Here are the top business stories in Cyprus from the week starting January 27:
The Limassol Chamber of Commerce and Industry (Evel) has called for a comprehensive and environmentally conscious approach to the redevelopment of the Lady’s Mile area. It also underlined the need to align any development plans with the area’s unique characteristics and recent local government reforms.
Specifically, in an Evel statement, Limassol mayor Yiannis Armeftis called for “a more holistic approach to the redevelopment of Lady’s Mile road.”
He also urged that recent local government reforms and the area’s unique environmental characteristics be taken into account. He emphasised that the plans should extend beyond simply upgrading the road and incorporate broader environmental and social factors, ensuring the project aligns with the evolving needs of the area.
This decision aims to partially cover the losses incurred due to the failure to allocate provisions from the provident fund during the conversion of retirement gratuities into provident funds. In a statement, Etyk said that this is “one of several unresolved issues” stemming from the financial crisis and the haircut on provident funds. These efforts, the union said, “aim to reduce costs and rectify injustices caused by the crisis.”
The budget reflects an 8.6 per cent increase compared to 2024, translating to an absolute rise of €1.4 million. Revenue and expenses are estimated at €15.5 million and €17.5 million, respectively.
According to a report submitted to the House, CySEC’s budgets for 2026 and 2027 are also expected to show deficits of €3.4 million and €3.9 million, with expenses projected at €19.2 million and €19.7 million. Despite the deficit, CySEC’s cash reserves of €2 million as of January 1, 2025, are expected to partially offset the shortfall.
On the stock market front, takeover bids for public companies listed on the Cyprus Stock Exchange (CSE) have proven major drivers for activity, often offering prices significantly higher than market value and revitalizing investor interest. These bids not only boost share prices but also lead to increased trading volumes, positively influencing the overall stock market.
Of particular importance are bids made by external investors unaffiliated with the target company, as these reflect the higher value an independent investor places on the acquisition target compared to its prevailing market valuation.
In real estate developments, investors are increasingly eyeing Nicosia’s centre, where developments in universities, hotels, and office spaces signal revitalisation of one of Cyprus’ most historic areas.
Recent local initiatives and rising investor interest are driving this turnaround, according to recent media reports. A key development is Kapodistrian University’s new branch in central Nicosia, expected to attract related investments, such as cafes and eateries. The growth of educational institutions has historically boosted surrounding areas, as seen in Makedonitissa. What is more, residential, office, and hotel projects are also on the rise.
Additionally, the number of entities supervised by the Cyprus Securities and Exchange Commission (CySEC) has grown by 11.8 per cent over the past five years, according to the commission’s chairman George Theocharides.
He added that CySEC was supervising 834 entities by the end of 2024, with 60 additional licensing applications currently under review. Theocharides explained that these figures reflect Cyprus’ continued attractiveness as an investment destination. He also pointed out that there has been a surge of interest from companies seeking licenses under the recently implemented European Markets in Crypto-Assets Regulation (MiCA).
Further addressing urban development issues, the municipalities of Limassol, Amathus, and Polemidia have teamed up on a collaborative spatial planning initiative, aimed at enhancing the city’s organisation while preserving the environment.
The Limassol Chamber of Commerce & Industry (Evel) has shared comments by Amathus mayor Kyriakos Xydias, who said that “the initiative was driven by rising concerns over traffic and the need for coordinated transport policies.” “Traffic can’t be tackled in isolation. It must be part of a wider urban planning strategy, as future developments could make current solutions obsolete,” he explained.
On the corporate front, Hellenic Bank is preparing to launch a new voluntary early retirement scheme aimed at reducing its workforce by a substantial number of employees, with completion targeted by the end of 2025, it emerged on Tuesday.
According to reports, which have been backed up by sources who spoke to the Cyprus Mail, the scheme will offer compensation capped at €200,000. The exact figure will be determined by various parameters, such as annual salary, years of service, and employee age. While the bank has not confirmed the exact number of targeted departures, sources suggest the goal is to facilitate the exit of approximately 500 members of staff.
