AGP Executive Report

Energy & Infrastructure: Cyprus’ energy cable plans are under fresh scrutiny after reports suggest Nicosia is “backing away” from the Cyprus-Crete interconnector deal, with officials pointing to alternative supply options and raising concerns over geopolitics and project figures. Electricity & Renewables: Cyprus is also pushing ahead with grid upgrades aimed at supporting renewables, while local power reliability remains in the spotlight. Maritime & Shipping: Safe Bulkers extended its 2026–27 scholarship deadline, keeping a €10,000-per-award pipeline for Cypriot and Greek residents pursuing maritime careers. Housing & Construction: Student accommodation demand is outpacing supply across Nicosia, Limassol, Larnaca and Paphos, driving steep rent increases and forcing early booking decisions. Agriculture & Livestock: Farmers’ groups back a plan to rebuild Cyprus’ livestock sector after outbreaks, as the industry seeks stability and long-term recovery. Education & Compliance: The Ghana Tertiary Education Commission published a list of 100 unrecognised universities, urging due diligence—an item relevant for cross-border study planning. Local Business & Finance: Cyprus banks step up financial literacy initiatives as payment fraud losses are reported rising, underlining the need for consumer protection. Culture & Industry Events: Septemberfest returns to Nicosia with beer, street food and major Greek music acts, a boost for hospitality and tourism.

Cyprus Housing Pressure: Student rents across Nicosia, Larnaca, Paphos, Limassol and Paralimni are climbing fast as demand outpaces supply, with one-bed flats reported from €600 up to €1,500 and three-bed asking prices reaching €2,700 in Limassol. Fisheries Survival Plan: Cypriot fishermen are urging a ten-year national strategy after warning stocks are falling, calling for better access to coastal grounds, stronger monitoring against illegal fishing, and easier routes to sell catches. Maritime Careers & Training: Safe Bulkers extends its 2026–27 scholarship deadline to Sept 7, offering ten €10,000 awards for students pursuing maritime careers. Recreational Boating Law: Cyprus’ updated recreational navigation legislation remains unimplemented six months after passage; officials say procedures and forms will be prepared from September and rollout will happen in stages. Energy & Regional Gas Link: A report highlights how Cyprus’ emerging gas role could connect with Egypt’s LNG push, potentially easing Egypt’s domestic supply squeeze while adding a non-Russian route for Europe. Local Environment Watch: Limassol’s sea pollution is again under scrutiny, with municipal leaders pointing to multiple land-and-sea sources and demanding accountability.

Fisheries Under Pressure: Cypriot fishermen are urging a ten-year national plan after stocks decline, calling for better implementation of the EU common fisheries policy, priority access for small-scale crews, stronger monitoring against illegal fishing, and easier routes to sell catch and access funding. Marine Pollution in Limassol: Amathus mayor and Limassol-area officials are pushing for clearer responsibility and stronger inspections after renewed complaints, with possible sources ranging from fish farms and boats to shipping and pipelines; municipalities also say Blue Flag status was lost over ongoing water quality issues. Recreational Boating Law: Cyprus’ revised recreational navigation legislation is still unimplemented six months after passage, with the shipping ministry saying procedures and forms will be developed from September and rollout planned in stages. Livestock Recovery Plan: After foot-and-mouth disease, Cyprus is considering a €610m, 12-year overhaul (2027-2038) to rebuild the livestock model and protect halloumi, milk and meat exports. Industrial Output Update: Cystat reports Cyprus industrial production up 0.3% year-on-year in June, with manufacturing slightly higher and electricity supply down 4%. Energy & Renewables Grid: Cyprus approved €95m for electricity grid upgrades to support renewables. Tourism & Heritage Moves: Larnaca’s 2026 tourism action plan backs projects like a marine education centre at Pervolia Lighthouse and restoration of historic railway wagons.

