Contents
Cyprus Advances Legislation to Monitor Foreign Investments
On Thursday, the Cypriot parliament began debating new legislation aimed at screening foreign direct investments (FDIs) in strategic sectors. This move aligns Cyprus with EU regulations designed to protect national security and public order. The bill, approved by the Council of Ministers earlier this month, implements Regulation (EU) 2019/452, which establishes a framework for monitoring FDIs into the European Union based on grounds of national security or public order.
The proposed legislation grants the state the authority to approve, impose conditions, block, or even reverse foreign investments that are deemed risky. This initiative is part of a broader effort to ensure that foreign investments do not compromise the country’s economic stability or security.
Strengthening International Partnerships
In addition to legislative developments, Cyprus has been actively engaging in international outreach. Chief Scientist Demetris Skourides recently completed a high-level business visit to the United Arab Emirates. The visit aimed to reinforce Cyprus’ role as a forward-looking hub for artificial intelligence, deep technology, and innovation-led economic growth.
This initiative is part of Cyprus’ Vision 2035 strategy, which focuses on fostering cross-border partnerships, attracting international investment, and enhancing the global competitiveness of its research and innovation ecosystem. The efforts have been highlighted by Invest Cyprus chairman Evgenios Evgeniou, who emphasized the growing confidence in Cyprus as an investment destination.
Evgeniou pointed to recent events such as President Nikos Christodoulides’ visit to the United States and the official visit of Indian Prime Minister Narendra Modi to the island as signs of momentum. These visits underscore Cyprus’ emergence as a strategic investment partner and a gateway to the European Union.
Expanding Bilateral Ties
Cyprus has also been working to strengthen its relationships with other countries. Deputy Shipping Minister Marina Hadjimanolis recently paid a working visit to London. The trip aimed to enhance bilateral ties with the United Kingdom and promote Cyprus’ bid for re-election to the council of the International Maritime Organisation (IMO) for 2026-2027.
During the visit, Hadjimanolis met with UK Minister for Shipping Mike Kane, highlighting the importance of maritime cooperation between the two nations. This collaboration is crucial for Cyprus as it continues to position itself as a key player in the global shipping industry.
Financial Literacy and Innovation
The Cyprus Financial Literacy and Education Committee (CyFLEC) reviewed the progress of Cyprus’ national strategy for financial literacy during its fifth meeting of the board of directors. The Central Bank of Cyprus (CBC) stated that the meeting focused on assessing the work of CyFLEC’s Thematic Working Groups (TWGs) during the first half of 2025.
Board members were also briefed on meetings held with the scientific advisory committee (SAC), which plays a critical role in supporting the committee’s long-term goals. This ongoing effort reflects the government’s commitment to improving financial education and literacy across the country.
AI and the Future of Finance
Artificial intelligence (AI) is rapidly transforming financial markets by bringing “speed and innovation” to the sector, according to Eliza Stasopoulou, senior officer at the Cyprus Stock Exchange. However, she cautioned that the successful use of AI depends on having “strong regulations, ethical safeguards, and human oversight” to ensure that technology serves the public good.
Stasopoulou emphasized that the balance between technology and human judgment is essential for creating a more “transparent, fair, and efficient financial environment.”
Corporate Initiatives and Economic Indicators
Several companies have launched new initiatives to support education and innovation. NYSE-listed Safe Bulkers and its CEO, Polys Hajioannou, announced the company’s 5th annual scholarship programme for the academic year 2025-2026. The programme will award ten scholarships of €10,000 each to Cypriot citizens or Greek citizens residing in Cyprus, aiming to pursue undergraduate or postgraduate studies abroad in shipping-related fields.
Meanwhile, the National Bank of Greece launched its 16th Innovation and Technology Competition as part of its NBG Business Seeds programme. This initiative has been the longest-running innovation support institution in Greece and Cyprus, promoting individuals with vision and offering them the tools and guidance needed to transform ideas into action.
Cytacom Solutions Ltd, a subsidiary of Cyta, announced the renewal of its collective labour agreements for the 2025–2027 period. These agreements cover both monthly and hourly-paid staff, reflecting the strong cooperation and mutual trust between management and trade unions.
Economic Performance and Trade Data
Mall of Cyprus approved an interim dividend of €13.5 million following a review of the company’s financial position based on the provisional 2025 accounts. Shareholders will receive €0.0405 per fully paid common share, with the payment to be made in cash on July 28.
Cyprus recorded a trade deficit of €3.26 billion in the first five months of 2025, slightly up from €3.18 billion in the same period of 2024. Total imports of goods reached €5.37 billion, rising by 13.7 per cent from €4.73 billion in the corresponding period of the previous year. Total exports of goods reached €2.12 billion, marking a 36.9 per cent increase from €1.55 billion in January to May 2024.
The construction production index in Cyprus reached 112.65 units in the first quarter of 2025, reflecting a 1 per cent increase compared to the same period in 2024. The output construction prices index reached 123.70 units in the first quarter of 2025.
Greek retail group Jumbo reported resilient sales growth across its network in the first half of 2025, with stores in Cyprus and Greece driving performance despite geopolitical tensions in the Middle East and planned tax changes in Romania. Shareholders approved a dividend of €68 million for fiscal year 2024.
