Here are the top business stories in Cyprus from the week starting December 2:
Paphos mayor Phedonas Phedonos has urged Cypriot businesses to adopt a more international, export-oriented approach, saying that the island can become a starting point from which they can sell products or services to other countries.
Speaking of broader economic opportunities, Phedonos, addressing Mindset Talks 7, a personal development and business conference held in Paphos over the weekend, highlighted the importance of Cyprus serving as a launchpad for local businesses to access major regional markets.
“We have to self-improve and become more outward-looking,” he said.
Additionally, the Paphos mayor noted, “Due to a number of factors, we have an inward-looking mentality as an island, and we have to change that.”
On a related note, Cyprus is well prepared for the new EU crypto assets regulation, ushering in a new era on January 1, 2025, the Cyprus Securities Commission assured President Nikos Christodoulides on Monday.
In this context, presenting CySec’s report for 2023, chairman George Theocharides said there was “a healthy growth in the securities sector” and outlined a series of challenges ahead.
Theocharides stated that there were a few important directives and regulations to prepare for, including the crypto assets regulation set to come into force on January 1.
“Already, over the past years, CySec has been preparing for this very important EU regulation,” Theocharides added.
Turning to the real estate market, Limassol led Cyprus’ high-value real estate market in October, driving €34.6 million in top property sales, according to real estate analytics firm Ask Wire.
To elaborate, the district recorded four of the ten most expensive transactions, including the highest-value sale of the month—a €9.9 million mixed-use building in the Panagia Evangelistria area of Kato Polemidia.
Furthermore, Ask Wire’s analysis shows that Limassol secured the highest overall sales value, accumulating €16.7 million from the top 10 transactions.
Paphos followed with €8.7 million from two major deals, while Larnaca contributed €4.65 million. Nicosia and Famagusta recorded €2.1 million and €2.5 million, respectively.
In terms of legislative challenges, the Cyprus Real Estate Agents Registration Council has voiced strong opposition to a proposed amendment to the Lawyers’ Law of 2024.
If implemented, the amendment would grant lawyers exclusive authority to draft contracts and documents related to real estate transactions.
In response, the council argued in an official announcement that this move threatens the viability of the real estate profession in Cyprus and could have “far-reaching consequences for citizens and the economy.”
The proposed amendment, currently under discussion in the House, has been described by the council as “a direct threat to the survival and existence of licensed real estate agents in our country.”
Moreover, the council emphasized that the proposal would burden people with additional legal fees for drafting contracts for rentals or property sales, creating financial obstacles and sidelining real estate agents in favour of lawyers.
On the digital transformation front, Cypriot businesses have accelerated their efforts in 2024, according to a study on the use of information and communication technologies (ICT) and e-commerce.
Specifically, conducted by the Cyprus Statistical Service (Cystat), the study revealed the widespread adoption of such technologies in order to stay competitive and drive growth.
84.1 per cent of businesses now provide employees with company-funded mobile internet-enabled devices to support remote work, AI integration, and e-commerce.
This shift is further evidenced by 88.1 per cent of enterprises providing access to email systems, 71.7 per cent enabling employees to work on shared documents, and 66.3 per cent providing access to essential business applications or software related to accounting, sales, CRM or other business software.
In the gaming sector, Playgama, a game tech platform with a presence in Cyprus, announced on Tuesday that it raised $3 million in a funding round led by The Open Platform and s16vc.
Notably, the funding round received additional support from The Games Fund (TGF), FJ Labs, TON Ventures, and Kirill Eves, the CEO and Founder of Unlimit.
Moreover, TGF, an early-stage VC fund based in New York and Cyprus, was founded by video game industry veterans and invests in future leaders, including innovative early-stage game developers, gaming technologies, and services.
According to the recent Drake Star Global Gaming Report, TGF is the most active seed-focused gaming VC fund and holds the largest gaming portfolio in Eastern Europe and Cyprus.
On the topic of Cyprus’ appeal as an investment hub, Cyprus on Wednesday showcased its advantages as a tax destination during a gathering in London, highlighting benefits for high-net-worth individuals amid UK tax reforms.
The event, titled ‘Non-Doms: The Cyprus Private Client Offering Gathering 2024,’ was hosted by IMH and Invest Cyprus at the London Stock Exchange.
As part of the initiative, more than 150 participants attended the event, including more than 120 professionals from the UK—such as lawyers, accountants, private bankers, and family office managers—and over 30 experts from Cyprus.
Building on Cyprus’ efforts to attract foreign investment, Invest Cyprus on Wednesday announced that it has concluded a successful mission to Saudi Arabia.
According to the agency, the mission will help facilitate future collaborations, supporting the country’s objective to increase foreign direct investment.
Specifically, Invest Cyprus participated in the 28th World Investment Conference (WIC), organised by the World Association of Investment Promotion Agencies (WAIPA).
The conference, hosted in Riyadh by the Ministry of Investment of Saudi Arabia, brought together global policymakers, CEOs, and investment promotion agencies to share knowledge and explore strategies for driving sustainable global economic growth.
Representing Cyprus, Invest Cyprus CEO Marios Tannousis took part in the discussions, showcasing the country’s commitment to fostering international partnerships.
In another significant development, Cyprus is stepping up as a leading destination for international investment, President Nikos Christodoulides said on Wednesday.
Addressing key stakeholders at the ‘EY Cyprus Attractiveness Forum 2024,’ the president outlined the government’s strategic plans to bolster economic growth and investor confidence.