In another significant development, the Cyprus Property Developers Association and Interior Minister Constantinos Ioannou met this week to discuss a number of issues impacting Cyprus’ housing sector.
These include delays in planning permits and the need for stronger public-private sector collaboration. The meeting was attended by association president Yiannis Misirlis, board members, and general director Mersina Isidorou.
The discussion centered around the delays in issuing planning and building permits, which were identified as a major obstacle to both the housing market and the country’s competitiveness.
Misirlis explained that “these delays were putting significant pressure on the sector and called for immediate solutions.”
Addressing budget concerns, the Contractors Council is preparing to revise its member fees in a bid to address a budget deficit that has plagued its finances, according to its president Thekla Kadi. Speaking during a presentation of the council’s 2025 budget to the House finance committee, Kadi stated that the deficit for the current year stands at approximately €390,000. Kadi said that the council, which is responsible for the registration and control of contractors in Cyprus, generates its income from membership fees, which have not been revised since 2015.
She explained that the council operates independently of public funding, relying solely on its own resources. “With the fee revision, the council’s finances will improve, allowing it to better meet its needs,” she said.
In international expansion news, Abu Dhabi’s Pure Health Holding has agreed to acquire a majority stake in Hellenic Healthcare Group (HHG), valuing the healthcare provider at €2.2 billion, marking a significant expansion into Cyprus and Greece. As announced, HHG was previously owned 90 per cent by CVC Capital Partners, with the remaining 10 per cent held by the company’s founder.
Under the new agreement, PureHealth will take control of the largest share, while CVC Capital Partners will reduce its stake to 35 per cent. It was also reported that HHG’s CEO, Dimitris Spyridis, will retain the remaining 5 per cent. Pure Health, owned by the Abu Dhabi Development Holding Company (ADQ), which is a Sovereign Wealth Fund, did not disclose a timeline for completing the deal.
Regarding market dynamics, the Bank of Cyprus has announced that Caius Capital has reduced its stake in the bank’s share capital to 4.98 per cent. The announcement was made through the Cyprus Stock Exchange (CSE).
Previously, Caius Capital’s ownership stood at 5.58 per cent as of December 31, 2023, down from its earlier stake of 5.65 per cent.
In tourism sector performance, revenue in Cyprus increased by 7.1 per cent in the first eleven months of 2024 compared to the same period in 2023, according to the traveller survey results published on Wednesday by the state’s statistical service. For the January-November 2024 period, revenue from tourism is estimated at €3.12 billion, up from €2.91 billion during the corresponding period in 2023.
In November 2024 alone, tourism revenue reached €138.7 million, marking a 22 per cent rise compared to €113.7 million in November 2023. The average per capita spending by tourists in November 2024 increased by 8.2 per cent, reaching €771.02, up from €712.63 in November 2023.
In regulatory updates, the Cyprus Securities and Exchange Commission (CySEC) on Wednesday announced the launch of a new initiative to bolster the Cyprus Stock Exchange (CSE). The commission explained that the aim is to “restore the CSE’s role as a driver of economic development in Cyprus”.
In its announcement, CySEC mentioned that it held a roundtable discussion on Wednesday at its offices in Nicosia to discuss this issue. “During the discussion, various stakeholders presented and discussed proposals for revitalising investor interest and attracting new companies and other investment products to list on the CSE,” it said.
In cybersecurity advancements, Cyprus’ Digital Security Authority (DSA), in collaboration with the Shipping Deputy Ministry and the Israel National Cyber Directorate (INCD), this week hosted a conference on maritime cybersecurity.
Titled ‘Charting a New Course: Overcoming Maritime Challenges’, the event brought together around 70 participants from both the public and private maritime sectors to discuss the rising cybersecurity challenges, as well as strategies and actions to address them, according to a DSA press release. Among the attendees were officials from the US Embassy in Cyprus, the British High Commission, and cybersecurity firm Mandiant, which specialises in threat intelligence and incident response.
In financial sector developments, Cyprus saw a substantial increase in loans in December 2024, with a rise of €503.2 million following a decrease the previous month, according to the Central Bank of Cyprus (CBC).
