Cyprus Business Now: weekly wrap-up

Here are the top business stories in Cyprus from the week starting August 24: Reviving Cyprus’ villages requires more than new infrastructure, with investment in social life, culture and opportunities for young people equally important to their survival, Shipping Deputy Minister Marina Hadjimanolis said. Speaking at Akapnou’s 36th annual community event over the weekend, Hadjimanolis said the government recognised the crucial role of rural communities in preserving the island’s cultural identity and strengthening social cohesion. She said the Christodoulides administration would continue pursuing policies that support regional development, improve living standards and create prospects for younger generations. The aim, she added, was to give young people genuine reasons to remain in their communities while encouraging those who had already left to return. Low-cost carrier Wizz Air has become the official airline partner of Mountain Games Cyprus 2026, boosting European accessibility for the flagship sporting event taking place next month. The coordinator of the European project, the MountMed Institute, announced the new collaboration on Monday, as part of ongoing efforts to increase international participation in the scheme, which is funded by the Erasmus+ Sport Programme. Under the agreement, Wizz Air will support the travel of athletes, volunteers, researchers, and visitors from ten European countries participating in the project’s consortium by using its extensive route network. The initiative aims to make it easier for continental participants to reach Cyprus ahead of the main public event, scheduled to take place in the Troodos Mountains from September 23 to September 26, 2026, as part of the 12th European Week of Sport. A homebuyer in Cyprus would need to hand over every cent of the country’s average salary for almost two years simply to raise a standard deposit. For the typical worker, the wait would be considerably longer. A new analysis by BestBrokers estimates that an average-sized home of 108 square metres costs €305,296 in Cyprus. A buyer providing 20 per cent would therefore need €61,059 before taking out a mortgage for the remaining amount. With average gross monthly income estimated at €2,603, the deposit is equal to 23 months of pay. The calculation assumes, however, that the buyer saves their full salary before tax and spends nothing on rent, food, electricity, transport and other household costs. The income estimate is almost identical to the latest wage data, which placed average gross earnings at €2,601 during the first quarter of 2026. However, the average is pulled upwards by higher earners and does not reflect what most workers receive. Cyprus authorities were recently alerted to 65 non-food products posing potential health and safety risks, the Consumer Protection Service said on Monday. The products were identified in the markets of various EU member states before being reported through the European Union’s Safety Gate rapid alert system for dangerous non-food products. The reported products span a wide range of categories, including toys and childcare items, electrical appliances and equipment, cosmetics, as well as clothing and footwear. It also includes motor vehicles, personal protective equipment, sports and leisure products, kitchenware, chemicals, furniture, construction products, and fireworks. The Cyprus Securities and Exchange Commission (CySEC) published a new amending regulatory directive updating the anti-money laundering framework governing the registry of ultimate owners for express trusts and similar legal arrangements. The regulatory update, officially designated as Regulatory Administrative Act 243/2026, was enacted by the board of the financial watchdog to streamline compliance and access rules for the national beneficial ownership database. The measures exercise specific statutory powers granted to the regulator under section 61C of the primary Prevention and Suppression of Money Laundering and Terrorist Financing Law, which has undergone multiple legislative updates between 2007 and 2025. By updating the underlying regulatory framework established between 2021 and 2025, the new directive modifies how the ultimate human controllers of financial structures, known technically as beneficial owners, are recorded and accessed. Larnaca led Cyprus’ property market during the second quarter of 2026, recording the strongest growth in apartments and offices, while also posting gains in houses and warehouses. The latest index from RICS and KPMG showed that prices moved higher across most districts and property categories. “During the second quarter of 2026, the Cyprus’ property market continued to demonstrate resilience, with positive price movements recorded across most districts and asset categories,” said Christophoros Anayiotos, KPMG board member and head of the real estate industry group. “Apartments remained the strongest-performing asset class, showing growth across all major districts, with Larnaca leading the market,” Anayiotos added, turning to residential property. Housing affordability in Cyprus is being driven not only by rising property prices, construction costs and interest rates, but also by the time it takes to secure planning and building permits, with delays potentially adding tens of thousands of euros to the cost of a new home. House prices in Cyprus rose by 3.4 per cent year-on-year in the first quarter of 