AGP Executive Report

Regional Industry Links: Cyprus and Greece joined Israel’s Mare MED conference to advance cooperation in energy, shipping, agriculture, technology and defence; annual trade between Israel and the two countries exceeds $2 billion. India’s defence secretary also visited Cyprus to discuss naval cooperation, cybersecurity and defence-industry partnerships under a 2026–31 roadmap. Ports and Shipping: Limassol’s shore-power project still lacks a grid connection application, putting EU funding at risk. Shipping agents are urging coordinated planning across ports, energy and environmental protection. Energy Costs: Brent crude neared $107 a barrel amid attacks on Gulf shipping and energy infrastructure, renewing pressure on Cyprus fuel prices. Digital Finance: Cyprus’s fintech sector is approaching 200 firms, with payments accounting for about 55%; industry leaders say growth will require stronger cybersecurity and a skilled workforce. Business Skills: KEVE is offering subsidised AI training in Nicosia in November to help companies apply the technology. Rural Enterprise: Limited access to finance, infrastructure and professional networks continues to constrain women-led businesses in rural communities.

Economic Outlook: The IMF trimmed Cyprus’ 2026 growth forecast to 2.9%, below the finance ministry’s 3.1% estimate, but expects growth to reach 3.2% in 2027. It also sees inflation rising to 3.7% this year before easing. Food & Agriculture: Halloumi exports top €350 million annually and support thousands of jobs. The government has until July 2029 to bring production into line with the cheese’s protected status rules. Property: September sales reached a record 1,681 contracts, up 13% year on year; the nine-month total is 14% ahead of 2025. Energy: Cyprus and Saudi Arabia signed a cooperation pact covering oil, gas, renewables and electricity links, while Türkiye has begun seabed surveys for a planned gas pipeline to Northern Cyprus. Trade & Industry: Cyprus’ trade deficit widened to €6.3 billion in the first eight months of 2026 as imports outpaced exports. India and Cyprus also discussed expanding defence-industry ties and maritime cooperation.

Energy: Cyprus and Saudi Arabia signed an MoU spanning oil and gas, electricity, renewables, hydrogen and interconnections, with a joint team to identify projects and investment opportunities. Shipping: Deputy Shipping Minister Marina Hadjimanolis is heading to Japan, China and South Korea to promote the Cyprus flag, build commercial ties and attract shipping business. The Cyprus Shipping Association also warned that sanctions checks, cybersecurity and security risks are adding to agents’ responsibilities. Finance and Technology: A Limassol fintech summit heard Cyprus needs faster regulation, less bureaucracy and more skilled workers to compete; Kraken’s parent company awarded six postgraduate scholarships at the University of Cyprus in finance and data science. Defence Industry: Cyprus and India discussed industry partnerships, cybersecurity and emerging technologies, alongside naval cooperation, training and port visits. Agriculture and Trade: Agricultural groups are seeking an extension of grain storage permits at Larnaca port, warning that losing the facilities could threaten supplies. Separately, Cyprus’ trade deficit widened to €6.3 billion in the first eight months of 2026 as imports outpaced exports.

Business & Finance: BBC and the Bureau of Investigative Journalism allege Deloitte Cyprus helped falsify records to conceal Roman Abramovich’s assets and reduce tax liabilities. Deloitte says it acted lawfully; Abramovich denies wrongdoing. Telecoms: Cablenet is upgrading its broadband network with Harmonic’s virtualised platform, aiming to boost gigabit services and cut operating costs. Energy: Cyprus and Saudi Arabia signed a cooperation memorandum covering oil, gas, renewables, electricity links and energy technology. Economic Outlook: The government forecasts average growth of about 3% in 2027–29, but the trade deficit widened to €6.3 billion in the first eight months as imports grew faster than exports. Agriculture: Authorities plan to cull about 2,000 animals on five farms following foot-and-mouth disease infections, with compensation and herd-rebuilding support planned. Hospitality: Cyprus-based MHV acquired Moxy Athens City, expanding its hotel portfolio in Greece.

Defence & Space: Cyprus and India are exploring partnerships in defence, space and dual-use technologies, following talks between Indian officials and Cypriot businesses. Trade: Cyprus’ goods trade deficit widened to €6.3bn in the first eight months of 2026, as imports grew more than twice as fast as exports. Business Climate: Parliament began reviewing the €14.4bn 2027 budget, while Nicosia businesses pressed the government to cut bureaucracy and address labour shortages, infrastructure gaps and rising costs. Shipping: The sector is promoting careers at sea and ashore as Cyprus’ shipping register grows and ship-management revenues rise. Food Exports: Cyprus promoted halloumi, zivania, wines and other local products at London’s Food & Drink Festival. Construction: Building prices rose 4.9% in the second quarter, while output growth remained modest; a serious fall at a Strovolos site has also renewed attention on worker safety.

