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Cyprus Business Now: CBC, Keve, CySEC, retail, shipping, vessel transparency

Central Bank of Cyprus (CBC) governor Christodoulos Patsalides on Tuesday argued that productivity must be placed at the heart of every reform as Cyprus and Europe confront slowing growth and persistent structural pressures.

Speaking during a conference of European Independent Fiscal Institutions held in Nicosia, the governor underlined that productivity gains strengthen growth potential.

In addition, he emphasised that reforms lacking a productivity focus risk falling short of delivering durable economic outcomes.

Addressing the conference, titled “Fiscal management in times of change: initial responses”, he mentioned that Europe has endured an exceptional sequence of shocks in recent years.

He recalled that the European Central Bank’s (ECB) decisive interest rate increases to curb inflation had carried a cost, warning that “increased debt and reduced fiscal space are emerging at a time when Europe urgently needs investment in defencetechnology and the green transition”.


Fisheries transparency has emerged as an early test of Cyprus’ leadership of the Council of the European Union, as Oceana urged the government to tighten rules on fishing vessel ownership to curb illegal fishing and protect compliant operators.

With Cyprus holding the EU Council Presidency, the country is now at the centre of policy debates extending beyond national borders, including fisheries governance where environmental protection, economic fairness and regulatory credibility intersect.

In this context, international non-governmental organisation (NGO) Oceana formally addressed Agriculture Minister Maria Panayiotou, calling for stronger transparency over the ownership of fishing vessels owned by Cypriot citizens or companies but operating under non-EU flags.

The organisation warned that some operators register vessels in countries with weak regulations and lax controls, enabling them to hide their identities and engage in activities that may not meet the environmental or social standards applied to Cypriot-flagged vessels.


Cyprus hosted the launch of the Mediterranean project SheEmpower in Larnaca, aiming to boost the competitiveness of women-led businesses through entrepreneurship, digital and innovation skills under the Interreg NEXT MED programme.

The Larnaca and Famagusta District Development Agency (Anetel), acting as lead partner, organised the kick-off meeting, beginning of February, at the environmental information centre in Larnaca.

The event welcomed representatives from Cyprus, Spain, France, Italy, Egypt and Lebanon.

According to its statement, the project is structured “in five work packages” and will strengthen transnational cooperation, knowledge exchange and networking across the region.

By creating a Mediterranean ecosystem for women entrepreneurs, SheEmpower aims to accelerate innovation, enhance competitiveness and contribute to inclusive economic growth.


Cyprus will assume the EU Council Presidency “at a defining moment for Europe”, Cyprus Securities and Exchange Commission (CySEC) chairman George Theocharides said in Brussels, arguing that deeper capital markets are central to Europe’s strategic autonomy and long-term competitiveness.

Speaking at the Bloomberg EU Policy Series event, held in the context of the upcoming presidency, he said the motto “An autonomous Union, open to the world” reflects current geopolitical and technological pressures, adding that Europe “must be competitive enough to lead, autonomous enough to protect its interests and innovative enough to shape the future”.

He described the financial sector as the “engine” of that transformation.

Turning to policy priorities, he referred to the Savings and Investment Union and the Commission’s market integration and supervision package, pointing to a structural weakness dating back to the first Capital Markets Union debate in 2014-2015, the persistent fragmentation of European capital markets.


Labour Minister Marinos Moushiouttas on Tuesday met with the board of the Cyprus Chamber of Commerce and Industry (Keve) to discuss mounting labour market pressures and key policy reforms affecting businesses.

The meeting took place in Cyprus and involved members of the Keve board of directors, who held extensive discussions with the minister on labour and social insurance issues.

During the talks, serious workforce shortages across all sectors of economic activity were highlighted as a growing challenge affecting the smooth operation of businesses.

Keve stressed that these shortages are undermining business competitiveness, with knock-on effects for the wider economy.


Cyprus’ tax reform has moved from design to implementation, shifting attention to how the new framework will affect competitiveness and investment appeal, according to Stavros Stavrou, president of the Cyprus Chamber of Commerce and Industry (Keve).

Speaking at the 9th Cyprus International Tax Conference, Cyprus Tax Reform 2026, he said the reform is expected to have a broadly positive economic impact, provided its effects are judged through real business conditions rather than headline figures.

Referring to the corporate tax increase, he said the market is still absorbing the change.

Cyprus has adjusted to similar developments in the past, he noted, although the impact differs across sectors. In his view, high-margin businesses may absorb it more easily, whereas lower-margin sectors such as agriculture and industry may need strategic reassessment.


Property market dynamics in Cyprus and internationally are increasingly shaped by infrastructure resilience, climate risk and affordability pressures, as new data released in January 2026 highlighted rising sales, widening cost gaps between cities and an evolving policy framework on land acquisition.

The value of property is no longer determined solely by location or size, as infrastructure has emerged as a decisive factor in modern cities facing climate stress, energy pressures and social inequality.

In this environment, both visible infrastructure such as roads, networks, transport systems and urban regeneration projects and less visible systems that act as mechanisms of safety and long-term resilience play a critical role in sustaining asset values.

International organisations agree that infrastructure resilience is now a core criterion of economic stability and investment security, with the OECD pointing out that cities investing in climate-resilient infrastructure significantly reduce long-term economic risk and protect asset values, including real estate.


Columbia Group president and chief executive Mark O’Neil said in Athens this week that the cost of creating ‘smart vessels’ has fallen dramatically in recent years, making digitalisation a financially viable and operationally compelling option for shipowners and managers.

Speaking at a Capital Link conference in Athens, he said one of the biggest barriers to digital adoption in shipping today is no longer technology itself, but a lingering misconception around cost.

“There is still a perception in the market that digitalisation is expensive,” O’Neil said, adding that “that may have been true in the past, but it is not true today. The economics have changed completely.”

According to its statement, advances in sensors, cameras and optimisation software have significantly reduced the cost of making vessels fully digital.


The board of directors of ASBISc Enterprises Plc, a leading Cyprus-based IT distributor commonly known as Asbis, has announced announced that the Zbigniew Juroszek Family Foundation has reduced its voting stake in the company to below five per cent.

The company received formal notification on February 6, 2026, regarding a series of share disposals executed across four consecutive trading days earlier in the week.

This notification was submitted pursuant to the Act on Public Offering, which requires the disclosure of the acquisition or disposal of a significant block of shares by major investors.

The foundation initiated the reduction on February 3, 2026, with the sale of 71,818 shares of the IT distribution firm.


Retail sales in Cyprus recorded the strongest annual growth in the European Union in December 2025, even as overall retail trade volumes declined month-on-month across the euro area and the EU, according to Eurostat.

The statistical office of the EU reported that Cyprus posted an annual increase of 8.2 per cent in total retail trade volume in December 2025 compared with December 2024.

This marked the highest annual rise among all member states for which data were available, placing Cyprus ahead of Bulgaria and Luxembourg.

Across the euro area, retail trade volume fell by 0.5 per cent in December 2025 compared with November 2025, following a modest increase of 0.1 per cent in November.


Ria.city






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