Here are the top business stories in Cyprus from the week starting February 24:
Natural gas production from Block 6 of Cyprus’ Exclusive Economic Zone (EEZ) could commence within 2 to 2.5 years, according to Constantinos Hadjistassou, Professor at the School of Sciences and Engineering, Department of Engineering at the University of Nicosia.
He described the agreement concerning Block 6 as the most significant of the two agreements signed in Cairo. Additionally, he noted that Block 6 contains three gas fields—“Cronos”, “Zeus”, and “Calypso”—with a total estimated capacity of 6.5 trillion cubic feet (tcf).
In the banking sector, Hellenic Bank reaffirmed its commitment to Cyprus’ hospitality industry with its participation at the 46th Cyprus Hotel Summit and Horeca Expo in Limassol, where sector challenges and opportunities were brought to the forefront.
The conference, organised by the Cyprus Hotel Association (Pasyxe), focused on innovation and growth, sending a strong message of optimism, resilience, and adaptation to modern demands. In a statement released on Monday, Hellenic Bank stressed that, as a key supporter of the event, it acknowledges the vital role of the hospitality industry in Cyprus’ economy.
Phivos Stasopoulos, General Manager of Wholesale Banking at Hellenic Bank, stressed that “strategic collaboration between banks and hoteliers is crucial for the development and resilience of the sector”.
Furthermore, the Sklavenitis Group aims to secure second place in the Cypriot market, while upgrading and expanding storage and production facilities in Greece in 2025, according to reports that emerged on Monday. The same reports suggested that the management of Greece’s leading retailer is also evaluating expansion into other markets, including the Balkans and Central Europe.
However, sources close to the company told Greek outlet Oikonomikos Tachydromos (OT) “that there is no concrete plan for such a move at this stage”. Regarding Cyprus, the investment plan for renovating the nine Papantoniou stores acquired last November is already underway.
In the technology and education sector, financial technology firm Capital.com announced the launch of a new paid internship programme for university students in Cyprus. The first group will include 30 students from the Cyprus University of Technology (Tepak), with plans to extend the initiative to other universities across the island.
The company stated that the programme aims to provide students with practical experience in financial technology while helping to develop local talent. I
nterns will work within the company’s Operations and Back-Office teams, gaining insight into areas such as data management, risk, customer support, systems, and technology. Christoforos Soutzis, Chief Executive Officer of Capital.com Europe, welcomed the new interns and highlighted the benefits of hands-on experience in the workplace.
On the financial front, the Bank of Cyprus announced on Monday the launch of a €30 million share buyback programme, a move previously signalled last week during the release of its preliminary 2024 financial results.
In a statement, the Bank of Cyprus Holdings Public Limited Company confirmed that the programme follows its February 18, 2025, announcement regarding a proposed cash dividend and intention to initiate a share buyback scheme for the financial year ending December 31, 2024.
The initiative will see the repurchase of ordinary shares by the company, with the total amount reaching up to €30 million. The purpose of the buyback is to reduce the company’s share capital. According to the bank’s statement, shares acquired under the programme will be cancelled.
In telecommunications, the Cyprus Telecommunications authority (Cyta), recorded revenues of €415 million and an expected pre-tax profit of €59 million for 2024, chairwoman Maria Tsiakka said on Monday.
Speaking at a House finance committee meeting over the authority’s 2025 budget, she highlighted Cyta’s “significant contributions” to the national economy, saying that since 2000, it has transferred over €1.27 billion to the state. This includes €914 million in dividends and €359 million in taxes.
“This contribution is not just numbers, it is an investment for Cyprus and its citizens,” Tsiakka said. Cyta, Tsiakka said, is “more than just a public service”, and a “modern telecommunications entity that belongs to Cyprus and supports its economic growth”.
In the real estate sector, Limassol continues to lead the office rental market in Cyprus, with prices averaging €29 per square metre, while Nicosia remains a more affordable alternative at €13 per square metre, according to a report by Landbank Analytics.
The analysis, compiled from major real estate platforms in January 2025, provides a comprehensive breakdown of office, retail, and warehouse rental prices across Cyprus, emphasising key regional trends. In the office rental sector, 506 properties are currently available for lease across Cyprus, with an average asking price of €24 per square metre. Notably, Limassol dominates the market, accounting for nearly 70 per cent of the total supply with 352 available properties.
In its announcement, the association said that “the rising cost of living is one of the most significant challenges faced by young people today, as high living expenses affect their daily lives and future prospects”.
“The increase in the prices of essential goods, along with high housing and energy costs, has impacted young people’s financial independence, forcing many to seek less favourable alternatives,” it added.
According to Syprodat, addressing high living costs requires “targeted measures that will provide relief to citizens, particularly young people, while also supporting the economy’s sustainability”.
In corporate responsibility, the Cyprus Securities and Exchange Commission (CySEC) on Tuesday marked ten years of social responsibility efforts, reinforcing its commitment to community support and sustainable development.
