemini leave to launch their own company. The changes come at a sensitive time for Google, with the most powerful version of its latest Gemini model still unreleased despite an initial June launch date. The delay has raised concerns among investors that the company could lose ground to OpenAI and Anthropic, both of which recruited senior Google researchers this summer. Alphabet shares fell 4 per cent following Wednesday’s announcement. Hassabis, who has Greek Cypriot roots through his father, whose family comes from Famagusta, will become chief scientist of Alphabet and chair of Google DeepMind. He will step away from his main managerial duties at the AI laboratory but remain closely involved in its research and long-term strategy. Cyprus’ construction sector maintained strong growth momentum in the first half of 2026, supported by a robust pipeline of new projects, rising property demand and continued investment activity, according to a report by Eurobank Research. The report said that first quarter data confirmed the sector’s resilience, with building permits, construction output, mortgage lending and business confidence all pointing to sustained expansion. However, it also cautioned that the latest building permit figures covered the period from January to March 2026, before the recent escalation of tensions in the Middle East. Artificial intelligence is reshaping the way businesses sell, but a Cyprus-based startup believes the next step is moving beyond automation and into real-time decision making. Sainni, founded by chief executive Briken Bufi and chief operating officer Christina Anastasiadou, has developed an AI sales assistant designed to support the entire sales process, from identifying prospective customers to coaching representatives during live calls and completing post-meeting administrative tasks. In this exclusive interview with the Cyprus Mail, the founders explain why they chose to build the company from Paphos after spending eight years in Vienna, and why they believe Cyprus has provided the ideal environment for an ambitious technology startup. Cyprus’ inflation rate eased to 2.9 per cent in July 2026, down from 3.1 per cent in June, as lower fuel prices and a sharp fall in clothing and footwear brought the consumer price index down on a monthly basis, figures released on Thursday by the statistical service (Cystat) showed. The Consumer Price Index (CPI) decreased by 0.68 points, reaching 102.32 units in July compared with 103.00 units in June. This represented a monthly decline of 0.66 per cent. However, prices remained 2.93 per cent higher than in July 2025, while inflation for the first seven months of the year stood at 1.87 per cent compared with the corresponding period of 2025. The Cabinet on Wednesday brought into force the law establishing the Cyprus Business Development Organisation and appointed the new body’s first board of directors, marking a key milestone in efforts to improve access to finance for businesses across the island. Speaking after the first Cabinet meeting following the government’s reshuffle, Finance Minister Makis Keravnos said the organisation’s mission is to improve access to financing for small and medium-sized enterprises, startups and self-employed professionals, while addressing financing gaps in the market. “The government continues consistently and decisively to implement its programme and the commitments it has announced,” Keravnos said. He recalled that the legislation was approved by the House of Representatives on July 14, with Wednesday’s Cabinet decision formally setting the law’s commencement date. The gross domestic product (GDP) of Cyprus was valued at €36.48 billion in 2025, accounting for 0.2 per cent of the European Union’s total economic output, according to provisional figures published by Eurostat on Thursday. The statistical office revealed in its ‘Key figures on Europe 2026 edition’ that the entire EU economy was worth €18.8 trillion during the same period. The annual publication provides a comprehensive overview of recent developments across the EU, covering key areas ranging from population and society to the economy, business, the environment and natural resources. EasyJet founder Sir Stelios Haji-ioannou and his family will remain significant shareholders in the airline after its proposed £5.7 billion takeover by US investment firm Apollo, bringing an end to a bidding contest for one of Europe’s largest low-cost carriers. The British airline confirmed on Thursday that its board had agreed to the terms of Apollo’s all-cash offer, valuing the company at around $7.7bn. The agreement came shortly after rival US investment group Castlelake announced that it would not increase its offer of just over £5bn. Under British takeover rules, both companies had been given until Friday to submit revised proposals. Cyprus must adopt a balanced and long-term energy strategy combining conventional power generation, renewable energy, storage, electricity interconnection and demand management, energy systems expert and former Cyprus Energy Regulatory Authority (CERA) chairman Andreas Poullikkas has warned. In an analysis on energy security, Poullikkas said there are no simple solutions to complex energy challenges, arguing that Cyprus’ electricity system requires a comprehensive approach rather than reliance on individual technologies. “Electricity adequacy is one of the most important conditions for economic stability, social cohesion and quality of life in Cyprus,” Poullikkas said. EmissionLink managing director Philippos Ioulianou has called for fairer treatment of shipping under the proposed expansion of the EU Emissions Trading System (EU ETS), warning against double charging and urging governments to reinvest more of the revenue in maritime decarbonisation. Under the European Commission’s proposals, the system would cover offshore activities from 2027, before expanding to certain vessels of between 400 and 5,000 gross tonnes from 2029. While the broader scope could support Europe’s climate objectives, Ioulianou said, “Expanding the EU ETS will not automatically make it more effective. The system must be coherent, proportionate and capable of delivering practical decarbonisation.” In particular, concerns have been raised about the possibility of shipping companies facing overlapping liabilities if the European system eventually operates alongside a carbon-pricing mechanism introduced by the International Maritime Organisation (IMO). PwC Cyprus chief executive Andreas Yiasemides has been appointed chairman of the council of the University of Cyprus for a three-year term. The appointment was made by the Cabinet and subsequently ratified by the University Senate. Yiasemides described the appointment as a significant responsibility, emphasising the importance of higher education to Cyprus’ future. “It is a great honour for me to have been appointed by the council of ministers of the Republic of Cyprus to serve as chairman of the council of the University of Cyprus, an appointment that was subsequently ratified by the University Senate,” he said. Beverage company Keo plc on Friday announced that technical issues with its dividend calculation software may cause a delay in distributing its approved dividend to shareholders. The announcement follows the decision made at the company’s annual general meeting on July 8, 2026, where shareholders approved a total dividend of €1.69 million. The approved payout, which amounts to 4 cents per fully paid share, is being funded from the company’s 2024 profits held within its revenue reserve. Company management confirmed that it is exerting every effort to resolve the technical issues and complete the dividend payout prior to the original deadline of August 17, 2026. The Cyprus Chamber of Commerce and Industry (Keve) will host a business forum and business-to-business meetings with a Palestinian business delegation in Nicosia on September 10, 2026, aiming to strengthen commercial ties and create new partnership opportunities between companies from the two sides. The event is being organised in cooperation with the Jenin Chamber of Commerce and Industry and the Embassy of the State of Palestine in Cyprus, and will take place at Keve’s headquarters in Nicosia. According to the chamber, the forum is intended to strengthen bilateral cooperation between Cyprus and Palestine while encouraging business partnerships between companies and institutions from both countries. The Cyprus Securities and Exchange Commission (CySEC) announced on Friday that it has imposed administrative fines on 12 listed companies for breaching transparency rules relating to the publication of their annual financial reports for 2024. The regulator said the sanctions were decided by its board during a meeting held on June 8, 2026, with the announcement published on August 7, 2026. The fines were imposed under the Transparency Requirements (Securities Admitted to Trading on a Regulated Market) Law of 2007, as amended.