Here are the top business stories in Cyprus from the week starting July 14:
The finance ministry has “absolutely refused” to pay any money to Greece’s independent transmission system operator (Admie) for the Great Sea Interconnector project, on account of the fact that the project is “frozen”, according to reports on Friday.
News website Brief reported that the ministry’s permanent secretary Andreas Zachariades penned a letter to the energy ministry and to Cyprus’ transmission system operator (TSO) ahead of last week’s meeting of the House energy committee – the last before parliament’s summer recess.
At that meeting, the website reported, Energy Minister George Papanastasiou had “tried to justify, in some way, the financial request made by Admie, by saying that the cable laying work is supposedly progressing”, after Admie had asked Cyprus to pay €25 million as part of its obligations regarding the project.
Then, according to the same report, the TSO wrote to the finance ministry and asked to be informed of how the €25m Admie had requested will be spent, and how Cypriot consumers will be affected, given that Admie had asked the Cyprus energy regulatory authority (Cera) to begin charging Cypriot consumers directly to finance the payment.
The EU commissioner for energy has dubbed the Great Sea Interconnector (GSI) a project of “the utmost strategic significance” for Europe, according to media reports on Thursday.
In an interview with Kathimerini newspaper, European Commissioner for Energy and Housing, Dan Jorgensen, said the GSI is “of the utmost strategic significance” for EU infrastructures, as the project would enhance electricity interconnections, facilitating the integration of renewables and helping drive down energy prices, a top priority for Brussels.
The GSI is a planned subsea electrical cable that would link the power grids of Greece and Cyprus, initially, and then the power grids of Cyprus and Israel. Ultimately, the project would establish a bidirectional power link between the three countries, enhancing energy security and enabling the transfer of renewable energy.
Jorgensen went on to say that the European Commission is tangibly backing the project by pledging €657 million – via the Connecting Europe Facility – to the Greece-Cyprus section of the planned interconnector.
At the same time, the Commission is working closely with the involved countries and their respective regulators, providing “technical and institutional assistance”.
Cyprus has strengthened its reputation as a trusted maritime jurisdiction, ranking tenth globally among the world’s largest flag states in 2025 with a fleet totaling 24.4 million gross tonnage, according to the latest Xinhua-Baltic International Shipping Centre Development Index 2025 (ISCDI).
The figure reflects a 2.5 per cent increase from the previous year and highlights Cyprus’ robust regulatory framework, which continues to attract shipowners seeking stability and compliance with international standards.
The Cypriot registry remains one of the largest in the EU and avoids negative regulatory listings, such as the Paris MoU Black List, a classification by the Paris Memorandum of Understanding on Port State Control, which identifies flag states with poor safety and regulatory performance.
Avoiding this list underlines Cyprus’ commitment to safety, environmental protection and labour rights.
An increasingly volatile environment has resulted in investment diversification becoming key in order to boost financial resilience among Cypriot households and businesses, according to Dr Stella Mourouzidou Damtsa, CFA.
In a detailed piece of analysis, she stated that an increasing number of people are asking what they should do with their money.
“It’s a question being asked with growing frequency, from middle-income families to business owners, amid the volatile environment surrounding Cyprus,” she said.
“Ongoing geopolitical instability and a complex global monetary landscape are weighing on investor confidence and long-term decision-making. In times like these, financial resilience is no longer a luxury, it is a necessity,” she added.
Approximately one third of the people in Cyprus are currently struggling to find the money for a weekly get-away, according to new Eurostat data released on Monday.
Specifically, the EU’s statistical service reported that 33.2 per cent of Cyprus residents aged 16 and over were unable to afford a one-week annual holiday away from home in 2024.
While the figure marks a notable improvement compared with previous years, with the figure having stood at 45 per cent in 2019 and 58.9 per cent in 2014, the island continues to rank above the European Union average.
Eurostat reported that 27 per cent of people across all EU member states said they could not afford such a break last year.
The share fell by 1.5 percentage points compared with 2023 and is significantly lower, by 10.6 percentage points, than in 2014, reflecting a decade of steady progress across much of the bloc.
