A shop selling radio-controlled toys went up in flames early on Friday morning in Strovolos, Nicosia.
The fire service was alerted to the fire in Irakleous street at 4.18am and brought the blaze under control by 6am.
The shop contained highly flammable liquids and it was feared that the blaze would spread to the first floor of the building and a kiosk next door. It was eventually put under control before spreading farther.
Authorities were investigating whether the fire had been set deliberately.