Cyprus Business Now: tourism, public debt, shipping, inflation, real estate
Addressing the audience at the opening of the international investment conference of the Great Britain Cyprus Business Association (GBCY) in Limassol, he stated that their presence represented “a clear vote of confidence in Cyprus as a reliable, resilient and competitive international business centre,” highlighting the importance of continued engagement with global investors.
He also expressed the government’s appreciation for their contribution to expanding Cyprus’ economic reach and creating new investment opportunities on the island.
Referring to the role of capital inflows, he stressed that foreign direct investment remains a cornerstone of economic growth, particularly for smaller economies.
“For a small, open economy like Cyprus, they are not simply important, they are essential,” he said.
He explained that investment inflows directly enhance economic resilience, while also strengthening productivity and competitiveness among domestic businesses.
In its annual report on the Cypriot real estate market, the company set out the main developments and trends that shaped the sector in 2025, while noting that the findings relate to market activity before the outbreak of the war in the Middle East.
This landmark performance saw the market reach new highs in both volume and value, with the total value of properties transacted rising by 8 per cent from €6bn in 2024.
The total number of transactions increased by 4 per cent to 25,600, while the average monthly transaction value climbed to €543 million, emphasising the market’s continued strength.
According to the IMF’s April 2026 Fiscal Monitor, Cyprus is projected to record a net lending position of 2.64 per cent in 2026, down slightly from 2.99 per cent in 2025 and projected to ease further to 2.5 per cent in 2027.
The country’s primary balance is also expected to remain strongly positive, reaching 3.72 per cent of GDP in 2026, compared with 4.07 per cent in 2025 and 3.62 per cent in 2027.
At the same time, the cyclically adjusted balance is forecast at 1.88 per cent of potential GDP in 2026, compared with 2.02 per cent in 2025 and 1.86 per cent in 2027.
Even if calm returns in the coming days, however, there is a growing sense within the sector that part of the loss has already been done.
For many in the industry, repeating last year’s record arrivals and tourism revenues now looks increasingly out of reach.
The difficulty lies not only in the conflict itself, but in when it erupted.
For a large share of European travellers, the early spring period is when summer holiday decisions are made.
Speaking at the opening of the 4th European Maritime Space Forum in Limassol, Vafeades said the need for a reliable, robust and interconnected European transport network had become even more pressing at a time of heightened geopolitical tensions and repeated disruptions to global supply chains.
“The need for a reliable, robust and interconnected transport network has never been more evident,” the minister said, adding that maritime links are fundamental to the stability and resilience of Europe’s wider transport system.
He described shipping as being “at the heart” of European connectivity and cohesion, rather than a regional component of the bloc’s transport framework.
Specifically, the data showed that Cyprus matched the second-lowest inflation rate in the EU, alongside Sweden and the Czech Republic, while only Denmark posted a lower rate at 1.0 per cent.
Across the euro area, annual inflation reached 2.6 per cent in March 2026, rising from 1.9 per cent in February, while in the wider European Union it increased to 2.8 per cent from 2.1 per cent the previous month.
A year earlier, inflation had stood at 2.2 per cent in the euro area and 2.5 per cent in the EU, highlighting a renewed upward trend in price pressures.
In a circular sent to affected members, Oev said the Labour Ministry had provided further information on the application process and the procedures that businesses must follow in order to be included in the scheme.
It added that the ministry is expected to announce within the coming week when applications will open.
According to Oev, applications will be submitted through the Ergani information system, using the access codes that companies already hold for recruitment, termination and employment terms procedures.
The event, organised by the Energy Ministry, in cooperation with the European Commission’s DG Trade & Economic Security and the Cyprus Chamber of Commerce and Industry (Keve), took place at the Limassol Chamber of Commerce and Industry (Evel).
