Cyprus Business Now: weekly wrap-up
Here are the top business stories in Cyprus from the week starting November 4:
Her October 29 to 31 visits, made at the invitation of Egypt’s Minister of Transport, included talks with top Egyptian officials focused on strengthening maritime operations, sustainability, and cruise tourism links between the two countries.
“The excellent level of Cyprus-Egypt relations was confirmed,” stated Cyprus’ Deputy Ministry, noting the discussions formalised lasting communication channels in line with a merchant shipping agreement between the two nations.
Hosted by ICAP CRIF and the Artemis Credit Bureau, the conference highlighted the need for a forward-looking approach to assessing individual risks, applicable to both agricultural policy and lending decisions.
This year’s discussions, moreover, revolved around ESG impact on credit risk, a growing concern among companies navigating today’s challenging economic environment.
In a significant development for Cyprus’ maritime sector, two shipping companies, Intership Navigation and Interorient Shipmanagement, have merged to form InterMaritime Shipmanagement.
This new entity, which includes Intership’s sister company Donnelly Tanker Management, will oversee 170 vessels, combining over 80 years of experience and offering extensive ship management services globally.
This merger enhances Cyprus’ role in the maritime industry by expanding capabilities in technical and crew management, procurement, and other commercial operations.
On the domestic front, the Cyprus Borrowers Association (Syprodat) has called for comprehensive government measures to address the rising cost of living.
Although the association acknowledged some satisfaction with recent anti-inflationary measures, it voiced concerns that the initiatives benefit only select groups.
According to Syprodat, borrowers face increased difficulty in meeting loan repayments, urging for a more inclusive approach to prevent a potential surge in non-performing loans.
In the technology sector, Cyprus is advancing as a regional tech hub, with Invest Cyprus and TechIsland signing a memorandum of understanding (MoU) to foster a sustainable tech community and drive economic growth.
TechIsland, representing over 300 tech companies since its founding in 2021, seeks to transform Cyprus into a leading destination for technology and innovation, aligning with Invest Cyprus’ goals to attract foreign direct investment (FDI) and support the local tech ecosystem.
The Cypriot delegation, which includes nearly 55 co-exhibitors, aims to showcase the nation’s diverse tourism offerings, with Deputy Tourism Minister Kostas Koumis set to discuss collaboration opportunities with UK airlines, tour operators, and foreign counterparts.
Koumis will also attend a ministerial panel on AI’s role in transforming the travel industry, highlighting Cyprus’ commitment to innovation in tourism.
Additionally, Cyprus’ banking sector is demonstrating resilience, with Hellenic Bank reporting a 28 per cent increase in profit after tax for the first nine months of 2024.
CEO Michalis Louis attributed this growth to a strong capital base and surplus liquidity, positioning the bank to support both individual and business customers effectively.
The bank’s robust financial standing, with a Common Equity Tier 1 (CET1) ratio of 28.3 per cent and a Total Capital Ratio of 34.1 per cent, underscores its readiness to meet regulatory requirements.
Real estate remains a significant component of the Cypriot economy, with apartments driving market activity in the third quarter, as per the RICS Cyprus property price index, produced in collaboration with KPMG.
Despite market stabilisation in other asset categories, apartment prices rose by 0.8 per cent, showing steady growth amidst subdued demand for shops and warehouses.
Passenger traffic also saw a boost, with Larnaca and Paphos airports recording a 7.14 per cent increase in October 2024 compared to the previous year.
The Transport Ministry reported that this trend supports projections of a record-breaking year for Cypriot airports, expecting over 12 million passengers by year-end despite geopolitical tensions.
Acting Senior Director Stelios Georgakis detailed the Eurosystem’s preparatory work for a digital euro, noting the role of European Business Associations in shaping this initiative, with attendees engaging on practical issues like balance maintenance and transaction costs.
In terms of wages, the Cyprus Statistical Service reported that the average gross monthly salary reached €2,363 in 2023, reflecting a 7.3 per cent rise from 2022.
This increase is driven by notable gains in sectors like ICT and financial services, underscoring the sector-specific nature of wage growth.
October also saw a rise in beer deliveries from local factories, marking a 14.8 per cent increase year-on-year, as per Cyprus Statistical Service data.
This spike highlights both domestic and export demand, signalling a strong performance for the Cypriot beverage industry.
This aligns with Jumbo’s regional expansion strategy, catering to increased consumer demand in Cyprus.
Covering the period from January 1, 2019, to December 31, 2022, this agreement promises benefits for approximately 2,200 employees, including a structured promotion plan and elimination of Monday afternoon working hours.
He emphasised Cyprus’ strategic location and favourable business environment as key attractions for global investors, positioning the island as a hub for technology and innovation.
In the financial market, Societe Generale’s Elina Asimakopoulou stressed the need for better regulations and transparency to develop the fixed-income market, particularly in light of advancements in automation and AI.
Speaking at the International Funds Summit, Asimakopoulou outlined the impact of “liquidity channels” and advocated for accessible data, aiming to enhance market efficiency and investor confidence.