Industrial Output Watch: Cyprus industrial production edged up 0.3% year-on-year in June 2026, with manufacturing up 0.6% and mining/quarrying jumping 11.4%, while electricity supply fell 4%—and water collection rose 14.2% even as materials recovery dropped 15.1%. Livestock Reconstruction: After the foot-and-mouth crisis, Cyprus is weighing a €610m, 12-year (2027-2038) overhaul to rebuild farms, cut outbreak risks, and rebalance milk and meat production for export resilience. Energy & Grid Reliability: A new push for backup power highlights how businesses and households can keep running during outages via near-instant switching systems. Shipping & AI: The Cyprus Shipping Chamber backs the draft National AI Strategy 2032, aiming for Cyprus to become an AI services hub—while targeting fuel savings and lower maintenance costs for shipping. Maritime Skills Funding: Safe Bulkers extends its 2026-2027 scholarship deadline to Sept 7, offering ten €10,000 awards for maritime-focused degrees. Tourism Tech & Heritage: Larnaca’s 2026 plan includes turning the Pervolia/Kiti lighthouse into a marine education centre and restoring historic railway wagons to spotlight mining heritage. Food Exports: EUKIHAL backs a €3.62m campaign to push Cyprus PDO halloumi and Greek kiwifruit into the US market, with a Miami tasting event tied to the Americas Food & Beverage Show. Urban Environment Pressure: Disy and Akel demand clearer answers on recurring Limassol sea pollution, calling for transparency on lab results and responsibility mapping. Agriculture Events: Simou Agrofest 2026 spotlights traditional food and farming—from trahanas and halloumi to wheat threshing—on Sept 12.

Electric Mobility Enforcement: Cyprus is moving to tighten rules on electric scooters, with a draft decree proposing fines and the impoundment of scooters for 30–90 days for offences like riding in prohibited areas, underage use, or exceeding 25 km/h. Energy & Power Market: The Electricity Authority (EAC) denies blocking a private 260MW power station near Vasiliko, saying the rival operator lacks permits over seawater discharge pipes that overlap with EAC land. Education & Skills: An EU report says Cyprus students lag behind peers in basic, civic and digital skills, with over half underperforming in maths and very low shares reaching advanced reading and science levels. Household Costs: Cyprus Consumers Association reports school supply prices are broadly stable versus 2025, but with huge gaps—school bags range from €1.89 to nearly €210—pushing parents to compare online and in-store. Shipping & Industry Events: Cyprus Shipping Deputy Minister Marina Hadjimanolis will speak at the 18th Capital Link Shipping & Marine Services Forum in London on Sept. 15, spotlighting shipping market updates and regulatory themes.

Gaza Aid Logistics: Cyprus kept the Amalthea maritime corridor moving with another 900 tons of supplies for Gaza—600 tons arrived Thursday and 300 more are due next—covering medicines, food, hygiene and shelter, with Cyprus acting as collection, storage and coordination hub under UN monitoring. Coastal Environment: Limassol beaches are still seeing recurring pollution complaints, and authorities are now widening the hunt to ships, leisure boats, marinas and pipelines, with the Moni wastewater-treatment plant under particular scrutiny after reports of possible sewage-related bacteria. Banking & Savings: EUR fixed-term deposit rates in Cyprus are pushing above 3% as PickTheBank.eu updates offers with Lidion Bank, including 3.02% for 18-month deposits and up to 3.08% for two- to five-year terms. Agriculture & Livestock: Farmers’ groups back a 2027–2038 plan to rebuild Cyprus’ livestock sector after foot-and-mouth disease, calling for investment in sheep, goats and cattle, plus biosecurity, animal welfare and organised meat production. Energy & Power Reliability: The Electricity Authority of Cyprus scheduled planned power cuts in Paphos communities on Monday for medium-voltage overhead network maintenance, while an investigation continues into last Friday’s islandwide outages linked to a telecom fault with photovoltaic parks. Education & Construction: Authorities are examining a major Kato Polemidia campus proposal—Fasouri School / Fasouri Academy and Sports Hub—for 4,500 pupils across three school units plus a shared sports centre. Maritime Decarbonisation: CYMEPA is urging citizens to take part in the METAVASEA online survey on shipping decarbonisation, alternative fuels and public readiness, with responses helping shape regional information needs. Employment Snapshot: Cyprus unemployment fell to 3.6% in Q2 2026 as employment rose to 520,763 and the number of unemployed dropped to 19,367. Fuel Market: Cyprus petroleum product sales returned to annual growth in July, up 1.3% to 146,656 tonnes, after a June decline, while fuel price growth cooled versus earlier months. Financial Sector Watch: A major payments deal is moving through Cyprus’ Central Bank review: ECM Partners’ planned purchase of half of payabl. is submitted for approval, with expectations for a decision around October.

