Cyprus Business Now: weekly wrap-up

Here are the top business stories in Cyprus from the week starting July 29:

Deputy Tourism Minister Kostas Koumis recently completed a tour of Limassol’s wine-producing regions, focusing on villages known for making Commandaria. Koumis emphasised the importance of promoting this Cypriot dessert wine, describing it as “a duty owed to both our history and the local residents.” This initiative reflects the broader efforts to enhance the cultural and historical tourism experiences in Cyprus, linking local traditions with modern tourism strategies.

In parallel with tourism efforts, the Cypriot real estate market has shown notable activity. Cypriot real estate data analytics firm, Ask Wire, published a report detailing the ten most expensive real estate sales transactions in Cyprus for the first half of 2024. The top transactions, which totaled €144.9 million, were dominated by the Limassol district, highlighting the region’s attractiveness and economic vitality.

Additionally, the Agriculture Department is taking steps to address pricing transparency in the agricultural sector. The introduction of tools similar to e-Kofini aims to help farmers leverage their position in the supply chain. This move comes after the Cyprus Consumers Association highlighted significant disparities between retail and producer prices for fresh produce, aiming to ensure fairer pricing practices.

Meanwhile, tourism remains a crucial sector for Cyprus. The Cyprus Statistical Service (Cystat) reported that tourist arrivals in May 2024 amounted to 421,400 visitors, marking a slight increase from the previous year. However, tourism revenue saw a slight decrease, reflecting the challenges in maintaining high spending per tourist amidst growing arrivals.

The real estate market continues to show resilience and growth. Delfi Partners’ analytics division reported that new property sales in the first half of 2024 reached 7,553, marking an increase from the previous year. Limassol leads in transactions, indicating the district’s ongoing appeal and investment potential.

Simultaneously, the tech startup scene is expanding. Nicosia-based tech startup and iOS app BRAYN, initially launched in Cyprus and the UK, is set to expand globally by 2025. BRAYN aims to equip teenagers and young adults with essential soft skills, reflecting the growing focus on digital education and youth empowerment in Cyprus.

Economic forecasts are optimistic. The University of Cyprus’ Economics Research Centre (CypERC) predicts improved economic growth for the 2024-2025 period. Factors such as resilient demand, a tight labor market, and easing inflationary pressures contribute to this positive outlook, indicating robust economic health.

International collaboration is also on the rise. The Cyprus Chamber of Commerce and Industry (Keve) announced a cooperation protocol with the Hellenic-German Chamber of Commerce and Industry. This partnership aims to enhance business opportunities and international cooperation, leveraging the strengths of both organisations.

In the gaming industry, Nexters, a game development company headquartered in Cyprus, has achieved significant success with its mobile game, Hero Wars: Alliance. The game’s impressive revenue and user base underscore the growing influence of the gaming sector in Cyprus’ economy.

Cyprus is also set to host a new event aimed at bridging the real estate and proptech sectors. The Elevate Summit, organised by The Doers Company, will take place in October 2024 and aims to foster synergies between real estate and technology players, promoting innovation within the industry.

Financial stability among Cypriot households is improving. According to the Central Bank of Cyprus (CBC), households’ financial assets were reported at €56.3 billion by the end of March 2024, with a significant portion held in cash, deposits, and loans, reflecting a cautious yet stable financial approach.

Moreover, Eurobank has posted robust financial results, reporting an adjusted net profit of €732 million for the first half of 2024. This represents a strong year-on-year increase, highlighting the bank’s solid position and profitability.

Additionally, its acquisition activities have further strengthened its market position. The bank successfully completed its mandatory public offer to acquire a significant stake in Hellenic Bank, increasing its direct stake to 55.9 per cent.

Further reflecting its financial health, Eurobank Cyprus generated a net profit of €105.7 million in the first half of 2024. This performance shows improved capital adequacy, liquidity, and profitability.

Finally, Cyprus’ aviation sector is experiencing growth. Larnaca and Paphos airports saw a 4.5 per cent rise in passenger numbers in the first seven months of 2024.