Cyprus business & economy wrap-up from the day before

The Research and Innovation Foundation (RIF) on Friday announced the signing of a strategic memorandum of understanding (MoU) with Tenstorrent, a firm specialising in AI hardware and open computing solutions.

“This MoU will significantly strengthen Cyprus’ position in the fields of AI, high-performance computing, and digital sovereignty,” the RIF said in its announcemnet.

The signing ceremony took place at the Presidential Palace on Friday, following a high-profile meeting between President Nicos Christodoulides and Jim Keller, Chief Executive Officer (CEO) of Tenstorrent.

The MoU was signed by Chief Scientist and RIF board chairperson Demetris Skourides, and Tenstorrent CEO Jim Keller.

The Central Bank of Cyprus (CBC) on Friday reported that the overall increase in house prices continued during the second quarter of 2025, driven largely by accelerated demand for apartments.

The CBC’s latest House Price Index (HPI), which covers both houses and apartments, recorded a year-on-year increase of 4.7 per cent in the second quarter of 2025, a slight deceleration from the 4.8 per cent rise seen in the first quarter of the year.

Quarter-on-quarter, the general index rose by 1.5 per cent, which was also a slight slowdown from the 1.9 per cent quarterly increase in the first quarter of 2025.

The overall trend was a result of sharply contrasting movements between the two property types, with apartment prices accelerating while house prices slowed down.

Cyprus registered the lowest inflation rate in the European Union in September 2025, with annual consumer prices remaining unchanged at 0.0 per cent, according to the latest figures released by Eurostat on Friday.

Across the euro area, annual inflation rose to 2.2 per cent in September, compared with 2.0 per cent in August.

A year earlier, the rate had stood at 1.7 per cent, reflecting a continued upward trend in price pressures across the bloc.

Within the European Union, the annual inflation rate increased to 2.6 per cent in September 2025, up from 2.4 per cent in August, while a year earlier, it was recorded at 2.1 per cent.

Cyprus, with a rate of 0.0 per cent, recorded the lowest inflation level among all member states, followed by France at 1.1 per cent, and Italy and Greece at 1.8 per cent.

Tourist arrivals in Cyprus increased by 12 per cent in September 2025, reaching 570,635 visitors compared with 509,463 in the same month last year, according to a report released on Friday by the Cyprus Statistical Service (Cystat).

For the period of January to September 2025, total tourist arrivals reached 3,604,790, up 10.3 per cent from 3,268,090 in the corresponding period of 2024, confirming the continued strength of Cyprus’ tourism sector.

The United Kingdom remained the leading source market, accounting for 31.4 per cent of total arrivals or 179,293 tourists.

The UK was followed by Israel with 14 per cent (80,115 arrivals), Poland with 7.9 per cent (45,019), and Germany with 6 per cent (34,348).

Sweden accounted for 3.6 per cent (20,570), followed by Romania with 3.1 per cent (17,975), and Greece with 3 per cent (17,217).

The Central Bank of Cyprus (CBC) released an updated report on the country’s non-performing loans (NPLs), showing that a further decline in the NPL ratio was recorded in July.

Based on the figures for non-performing exposures (NPEs) as of July 31, 2025, the ratio of NPEs to total loans fell to 5.5 per cent, down from 5.6 per cent at the end of June and 6.2 per cent at the end of 2024.

The total stock of NPLs stood at €1.44 billion, showing a small decline compared with the previous month’s figure of €1.46 billion, and a notable decrease on an annual basis.

At the same time, total loans increased slightly to €26.0 billion from €25.8 billion in June, a development that also contributed to the improvement of the ratio.

Loans with delays exceeding 90 days remained stable at €1.15 billion, representing 4.4 per cent of the total, indicating stabilisation in the quality of the loan portfolio.

The Cyprus Securities and Exchange Commission (CySEC) on Friday reported that the number of Management Companies and Undertakings of Collective Investments (UCIs) reached 319 during the second quarter of 2025.

At the same time, CySEC’s quarterly statistics bulletin also showed that assets under management (AUM) recorded a slight decrease to €10.6 billion.

The commission stated that it supervised 319 Management Companies and UCIs during this time, compared to 328 in the same period of the previous year, representing a decrease of 2.74 per cent.

The total number of 319 entities included 222 Externally Managed UCIs, 30 Internally Managed UCIs, and 67 External Fund Managers.

Astrobank Public Company Ltd has reduced its stake in Atlantic Insurance Company Public Ltd from 5.23 per cent to 4.85 per cent, according to a relevant announcement.

Atlantic Insurance announced that it was informed on the afternoon of October 16, 2025, by Astrobank that the bank’s voting rights in the company had decreased.

Following the change, Astrobank now holds 1,887,918 shares in the insurer’s share capital.

Cyprus has emerged as the European Union (EU) leader for tourism growth in 2024, registering the highest year-on-year growth in overnight stays among all member states, according to Eurostat.