The Ygia hospital, which is already the largest private hospital in Cyprus and fully integrated into the General Healthcare System (GeSY), announced the deal’s completion following all necessary approvals from the Commission for the Protection of Competition.
As of December 31, 2024, GDEV shares were trading at $15.06, giving the company a market capitalisation of $273.4 million and an enterprise value of $135.6 million.
Its last twelve months (LTM) revenue stood at $420.9 million, with LTM EBITDA of $45.1 million.
This translates to an enterprise value-to-revenue multiple of 0.3x for both LTM and next twelve months (NTM), while the EV/EBITDA multiple was 3.5x for LTM and 3.1x for NTM.
Limassol continues to dominate the Cyprus rental market with the highest average asking rent at €3,057 per month in July 2025, while Larnaca offers the most affordable options at €1,277, according to a report from Landbank Analytics.
The report also shows that apartment availability across the island has fallen sharply, with only 1,390 units listed for rent compared to 3,257 in January.
Andreas Christophorides, CEO of Landbank Group, said the analysis highlights notable regional differences in both supply and pricing, noting that July falls within the peak rental demand period, which explains the reduced number of listings across Cyprus, “just 1,390 available apartments,” as he put it.
The decision, delivered on July 10, 2025, upheld the legality of a disputed administrative decision made by the CBC in 2017, which denied retroactive salary adjustments tied to the employees’ acquisition of university degrees and their reclassification under a special pay scale.
The original dispute concerned the employees’ claim that the increments should have been applied retroactively from January 1, 2017.
However, they were instead granted the increase from July 1, 2017, without any backdated pay.
However, Cyprus fell by 14.6 points when compared with 2024, with its score now standing at 84.1.
According to a statement from the Deputy Ministry of Research, “the island continues to excel in creating an attractive research ecosystem, supported by high-level scientific publications, strong public-private collaborations and its growing ability to attract talent from abroad”.
The ministry explained that this year’s revised assessment framework by the European Commission was a key factor in Cyprus’ new ranking.
According to the announcement, the memorandum was signed by Keve president Stavros Stavrou and the CSEO president George Danos.
The chamber explained that the agreement aims to “promote data science, support the development of new technologies and increase public awareness about opportunities in space exploration”.
What is more, the agreement also seeks to “foster educational and social initiatives around the sector“.
The Cypriot banking sector experienced a decline in profitability, an increase in total assets, and a further strengthening of capital adequacy, according to a report from the Central Bank of Cyprus (CBC).
Specifically, the CBC reported on Wednesday that the sector’s profitability fell by €82 million in the first quarter of 2025, dropping from €346 million in March 2024 to €264 million in March 2025.
“This decrease is mainly attributed to a reduction in net interest income,” the central bank said.
Despite the decline in profits, total assets in the banking sector grew by €422 million, a rise of 0.6 per cent, in the first quarter of the year.
Heightened geopolitical instability and mounting global debt levels represent key risks to Cyprus’ financial stability, according to the Central Bank of Cyprus (CBC).
The CBC published its 2024 Financial Stability Report (FSR) on Wednesday, highlighting several medium-term threats to the Cypriot financial system.
These include global uncertainty, inflationary pressures, as well as the impact of climate change and cyber risk on financial institutions.
In a press conference held at the CBC’s headquarters in Nicosia, executive board member Evgenia Christodoulou said the event marked a step towards “establishing the annual publication of the Financial Stability Report as a regular institution to strengthen transparency and build trust between the Central Bank, the public and national institutions”.
Paphos continued its upward trend, posting €485 million in transfer values and a 20 per cent rise in sales documents to 1,653, both for permanent and tourist investment.
The Cyprus Real Estate Agents Registration Council, citing data from the Department of Lands and Surveys (DLS), revealed on Thursday that 8,729 sales documents were filed between January and June, up from 7,553 in the same period last year.
Although transfer volumes edged up just 0.5 per cent, their total value jumped nearly 10 per cent.
“Despite geopolitical tensions and wider instability during the second quarter, the property market has held its momentum and continues to perform remarkably well,” said council president Marinos Kineyirou.