2026, according to Eurostat, with the index now standing around 50 per cent above its 2015 level. The pressure is also being felt in the rental market, where Eurostat’s harmonised index for actual rents recorded a steady month-on-month increase during the first five months of 2026. According to the Cyprus Statistical Service (Cystat), the annual rate of rental increases accelerated from 2.5 per cent in January to 4.5 per cent in April 2026. The Paphos regional tourism board (Etap Paphos) has extended its domestic tourism campaign until mid-November after promotional activity generated more than 2.6 million impressions and reached over 335,000 potential visitors between May and August. The campaign, which is aimed at Cyprus’ permanent residents, has focused on promoting the Paphos district as a destination for holidays and short breaks, highlighting its natural attractions, beaches, food, events and outdoor activities. In a statement, the board said its strategy this year was centred on reminding permanent residents of Cyprus about the unique experiences available in Paphos, with promotional activity carried out through a range of digital channels. The campaign has included targeted advertising on Facebook and Instagram, alongside videos and photographs showcasing the district’s tourism products and experiences. The value of fraudulent payments in Cyprus rose 16 per cent year on year to almost €3.7 million during the second half of 2025, even as the number of cases fell 5 per cent to around 14,000, according to the Central Bank of Cyprus (CBC). Despite the increase in value, payment fraud remained relatively low both in absolute terms and as a share of total transactions. Fraud rates for most payment instruments were also below the euro area average. The only exception was credit transfers measured by value, where the fraud rate in Cyprus was slightly higher than the corresponding euro area rate. E-money and card payments recorded the highest fraud rates overall, both in Cyprus and across the euro area. The CBC said the higher value of fraudulent transactions partly coincided with a broader expansion in payment activity in Cyprus, meaning some of the increase may reflect the growing amount of money moving through the country’s payment system. Cypriot beverage company Keo plc announced on Tuesday that it has completed the payment of its interim dividend to beneficiary shareholders, overcoming previous software issues that threatened to delay the distribution. The completion follows the company’s prior warning on August 7, 2026, when management disclosed that technical issues with dividend calculation software could disrupt the payout timeline. Shareholders had previously approved the €1.69 million total dividend during the company’s annual general meeting on July 8, 2026, allocating 4 cents per fully paid share funded from 2024 profits held within the revenue reserve. Although management had aimed to resolve the technical hitch before an initial August 17, 2026 deadline, it had reassured investors that payments would be finalised no later than August 25, 2026. The Digital Cooperation Organisation (DCO) has launched a new study calling for greater international cooperation to help countries strengthen their digital sovereignty and resilience as artificial intelligence becomes increasingly concentrated among a small number of technology providers. It should be noted that Cyprus is a member of the DCO, which brings together countries seeking to promote digital cooperation and the development of digital economies, among other things. Indeed, Cyprus has sought to deepen its engagement with the DCO as it develops its position as a regional centre for technology, investment and digital services. During a visit to Cyprus in June, DCO Secretary-General Deemah AlYahya held talks with government, business and technology stakeholders on digital investment, artificial intelligence, connectivity and infrastructure. Cyprus represents a leading example of how diversifying tourism markets can help absorb the loss of a major source of visitors, according to a new report examining how destinations have recovered from major crises. The report, ‘Resilience in a World That Doesn’t Reset‘, produced by global tourism platform TOURISE and Oxford Economics, examined the response of destinations to 85 tourism crises over the past 25 years and identified market diversification as one of the strongest drivers of recovery. For Cyprus, the case study centres on the sharp disruption to Russian tourism following Russia’s invasion of Ukraine and the sanctions that followed, which effectively cut off one of the island’s most important source markets. Before 2022, Russia accounted for more than 27 per cent of all arrivals to Cyprus. Young people must be included in decisions on technology that will shape their jobs, education and safety online, Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou said during an open discussion in Larnaca. Damianou met students at UCLan Cyprus as part of the 20th National Session of the European Youth Parliament Cyprus (EYP Cyprus), with the discussion covering the digitalisation of the state, employment opportunities in technology and innovation, and the protection of minors online. “As much as young people want to listen to me, I also want to listen to them,” Damianou said, acknowledging that policymakers sometimes unintentionally leave the younger generation out of discussions that directly concern