Waste & Infrastructure: Cyprus’ agriculture ministry says contracts for upgrading the Pentakomo and Koshi waste facilities are only expected in 2027 and 2028, with interim steps tied to a sustainability study for the national municipal solid waste network. Energy & Renewables: Nicosia district authorities report a solar farm (up to 1,081 kWp) is now powering the bicommunal Mia Milia wastewater treatment plant, cutting the station’s electricity footprint after EU-funded works. Power Grid & Renewables: Greece says Turkey permission isn’t needed for the Great Sea Interconnector (GSI), as planning continues and seabed surveys are underway for the Cyprus–Crete cable route. Retail & Consumer Demand: Cystat data shows Cyprus inflation easing but still high pressure: July prices up 4.4% year-on-year, with supermarkets seeing shoppers compare and buy more selectively. Research & Education: RIF opens “Researchers in Schools” for 2026–2027, inviting Cyprus research organisations to bring STEAM-linked science, engineering and innovation into classrooms and, for the first time, host pupils at their own facilities. Finance & Ratings: Cyprus is set for three September credit rating decisions (DBRS on Sept 4; S&P and Capital Intelligence on Sept 18), with Fitch and Moody’s following in November. Payments & Fintech: ECM Partners’ planned €100m-plus purchase of payabl. is submitted to the Central Bank of Cyprus, with approval expected in October. Local Economy & Housing: Cyprus’ economy is described as expanding faster than the EU average, as rating reviews loom and policymakers watch execution on growth and inflation.

Retail & Inflation Watch: Cyprus shoppers are visiting supermarkets more often but buying less per trip, comparing prices across stores as inflation stays a drag. Cystat data show July HICP up 4.4% year-on-year, with food up 4.54% and housing/electricity up 6.98%, while clothing fell 5.24%. Energy Infrastructure: EAC plans new electricity storage at Dhekelia (80MW/160MWh) and Moni (100MW/200MWh) to cut renewable curtailment, with Dhekelia targeting operation in September next year; the Dhekelia contract is €33.7m and total estimates are around €50m. Shipping Decarbonisation: The Clean Shipping Alliance and Marine Fuels Alliance signed an MoU to coordinate on MARPOL compliance, alternative fuels, and emissions-reduction tech, with Cyprus-linked CSA executive director Andreas Chrysostomou. AI Policy & Skills: Cyprus’ National AI Strategy 2032 is open for consultation, with calls for a coordinated national framework; separately, Deputy Minister Nicodemos Damianou urged young people to be included in tech decisions. Business & Exports: Keve says the Trade Ministry opened a €1.7m de minimis grant for Cypriot firms to exhibit at international trade fairs in 2027 (applications until Sept 18). Tourism Resilience: A new report highlights how Cyprus recovered after Russian arrivals collapsed, shifting to other European markets. Finance & Regulation: CySEC issued an updated anti-money laundering directive for beneficial ownership registries for express trusts. Geopolitics Hitting Travel: Gatwick reported lower profits and passenger declines tied to the Iran war, with Cyprus among affected destinations.

Energy & Infrastructure: Eni says it’s in talks with BP and Egypt’s EGPC to reach a final investment decision in the coming months on Egypt’s offshore gas discovery, with first gas possible in under two years, while also discussing its Cyprus offshore Cronos project and its role feeding Egypt’s Damietta LNG. Power & Utilities: Cyprus approved new Police and Fire Service facilities in Larnaca, with construction targeted for 2027, as part of a wider upgrade plan; meanwhile, storage-heater households face higher electricity costs after the EAC ended the long-running preferential tariff from 1 May 2026. AI & Digital Economy: Cyprus opened public consultation on a national AI strategy aiming to make the island a trusted Eastern Mediterranean AI hub by 2032, targeting smarter public services, productivity gains, and a stronger local tech ecosystem. Finance & Consumer Impact: Cyprus’ economy remains resilient with 3.3% GDP growth in the first half and unemployment at 4%, but inflation is still a concern; separately, the Consumer Protection Service reports fuel price rises in Cyprus are smaller than the EU average. Maritime & Regional Security: Turkey’s marine parks debate continues to spill into Cyprus’ energy and interconnector plans, while Hormuz navigation talks between Iran and Oman point to a phased approach and mine-clearing corridor. Business & Markets: PickTheBank and Lidion Bank lifted EUR fixed-term deposit rates, pushing several terms above 3%. Local Development: Larnaca’s property and permitting dynamics remain in focus, with construction and housing approvals cited as key drivers.