Tourism in Cyprus continued to strengthen in June 2025, with tourist arrivals rising 3.4 per cent year-on-year to reach 498,527, compared to 482,261 in June 2024, according to the state statistical service.
For the first half of the year, tourist arrivals totalled 1,843,013, up 11.5 per cent from 1,652,475 in the corresponding period of 2024.
The United Kingdom remained the largest source of incoming tourists, accounting for 36.4 per cent of arrivals in June 2025, with 181,610 visitors.
This was followed by Poland with 7.3 per cent or 36,616 tourists, Israel with 6.1 per cent or 30,246, Germany with 5.3 per cent or 26,643, Sweden with 4.8 per cent or 23,750, and Romania with 3.4 per cent or 16,860.
Cyprus’ Harmonised Index of Consumer Prices (HICP) rose by 0.5 per cent year-on-year in June 2025, according to figures published by the statistical service on Thursday.
When compared with the previous month, prices increased by 0.4 per cent between May and June 2025.
The annual inflation rate reflects subdued price pressures, as several categories posted declines or only modest increases.
Compared to June 2024, the most significant price increases were observed in recreation and culture, which rose by 7.5 per cent, and in restaurants and hotels, which recorded a 5.5 per cent increase.
According to a statement issued by the association, the meeting was attended by the association’s chairman Yiannis Misirlis, board member Nicolas Karoullas, and general director Mersina Isidorou.
During the meeting, Misirlis underscored the “significant contribution that short-term rentals make to the Cypriot economy and tourism sector“.
He referenced Barcelona as a frequently cited example in the ongoing debate around rental platforms, but argued that the comparison to Cyprus is misleading.
“Barcelona faces a serious problem of overtourism, whereas our country is actually striving to increase tourist arrivals and strengthen its competitiveness” he said.
“Studying in Cyprus is now very expensive, both in terms of housing and tuition fees at private universities,” said Polys Kourousides, president of the Cyprus Property Valuers Association, during an interview on Sigma’s ‘Mesimeri kai Kati’.
He warned that private study costs on the island are approaching those of studying abroad.
“We have reached the point where private study in Cyprus is approaching the cost of studying abroad,” he said, noting that many students are opting for universities overseas due to financial strain.
From subsidiaries and acquisitions to strategic partnerships, more than a dozen Greek companies are now active in Cyprus, tapping into its revenue opportunities and favourable business environment.
Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou participated in the Informal Competitiveness Council of the European Union on Research, which took place in Copenhagen, Denmark, between July 16–17, 2025.
According to an announcement released on Friday, the minister held political discussions with a number of his counterparts.
During these discussions, the minister is said to have “played an active and coordinating role”, serving as rapporteur and “enhancing Cyprus’ contribution to the process of shaping European policy on research and innovation“.
According to Etap, these initiatives form part of a wider action plan for the gradual aesthetic and thematic upgrading of the district, while several complementary projects are already under way.
“We are at the peak of the summer season,” Michaelides told to the Cyprus News Agency (CNA), explaining that July and August are the two main months for the sector.
He added that bookings are expected to continue growing, potentially reaching the levels recorded during the first half of 2025.
According to Michaelides, the United Kingdom, Israel and Poland remain the three key markets for Cyprus tourism.
In addition, he expressed confidence that these countries would perform well again in November, just as they did last year.
However, he cautioned that it is “quite difficult to make predictions” about how the season might end, pointing out that unexpected developments could alter the outlook at any moment.
Cyprus’ working life expectancy has climbed to 39 years, placing the island well above the EU average of 37.2 years in 2024, according to Eurostat data released on Friday.
The figure reflects the expected average duration of working life for people aged 15 and over.
Eurostat reported that men in Cyprus are expected to spend 41.6 years in the labour market.
At the same time, women’s working life is estimated at 36.3 years, resulting in a gender gap of 5.3 years.
By contrast, in neighbouring Greece, working life expectancy remains significantly lower at 34.8 years. Greek men are expected to work for 36 years, while women’s participation is markedly lower at just 31.1 years.
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