them. He added that technology, digitalisation and innovation were no longer subjects confined to specialists, but had become part of everyday life and the country’s economic future. Researchers and research organisations across Cyprus are being invited to take part in the 2026–2027 “Researchers in Schools” programme, bringing pupils into closer contact with people working in science, technology, engineering, the arts and mathematics. The Research and Innovation Foundation (RIF) has opened expressions of interest from researchers who are available to visit primary, secondary and technical and vocational schools during the coming academic year. For the first time, research organisations will also be able to host groups of pupils at their own facilities, giving students an opportunity to see research environments and activities at close range. Researchers taking part will be asked to present their work in a simple and accessible way, using creative or interactive demonstrations wherever possible. The use of portable equipment and research tools that can be safely transported to schools is also encouraged. The Research and Innovation Foundation (RIF) on Wednesday opened applications for up to 15 Cyprus startups to take part in Slush 2026 in Helsinki on November 18 and 19. The initiative is aimed at promoting Cyprus’ innovation ecosystem and supporting local startups, particularly businesses that have received funding through RIF innovation programmes. Slush 2026 is expected to bring together more than 6,000 startups and over 3,500 investors and businesses, offering participating companies opportunities for exposure, customer acquisition and networking. RIF’s support for Cyprus’ participation forms part of the activities of Enterprise Europe Network Cyprus, in which the foundation participates as a partner. Under the scheme, RIF will cover the €395 entry ticket, including VAT, and provide a €300 subsidy per person towards participation costs. The Association of Cyprus Banks (ACB) expanded its financial literacy initiatives during 2025 and the first half of 2026, supporting national efforts to improve financial education as Cyprus experienced strong economic growth alongside mounting social and economic pressures. In an article on Banking Insight, the association’s online publication, the association said its work complemented the National Strategy for Financial Literacy and Education coordinated by the Cyprus Financial Literacy and Education Committee (CyFLEC), which is chaired by the Central Bank of Cyprus. The ACB provided expertise, trainers and educational resources aimed at turning the national strategy into practical programmes for students, young adults and other members of the public. The initiatives came as Cyprus recorded real economic growth of approximately 3.5 per cent in 2025, placing it among the faster-growing economies in the European Union. The luxury lifestyles presented by some of Cyprus’ best-known social media personalities have proved far less impressive once tax officials looked beyond their carefully curated photographs. Audits of people with a strong online presence uncovered cases of well-known figures displaying wealth without having corresponding income or bank deposits. Instead of revealing hidden fortunes in every case, the checks exposed a different discrepancy. Some of the personalities under review were not concealing the wealth shown on their accounts because, in financial terms, much of that wealth did not exist. Their apparent prosperity was largely confined to the photographs and videos they posted, emphasising the distance between the lifestyle presented on social media and the reality behind it. However, the absence of a fortune does not necessarily remove every tax question. Officials are also examining whether products, trips, accommodation, services or other benefits appearing in posts were provided in exchange for promotion. A master plan formally submitted under the name “Fasouri School”, and described in accompanying technical documents as the “Fasouri Academy and Sports Hub”, is being examined by the authorities for a major educational and sporting development in Kato Polemidia. The two names refer to the same proposed campus, rather than separate projects. “Fasouri School” is the formal umbrella name used in the environmental application, while “Fasouri Academy and Sports Hub” appears as a descriptive project name in supporting technical material. Despite the singular “School” in the application title, the proposal is not for one conventional school. It envisages three autonomous school units, identified at this stage as Schools A, B and C, alongside an extensive shared sports centre. Each school is planned to accommodate about 1,500 pupils and provide education from pre-primary level through primary, middle and secondary school. Together, the three units would serve 4,500 students, supported by an estimated 145 teaching, administrative and other staff. The facilities would include classrooms, science laboratories, libraries and dedicated areas for art and music education. The combined internal covered area of the school buildings is estimated at approximately 26,301 square metres. Parents in Cyprus face large differences in the price of school supplies as they prepare for the new school year, with school bags alone ranging from €1.89 to nearly €210, according to the Cyprus consumers’ association. The association urged families to plan their purchases