Construction: Cyprus is investigating allegations that migrant workers were made to sleep on building sites in unsafe conditions. Separately, three workers were seriously injured after a nine-metre fall at a Strovolos site. Construction prices rose 4.9% in Q2 as output growth remained modest. Energy Costs: Diesel has hit a record €2.126 a litre, while critics say recent cost-of-living relief does too little to address high energy prices. The Vasiliko LNG project has passed its deadline for expressions of interest, and Cyprus plans to raise a proposed Turkish gas pipeline with EU counterparts. Trade and Food: Cyprus promoted halloumi, zivania, wines and other products at London’s Food & Drink Festival. Athienou bread and loukoumi are also expected to gain EU protected status within a year, strengthening their market identity. Shipping and Investment: Cyprus and Italy are exploring shipping and port investment opportunities, while Cyprus and Saudi Arabia plan an energy cooperation memorandum.

Energy Costs: Diesel reached a record €2.126 a litre in Limassol as fuel costs squeeze households and businesses; calls for tax relief are growing. Gas and Energy Security: Cyprus plans to challenge Türkiye’s proposed undersea gas pipeline to northern Cyprus at an EU meeting. The 97-kilometre line is projected to cost €601 million and be operational by 2028. Construction: Three workers were seriously injured in a nine-metre fall at a Strovolos building site; police and labour inspectors are investigating. Construction prices also rose 4.9% as production growth remained modest. Shipping: Cyprus’ ship registry has expanded 27% in three years, while state revenue from ship management rose 20%, President Nikos Christodoulides said. The sector employs more than 5,000 people ashore. Agriculture: Athienou bread and loukoumi are expected to gain EU protected geographical status within a year, strengthening recognition of local products.

Gas Pipeline: Türkiye’s Oruç Reis is surveying the route for a planned 101-kilometre gas pipeline to northern Cyprus, with construction targeted for completion by 2028. Shipping: Cyprus’ ship registry has grown 27% in three years, while state revenue from ship management rose 20%; the sector employs more than 5,000 people ashore and 55,000 seafarers aboard Cyprus-flagged ships. Energy Costs: Diesel averages €2.022 a litre and reaches €2.126 at some pumps, prompting more Greek Cypriots to cross north for cheaper fuel. Energy Investment: Finance Minister Makis Keravnos is urging more EU spending flexibility to help businesses and households manage energy costs while funding generation and storage. Construction: Cyprus construction prices rose 4.9% as production growth remained modest, while property professionals point to permit delays and the need to increase housing supply.

Shipping: Cyprus’s ship registry has grown 27% in three years, while state revenue from ship management rose 20%. The sector supports more than 250 companies and over 5,000 onshore jobs, with the government seeking to attract young people to maritime careers. EU Funding: A draft 2028–34 budget trims €141bn from the European Commission’s proposal, with agriculture and regional funding among the least affected. Cyprus is also pressing for more EU spending flexibility to support businesses and households facing energy costs. Energy Costs: Rising fuel prices are driving more Greek Cypriots to cross north to fill up; diesel averages €2.022 a litre in the Republic, while prices in the north are substantially lower. Investment and Construction: Cyprus and Saudi Arabia are set to sign an energy cooperation memorandum, while construction prices rose 4.9% as production growth remained modest.

Energy Security: Cyprus is seeking more EU spending flexibility as conflict-driven costs squeeze households and businesses. Expressions of interest have closed for completing the stalled Vasiliko LNG terminal; the government expects to confirm interest on Monday and estimates completion will cost €180 million and take two years. Athens says the Greece-Cyprus electricity link can proceed without concessions on sovereign rights, while Cyprus and Saudi Arabia are set to sign an energy cooperation memorandum. Construction: Second-quarter production rose 1.1% year on year, but construction prices climbed 4.9%, highlighting mounting cost pressure. Shipping: Cyprus and Italy are exploring investment and partnerships in ports, logistics and maritime technology. Space Industry: Cyprus has committed €13.5 million to European Space Agency programmes through 2028 to build local industry and support technology firms. Business Costs: Diesel has reached a record €2.126 per litre, adding pressure on Cypriot businesses.

Energy Projects: Expressions of interest have closed for the stalled Vasiliko LNG terminal, with completion estimated at €180 million and about two years. Separately, Cyprus, Greece and Egypt are advancing a route to liquefy Cypriot gas in Egypt and send it to Europe via Greece, with flows targeted for the first half of 2028. Fuel Costs: Diesel has hit a record €2.126 a litre, adding pressure on households and businesses. Finance Minister Makis Keravnos is urging the EU to allow more flexibility to support businesses and consumers through the energy crisis. Industry and Construction: Cyprus industrial output rose 5 per cent as local demand offset weaker exports, while industrial prices climbed amid higher European energy costs. Property professionals want faster, more predictable building permits to support development and housing supply. Shipping: Italy and Cyprus are seeking new shipping and port partnerships at a Limassol forum, while Safe Bulkers awarded €100,000 in scholarships to support the next generation of maritime professionals. Business Outlook: Cyprus’ short-term outlook improved in September, supported by stronger property activity and retail sales, though rising oil prices remain a risk.