According to an announcement, the commission has implemented a number of targeted initiatives over the past decade, “aimed at strengthening social cohesion and assisting vulnerable groups”.
“We do not view corporate social responsibility as a mere series of charitable actions but as an integral part of our culture,” said Elena Karkoti, a senior officer at CySEC and coordinator of its social responsibility programme.
In investment and networking, Invest Cyprus, in collaboration with the Nicosia Municipality, hosted a networking event this week titled ‘Why Nicosia’, aiming to connect investors with key institutional stakeholders.
According to an announcement released on Tuesday, the event provided a platform for networking and exchanging views, reinforcing Nicosia’s position as a prime destination for foreign direct investment and corporate headquarters.
“The Why Nicosia event is a crucial step in strengthening business and investment ties between the capital and foreign investors,” said Nicosia mayor Charalambos Prountzos.
What is more, Prountzos outlined the municipality’s vision and plans to establish the city as a central business hub. Meanwhile, Invest Cyprus CEO Marios Tannousis highlighted the organisation’s goal of facilitating discussions and showcasing Nicosia’s unique advantages.
In the retail sector, the agreement for the sale of Ermes Department Stores’ investment in Superhome Centre DIY was finalised on Monday.
In a statement issued by Ermes today, following its previous announcement on January 31, 2025, the company informed shareholders and the investment community that the transaction for the disposal of its stake in Superhome Centre (DIY) Limited has been successfully completed.
According to the details outlined in the earlier announcement, the sale of 100 per cent of Superhome’s share capital to Vasilitsi DIY Ltd was concluded for a total sum of €94 million. Ermes received €39.4 million for its 51 per cent stake in the company.
In economic optimism, PwC Cyprus this week released the findings of its 14th Annual CEO Survey, revealing a significant increase in business leaders’ confidence in the local economy.
The survey, presented at the PwC Experience Centre, is part of PwC’s Global CEO Survey, which was launched last month at the World Economic Forum in Davos.
While the results underscore optimism about economic growth, they also highlight ongoing concerns regarding business sustainability, workforce skills, and technological disruption.
According to the survey, 69 per cent of business leaders in Cyprus expressed confidence in the country’s economic growth prospects, a notable increase from 43 per cent last year.
The data revealed moderate increases in all property categories nationwide during the final quarter of last year.
When compared to the third quarter of 2024, the most significant increase was recorded in warehouses, while apartments continued to show the most consistent growth based on annual changes. On a yearly basis, apartments saw the most substantial increase, followed by office spaces.
In economic climate improvements, the economic climate in Cyprus registered a slight improvement in February 2025, the Economics Research Centre of the University of Cyprus (CypERC) reported this week. Specifically, the Economic Sentiment Indicator (ESI) rose by 0.8 points compared to January 2025, according to the CypERC’s latest economic sentiment survey.
The increase in the ESI was driven by strengthened business sentiment across all sectors, with the exception of retail trade. In the services sector, sentiment improved slightly in February as businesses assessed their turnover over the past quarter more positively compared to the previous month.
The construction sector experienced a significant boost in confidence, attributed to more favourable evaluations of ongoing projects and more optimistic employment expectations within the sector.
In industry developments, President Nikos Christodoulides this week said that Cyprus’ industrial sector’s “vast potential” has yet to be fully exploited.
Speaking at the official dinner of the Agios Athanasios Industrialists’ Association in Limassol on Tuesday evening, Christodoulides said that the government is revising its industrial policy, focusing on internationalisation and expanding Cyprus’ industrial presence abroad.
Addressing attendees, including Transport Minister Alexis Vafeades, the president urged the swift implementation of a longstanding request from industrialists for a second entrance and exit to the industrial area. “When it comes to safety issues, no delay is acceptable,” he stated.
In securities regulation, the Cyprus Securities and Exchange Commission (CySEC) has approved Logicom’s public offer to acquire up to 100 per cent of Demetra Holdings’ issued share capital, it emerged on Wednesday.
According to Logicom’s announcement, following its January 17, 2025, statement regarding the mandatory public offer, CySEC has reviewed and approved the offer document, allowing its publication on February 25, 2025.
Logicom currently holds 76,984,453 shares in Demetra, representing 38.492 per cent of the company’s issued share capital and voting rights. When combined with shares held by associated parties, this figure rises to 38.493 per cent.
In regulatory guidance, the Cyprus Securities and Exchange Commission (CySEC) on Thursday released a practical guide on maintaining effective and efficient sanctions screening systems.
The guide incorporates the latest findings from CySEC’s assessment of the effectiveness and efficiency of sanctions screening systems used by regulated entities.
The thematic inspections, conducted between April and November 2024, covered all categories of regulated entities, including Cyprus Investment Firms, Administrative Service Providers (ASPs), Funds and Fund Managers, and Crypto Asset Service Providers (CASPs).
