Here are the top business stories in Cyprus from the week starting June 29:
Speaking to the Cyprus News Agency (CNA), Michaelides said hotels and other tourist accommodation in Paphos would normally expect occupancy levels to be above 90 per cent during the peak summer months of June, July and August.
This year, however, occupancy is closer to 70 per cent, leaving a sizeable gap at what should be one of the strongest periods for the district’s tourism industry.
Although bookings have shown some improvement, particularly through last-minute reservations, Michaelides said “the increase has not been enough to bring the market back to normal seasonal levels.”
Speaking on behalf of President Nikos Christodoulides at a shipping symposium in Limassol, Hadjimanolis said shipping had always been “much more than just another economic sector” for Cyprus.
Rather, she said, it remains “a driver of economic growth, a pillar of stability and, above all, a bridge connecting economies, societies and continents”.
The symposium was held under the auspices of the Deputy Ministry of Shipping, the Limassol Chamber of Commerce and Industry (Keve), the Cyprus Shipping Chamber (CSC), WISTA Cyprus and DP World.
The proposed European Competitiveness Fund (ECF), part of the EU’s next long-term budget for 2028-2034, is designed to simplify access to funding while supporting sectors seen as critical to Europe’s economic security and global competitiveness.
For shipping and ports, the fund could become an important tool for investments in low and zero-emission vessels, port infrastructure, alternative fuels, digital systems, automation, shipbuilding technology and maritime innovation.
The move comes as the EU is trying to reduce industrial dependencies, keep pace with global competitors and support the green and digital transition of shipping, without losing ground in a sector where Europe still has considerable weight.
The initiative falls under the framework of the Enterprise Europe Network and serves as preparatory work for the upcoming Quality Jobs Act, which seeks to align employment standards with the needs of the modern economy.
The chamber explained that the European Commission aims to collect data and real-world experiences from businesses regarding current policies and practices applied to occupational health and safety.
The survey also focuses on the protection of workers’ rights within subcontracting chains, as well as the benefits and costs associated with implementing these policies for individual businesses.
“Energy is one of the most complex issues of our time,” he said in a recently published piece of analysis, stressing that it extends far beyond production and consumption.
He added that energy is tied simultaneously to security of supply, household costs, infrastructure investment, climate commitments and geopolitical stability, which pulls policy in multiple directions at once.
“Some look at the bill at the end of the month, others focus on new generation units, others worry about emissions and others about strategic autonomy,” he said.
The conclusions were approved in Luxembourg during the EPSCO Council, chaired by Interior Minister Constantinos Ioannou on behalf of the Cyprus Presidency of the Council of the EU.
Titled ‘Housing: Shifting demographics and shaping policies’, the text calls on governments to take closer account of demographic change, urbanisation, climate pressures and economic challenges, as rising costs, limited supply and changing living patterns place growing pressure on households across Europe.
The Council said housing needs are being reshaped by ageing populations, smaller households and rural-to-urban migration, while affordability problems are now affecting people across generations and income groups.
Speaking on CyBC’s Apo Mera se Mera, Damianou said the Presidency had received broad recognition from European partners, something he linked to the preparation, coordination and management shown throughout the six-month term.
“The broad recognition that the Cyprus Presidency has received from our European partners reflects the serious preparation, collective effort and effective management that have characterised these six months,” he said in a statement following the interview.
He added that, particularly in the areas of digital policy, research and innovation, the Cyprus Presidency had promoted an agenda with “tangible results for Europe’s competitiveness and technological autonomy”. For Damianou, the success of a Council Presidency is measured not simply by the number of meetings held, but by whether it delivers on the targets it sets.
The measure will apply to parcels worth less than €150, which until now were exempt from customs duties, although they were still subject to VAT and customs declarations. The exemption, known as the de minimis threshold, has long allowed low-value goods to enter the EU duty-free, a system Brussels says has created unfair competition for European retailers and made customs checks harder to enforce.
The new customs duty will not be calculated simply per parcel. Instead, it will apply per different type of item, based on the product’s customs classification.
This means a package containing a T-shirt and a pair of shoes would face two €3 charges, while a parcel containing several T-shirts of the same type would normally attract one €3 charge.
Stavrianos said the shift is already visible among a small group of organisations that have moved beyond experiments and demos, and are now using AI to reshape their cost base, growth model and decision-making processes. “Every CEO has, by now, seen the demos,” he said, pointing to AI tools that summarise documents, draft emails and answer customer questions.
However, he explained that the temptation over the past two years has been to treat these tools as “useful additions to the technology stack”, somewhere between “a better search engine and a cleverer assistant”. That view, he said, is “becoming increasingly difficult to defend”.
According to Stavrianos, the turning point came in April 2026, when PwC published the results of its global AI Performance Study, based on a survey of 1,217 senior executives across 25 sectors. The study found that “nearly three-quarters of AI’s economic value is already being captured by just 20 per cent of companies”, he said.
The federation said the presidency had been carried out during a period of heightened geopolitical instability and economic challenges, with the Republic responding to its responsibilities with seriousness, competence and effectiveness.
