Cyprus shipping has significantly bolstered its contributions to the economy in 2025, accounting for approximately 7 per cent of the country’s GDP, or around €1.9 billion, as highlighted in the latest annual report from the Cyprus Shipping Chamber (CSC).
- The report also estimates that the loss of revenue for public coffers due to illegal sales stands at €27 million, up from €22 million in 2024.
- In her remarks, Christodoulou underscored the need for effective policymaking, which starts with clearly identifying issues and considering who is absent from discussions.
Cyprus shipping: Strengthening Economic Backbone
The shipping industry in Cyprus operates largely without direct state investment, yet it continues to play a crucial role in supporting the wider economy. This sector not only enhances the island’s economic resilience but also reinforces the international reputation of the Cyprus flag, known for its reliability and prestige.
A Global Player in Shipping
As of 2025, Cyprus maintains the fifth largest merchant fleet in Europe and ranks fourteenth globally, controlling over 4 per cent of the world’s fleet. This impressive standing underscores Cyprus’s importance in the global shipping arena.
Leading Shipmanagement Centre
Additionally, Cyprus is recognised as one of the world’s leading shipmanagement centres. Companies based on the island manage over 20 per cent of global third-party shipmanagement activities, reinforcing its strategic importance in maritime operations.
Entrepreneurial Insights from the Diaspora
In a related discussion on economic development, prominent British Cypriot entrepreneurs Theo Paphitis and Touker Suleyman shared their insights on entrepreneurship and the evolving role of artificial intelligence during a special event hosted by the Cyprus Forum London at the Cyprus High Commission. The event aimed to underscore the contributions of the Cypriot diaspora to British society and its economic landscape.
Fuel Prices Expected to Decline
In other economic news, retail fuel prices in Cyprus are projected to decrease further in the coming days, following a series of reductions over the past month, according to Constantinos Karagiorgis, director of the Consumer Protection Service.
Karagiorgis reported that diesel prices have fallen by an average of 13.5 cents per litre, while unleaded 95 petrol has decreased by 2.4 cents per litre. This downward trend is attributed to recent declines in refinery prices, which are now reflected in incoming fuel shipments.
Regulatory Changes in the Financial Sector
In financial news, the Cyprus Securities and Exchange Commission (CySEC) has issued an urgent directive mandating all regulated entities to submit specific information to assist in identifying firms for future direct supervision by the Anti-Money Laundering Authority (AMLA). This new reporting procedure is essential for preparing for the first selection cycle of entities set to fall under direct oversight starting in 2028.
The requirement applies to a wide range of regulated entities, including investment firms and crypto-asset service providers, as well as collective investment management companies that held authorisation as of December 31, 2025.
Shifts in Office Space Needs
Amidst changing work environments, Yiannis Misirlis, chairman of the Cyprus Property Developers Association, commented on the evolving demands for office spaces. Despite expectations that technology would make physical offices obsolete, he noted that offices are being reimagined to meet the needs of modern professionals.
Leading businesses are now seeking more than just office space; they are looking for integrated workplace ecosystems that foster collaboration and innovation. This shift is illustrated by models like the Urban Knowledge Campus, where work, housing, education, and services coexist.
Stable Investment Environment
At an international level, Cyprus’s stability as a destination for investment and tourism was underscored by Michalis Antoniou, Director General of the Employers and Industrialists Federation (Oev), during the annual International Labour Organisation (ILO) conference in Geneva. Antoniou highlighted that despite various crises, Cyprus remains a safe and stable choice for investment.
He attributed this stability to robust institutions, adherence to the rule of law, and Cyprus’s equal standing within the European Union, all of which contribute to its attractiveness for both investors and tourists.
Corporate Developments in Finance
Alpha Bank has announced plans to distribute 4.2 million treasury shares free of charge to executives and employees as part of its Combined Bonus Plan for 2025. This initiative, approved at a recent board meeting, aims to reward performance among 1,260 beneficiaries, including management and staff.
Key Changes at the Cyprus Stock Exchange
The Cyprus Stock Exchange (CSE) is set to implement index composition changes that will take effect on June 12, 2026. These adjustments are part of routine maintenance to ensure that benchmark compositions accurately reflect market conditions. Interfund Investments PLC will be removed from several indices, including the General Index and the FTSE/CySE20 Index.
Enhancing Maritime Security
The Cypriot government is actively enhancing its maritime security capabilities. Recent exercises conducted at the port of Limassol tested the revised Sounio Plan, focusing on ensuring the resilience of key maritime infrastructure during crises. Deputy Minister of Shipping, Marina Hadjimanolis, attended the exercise designed to maintain safe operations at the Republic’s main ports.
Increasing Illegal Cigarette Consumption
A report by KPMG reveals a concerning trend in Cyprus, with illegal cigarette consumption rising to an estimated 16.3 per cent of total consumption in 2025, a two percentage point increase compared to the previous year. This uptick is part of a broader trend across the European Union, where illicit cigarette consumption has surpassed 10 per cent for the first time since 2014.
The report also estimates that the loss of revenue for public coffers due to illegal sales stands at €27 million, up from €22 million in 2024.
New Travel Options for Cypriots
Cypriots heading to the Greek islands can now take advantage of a new helicopter flight service launched by Zela Jet. This service provides a faster and more flexible travel option between Athens and popular holiday destinations, catering especially to Cypriot travellers who frequent Greece during the summer.
Promoting Digital Gender Inclusion
Gender equality commissioner, Josie Christodoulou, highlighted the importance of digital gender inclusion in a recent panel discussion. She emphasised that it goes beyond mere access to technology and involves ensuring that women and girls play a significant role in shaping the digital landscape.
In her remarks, Christodoulou underscored the need for effective policymaking, which starts with clearly identifying issues and considering who is absent from discussions.