CySEC’s inspections centred on legal requirements derived from the provisions of United Nations Security Council Resolutions or Decisions (UN Sanctions) and the European Union Council’s Decisions and Regulations (EU Restrictive Measures).
According to the RIF, this jump showcases Cyprus’ rising prominence in this space, especially among countries with populations under 2 million, where it now ranks fourth globally. RIF also noted that Cyprus is sixth globally in terms of startup exits under $1 billion and ninth in investor density per capita.
In the tourism sector, the future of Cyprus’ tourism industry depends on sustainable development, according to Association of Cyprus Tourist Enterprises (Stek) president Akis Vavlitis.
The Stek president on Thursday explained that “while the sector has demonstrated resilience, ongoing challenges must be addressed to ensure long-term stability”.
These, he said, include a reliance on a handful of markets, the threat of short-term rentals, seasonal imbalance, and inadequate infrastructure.
Vavlitis stressed that tourism continues to be a vital pillar of the economy. Visitor numbers surpassed four million in 2024, generating an estimated €3.2 billion, contributing around 13 per cent to Cyprus’ GDP.
Hellenic Bank on Thursday reported a net profit of €383 million for the full year 2024, highlighting its strong financial performance and solid capital position. “2024 was a landmark year for Hellenic Bank in terms of financial performance and ownership structure,” said chief executive officer Michalis Louis.
“The bank achieved strong financial performance in 2024 with a net profit of €383 million, up 10 per cent year-on-year, adjusted for discontinued operations, and a return on tangible equity of 23,” he added.
In startup funding, Cypriot startups are set to receive a significant boost with €26 million in funding secured by venture capital firm 33East in partnership with the European Investment Fund (EIF).
The fund aims to stimulate investment in the regional market and enhance its global competitiveness, Vice-President of the European Investment Bank (EIB) Kyriakos Kakouris said at its official launch on Thursday. Permanent secretary of the finance ministry, Andreas Zachariades, underscored the importance of the fund, acknowledging the startup sector as a particularly challenging business landscape.
Ask Wire, which specialises in real estate data and analytics, is contributing to the development of a Banking-as-a-Service (BaaS) platform that integrates property listings, mortgage financing, and additional homeowner services.
Attica Bank announced the platform in early February 2025, aiming to simplify real estate transactions by offering homebuyers access to various financial and market services.
“Designed to simplify real estate transactions, it offers homebuyers access to property listings, mortgage financing, market analytics, and additional services such as discounted energy supply and technical support—all in one place,” the bank stated.
At the same time, Cypriots are paying the highest mortgage rates in the eurozone while receiving some of the lowest interest rates on their deposits.
“The banking system operates close to an oligopoly, limiting competitive pressure,” said Central Bank of Cyprus (CBC) governor Christodoulos Patsalides, highlighting the limited competition within the sector.
These concerns arise as the sector consolidates further, with the announced merger between Hellenic Bank and Eurobank and Alpha Bank’s acquisition of AstroBank.
It should be noted that Karakyr Properties was already the active tenant of the building.
According to the company, the board of directors had long considered Annexes 3 and 4, located next to the Mall of Cyprus, as non-core assets.
These annexes are primarily occupied by office and exhibition space tenants, while the mall itself focuses on retail.
Annex 3, an office building with a gross leasable area (GLA) of 2,330 square metres, generated a net operating income (NOI) of €383,500 for the financial year 2024.
The legal merger between Eurobank and Hellenic Bank is expected to be completed within the first quarter of 2025, with the final step, the operational merger, scheduled to take place over the following two years.
According to Eurobank Holdings’ latest financial results, the bank recorded a €99 million contribution to its net profits from acquiring an additional stake in Hellenic Bank during the second half of 2024.
Following the mandatory public offer in early 2025, Eurobank will proceed with a squeeze-out to acquire the remaining 6.5 per cent stake in Hellenic Bank, aiming for full ownership.
The delisting of Hellenic Bank is expected within the second quarter of 2025, pending regulatory approvals.
The bank’s three-year plan aims for a 15 per cent return on tangible equity and a cumulative profit distribution twice that of the 2022-2024 period.
According to preliminary results, 2024 was a year of strong performance for Eurobank, exceeding expectations.
Net interest income increased by 15.3 per cent year-on-year (or 1.8 per cent excluding Hellenic Bank), reaching €2.50 billion.
This growth was primarily driven by lending, bond investments, and international activities. The net interest margin remained stable at 2.73 per cent compared to 2023.
During a presentation of the EIB’s 2024 financial results, vice-president Kyriakos Kakouris announced a key investment of €72 million for Cyprus’ new archaeological museum, highlighting the bank’s commitment to the island’s cultural and socio-economic growth.
During the annual financial results presentation, Finance Minister Makis Keravnos noted that the EIB group achieved a new high with €89 billion in new lending for the year.
This capital has mobilised over €100 billion for various projects, significantly bolstering the EU’s energy security through enhancements and expansions in networks, renewable energy sources, and zero-emission industries.
