cyprus business — Cyprus business is witnessing significant developments in various sectors, including finance, tourism, and shipping, as recent announcements highlight. On Friday, the Finance Ministry of Cyprus, along with the Cyprus Stock Exchange (CSE) and employee unions, formalised an agreement to transfer CSE staff to the public service. This agreement is designed to prepare for the potential privatisation of the exchange, a move the Finance Minister Makis Keravnos described as crucial for the country’s economic future.
- As Cyprus navigates these developments across various sectors, the ongoing collaboration between public and private entities is crucial for fostering economic resilience and growth.
Cyprus business: Agreement to Transfer CSE Staff
The agreement signed between the Finance Ministry, CSE, and employee unions signifies a pivotal step for the stock exchange in Cyprus. Finance Minister Keravnos expressed satisfaction with the outcome, stating that the deal regulates the transfer of CSE personnel to public service should the privatisation process be completed. He emphasised the importance of this agreement in achieving the common goal of a successful privatisation.
Strengthening Ties with India
In a bid to enhance economic collaboration, Cyprus is actively seeking to deepen its ties with India. Deputy Minister of Research, Innovation and Digital Policy, Nicodemos Damianou, spoke at the ICC Global Business Summit held in Mumbai, where he highlighted Cyprus as a stable and reliable business partner within Europe. He pointed out that the economic outlook in Cyprus is robust, boasting one of the best performances in the EU.
Damianou noted that relationships between Cyprus and India have evolved significantly, expanding into sectors like technology, shipping, and tourism. The partnership gained momentum following Indian Prime Minister Narendra Modi’s visit to Cyprus in June, marking the first such visit in over two decades.
Record September for Tourism
This September is shaping up to be one of the best months for tourist arrivals in Cyprus, according to Victor Mantovani, honorary president of the Association of Cyprus Travel Agents. He remarked that this month has seen unprecedented numbers of visitors, the highest he has observed since joining the association in 1983. Early indicators for October look promising as well, with many destinations reporting strong demand.
Most visitors during this autumn season are arriving from the United Kingdom, Poland, Israel, and Germany. Mantovani expressed his optimism, stating, “In the 42 years I have worked in the tourism industry, I do not recall another September with such a large number of tourist arrivals.” This surge in tourism bodes well for the Cypriot economy, particularly in the hospitality and service sectors.
Maritime Sector Developments
During the 12th London International Shipping Week, Cyprus’ Deputy Shipping Minister Marina Hadjimanolis presented the advantages of the Cyprus registry and its maritime cluster at a reception in London. She addressed key figures from the political, diplomatic, and maritime sectors, underscoring the government’s commitment to a green and digital transition within the shipping industry.
Hadjimanolis highlighted that shipping contributes more than 7% to Cyprus’ GDP and plays a crucial role in its social and political development. She asserted that Cyprus stands as a premier hub for shipowning and management services, recognised as one of the largest top-quality sovereign flag states.
Bank Lending Trends
The Central Bank of Cyprus (CBC) reported an increase in net demand for loans during the second quarter of 2025, driven by both businesses and households. The bank lending survey indicated expectations for continued growth in demand for mortgage and household loans in the upcoming quarter. Despite this growth, banks reported that lending criteria for both sectors remained unchanged, although stricter criteria for businesses may be anticipated.
Finance Minister Keravnos raised concerns regarding the ongoing negotiations surrounding the cost-of-living allowance, labelling it “inconceivable” that an agreement has not yet been reached, especially given Cyprus’ current zero inflation rate. He urged for social dialogue between workers and employers, emphasising the importance of reaching an agreement in a timely manner.
Impact of AI on Banking
In discussions surrounding the future of banking, Jens Tau, chairman of the Banking Committee for European Social Affairs, remarked on the transformative impact of artificial intelligence and automation on the sector. He noted that routine tasks in compliance and customer service are increasingly being automated, allowing employees to focus on higher-value work. This shift is leading to more flexible working environments and new roles within banks.
As AI tools reshape recruitment and staffing, Tau highlighted the necessity for transparency and the prevention of bias, stating that advisory and analytical roles are expected to expand significantly.
Financial Performance of Local Companies
Local companies are reporting mixed financial results for the first half of 2025. KEO PLC announced a net profit of €3.23 million, a decline from €3.53 million in the same period last year. The group maintains its core activities, which include vinification, beer production, and the distribution of bottled water.
In contrast, Top Kinisis Travel Public Limited reported a net loss of €181,642, compared to a profit of €29,082 the previous year. Revenue declined primarily due to geopolitical tensions affecting the Middle East, highlighting the vulnerability of the tourism sector to global events.
Upcoming Financial Reviews
Louis plc is set to meet on September 25 to review its financial results for the first half of the year, in compliance with regulatory obligations. Meanwhile, Demetra Holdings Plc has announced the repurchase of 5,750 of its own shares at 1.685 cents each, representing an active approach to managing its share capital.
As Cyprus navigates these developments across various sectors, the ongoing collaboration between public and private entities is crucial for fostering economic resilience and growth.
