Cyprus Business Now: weekly wrap-up
Cyprus Business Weekly Highlights: Maritime Cooperation, Financial Strategy, and Growth Across Key Sectors
Maritime Collaboration: Cyprus and Egypt have strengthened their maritime relationship through a joint commission, set up during Deputy Shipping Minister Marina Hadjimanolis’ visit to Egypt from October 29 to 31. Invited by Egypt’s Minister of Transport, Hadjimanolis engaged with senior officials to discuss boosting maritime operations, sustainable practices, and cruise tourism. The Cyprus Deputy Ministry highlighted that these talks reaffirmed Cyprus-Egypt relations, establishing a formal channel for ongoing collaboration in line with a merchant shipping agreement between the two nations.
Financial Oversight and ESG: The Central Bank of Cyprus (CBC) continues its focus on financial oversight, with Governor Christodoulos Patsalides speaking at the Credit Risk Management Conference hosted by ICAP CRIF and Artemis Credit Bureau. The conference covered risk management, including the impact of Environmental, Social, and Governance (ESG) criteria on credit risk, underlining the need for a forward-thinking approach to financial resilience.
Maritime Industry Expansion: In a significant development, Cyprus-based shipping firms Intership Navigation and Interorient Shipmanagement have merged to form InterMaritime Shipmanagement. The new entity, managing 170 vessels, leverages over 80 years of combined expertise to enhance Cyprus’ role in global maritime services, offering technical and crew management, procurement, and commercial operations.
Living Cost Concerns: Domestically, the Cyprus Borrowers Association (Syprodat) is urging the government to adopt broader measures addressing the cost-of-living crisis. Although Syprodat acknowledged recent inflation countermeasures, it argues for a more inclusive approach to help borrowers manage loan repayments and avoid an increase in non-performing loans.
Tech Advancement: Cyprus is positioning itself as a regional tech hub through an MoU signed by Invest Cyprus and TechIsland to cultivate a sustainable tech community. Since 2021, TechIsland has represented over 300 tech companies and aims to make Cyprus a leading technology destination, aligning with Invest Cyprus’ mission to attract foreign investment and enhance the local tech ecosystem.
Tourism Sector Highlights: Cyprus showcased its tourism offerings at the World Travel Market (WTM) in London, with Deputy Tourism Minister Kostas Koumis leading discussions with UK airlines, tour operators, and global tourism partners. Koumis also participated in a ministerial panel on AI’s transformative impact on travel, highlighting Cyprus' commitment to innovation in tourism.
Banking Growth: Cyprus' banking sector remains resilient, with Hellenic Bank reporting a 28% increase in profit for the first nine months of 2024. CEO Michalis Louis credited this growth to a strong capital base and liquidity, enabling the bank to support a diverse range of clients. The bank's CET1 ratio of 28.3% reflects solid regulatory alignment.
Real Estate and Transportation Growth: The RICS Cyprus property price index reveals a 0.8% rise in apartment prices, indicating growth in Cyprus’ real estate market. Additionally, passenger traffic at Larnaca and Paphos airports rose by 7.14% in October, suggesting a record-breaking year for Cypriot airports, with projections of over 12 million passengers by year-end.
Digital Currency and Wage Growth: The Central Bank of Cyprus recently held discussions on the digital euro’s potential impact on transaction fees, liquidity, and balance management. Cyprus Statistical Service reports also showed a 7.3% rise in the average gross monthly salary, reaching €2,363 in 2023, driven by ICT and financial service sector growth.
Economic Activity and Investment: Cyprus continues to attract foreign investment, as highlighted by Invest Cyprus CEO Marios Tannousis at the International Funds Summit & Expo. The event underscored Cyprus’ strategic appeal to global investors and featured insights into advancing regulatory frameworks and transparency in financial markets.
These updates reflect Cyprus’ strategic advances across maritime, technology, finance, and tourism, reinforcing its position as a dynamic business and innovation hub.
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