Energy & Infrastructure: Cyprus is pushing ahead with a €95m electricity grid upgrade co-funded by the EU, targeting substation modernisation and digital controls to better absorb renewables and cut curtailment, with works due to finish by Dec 2029. Housing & Permits: The housing crunch is being worsened by slow planning and building permits, with delays adding tens of thousands of euros to new homes and feeding rental pressure. Waste Policy: Municipalities are threatening to block Cyprus’ “pay as you throw” rollout unless funding, organic waste processing sites, equipment costs, inspectors and licensing details are clarified. Payments Security: Central Bank data shows payment fraud value in Cyprus rose 16% y/y to nearly €3.7m in H2 2025, even as case numbers fell. Property Market: RICS/KPMG results show Larnaca leading Q2 2026 price growth across apartments and offices, with retail lagging. Local Tech & Defence: Cyprus’ National Guard has started locally producing small drones via a new drone lab, building sUAV and FPV capabilities. Maritime Risk: Strait of Hormuz compliance is tightening as Iran blacklists 45 ships and threatens fines, detention and cargo confiscation. Cross-border Energy Politics: Cyprus has complained to the UN over a Turkey–north Cyprus gas pipeline memorandum, calling it illegal and a sovereignty violation.

Electricity & Renewables: Cyprus has approved a €95m electricity grid upgrade, co-financed by the EU (THALIA 2021-2027), to modernise transmission substations and add new transformers, switchgear and digital protection—aimed at boosting capacity and renewable integration, with works due by Dec 2029. Energy Interconnection & Diplomacy: Turkish Cypriot PM Ünal Üstel rejected the Republic of Cyprus’ UN complaint over a planned Turkey–TRNC gas pipeline, calling it a “double standard” and saying the project strengthens Turkish Cypriots’ energy future. Maritime Watch: With the Iran–US Hormuz MoU expired, Iran has blacklisted 45 tankers for alleged Strait of Hormuz rule breaches, warning that ship-to-ship transfers with listed vessels could trigger fines, detention and cargo confiscation. Property Market: KPMG in Cyprus and RICS report Q2 2026 resilience: apartments led price growth (Larnaca strongest), rentals rose, while retail lagged. Digital Payments: Viva.com won a Cyprus state contract to run electronic transaction processing for government payments via Gov.cy, with expected volumes above €1.5bn annually. Consumer Safety: Cyprus issued a Safety Gate alert over 65 unsafe non-food products, spanning toys, electrical goods, cosmetics, clothing, vehicles and construction items. Water & Infrastructure: Reservoir storage is now more than double last year (111m m³ total), and upgrades are progressing to relieve pressure on Moni’s sewage plant via Vati. Tech & Identity: Cyprus plans to replace passport scanners at Larnaca and Paphos with automated biometric gates ahead of Schengen accession. Retail: Pull&Bear reopened at Mall of Cyprus with a new digital-first store concept.

State Payments Upgrade: Viva.com has won a Cyprus Treasury contract to run electronic transaction processing for the state, building a multi-channel payments backbone for Gov.cy and handling online payments for taxes, vehicle licence renewals and social insurance, with volumes expected to top €1.5bn annually. Energy & Infrastructure Tensions: Turkish Cypriot PM Ünal Üstel hit back at the Greek Cypriot administration’s UN complaint over a Türkiye–TRNC natural gas pipeline, calling it contradictory and saying the TRNC can decide its own energy future with Ankara. Grid Reliability Questions: Cyprus faced widespread power cuts in government-controlled areas, and officials still lack a clear explanation, with competing claims about whether the issue stemmed from telecom links tied to solar parks or from the occupied north’s connected network destabilising supply. Livestock Compensation Dispute: Farmers’ union leaders condemned veterinary services over foot-and-mouth disease compensation delays, while the directorate said some claims failed legal conditions tied to registration and declared animal numbers. Rural Development Push: Deputy Shipping Minister Marina Hadjimanolis said reviving Cyprus villages needs more than infrastructure, stressing culture, social life and youth opportunities alongside regeneration funding. Digital Work Rules: A Cyprus remote-telework legal framework is outlined, focusing on voluntary arrangements, written agreements and preventing employers from shifting remote-work costs to employees.

