Cyprus and the United Arab Emirates (UAE) have taken a significant step in boosting bilateral economic relations with the launch of a joint business council reflecting a sharp rise in non-oil trade, officials said on Saturday.

Speaking at a business forum in Nicosia, UAE trade minister Thani bin Ahmed Al Zeyoudi said non-oil trade between the two countries reached $176 million in the first nine months of this year.

This represents almost a 40 per cent increase compared with the same period last year, nearing the total value recorded in 2024.

The agreement establishes the UAE-Cyprus Joint business and investment council to promote structured cooperation between businesses and investors.

Al Zeyoudi described the meeting as an opportunity to explore synergies in sectors of mutual interest.

He highlighted recent initiatives demonstrating closer ties, including the launch of the Cyprus business council in Dubai last month, aimed at strengthening private sector collaboration in finance, green technology, tourism and logistics.

He also noted that Investopia, an investment platform from the UAE, held its first international events in Cyprus in June, reflecting Cyprus’ role as a gateway to Europe for Middle Eastern investors.

Al Zeyoudi said the economic models of Cyprus and the UAE are similar, citing streamlined company registration processes, incentives for innovation and research, and low corporate tax rates.

He added that both countries are key hubs for shipping and fintech and continue to attract foreign direct investment in real estate, technology, and renewable energy.

He encouraged UAE companies to explore opportunities in Cyprus and urged Cypriot businesses to view the UAE as a base for regional expansion, including access to Asia and the wider Middle East.

Commerce Minister Michael Damianos called the MoU a “major step forward” for institutionalising economic cooperation.

He said the council will provide a structured platform for companies, investors, and innovation bodies to collaborate more systematically, facilitating knowledge exchange, joint ventures, and cooperative projects.