Christodoulides reaffirmed the government’s dedication to fostering economic stability and enhancing the business environment.
As part of this vision, he announced the launch of the ‘Digital Citizen’ application, a significant step in Cyprus’ journey toward digital transformation.
“This pioneering platform will simplify administrative procedures and improve services for citizens by enabling the electronic issuance and secure storage of official documents,” he explained.
Turning to gender equality, CySEC officer Elena Karkoti on Thursday highlighted the ongoing issue of underrepresentation of women on corporate boards and in leadership roles.
During her speech, she described this phenomenon as “a profound social and political contradiction” during a time when equality has been in the spotlight.
Karkoti stated that despite progress in gender equality, “women remain trapped on the margins of decision-making centres and are often a disheartening minority in boardrooms.”
Importantly, she attributed this to both visible and invisible barriers stemming from “deeply ingrained societal perceptions and institutional shortcomings.”
On the retail front, Cypriot DIY retail chain Superhome Centre is set to change ownership in a €94 million deal, it emerged this week.
As reported by Economy Today, the prospective buyer is a billionaire investor of Greek descent, who has previously been listed among the world’s top 200 richest individuals by Forbes.
Furthermore, the investor initially built their wealth in the coal industry before expanding into cement production.
According to statements made to the Cyprus Stock Exchange, Ermes Department Stores Plc, a subsidiary of Cyprus Trading Corporation Plc (CTC), confirmed plans to sell its 51 per cent stake in Superhome Centre DIY Ltd to the international investor.
In the realm of housing reforms, Cyprus has revamped its planning and building permit system, cutting approval times to just 40 working days for small-scale developments, Interior Minister Constantinos Ioannou announced this week.
The initiative, which forms part of a broader strategy, targets low-risk “Category A” developments, which include up to two residential units.
“The package of 22 measures of the plan to simplify the licensing procedure includes changing the way of examining planning and building applications in order to achieve a shortening of the time of issuing the permit,” Ioannou said.
With these changes, planning certificates will now be issued within 20 working days, with building permits granted within another 20 days.
In a move to support inclusivity, the Cyprus Shipping Chamber (CSC) on Thursday announced that it will host its first-ever ‘Love Shuttle’ on Sunday, December 8, at the Limassol pier.
Celebrating its 35th anniversary, the event will also raise funds for the Pancyprian Organisation of People with Disabilities.
Speaking at a press conference, director general Thomas Kazakos explained that the event coincides with the International Day of Persons with Disabilities.
Highlighting the event’s activities, it includes a 35-kilometre marathon, representing the chamber’s years of operation, and a 3.5-kilometre relay race featuring five children with mobility challenges.
On a more environmental note, the Christodoulides administration has prioritised addressing climate change with targeted actions, a commitment echoed by Cyprus’ tourism industry, Deputy Minister Costas Koumis said on Thursday.
Speaking at a conference titled ‘Tourism in the Era of Climate Change: Challenges and Innovations,’ Koumis emphasised the importance of a balanced approach to tourism growth.
“The growth trajectory of tourism must continue with respect for the environment, recognising our responsibility to preserve our natural wealth for future generations,” he said.
In gaming innovation, Top App Games, a mobile game developer headquartered in Cyprus, has secured $10 million in funding to bolster its hit strategy RPG, Ludus: Merge Arena, and to spearhead the development of new titles.
This marks a pivotal milestone for the studio, which has seen remarkable growth in both revenue and player engagement.
Known for its innovative approach, the game has achieved over $2 million in monthly revenue and surpassed 3 million downloads this year.
Finally, in financial support initiatives, the Bank of Cyprus on Friday outlined a range of measures designed to ease the financial strain on customers in the face of market interest rate volatility.
In its announcement, the bank detailed key actions such as interest rate reductions and a customer rewards programme, aimed at reducing loan servicing costs to borrowers.
Further to this, the bank stated, “These actions aim to lower the cost of loan servicing and offer tangible benefits to borrowers.”
Continuing with innovation, the Research and Innovation Foundation (RIF) on Friday announced the launch of ‘Boost,’ a new blended finance scheme.
This initiative aims to support certified innovative companies in Cyprus by providing grants of up to €300,000.
As explained by RIF, the scheme is designed to bolster innovation and enhance the entrepreneurial ecosystem by incentivizing equity-based investments.
Under the programme, certified companies can access grants covering up to 50 per cent of their secured equity-based investments, provided the investment is at least €200,000.
On the topic of energy efficiency, the Energy Ministry is offering a second chance for small and medium-sized enterprises (SMEs) and non-profit organisations to secure funding through the ‘Save – Upgrade’ scheme.
This EU-backed initiative, part of the Recovery and Resilience Plan, seeks to promote energy-saving investments with a total budget of €24 million.
According to the ministry, applications will open on a date yet to be announced, and expenses incurred before submission will not be eligible.
Focusing on research collaborations, Cyprus has intensified its efforts to expand its Research and Development (R&D) landscape through a recent visit to Indonesia.
During this visit, Chief Scientist Demetris Skourides and Ambassador Nikos Panagiotou held high-level talks with leading Indonesian research officials in Jakarta.
Notably, Skourides met Laksana Tri Handoko, Chairman of the National Research and Innovation Agency of Indonesia (BRIN), at BRIN Headquarters.
Highlighting Cyprus’ achievements, Skourides emphasised the country’s recognition as a strong innovator on the European Innovation Scoreboard for the third consecutive year, as well as its ranking as 27th on the Global Innovation Index.