“Oev congratulates the President of the Republic for the well-organised and effective management of the presidency, as well as all state and public service officials who contributed to this national success,” the federation said.
It added that progress was achieved on a number of important European policy files during Cyprus’ presidency, particularly in areas affecting the competitiveness of the European economy, the strengthening of the Single Market, enlargement, migration, defence and security.
The committee discussed the effects of the volatile regional situation on Cyprus’ tourism industry and possible support measures for affected businesses.
“Under the circumstances and given the intense shock suffered by the tourism economy, the losses reflected in May data have been significantly contained,” he said.
“The most important thing is that Cypriot tourism has returned to a stable path, that the measures taken appear to have worked effectively, and that once again the country’s tourism sector is demonstrating resilience,” he added.
Koumis said 2026 would not be a record year, pointing to significant losses in March and April, but noted that May reduced the decline in tourist arrivals to 4.9 per cent compared with May 2025, while still showing an 8.1 per cent increase compared with 2024.
The award was presented as part of the organisation’s broader contribution to society and its corporate social responsibility programme, the exchange said.
The distinction, officially named the “Cyprus Stock Exchange Annual Award in memory of former CSE Council chairman Akis Cleanthous”, was presented during a special awards ceremony honouring University of Cyprus students who excelled during the 2025-2026 academic year.
The ceremony took place on June 29, 2026 at the University of Cyprus.
CSE Deputy General Manager Nicos Trypatsas presented a cash prize of €500 to Stylianos Savva, who achieved the highest academic performance in the economics specialisation within the Department of Economics of the University’s School of Economics and Management.
Yiasemides takes over as of July 1, 2026, with his term running until June 30, 2030, at a time when the professional services sector is being reshaped by digital transformation, artificial intelligence, tighter regulation and shifting client needs.
The handover was set in motion last December, when PwC Cyprus elected Yiasemides as its next CEO, confirming that he would succeed Soseilos at the start of July.
The change also marks the end of a long chapter for Soseilos, who joined PwC in 1989 and became a partner in July 2000, before being appointed CEO of PwC Cyprus in January 2022.
During his tenure, Soseilos led the organisation through a period marked by repeated external pressures, including the aftermath of the pandemic, the impact of the war in Ukraine, the closure of the Russian market, inflationary pressures, geopolitical uncertainty, increasing regulation and the rapid rise of artificial intelligence.
In its June 2026 economic bulletin, the CBC said it now expects GDP to grow by 2.5 per cent in 2026, down from the 2.7 per cent forecast in March. Growth in 2027 was also revised slightly lower, to 2.9 per cent from 3 per cent, while the economy is expected to accelerate to 3.1 per cent in 2028.
The central bank said the relatively limited impact on this year’s forecast was because some conservative estimates had already been incorporated in the March projection round.
However, it warned that “the main downside risks to GDP” are linked to the possible non-finalisation or non-implementation of the agreement announced between the United States and Iran.
The CBC said its baseline scenario had been completed before that announcement and was based on the working assumption that the conflict would continue until the final quarter of 2026 before gradually easing.
The professional services firm said the district has undergone a significant transformation in recent years, shifting from being primarily known as a coastal destination for holidays and retirement into a more diversified economy with a strong international outlook.
According to KPMG Cyprus, this transformation has been driven by new investment, upgraded infrastructure, higher education institutions, international businesses and a property market that continues to attract overseas buyers, creating a new development model for the district.
Speaking to Finance Magnates, Theocharides, who also chairs ESMA’s risk standing committee, said there are currently no substantial discussions underway on regulating the retail prop trading industry.
“To the best of my knowledge, ESMA is not currently engaged in any substantive discussions regarding retail prop trading,” Theocharides said.
His comments mark a shift from the regulatory stance seen over the past two years, when the sector had attracted growing attention in Paris amid suggestions that retail prop trading could eventually fall within the scope of MiFID II, particularly under provisions governing proprietary trading.
The agreement sets the framework for a strategic partnership between the Paphos-based university and the telecommunications organisation, at a time when Cyprus is seeking to strengthen its digital skills base and support closer links between education, technology and business.
According to AUB Mediterraneo, the partnership reflects a shared commitment to preparing the next generation of professionals in areas such as technology, engineering, business and digital transformation.
Under the agreement, the two sides will work together on a series of initiatives, including student internship programmes, lectures by industry executives, workshops, research activities and social projects.
Drosos said the old model of maritime risk, built around clearly defined danger zones and standard security measures, no longer reflects what shipowners, operators and insurers are facing.
He said that “for decades, international shipping operated under the assumption that the greatest threats were located in specific areas and were addressed with specific security measures,” he said, adding that “today, this assumption is collapsing”.
From the Strait of Hormuz to the Red Sea, and from the South China Sea to the Baltic, he said commercial shipping is now operating in an environment where state rivalry, terrorism, piracy, organised crime and migration pressures are no longer separate risks.
The index reached 54.6 points in 2025, marking an increase of around four points compared with 2024, reflecting what the ministry described as a broad improvement across all 14 components of the index.
