Cyprus Business Now: weekly wrap-up
Here are the top business stories in Cyprus from the week starting February 2:
These two factors, he explained, are “the key pillars of sustainable development for Cypriot tourism” in the coming years.
Speaking to the Cyprus News Agency (CNA), Michaelides said “the hotel sector faces challenges beyond national borders“, with the most significant being the global shortage of human resources.
He mentioned that progress had been made in recent years, particularly in the work permit issuance process for staff from third countries, which now represent the main labour pool for the tourism industry.
Michaelides further stated that the association had submitted specific proposals to the Labour Ministry aimed not only at easing staff recruitment but also at “creating stability for third-country workers so they can be employed in Cyprus on a year-round basis“.
The acquisition was carried out through Petrolina’s wholly owned subsidiary, Med Energywise Ltd, which acquired 100 per cent of the share capital of ExxonMobil Cyprus Limited.
The total consideration amounted to €45.1 million, following the completion of the expected post-closing adjustments, based on the acquisition agreement signed on November 27, 2024.
The authority’s budget for 2026 amounts to €3.68 million and is balanced, with operating expenses rising by 8.24 per cent, officials told MPs.
Chairman Pieris Chourides said the authority’s core role, as an independent regulator, is the analysis and management of risk, noting that financial data show “good performance of the casino”.
By contrast, he said, the performance of the integrated casino-resort, which does not fall under the authority’s direct regulatory remit, is below the targets that had been set.
According to figures presented to the committee, gross casino revenues in 2025 are estimated at €227m, an annual increase of around 20 per cent, levels which Chourides described as high by European standards.
The budget places strong emphasis on major investments in digital infrastructure, profitability and resilience, positioning Cyta as a central pillar of Cyprus’ digital economy.
“This is a budget of responsibility and continuity,” said “a budget built on tangible financial results and a specific investment plan that delivers direct benefits to citizens, businesses and the Cypriot economy,” Cyta chair Maria Tsiakka told the committee.
She stressed that the primary objective was ensuring uninterrupted operation and continuous upgrading of critical digital infrastructure across the Republic of Cyprus.
In doing so, the creator and owner of the easy family of brands (www.easy.com and www.easyHistory.info) and founder and chairman of the Stelios Philanthropic Foundation (www.steliosfoundation.com.cy) set out the broader thinking behind an initiative that has become a long-standing pillar of bi-communal cooperation on the island.
The presentation, delivered by Haji-Ioannou via live Zoom connection, formed part of an event presenting the vision and philosophy of the Bi-Communal Cooperation Awards and took place at the headquarters of the Stelios Philanthropic Foundation in Nicosia, ahead of the awards ceremony scheduled for June 8,2026.
The event drew strong representation from the business community, emphasising its role in shaping conditions of cooperation and stability that support the island’s economic development.
In a statement signed by its president, Costas Melas, the association said recent economic data point to a clear disconnect: despite relative economic stabilisation and easing European pressure on interest rates, many Cypriot borrowers remain under severe strain.
Banks, it said, benefited from the high interest rate environment of previous years, recording a sharp rise in income. At the same time, thousands of households and small businesses saw monthly loan instalments surge.
Even though borrowers have increasingly shifted towards fixed-rate products, the association added, meaningful relief has remained limited.
The Cyprus Mail covered the assembly live from Kuwait, with on-the-ground reporting from the opening session and ministerial round table as discussions moved quickly to the pace of AI development and the limits of existing governance.
Addressing the assembly by video message, UN secretary general António Guterres warned that AI was advancing faster than the frameworks designed to manage it and urged collective global action through shared standards and guardrails.
“Humanity must steer artificial intelligence together,” Guterres said, adding that the United Nations would advance new initiatives on AI science and global governance in cooperation with the DCO.
DCO secretary general Deemah Al Yahya cautioned that governance was lagging behind technology and that uneven access to infrastructure and capital risked deepening global digital divides.
Giorgos Kafkalias, director of the Famagusta Regional Tourism Board (Etap), said the aim is both market diversification and calendar extension, particularly into early spring. At the same time, the organisation has already moved into implementation.
He explained that “we have already begun the implementation of the Action Plan for 2026, which was approved by the Deputy Ministry of Tourism,” adding that delegations will travel abroad in the coming weeks. More specifically, in February and March the company will attend tourism exhibitions in Serbia and Germany.
In fact, “between February 19-22, a delegation of the Famagusta Tourism Board will travel to Belgrade for the tourism exhibition, in which Cyprus will be the honored country,” he said, while shortly afterwards “between March 3-5, the well-known ITB” in Berlin will follow, alongside participation in a roadshow in Poland.
According to the announcement, the agreement brings together investment professionals and the national investment promotion authority and, in doing so, aims to strengthen engagement between market participants and key stakeholders.