At the same time, total deposits surged by €977.4 million, marking a significant jump compared to November 2024. The CBC reported that the annual growth rate of total deposits reached 6.6 per cent, compared to 5.4 per cent in November 2024. As a result, the total deposit balance in December 2024 reached €55.9 billion.
In the real estate market, affordable cities are gaining momentum as shifting work trends and rising demand reshape the market landscape, according to Ask Wire CEO and co-founder Pavlos Loizou.
In a piece of analysis released on Thursday, Loizou said that while traditional property powerhouses such as Athens, Thessaloniki, and Limassol continue to attract attention, smaller cities like Patras and Larnaca are emerging as significant players. Loizou noted that the shift towards these more affordable, liveable cities, driven by remote work and lifestyle changes, is gaining momentum.
This trend is exemplified by the significant increase in property transactions in Patras, which surged by 121.95 per cent in 2024.
Consequently, Loizou advised that agents should target these cities’ rental markets, while developers could focus on mid-sized projects tailored for young families or remote workers.
The agreement, sealed by Andrea Moundi Savvides and Nikos Potamaris, presidents of the CCA and the CFA Society Cyprus respectively, was enacted before an assembly of both boards. This partnership marks a significant stride towards embedding a culture of accountability and professionalism across the financial sector.
In international cooperation, the Cyprus Securities and Exchange Commission (CySEC) on Thursday hosted the plenary meeting of the International Organisation of Securities Commission’s (IOSCO) European Regional Committee (ERC) in Nicosia.
The ERC is one of four regional committees established by IOSCO to address regional issues related to securities regulation. The event attracted over 52 participants, with the ERC representing 57 member authorities.
In investment trends, optimism is growing about Cyprus’ potential to attract more foreign direct investment (FDI), despite a decline from an annual average of €5.7 billion between 2018 and 2021 to €4.8 billion in 2022 and €4.2 billion in 2023. This was highlighted in the EY attractiveness survey, released this week, which explored global investment trends and their regional impacts.
In country’s revenue forecasts, the government is expected to make a total of €37 million from tax revenues related to the country’s only licensed casino, the gaming and casino supervision commission said on Monday.
The commission revealed its forecast revenue in a note sent to parliament ahead of a planned discussion over its budget in the House finance committee later in the day. Around €29m of that income is set to come from tax, €7m is made up of the annual licence fee, while the remainder is from smaller sources of income such as investigation and application fees.
The commission also forecast an income of €38.3m next year and €39.3m in 2027, with its income being deposited directly into the state’s consolidated fund and classed as income in the annual state budget.
As such, the commission requires state funding to operate, with this figure included under the tourism deputy ministry’s budget.
In energy developments, Cypriot natural gas will be extracted from under the sea for the first time in 2027, Energy Minister George Papanastasiou said on Monday. Speaking to Politis radio, he said he expects an agreement to be struck between the government and Italian energy company Eni in the near future, which will allow for Cypriot natural gas from the ‘Kronos’ reservoir to be sent to the Segas liquefied natural gas (LNG) terminal in the Egyptian port city of Damietta for liquefaction.
Given the proximity of the ‘Kronos’ reservoir and Block 6 of Cyprus’ exclusive economic zone (EEZ) to Egypt’s ‘Zohr’ gas field, which Eni also operates, Eni would be able to use its own infrastructure to take the Cypriot natural gas to Damietta.
To this end, Papanastasiou said the development and production plan for this is expected to be submitted by March.
The government would next have to take a final investment decision by summer, with the first Cypriot gas extracted by 2027.
In related energy discussions, the energy minister and the natural gas infrastructure company (Etyfa) met on Tuesday to review the state of play with the LNG project at Vasiliko and what the next steps will be.
The discussion also aimed to set a firm, binding timetable for the completion of the project – both as concerns the onshore LNG facilities at Vasiliko, as well as for the floating, storage and regasification unit (Fsru) currently located in Malaysia.
However, discussions about firming up the timetable will continue, the Cyprus Mail was told. Sources confirmed that a number of interested parties have informally expressed interest in making use of the Fsru.