Energy & Sovereignty: Cyprus’ UN envoy Maria Michael says Turkey must halt its planned undersea gas pipeline to the Turkish-occupied north, calling the “memorandum of understanding” illegal and warning preparatory moves have already started, including navigational notices for research vessels. Regional Energy Tensions: Greece and the Republic of Cyprus also object to the Turkey–TRNC gas pipeline, arguing it violates Cyprus’ sovereignty and could intensify the Eastern Mediterranean energy dispute. Maritime Security: Iran’s Persian Gulf Strait Authority announces a “Non-Compliant Vessels” list for Strait of Hormuz transit, warning of possible fines, detention, seizure or confiscation—another escalation in its control of shipping through a key energy chokepoint. Power & Water Infrastructure: Relief is coming for Limassol’s Moni sewage plant as Vati’s upgrade is expected to take over cesspit handling from next month, with the Water Development Department coordinating to reduce strain and improve recycled water quality. Payments & Retail Habits: A new ECB survey shows cash is still widely accepted in Cyprus (lowest in the euro area at 76%), while digital payments keep gaining ground—useful context for local fintech and consumer services. Pensions: Labour Minister Marinos Mousiouttas says pension reform will raise payments for all retirees, with larger gains for lower pensions, rolled out gradually over five years. Business Links: Cyprus Chamber of Commerce and Industry meets Libya’s National Development Authority to explore renewable energy, infrastructure, and port/airport modernization partnerships.

Energy Infrastructure: Cyprus’ energy isolation is set to ease as Mitsotakis hailed a French investment deal for the Great Sea Interconnector, with Nexans tasked to manufacture and lay the cable—positioning the GSI as a stronger financial and technical bridge for clean power. Power Reliability: Cyprus saw power cuts tied to a telecom failure that disrupted data transmission from major photovoltaic parks to the Electricity Authority of Cyprus, while a separate Saturday outage was linked to a fault in the north. Cross-Border Energy Politics: Cyprus’ UN envoy Maria Michael protested Turkey’s planned natural gas pipeline via a Turkey–TRNC MoU, calling it illegal and already backed by preparatory steps like seismic survey activity. Business & Trade Links: The Cyprus Chamber of Commerce and Industry met Libya’s National Development Authority to explore renewable energy, construction, and port/airport modernization partnerships. Construction & Permits: A report flags build-first practices in three Israeli-backed developments across Cyprus—raising concerns over unresolved licensing, permits, and local planning impacts. Tourism & Labour: PASYXE pushed back on hotel employment allegations, saying no substantiated complaints were filed, while warning the sector still faces staffing shortages.

Energy & Grid Reliability: Cyprus saw power cuts after a telecom failure disrupted production data links from major photovoltaic parks to the Electricity Authority of Cyprus, while a separate Saturday outage was blamed on a fault in the occupied-area network; EAC says generation units were fine, pointing to system-control data and grid faults as the triggers. Energy Diplomacy: Cyprus has protested to UN chief António Guterres over Turkey’s plans for a natural gas pipeline connecting the island to Turkey, calling the MoU illegal and warning that preparatory steps like seismic surveys signal intent to proceed. Tourism & Labour: PASYXE pushed back on allegations of illegal hotel employment, saying it has received no substantiated complaints and urging workers with specific information to report it to authorities. Energy Investments (Regional): Talks in Trinidad and Tobago between the government, Nutrien and Methanex on future energy-sector investment were described as ongoing and confidential, underscoring how fertilizer and methanol supply chains remain tied to gas strategy. Business & Mobility: Cyprus residents are still travelling in record numbers abroad, with 2026 trips projected to top 2.1 million as better connections keep demand steady.

Energy & Grid Reliability: Cyprus saw power cuts in “various areas” after a fault in the north at 5:51am, with restoration by 6:09am, while the transmission operator blamed a north-side issue and local reporting pointed to grid maintenance and insulator concerns. Labour & Hospitality Compliance: PASYXE pushed back on allegations of illegal hotel employment, saying it has received no substantiated complaints and urging whistleblowers to report specific information to authorities. Construction & Land Readiness: A local land-clearing service highlights how proper removal, grading and site preparation can reduce delays and costs before building starts. Energy Infrastructure Debate: A Cyprus energy expert argues the Great Sea Interconnector should be judged on long-term strategic impact—turning Cyprus into an Eastern Mediterranean energy hub—not just upfront cost. Tourism & Mobility: Cyprus residents are still travelling in record numbers, with trips abroad expected to hit 2.1 million in 2026 as better routes boost outbound options. Agriculture & Compensation: Farmers report delays and partial payments tied to foot-and-mouth disease compensation, with concerns over restocking timelines and veterinary requirements. Regional Business & Policy: The Cyprus-Greece palace says regular intergovernmental summits are delivering coordination benefits across health, energy, digital policy and security.