The EU’s statistical office on Friday reported that Cyprus saw a significant increase of 14.5 per cent in the number of nights spent in its tourist accommodation establishments compared with 2023.

This figure was narrowly ahead of Malta, which registered the second-highest growth rate at 14.4 per cent.

Latvia followed at a distance, registering a 7.4 per cent growth rate compared with 2023.

The Consumer Price Index (CPI) in Cyprus remained unchanged in September 2025 compared with September 2024, according to data released on Friday by the state statistical service.

On a monthly basis, the index recorded a decrease of 0.4 per cent compared with August 2025, reaching 119.39 units from 119.88 units.

Compared with September last year, the largest increases were recorded in recreation and culture, which rose by 5.6 per cent, and restaurants and hotels, up 4.9 per cent.

In contrast, clothing and footwear declined by 7.2 per cent, while housing, water supply, electricity, gas and other fuels fell by 3.8 per cent.

Among the major consumption categories, food and non-alcoholic beverages stood at 128.06 units, marking a 1.1 per cent monthly increase and a 1 per cent rise for the first nine months of 2025 compared with the same period of 2024.

Demetra Holdings Plc on Friday announced that it has carried out a buyback of 7,300 own shares through the Cyprus Investment and Securities Corporation Ltd (CISCO).

According to a disclosure submitted to the Cyprus Stock Exchange (CSE), the transaction took place on October 16, 2025, at an average price of €1.66 per share.

This is in line with the authorisation granted by the company’s annual general meeting on June 24, 2025.

Top App Games, a Cyprus-based company specialising in mobile game development, has announced a special in-game collaboration between its popular strategy title, Ludus: Merge Arena and MMA fighter Alexander Volkov.

The announcement comes just days before Volkov enters the octagon at UFC 321. The new character will officially launch in-game on October 22.

The collaboration features Volkov as a fully playable, limited-time hero card in Ludus, with the design incorporating input from the athlete himself.

Global mergers and acquisitions in 2025 tell a story of contrasts, with fewer deals being struck but total values soaring, reflecting a market driven by concentration rather than volume, according to Panikos Teklos, founding partner at services firm XPADIA.

In the first half of the year, Teklos mentioned in a recently-published analysis piece, worldwide volumes fell by nearly 9 per cent compared with 2024, yet total deal value rose by around 15 per cent.

This, he said, is not a story of decline but of concentration. Boards and investors are pursuing fewer but more ambitious opportunities, particularly in financial services, asset management, and technology. 

He explained that asset and wealth management has become one of the fastest-growing hotspots, with deal value up more than 70 per cent year-on-year by mid-2025.  

The Cyprus Securities and Exchange Commission (CySEC) this week announced a further extension to its decision to prohibit Igor Gutinskiy, the sole director of the Cyprus Investment Firm (CIF) Otkritie Broker Ltd, from exercising management duties on the company’s board of directors.

CySEC had originally imposed a two-year prohibition on Gutinskiy, which was set to take effect after six months.

This follows earlier announcements on April 12, 2023, October 23, 2023, April 8, 2024, and October 2, 2024, regarding this decision.

Ancoria Bank has announced a new interest rate of 1.50 per cent per annum for six-month Fixed Term Deposit Accounts, available to individuals and small to medium-sized enterprises (SMEs).

The offer applies to new six-month deposits as well as to renewals upon maturity, with a minimum deposit amount of €500.

According to the bank, the product is available both digitally through the myAncoria platform and at the bank’s physical banking centres located in Nicosia, Limassol, and Larnaca.

The new rate provides a fixed annual yield of 1.50 per cent, offering a short-term savings option for customers seeking stability.

Cyprus participated in the ANUGA 2025 international food and drink exhibition, held in Cologne, Germany, from October 4 to October 8, 2025, with a national pavilion featuring more than 30 Cypriot businesses.

The state participation was organised by the Ministry of Energy, Commerce, and Industry, in collaboration with the Cyprus Commercial Centre in Berlin, according to an announcement released by the ministry this week.

The pavilion proved to be a major draw for a significant number of visitors and industry professionals from around the world.

The Cypriot companies that took part in the exhibition presented the unique flavour and quality of Cypriot products, which included halloumi, olive oil and olives, honey, sweets, bakery products, salt, juices, and soft drinks.

President of HOTREC and the Hellenic Chamber of Hotels Alexandros Vassilikos has emphasised the importance of adapting to modern trends while preserving authenticity.

Speaking to the Cyprus News Agency (CNA) during his visit to Paphos for the 91st general assembly of HOTREC, Vassilikos said that this balance is what will continue to distinguish Europe from other emerging destinations.

“This is the secret which will keep us differentiated from other emerging destinations that exist today,” he said.

Drawing a comparison, Vassilikos said that in the Middle East there are destinations adding half a million hotel rooms within five years.

“These developments will change the map of global tourism,” he explained.

It is vital, he stressed, to know our identity, strengthen it, and invest in it for the next generations, adding that this will define “the success of the European tourism product in the future.”