economic ties — Cyprus and the United Arab Emirates (UAE) have launched a joint business council, marking a significant enhancement in their economic ties. This initiative comes amid a remarkable rise in non-oil trade between the two countries, reflecting growing mutual interests.
Economic ties: Significant Trade Growth
At a business forum held in Nicosia, UAE Trade Minister Thani bin Ahmed Al Zeyoudi announced that non-oil trade between Cyprus and the UAE reached $176 million in the first nine months of this year. This figure represents an almost 40 per cent increase in trade compared to the same period last year, and it is approaching the total value recorded in 2024.
Joint Initiative for Economic Cooperation
The establishment of the UAE-Cyprus Joint Business and Investment Council aims to foster structured cooperation between businesses and investors in both nations. Al Zeyoudi referred to the meeting as an opportunity to explore synergies in sectors such as finance, green technology, tourism, and logistics.
Recent Developments Strengthening Ties
Recent initiatives have underscored the strengthening economic relations between Cyprus and the UAE. Last month, the Cyprus Business Council was launched in Dubai, designed to enhance private sector collaboration across various fields. Additionally, the UAE’s Investopia, an investment platform, hosted its first international events in Cyprus in June, further solidifying the island’s status as a gateway to Europe for Middle Eastern investors.
Similar Economic Models
Al Zeyoudi highlighted that Cyprus and the UAE share similar economic models, which include streamlined company registration processes, incentives for innovation and research, and competitive corporate tax rates. Both countries serve as key hubs for shipping and financial technology, continuously attracting foreign direct investment in areas such as real estate, technology, and renewable energy.
Encouraging Investment Opportunities
During his address, Al Zeyoudi encouraged UAE companies to explore opportunities within Cyprus and urged Cypriot businesses to consider the UAE as a base for regional expansion. He noted that the UAE offers access to broader markets, including Asia and the wider Middle East.
Institutionalising Economic Collaboration
Cyprus Commerce Minister Michael Damianos described the Memorandum of Understanding (MoU) as a “major step forward” for institutionalising economic cooperation between the two nations. He asserted that the council will create a structured platform for companies, investors, and innovation bodies to collaborate more effectively. This collaboration aims to facilitate knowledge exchange, joint ventures, and cooperative projects.
Looking Ahead
As both countries continue to strengthen their economic partnership, the joint business council is expected to play a crucial role in expanding trade and investment opportunities. The focus on sectors of mutual interest, combined with the shared economic values, positions Cyprus and the UAE to enhance their standing in the global market.
The increasing trade figures and collaborative initiatives signal a promising future for both nations as they work together to unlock further economic potential. With the establishment of the UAE-Cyprus Joint Business and Investment Council, the groundwork has been laid for a more integrated and prosperous economic relationship.
