Cyprus Business Now: weekly wrap-up

Here are the top business stories in Cyprus from the week starting March 11:

REALTYon, the only event in Cyprus dedicated to the entire property industry, is returning for its second edition, with a further-reaching direction and an exciting agenda of topics. Scheduled to take place over July 3-4, 2024, at Cyprus’ iconic City of Dreams Mediterranean Integrated Resort, the premier real-estate event promises to be even bigger than last year. With 80 per cent of the expo floor sold out and the floor plan being expanded at press time, REALTYon has already attracted a significant number of property business leaders.

In a related development, the Deputy Minister of Shipping, Marina Hadjimanoli, emphasised Cyprus’ commitment to attracting young people to the maritime profession as well as more women, as part of its effort to enhance diversity. This initiative underscores the broader efforts across sectors in Cyprus to foster growth and inclusivity.

Meanwhile, Cyprus saw a significant reduction in its trade deficit, which stood at €566.5 million in January 2024, according to the Cyprus Statistics Service Cystat. This marked decline compared to €1.419.9m in January 2023 is attributed to a major decrease in the value of imported goods, highlighting the nation’s improving economic landscape.

Furthermore, in the realm of fiscal policy, Eurozone finance ministers have decided to gradually phase out energy support measures in 2024 in favor of fiscal prudence, aimed at reducing government deficits. This decision, emphasised at Monday’s Eurogroup meeting, aligns with Cyprus’s conservative fiscal approach, further stabilising the economic environment.

Expressing satisfaction with this direction, Finance Minister Makis Keravnos highlighted that Cyprus’ conservative fiscal policy and efforts towards transitioning to the green and digital economy are in harmony with the Eurozone’s fiscal policy orientation for 2025. This synergy validates Cyprus’s strategic economic policies.

Amid these developments, the Cyprus economy has showcased its strong resilience, recording one of the highest growth rates in the European Union, as noted by Dr. Giorgos Mountis, CEO of Delfi Partners. The country’s strategic monetary policy decisions have been successful in containing inflation, further testament to its economic stability.

On the tourism front, the Famagusta Tourism Board (Etap) and businesspeople of the district participated in the “ITB BERLIN 2024” international tourism exhibition, aiming to promote bookings in Germany. Despite the challenges faced by the German economy, there is moderate optimism for maintaining tourist flows, highlighting the importance of the German market for Cyprus tourism.

In the banking sector, Eurobank has surpassed initial expectations with its financial results for the year 2023, setting the stage for a robust business plan spanning 2024 to 2026. The bank’s board of directors will be meeting in Cyprus, reflecting the island’s growing importance to the bank’s forward-looking vision and regional ambitions.

Cablenet has achieved double-digit revenue growth, with a 16.2 per cent increase in 2023. This growth is largely attributed to the ongoing expansion of its total subscriber base, demonstrating the company’s strong performance in the telecommunications sector.

Addressing the challenges of digital and business transformations, Andreas Papadopoulos, Workforce Transformation and Consultant at PwC Cyprus, highlighted the high failure rate of such initiatives. This underscores the need for organisations to navigate the balance between future preparedness and current operations, emphasizing the importance of addressing key challenges for successful transformation.

In the shipping industry, the Cyprus Shipping Chamber (Kne) held a meeting focused on the regulatory framework governing the EU Emissions Trading System (EU ETS), which came into effect on January 1, 2024. This meeting aimed to examine the new obligations imposed on shipping companies, reflecting the sector’s commitment to environmental compliance.

Moreover, the Consumer Protection Service (CPS) and the Advertising Control Agency (ACA) signed a 5-year memorandum of understanding (MoU), aiming to inform consumers about the commercial pursuit of posts published by influencers on various social media platforms. This agreement highlights the efforts to ensure transparency and protect consumers in the digital age.

In efforts to bolster trade and resolve the Cyprus problem, the Cyprus Chamber of Commerce and Industry (Keve) president Stavros Stavrou, along with members of the chamber’s executive committee, met with the UN Secretary-General’s recently appointed envoy to Cyprus, Maria Angela Holguin Cuellar. The discussions focused on regulating green line trade and exploring development prospects as catalysts for resolving the longstanding issue.

However, Paphos hoteliers are pessimistic about the volume of guests in the coming weeks, citing low visitor numbers based on current reservations. This sentiment reflects the challenges faced by the tourism sector, despite efforts to promote Cyprus as a prime destination.

In a significant move towards increasing its loan portfolio, the Bank of Cyprus announced the acquisition of a restructured loan portfolio with a total gross accounting value of €58.4 million. This represents a strategic step for the bank, underscoring its commitment to growth and stability.

Lastly, the 16th evaluation of Cyprus’ post-memorandum economic situation is set to commence, providing an extensive review of the island’s public finances, economic prospects, and challenges. This evaluation is crucial for assessing the progress and setting the course for future policies.

In the real estate sector, the platform INDEX highlighted Larnaca as a key destination for investors and homebuyers, based on a recent analysis. This insight into the local property market underscores the opportunities for profitable ventures, reflecting the dynamic nature of Cyprus’ real estate landscape.