In a statement, the ministry said the results pointed to an overall strengthening of financial wellbeing, while acknowledging that significant challenges remain, particularly related to inflation, energy costs and retirement concerns.
The ministry added that the findings highlight ongoing difficulties faced by parts of the population due to the cost of living and external economic pressures, adding that anxiety over pensions remains a key concern for households.
What is more, the ministry pointed out that “the government has already implemented measures aimed at tackling inflation and supporting households“, including changes to tax policy intended to increase disposable income.
The report, prepared under Auditor General Andreas Papaconstantinou, paints what it describes as a worrying picture of the sector, citing shortcomings in licensing procedures, supervision, inspection mechanisms and the management of subsidy schemes operated by the Deputy Ministry of Tourism.
Papaconstantinou warned that “the effort to upgrade the Cypriot tourism product is being called into question,” pointing to the low proportion of businesses operating with full licences.
The report found that 55 per cent of tourist accommodation operates without a full operating licence, while a further 22 per cent operates under temporary licences.
Responding to the Audit office’s report, the Deputy Ministry said it intends to comply with its observations, while stressing that the issue has been unresolved for almost three decades.
The problem, it said, worsened between 2014 and 2018, following large-scale renovations and expansions by hotel units after the urban planning incentives announced in 2013.
According to the Deputy Ministry, during the five-year transitional period provided for under the 2019 legislation, only 43 operating licences were issued. This meant that by April 2023, just 6 per cent of hotels had been licensed.
In an effort to address the issue, a new bill was submitted in 2023, extending the deadline to December 31, 2025, while introducing stricter provisions and interim deadlines, with particular emphasis on safety and health requirements.
Recent coverage has linked the earlier slowdown in tourism to the regional conflict while portraying Cyprus as a nearby, affordable, safe and welcoming destination for Israeli travellers.
Israeli news website Walla reported that Cyprus’ tourism market is gradually recovering, with Israeli visitors playing a significant role in the rebound.
According to the publication, Cyprus’ geographical proximity, frequent flight connections and Israelis’ familiarity with the island continue to make it a preferred destination, particularly for short breaks.
The report also said that, despite a period of uncertainty, demand from Israeli travellers recovered quickly after flights resumed.
The latest 2025 Paris MoU performance list, valid from July 1, 2026 until July 6, 2027, places Cyprus 22nd among 40 flag states on the White List, following 2,155 inspections and 65 detentions recorded during the 2023–2025 period.
CUS congratulated the Shipping Deputy Ministry, the Cyprus Maritime Administration and the wider Cyprus shipping community, saying the result “reaffirms the exceptional quality and performance of the Cyprus flag” and emphasises the country’s commitment to maritime safety, environmental protection and regulatory compliance.
The Paris MoU said its White, Grey and Black List is based on the total number of inspections and detentions over a three-year rolling period for flags with at least 30 inspections, with the 2025 results approved by the Paris MoU Committee at its 59th meeting.
Gender Equality Commissioner Josie Christodoulou said the bill, entitled “The Gender Balance in Managerial Positions of Listed Companies and Related Measures Law of 2026”, provides that members of the underrepresented sex must hold at least 33 per cent of all management positions in listed companies.
Writing on her personal platform, Christodoulou described the approval as “another essential step towards equality between women and men”, saying the bill promotes balanced representation on boards through merit-based and transparent selection procedures.
The proposed legislation brings Cyprus into line with Directive 2022/2381, the EU’s corporate board gender balance framework. Under the directive, large listed companies in the EU must meet one of two targets, 40 per cent representation of the underrepresented sex among non-executive directors, or 33 per cent among all directors, by June 30, 2026.
Speaking at a dinner hosted by the Cyprus association of building contractors (Oseok) in Nicosia, Christodoulides said that “the transition to a greener and more sustainable model was a common goal of the state, the government and the private sector.”
He said the sector’s importance went beyond its contribution to economic activity, as it supports employment, a wide range of related professions and businesses, regional development and “the environment in which citizens live and create”.
Cyprus, he added, is going through a period of “substantial transformation”, with the demands of the modern economy, technological developments and sustainable development requiring a more flexible and effective state.
This, he said, was necessary to support entrepreneurship, attract investment and promote growth, which in turn allows the state to pursue targeted social policy, adding that “the government is promoting a broad reform programme aimed at modernising procedures, reducing administrative burdens and using technology for the benefit of citizens and the economy.”
The European subsidiary of Freedom Holding Corp. received the Best Pan-European Retail Investment Platform 2026 award for its proprietary Tradernet platform and its presence across the European Union, as well as the AI in Finance Innovation Award 2026 for its Neo Compliance framework.
The awards, presented by Wealth & Finance International, recognise companies driving innovation in financial technology, with winners selected based on expertise, performance and measurable impact within their respective markets.
The recognition was accompanied by an interview with Freedom24 chief executive Evgenii Tiapkin, who discussed the company’s technology strategy and long-term ambitions in Europe.
Click here to change your cookie preferences