Here are the top business stories in Cyprus from the week starting November 11:
Two in three Cypriots place a high priority on adapting to climate change, according to the European Investment Bank’s (EIB) annual climate survey. “Climate change is an undeniable reality that requires immediate action,” said EIB vice president Kyriacos Kakouris.
“The fact that Cypriots explicitly recognise the need to adapt their way of life reflects a profound understanding of the situation,” he added. Despite ranking climate change third among the challenges facing Cyprus—after the cost of living and migration—Cypriot survey participants widely acknowledged the need to adjust their lifestyles in response to climate impacts.
Similarly, challenges of a different kind were recently resolved in the banking sector. Hellenic Bank and bankers’ union Etyk have signed a new collective agreement, according to an official announcement released on Monday. “This agreement brings to an end a prolonged period of unnecessary and damaging disputes, which had caused numerous issues and uncertainty for the future of both the bank and its staff,” said Etyk in a statement following the signing.
This agreement builds on a preliminary accord which was reached with the mediation of Labour Minister Yiannis Panayiotou. Etyk’s honourary president Loizos Hadjicosti signed on behalf of the union, while Hellenic Bank CEO Michalis Louis signed for the bank. According to Etyk, the new accord will “immediately improve relations between the two sides.” The union added that the signing “provides a foundation for future negotiations for the renewal of the collective agreement between Etyk and the Association of Cyprus Banks.”
In the realm of education and professional development, the Cyprus Chamber of Commerce and Industry (Keve) on Tuesday released a public invitation to professional trainers who want to participate in EULEP’s Train-the-Trainers (TtT) sessions. EULEP refers to the European Learning Experience Platform, which brings together 20 organisations from 8 countries under the leadership of Eurochambres, the Association of European Chambers of Commerce and Industry.
This initiative, implemented in collaboration with the Centre for Social Innovation (CSI), is co-funded by Erasmus+, the EU’s programme to support education, training, youth and sport in Europe. In total, the programme has an estimated budget of €26.2 billion. Keve said that the goal of this project is to promote “lifelong learning and professional development across Europe.” Moreover, the chamber said that the “TtT programme is open to trainers of all levels who wish to expand their expertise in Artificial Intelligence (AI), Virtual-Mixed Reality (VR), and Social Innovation (SI).”
Meanwhile, Cyprus’ financial sector has also reported significant achievements. The Bank of Cyprus (BoC) on Tuesday reported a profit after tax of €401 million for the first nine months of 2024, representing a 15 per cent increase year-on-year.
According to the bank’s latest financial results, €131 million of this amount was generated during the third quarter. “We continue to generate strong financial and operational results and are well positioned to deliver sustainable earnings as economies transition to a declining interest rate environment,” said group CEO Panicos Nicolaou.
Adding to this sense of momentum, Cyprus is also gaining recognition as a filming destination, supported by strategic efforts from Invest Cyprus to draw high-profile productions to the island.
According to the investment promotion agency, there are 13 major projects currently underway. The current slew of projects includes six films, six reality shows, and an English TV series, highlighting the impact of Cyprus’ audiovisual industry programme, which was initiated by Invest Cyprus. “We could not have imagined this a year ago,” Lefteris Eleftheriou, director and head of filming at Invest Cyprus, told local outlet InBusinessNews. Productions include a feature from ‘Find Me Falling’ director Stelana Kliris, a South African-Cypriot writer, director, and producer, as well as projects from Germany, France, Israel, and reality shows backed by major Scandinavian companies.
Further underscoring Cyprus’ growing influence in international markets, “Cyprus has gone from zero to over 330 licensed investment entities managing €9 billion in assets in just a decade,” according to Maria Panayiotou, president of the Cyprus Investment Fund Association (CIFA).
Speaking at the 5th Fund and Asset Management Conference in Athens, Panayiotou attributed this growth to “relentless effort and strategic vision.” She added that “we now have over 330 licensed entities—collective investment management companies and schemes—with most assets under management classified as Alternative Investment Fund Managers (AIFMs),” crediting this to “systematic and hard work, in cooperation with the Supervisory Authority and all stakeholders.” She noted that Cyprus has established itself as a key centre for AIFs, attracting investors seeking higher-risk, specialised opportunities.
In a related development, the Cyprus Securities and Exchange Commission (CySEC) on Wednesday announced that Crypto-Asset Service Providers (CASPs) in Cyprus can now apply for a preliminary assessment under the EU’s Markets in Crypto-assets Regulation (MiCAR).
This aims to ensure a smooth transition ahead of the regulation’s full implementation on December 30, 2024. The commission explained that “the decision by CySEC to implement a preliminary examination phase for MiCAR, also allows its authorised entities to notify the regulator of their intention to provide crypto-asset services.” It noted that both the application and notification forms are available on CySEC’s website. “This initiative is designed to ensure a smooth transition to MiCAR which represents a major step forward for the protection of investors in financial markets,” said CySEC chairman George Theocharides.
