Cyprus services sector shows growth in 2025

The services sector in Cyprus showed an improvement in 2025, to data published by the Employers and Industrialists Federation (OEV) on Sunday revealed.

“The data confirm the decisive role of the services sector as a key pillar of the Cyprus economy, enhancing its contribution to the growth, employment and international competitiveness of the country,” OEV said.

According to the published data, an increase of 9.5 per cent was recorded in Accommodation and Food Services, 7.4 per cent in Administrative and Support activities, and 4.6 per cent in Professional, Scientific and Technical Activities. In addition, an increase of 4.3 per cent was recorded in the Information and Communication sector, 2.8 per cent in Transport and Storage Activities and 0.4 per cent in Real Estate Management.

OEV reported that tourism had a particularly successful year, reaching historical highs.

Total tourist arrivals reached 4,534,073 visitors, an increase of 12.2 per cent on the previous year.

In December alone last year, arrivals totalled 156,959, an increase of 18 per cent over the same month the previous year.

“The continuous increase in tourist arrivals throughout 2025, together with the strengthening of revenues, reflects the strong outlook of tourism for the Cypriot economy and further strengthens the image of Cyprus as an attractive, competitive tourist destination throughout the year,” OEV said.

Regarding the digital transformation of Cypriot businesses, OEV said it continued to play an active and substantial role in 2025, implementing a series of actions and initiatives aimed at accelerating the digital transition and enhancing innovation.

“Its active participation in the DiGiNN Cyprus Digital Innovation Hub, an innovative, co-funded project aimed at the digital upgrading of businesses and the development of modern digital skills, continues to be important for OEV,” the federation said.

Through targeted training, guidance and support actions, the project contributes to the adoption of new technologies and the enhancement of the operational efficiency of businesses. OEV’s contribution focuses on promoting cooperation between businesses and institutional bodies, as well as taking advantage of the digital opportunities created by technological development.

As part of its overall strategy for digital transformation, OEV in 2025 established a Digital Transformation and Innovation Committee in addition to organising a business mission of Cypriot IT companies to Qatar, with the aim of exploring new markets and partnerships,

“OEV continued to act as a catalyst for digital maturation, strengthening the competitiveness of Cypriot businesses and contributing to the formation of a modern, resilient and innovative production model,” OEV said.

OEV data showed that 2025 was a year of strong presence and resilience for Cypriot shipping, with developments that continued to strengthen Cyprus’ position on the international shipping map. Shipping contributed about seven per cent to Cyprus’ GDP during the year.

The Cyprus Registry continued to record a significant increase in the total tonnage of registered vessels, reaching the highest level in the last two decades, with an increase approaching 20 per cent in total tonnage in recent years.

“As a result, Cyprus maintains one of the strongest positions internationally in the shipping sector, with the Cypriot fleet being among the largest in the world and among the leading flags of the European Union,” OEV said.

OEV said that realising the significant contribution of the services sector to the Cyprus economy, last year it proceeded with a series of initiatives including conferences, workshops and exhibitions, with the aim of strengthening businesses in various sectors.