At the same time, it is intended to encourage knowledge sharing and support initiatives that improve transparency and investor confidence.
Within this framework, the two organisations will pursue joint initiatives, educational activities and thought-leadership actions.
Net new loans rose by €368.7 million month-on-month to €625m, out of total new lending of €986.9m, compared with €256.3m out of €565.2m in November.
At the same time, deposit rates moved higher for both households and businesses.
Consumer-loan rates also increased, whereas housing-loan rates eased. Overall, the CBC said the level of interest rates on new loans in Cyprus remains broadly comparable with the eurozone median.
Looking more closely at lending volumes, consumer borrowing slowed. Net new consumer loans fell to €17.2m (from €18.2m in total new loans), compared with €20.4m the previous month (from €23.4m).
Within this context, the supply chain was described as moving from an “invisible” operational mechanism to a strategic pillar for businesses and economies.
Recent disruptions, from the pandemic and geopolitical tensions to extreme climate events, were cited as evidence of both its fragility and its decisive importance.
The discussions centred on three forces redefining the sector, namely resilience and efficiency, sustainability and the digital transition supported by artificial intelligence.
Addressing the conference, Eurobank general manager of corporate banking, Nicolas Panayi, said a supply chain is “not only a flow of goods, but also a flow of capital, data and risk”, while also referring to the transition towards more resilient and proactive structures, including supplier diversification, greater transparency and more flexible logistics networks.
That placed Cyprus slightly above the EU average, where 68 per cent owned their home and 32 per cent rented, marking a marginal shift from 2023 when ownership stood at 69 per cent across the bloc.
Across Europe, ownership remained highest in eastern member states. Romania recorded the top rate at 94 per cent, followed by Slovakia at 93 per cent and Hungary at 92 per cent.
Codina wrote that the Southern European ecosystem “continues to steadily advance and secure its niche” and, although it does not yet rival the continent’s largest hubs, it increasingly supports entrepreneurial ambition and cross-border collaboration.
In that context, she explained that Cyprus combines local talent with global reach, helped by its strategic position “at the crossroads of Europe, the Middle East, and Africa”, which makes it a natural launchpad for founders targeting several markets simultaneously.
According to her, startups on the island are now active across gaming, SaaS, B2B software, Web3, AI and digital infrastructure, while areas such as EdTech and tourism-related technology show how innovation is emerging alongside traditional sectors rather than replacing them.
According to an official announcement, Koumis stated that the goal now is to increase arrivals during the winter season, but also to strengthen tourist flows in relation to special forms of tourism.
During the visit, Koumis also held contacts with strategic partners in a market that has emerged in recent years as one of the most important for Cypriot tourism.
In 2025, arrivals from Israel exceeded half a million visitors for the first time, reaching 588,000 and placing the country second only to the United Kingdom among Cyprus’ source markets.
The discussion took place at the ministerial panel of the 16th Annual Capital Link Greek Shipping Forum organised by Capital Link, also attended by Greece’s maritime affairs minister Vasilis Kikilias, Malta transport minister Chris Bonett and US Deputy Assistant Secretary for Transportation Affairs Marco Sylvester.
Sylvester warned the transition risked failure without realism, technical documentation and active industry participation.
He clarified that Washington’s rejection of the NZF did not amount to withdrawal from international cooperation, but argued the framework alters the character of the IMO, transforming it from a technical organisation for safety and security of navigation into a global climate policy regulator.
The Ministry of Interior has begun drafting a revised framework, Interior Minister Constantinos Ioannou told the House interior committee, as authorities attempt to modernise legislation governing foreign property ownership.
Among the issues under review is a clearer definition of the concept of acquisition and limits on property size. The minister said an effort would be made to “more clearly define the term for acquiring real estate and the maximum area of real estate that can be acquired”.
He added that authorities are considering “the introduction of a time limit between applications that an applicant can submit” in order to prevent abuse of the process and its conversion from residential use into business activity.
At the same time, restrictions in specific urban zones and areas linked to security or public-interest concerns are also under examination.
The event, titled ‘Presenting the Digital Euro in Cyprus’, took place at the Bank of Cyprus headquarters and was organised by Disy MEP Michalis Hadjipantela, in cooperation with the Association of Cyprus Banks, and in the presence of Finance Minister Makis Keravnos.
More than 170 representatives from government bodies, social organisations, banks and financial-services professionals attended.
Hadjipantela said that “today’s conference proves that Cyprus, although a small country, can play an active and substantial role in the dialogue and development of the digital euro”, adding that the island can contribute “to the shaping of European decisions that will determine the financial environment of the coming years”.
At the same time, he explained that the digital euro would preserve the central role of public money, enable fast and low-cost pan-European payments, and support competitiveness and innovation, while remaining “a safe and comprehensive means of payment for 450 million citizens, without undermining the role of banks”.