Here are the top business stories in Cyprus from the week starting February 17:
Kicking off the week, access to high-performance computing has long been a barrier for creative professionals, engineers, and businesses. However, LoLa Cloud PCs, founded by Cypriot entrepreneur Rogiros (Roger) Theophanous, is on a mission to change that. Theophanous explained that his company offers an innovative solution that transforms any device into a high-performance PC through cloud computing. LoLa was born out of necessity, he told the Cyprus Mail, recalling a university project where he lacked a high-performance PC for a solar system simulation. “That moment sparked a realisation—why should powerful computing be limited to those who can afford expensive hardware?” he said.
Turning to real estate, short-term rentals in Cyprus will come under the scrutiny of the House energy, trade, industry, and tourism committee this week. The committee, set to meet on Tuesday, will assess the effectiveness of the 2020 legislation regulating this sector, dominated by platforms such as Airbnb. This ex officio review aims to evaluate the functionality of the legislative framework, identify emerging issues, and monitor compliance with the mandatory registration process.
Meanwhile, fresh data from the Central Bank of Cyprus (CBC) reveals a shift in financial asset distribution among households. This trend may be linked to the low deposit interest rates offered by banks in recent years. By September 2024, household and non-profit institution deposits and cash holdings reached €32.7 billion, reflecting a 2.5 per cent increase since 2021. Investments in debt securities soared to €2.1 billion—a 90 per cent surge—while investments in shares grew from €9.4 billion to €10.3 billion. Other financial assets increased from €11.6 billion to €14.5 billion, marking a significant redistribution of household wealth.
Shifting to the gaming industry, Cyprus is becoming an increasingly influential player in mobile gaming. Vladimir Nikolsky, the founder and CEO of Utmost Games, is driving this growth, leveraging his experience as the former CEO of MY.GAMES. Among his ventures, Top App Games, a rapidly expanding mobile game studio, has made a global impact with Ludus: Merge Arena. The game has surpassed 3 million downloads, generating over $2 million in monthly revenue, and continues to expand its player base.
On the banking front, the Bank of Cyprus on Tuesday announced preliminary financial results for 2024, reporting a profit after tax of €508 million—a 4 per cent increase from the previous year. In the fourth quarter alone, the bank earned €107 million, with basic earnings per share rising to €1.14, marking a 5 per cent year-on-year increase. “This performance is testament to our robust capital and liquidity position, strong asset quality, and diversified business model,” said Bank of Cyprus Group CEO Panicos Nicolaou.
In the hospitality sector, the board of Agros Development Company ‘Proodos’ Public Ltd, which owns the Rodon hotel in Agros, has accepted PwC’s valuation of its share price. PwC, commissioned to assess Balram Chainrai’s bid to acquire 100 per cent of the company at €3 per share, deemed the offer “fair and reasonable”. Notably, the €3 per share offer represents a 105 per cent premium over the December 9, 2024, closing price of €1.46.
Turning to the shipping industry, the 8th Capital Link Shipping Forum in Limassol saw Deputy Minister for Shipping Marina Hadjimanolis emphasise that “expanding the Cypriot registry remains a top priority for the government.” She stressed that innovation, cooperation, and global regulatory implementation are key focus areas. With 2025 set to be a challenging year for international shipping, she highlighted the importance of resilience and the need to transform challenges into sustainable growth opportunities.
On the workplace front, Cyprus recorded the lowest remote working rate in Europe in 2024, at just 22 per cent, compared to 83 per cent in the Netherlands. Eurofound data highlights gender disparities, with only 22 per cent of women and 25 per cent of men working remotely, while the vast majority—78 per cent of women and 75 per cent of men—remained office-based.
Meanwhile, the construction, tourism, and retail sectors face an acute labour shortage, warns Oseok, the association of building contractors. With demand for skilled and unskilled labour rising, this shortage is stalling economic growth. The construction industry is particularly affected, as fewer Greek Cypriots are entering the field and an ageing workforce struggles to meet modern demands, including technological and sustainability requirements.
In investment news, the Central Bank of Cyprus (CBC) reported an 8.4 per cent increase in investment institution assets, which grew by €573.8 million to reach €7.36 billion in December 2024. This significant rise was fueled by a €497.7 million surge in unlisted shares, now valued at €2.77 billion. Meanwhile, listed shares stood at €1.03 billion, while investment shares or units reached €1.47 billion. The number of investment institutions also grew slightly from 334 to 338.
On the international cooperation front, the Digital Cooperation Organisation (DCO) successfully concluded its fourth general assembly in Jordan, unveiling a 2025-2028 digital growth agenda. Deputy Minister of Research, Innovation, and Digital Policy Nicodemos Damianou highlighted Cyprus’ strategic role as a digital hub, particularly in AI investment and data connectivity.
Meanwhile, tax reform took centre stage at the ‘Gender Budgeting and Gender Mainstreaming’ conference in Nicosia. Kyriakos Iordanou, general manager of ICPAC, reaffirmed the commitment to shaping a fair and sustainable economy, focusing on meritocracy, transparency, and equal opportunities in taxation and entrepreneurship.
On the regulatory front, the Cyprus Chamber of Commerce and Industry (Keve) welcomed the government’s approval of a revised framework for employing third-country nationals (TNCs). This new policy aligns with labour market needs and adds flexibility for businesses, following extensive dialogue led by Labour Minister Yiannis Panayiotou.
Cyprus’ shipping industry also took centre stage at the 8th Annual Capital Link Cyprus Shipping Forum in Limassol, where experts discussed geopolitical changes, fleet management challenges, and financial market shifts. The event reinforced Cyprus’ reputation as a key player in shipping, energy, and logistics.
At the ‘Money Conference 2025: Investment Outlook & AI Impact’ in Nicosia, leading financial, tech, and business executives explored AI-driven investment opportunities. Maria Koletta, assistant general manager of Eurobank Asset Management (MFMC), stressed the importance of strong partnerships amid rapid change.
Labour Minister Yiannis Panayiotou, speaking at a ministerial conference in Gdańsk, underlined the need for AI-driven productivity improvements while ensuring technological progress does not deepen inequalities. He called for enhancing AI skills among employers and employees to boost European economic productivity.
Lastly, the Institute of Certified Public Accountants of Cyprus (ICPAC) and the Cyprus Institute of Internal Auditors (IIA Cyprus) renewed their Memorandum of Understanding (MoU) to reinforce good governance, transparency, and accountability. The agreement will enhance continuous professional training, knowledge exchange, and corporate governance initiatives.