The association, which conducted the survey with funding from the Energy Ministry, reported that, despite slight service improvements, many establishments have reduced portions and quality, leading to mixed customer experiences. “Encouragingly, in 2024 compared to 2023, there is a marked improvement in the picture of services offered in food,” the report said. “This may be due to the publicity given to the 2023 assessment,” it added. Yet the report suggested that many issues could be resolved by owners at no extra cost, emphasising the importance of consistent service standards. The survey, conducted from May to September 2024 through 200 mystery shopping visits across Cyprus, recorded a broad range of experiences, both positive and negative.
In the innovation sector, Energy technology firm EnergyIntel recently hosted Chief Scientist and Research and Innovation Foundation (RIF) president Demetris Skourides, according to an announcement released on Wednesday.
Skourides visited the company’s headquarters to discuss their achievements under the foundation’s Disrupt programme. During the visit, Skourides emphasised the “crucial role of collaboration and mutual support in fostering innovation in Cyprus.” The announcement stated that this visit highlighted the government’s support for “maximising the impact of grants” by fostering productivity and innovation within key local companies. EnergyIntel secured a €1.5 million Disrupt grant as well as an additional €1 million in equity capital.
According to an official announcement from the ministry, Hadjimanolis will participate as a speaker at the Hong Kong Global Maritime Trade Summit, discussing issues related to global maritime trade. During her time in Hong Kong, the Cypriot minister will engage with local authorities, shipping companies, and representatives from both the regional and international maritime community. She is also scheduled to attend events held as part of Hong Kong’s Maritime Week, which brings together industry leaders from across the world.
Turning to domestic developments, the director general of the Finance Ministry and the Interior Minister reassured the House internal affairs committee about recent concerns regarding the regulations for facilitating strategic development projects.
During a parliamentary briefing held as part of an ongoing discussion on the new regulatory framework, officials from the finance and interior ministries proposed several modifications to address the committee’s reservations. Key concerns among committee members centred on the primary funding sources for strategic developments. Specifically, questions were raised about whether these projects could be financed through loans or share issuance. In response, the Finance Ministry clarified that both methods—borrowing capital and issuing shares—are standard and vital sources of funding for large-scale investments.
Cyprus’ economy grew steadily in the third quarter of 2024, with GDP rising by 3.9 per cent year-on-year, according to a flash estimate released on Thursday by the state’s statistical service. This growth was primarily driven by robust activity in hotels and restaurants, wholesale and retail trade, repair of motor vehicles, information and communication, and construction. Moreover, seasonally and working day-adjusted data showed similar growth, with a rate of 3.8 per cent.
Highlighting the importance of strategic planning in volatile markets, Hellenic Bank has underscored the significance of long-term investment strategies.
Speaking at the first Where to Invest Forum 2024, organised by the bank as part of its commitment to fostering sound investment principles, wealth and investment services manager Michaella Savva stressed that investors should maintain a strategic, long-term focus. “In a fast-evolving market with rapid shifts and geopolitical tensions, a strategic, long-term perspective is not just advisable but essential,” Savva stated. Furthermore, Savva also discussed “megatrends” influencing today’s markets, encouraging investors to diversify across assets, regions, and markets. “At Hellenic Bank, we encourage diversification across assets, geographical regions, and thematic sectors, helping our clients to build resilient portfolios that can respond to modern market challenges,” stated Savva.
The report, which reviewed data from the Department of Lands and Surveys from January to September 2024, shed light on variations in the pricing of new houses and apartments in Cyprus. According to the report, there was a decrease in average sale prices in Nicosia, despite a rise in the number of new residential sales this year. The average apartment price fell by 2.9 per cent to €198,421, while new houses experienced a slight drop of 0.56 per cent, averaging €309,440.
In a testament to the growing role of Cypriot startups, EMBIO Diagnostics, a Cypriot startup based in Nicosia and specialising in rapid diagnostic technologies for food safety and air quality, has secured €2.5 million in funding to drive international growth and expand its product range.
Founded in 2016, EMBIO Diagnostics has advanced sustainability and diagnostic innovation, focusing on industries such as food safety, environmental research, and air quality testing. CEO Constantinos Loizou explained that while the company initially prioritised pesticide detection in food, limited innovation in this area prompted a shift towards more impactful applications like Salmonella and Listeria detection. The latest €2.5 million funding round was led by Kinisis Ventures, with participation from existing and new investors, including a prominent athlete based in Greece. This follows a €1 million seed round raised in 2021 from Asbis Enterprises. According to Loizou, “The new funds will be used to promote the company’s product range internationally.”
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