According to the organisers, the Cyprus Market Access Day 2026 was held for the first time on the island and focused on helping Cypriot businesses better understand EU trade policy, make practical use of Free Trade Agreements, and access European Commission tools aimed at removing trade barriers and supporting exports.
Skourides, serving as Chief Scientist for Research, Innovation and Technology of the Republic of Cyprus, represented the country as an emerging hub for deep-tech innovation during the event held at Marina Bay Sands.
According to an announcement released on Thursday, his participation highlighted Cyprus’ growing role in global dialogue on AI governance, digital identity and cybersecurity challenges.
At the event, he took part in two fireside discussions addressing the dual challenges of rapid AI deployment and the erosion of digital identity.
In the first session, titled “The AI Safety Paradox Can Companies Win the Innovation Race Without Creating the Next Global Risk,” Skourides joined journalist Norman Goh of Nikkei Asia to explore the complexities of scaling artificial intelligence systems.
He explained that as organisations transition towards Industry 5.0, AI systems are increasingly evolving into autonomous agents influencing human behaviour and critical infrastructure.
The distinctions highlight the growing importance of technology-led innovation in European investment services, where scale, speed and regulatory rigour are increasingly shaping market leadership.
The company received awards for Most Innovative Digital Trading Platform 2026 and Most Innovative Integrated Investment Platform 2026, both attributed to Tradernet, as well as Most Innovative AI-Driven Compliance Technology 2026, awarded to Neo Compliance.
The meeting, scheduled for April 23 and 24, 2026, will be hosted by president Nikos Christodoulides in Nicosia and Ayia Napa, bringing together EU heads of state and government at a critical moment for the bloc.
Von der Leyen said the conflict has already had a severe impact on the European economy, particularly through rising energy costs.
“For 44 days now, once again the Middle East has been engulfed in war, and these past six weeks have reminded us that peace cannot be taken for granted,” she said earlier this week.
At the same time, the average interest rate for new household term deposits of up to one year reached 1.19 per cent, remaining lower than the eurozone average of 1.78 per cent.
According to the central bank, the lowest interest rate for new mortgage contracts regardless of initial rate fixation period was offered by the National Bank of Greece at 2.01 per cent.
The highest rate for new housing loans was recorded at 5.14 per cent by Societe Generale, marking a significant variation across institutions.
Among the strongest performers, Threedium posted its best opening quarter on record, surpassing $500,000 in new licence revenue for the first time.
The company also built a pipeline exceeding $10 million and used NVIDIA GTC to announce its Agentic Product Brain, pointing to further growth in AI-driven commerce tools.
Elsewhere, Autonomics moved further into live hospitality deployments, with its technology now operating at the Four Seasons Astir Palace and Astir Marina in Athens.
According to the chamber, the discussions brought together representatives from Mediterranean regions, with the Paphos body saying its participation reflected its commitment to promoting quality and innovation in the industry.
The meetings focused on the exchange of best practices and experience, with particular attention given to quality issues, chemical analysis and the identification of olive oil varieties.
Participants also visited local olive mills, gaining first-hand insight into production processes and linking technical discussions with on-the-ground application.
The solution is designed to reduce checkout friction and improve authorisation rates, while delivering a faster and more secure payment journey for customers.
The technology replaces manual card number entry with a token-based checkout system, allowing users to complete transactions without repeatedly entering their card details.
Once a card is enrolled, customers can complete purchases in just a few clicks, mirroring the ease of contactless payments used in physical stores.
This approach maintains strong security standards through network tokenisation, while simplifying the overall checkout process.
The meeting took place in the presence of Acting Deputy Chief of Mission at the US Embassy Shane Siegel, bringing together government and business stakeholders for what was described as a constructive and forward-looking exchange.
Discussions centred on competitiveness, regulatory effectiveness and public–private cooperation, as well as Cyprus’ positioning as a credible and stable partner in the region.
Particular emphasis was placed on strengthening international partnerships that can support sustainable growth and innovation within the Cypriot economy.