Fuel & Costs: Diesel has hit a record €2.126 a litre as Cyprus inflation rose to 3.7% in September, led by surging housing, utility and transport costs. Energy Links: The US says it will use diplomacy to advance the €1.9bn Greece-Cyprus electricity cable, stalled by Greek-Turkish tensions. Separately, Cyprus’s Kronos gas project is moving toward exports to Europe through Egypt, following a final investment decision. Business: Seventeen Cypriot and 40 Greek firms met in Athens to explore partnerships across technology, construction, food, sustainability and other sectors. Foreign-controlled firms employ more than 40,000 people in Cyprus and generate €4.76bn in value added. Industry & Agriculture: Cyprus industry grew 5% as local demand offset weaker exports. The government also plans €200m in water and irrigation projects through 2030, while bluetongue has affected three livestock farms, with 10 animal deaths reported. Property Technology: Limassol-based Tektor has launched an all-in-one platform for developers, covering construction, sales and post-handover services.

Business Links: Seventeen Cypriot firms met 40 Greek companies at an Athens forum on October 8 to explore partnerships across technology, construction, food, hospitality and sustainability. Investment & Jobs: Foreign-controlled firms generated €4.76 billion in value added and employed 40,187 people in Cyprus in 2024—about one in ten workers. Former Cyta chief Andreas Neocleous joins PwC Cyprus as chief consulting officer on October 16, strengthening its consulting practice. Shipping & Trade: Cyprus and Italy are set to discuss maritime investment, ports and shipping in Limassol, while Cyprus and India are advancing cooperation in shipping, technology, tourism and infrastructure. Energy: The US says it will use diplomacy to help move forward the €1.9 billion Great Sea Interconnector linking Cyprus, Greece and Israel, amid a dispute over seabed surveys. Industry & Infrastructure: Cyprus industry grew 5 per cent as local demand offset weaker exports; building permits topped €2.56 billion, and €200 million in water and irrigation projects is planned through 2030. Rising energy costs are also pushing industrial prices higher and diesel to a record €2.126 a litre.

Shipping: A Cyprus-linked tanker, the Rio, caught fire after an attack off Sochi; all 23 crew members were rescued, with no injuries reported. Energy: Cyprus, Greece and Egypt are advancing plans to export gas from the Kronos field to Europe via Egypt, with flows targeted for the first half of 2028. Costs: Diesel reached a record €2.126 a litre at one Limassol station, while the government is seeking EU relief on heating-oil tax as energy costs weigh on households and businesses. Agriculture and Water: More than €200m is planned for water infrastructure by 2030, alongside extra irrigation supplies and support for farmers facing higher fuel and fertiliser costs. Industry and Construction: Cyprus industry grew 5%, supported by local demand despite weaker exports; building permits also topped €2.56bn as the construction boom gathered pace.

Shipping: A Cyprus-linked tanker caught fire off Sochi after a drone attack; all 23 crew were rescued, with no oil pollution reported. Ports and Skills: European maritime partners met in Cyprus to discuss port skills, digitalisation and decarbonisation, with visits to Limassol port operators. Food Exports: Halloumi exports are worth €350m annually, and producers are eyeing the US market; limited goat and sheep milk could constrain growth. Industry and Energy: Cyprus industry grew 5%, supported by domestic demand, even as exports weakened. Industrial prices are also rising amid higher European energy costs. Retail: Jumbo’s Cyprus sales rose 15% in September, driven in part by back-to-school shopping. Manufacturing: Medochemie received the Cyprus Environmental Awards’ top distinction, citing renewable electricity at its local factories since October 2025. Digital Innovation: Primetel joined a regional smart-cities research project exploring AI, digital twins and data analytics.

Smart Cities & Digital Tech: Primetel is joining the Metacities Excellence Hub project, linking Cyprus with Greece and Bulgaria to test digital twins, AI and big-data tools for smart mobility, urban planning and energy management. Energy & Shipping Costs: Cyprus fuel prices are still under pressure as oil moves again through Hormuz, but retailers warn diesel and petrol could rise another 2–3 cents this week due to higher shipping, insurance and refining constraints. Regional Maritime Cooperation: Cyprus is among countries keen to join IMEC, with a ministerial meeting expected later this year to expand the corridor’s membership beyond current signatories. EU Budget Watch: EU leaders and institutions are warning against “excessive” cuts in the 2028–2034 multiannual budget, pushing for reductions that don’t damage agreed priorities. Local Infrastructure: Larnaca’s sewage system gets a €7.95m contract for design and studies for Aradippou, Livadia, Voroklini, including treated-water reuse to tackle water shortages. Jobs & Economy: Cyprus unemployment rose in September, with public administration and defence, information/communication and support services driving the increase. Workplace Culture: interFRONTIERS says Cyprus firms are increasingly investing in team-building and workplace relationships, helped by foreign business demand.