carefully, compare prices and avoid being influenced by advertising, particularly when buying branded products that may carry a considerably higher price. Its findings were based on a survey conducted both online and in stores across 10 businesses with outlets in all Cypriot cities. Overall, school supply prices remained at broadly the same levels as in 2025, although small fluctuations were recorded in some categories. The survey also found that some retailers charge less for products purchased online than for the same items bought in their physical stores, making price comparisons between the two channels particularly important. Among the widest price differences were those recorded for school bags, which ranged from €1.89 to €209.95, depending on their size, design and brand. Pencil cases were priced between €0.48 and €45.55, while pencils, pens and markers ranged from €0.20 to €18.99. George Pantelides leaves Deloitte after more than 20 years to become chief executive of Hellenic Healthcare Group (HHG) on January 1, 2027, taking charge of the private healthcare provider with operations in Cyprus and Greece. Alongside his new responsibilities, he will remain chairman of the Cyprus Employers and Industrialists Federation (Oev), a position he assumed in May 2025. Pantelides currently leads Deloitte Cyprus’ consulting businesses and serves as its chief strategy officer, while also sitting on Deloitte Middle East’s leadership team. His advisory experience spans local and international organisations, including work on mergers and acquisitions, business development and organisational transformation. His move follows significant involvement in major investment deals in the healthcare sector, where HHG has built an extensive network of hospitals and diagnostic centres. Safe Bulkers extended the application deadline for its 2026 – 2027 scholarship programme to September 7, 2026, with ten scholarships worth €10,000 each available to students seeking a career in the maritime industry. The sixth annual programme is being offered by the New York-listed company and its chief executive, Polys V. Hajioannou, under the company’s environmental, social and governance (ESG) policy. The scholarships are open to Cypriot citizens, as well as Greek citizens permanently settled in Cyprus. They cover both students graduating from lyceums in Cyprus and those already attending universities in Greece, the United Kingdom and other countries abroad. Recipients will be selected on academic merit and financial circumstances, with social criteria covering family or marital status and family income during the previous year. Plans to develop Larnaca port and marina and Vasiliko port, together with the expansion of Latchi port, were discussed during a meeting this week between Transport Minister Evi Tsolaki and the Cyprus Ports Authority’s (CPA) new board. According to a statement from the authority, the meeting took place at its head offices, where the newly appointed minister was briefed on its strategic planning and development projects, with particular emphasis on upgrading Cyprus’ port infrastructure. Discussions covered the prospects and planning for these projects, alongside their importance in strengthening infrastructure, improving the competitiveness of Cypriot ports and supporting the country’s sustainable development. Tsolaki was also informed about the authority’s priorities and objectives, as well as progress in implementing its main development plans. She recognised the importance of the authority’s work on Cyprus’ ports and expressed her ministry’s support for the successful implementation of the planned projects. The Cyprus Shipping Chamber (CSC) has backed the proposed national artificial intelligence (AI) strategy, following a meeting with Chief Scientist for Research, Innovation and Technology Demetris Skourides. During the visit to the chamber’s offices, Skourides presented the strategy to members of its Digitalisation Committee and heard their views on the proposals. The chamber said it looked forward to continued cooperation with Skourides and the Deputy Ministry of Research, Innovation and Digital Policy towards its effective implementation. The chamber’s Digitalisation Committee already examines technology and communications affecting shipping companies and vessel operations, including satellite links between ships and shore. The committee also follows the International Maritime Organisation’s (IMO) work on navigation, communications and search and rescue. Larnaca is advancing heritage projects, digital tourism and accessibility improvements under its 2026 tourism action plan, with proposals ranging from a marine education centre at Pervolia Lighthouse, also known as the Kiti Lighthouse, to the restoration of historic railway wagons. The Larnaca tourism board (Etap) said its action plan aims to strengthen year-round tourism, while emphasising the region’s distinctive identity and developing a more sustainable destination. At Pervolia, the plans involve converting the lighthouse into a centre for marine knowledge, bringing together research, education and cultural activities. An agreement announced in June 2025 involves the Cyprus Ports Authority (CPA), Dromolaxia-Meneou municipality, Etap and the Cyprus Marine and Maritime Institute (CMMI). The proposed lighthouse conversion includes interactive displays, exhibitions and workshops, with cameras and sensors intended to transmit live footage from the nearby seabed.