Cyprus Business News: startups, tourism, shipping, digital euro, vehicle registrations

Cyprus’ startup ecosystem continues to develop its own place within Europe’s innovation landscape, according to EU-Startups’ Olga Codina, who highlighted ten companies founded since 2021 as a reflection of the island’s emerging tech maturity.

Codina wrote that the Southern European ecosystem “continues to steadily advance and secure its niche” and, although it does not yet rival the continent’s largest hubs, it increasingly supports entrepreneurial ambition and cross-border collaboration.

In that context, she explained that Cyprus combines local talent with global reach, helped by its strategic position “at the crossroads of Europe, the Middle East, and Africa”, which makes it a natural launchpad for founders targeting several markets simultaneously.

According to her, startups on the island are now active across gaming, SaaS, B2B software, Web3, AI and digital infrastructure, while areas such as EdTech and tourism-related technology show how innovation is emerging alongside traditional sectors rather than replacing them.

The ecosystem, she noted, therefore reflects both continuity and transition, moving from service economy to product-driven technology creation.

Cyprus and Israel reaffirmed close tourism cooperation during meetings held in Israel by Deputy Minister of Tourism Kostas Koumis with Tourism Minister Haim Katz, on the sidelines of the International Tourism Fair IMTM.

According to an official announcement, Koumis stated that the goal now is to increase arrivals during the winter season, but also to strengthen tourist flows in relation to special forms of tourism.

During the visit, Koumis also held contacts with strategic partners in a market that has emerged in recent years as one of the most important for Cypriot tourism.

In 2025, arrivals from Israel exceeded half a million visitors for the first time, reaching 588,000 and placing the country second only to the United Kingdom among Cyprus’ source markets.

This represents an increase of 38.4 per cent compared with 2024 and 112.3 per cent over the 2022 – 2025 period.

Cyprus shipping deputy minister Marina Hadjimanolis joined ministers and international officials in a high-level debate on maritime decarbonisation, where the United States set out firm objections to the Net Zero Framework (NZF) while backing the institutional role of the International Maritime Organisation (IMO).

The discussion took place at the ministerial panel of the 16th Annual Capital Link Greek Shipping Forum organised by Capital Link, also attended by Greece’s maritime affairs minister Vasilis Kikilias, Malta transport minister Chris Bonett and US Deputy Assistant Secretary for Transportation Affairs Marco Sylvester.

Sylvester warned the transition risked failure without realism, technical documentation and active industry participation.

He clarified that Washington’s rejection of the NZF did not amount to withdrawal from international cooperation, but argued the framework alters the character of the IMO, transforming it from a technical organisation for safety and security of navigation into a global climate policy regulator.

Cyprus stepped into the European discussion on the digital euro on Friday, as policymakers, bankers and institutions gathered in Nicosia for the first event held on the island with the participation of the European Central Bank (ECB).

The event, titled ‘Presenting the Digital Euro in Cyprus’, took place at the Bank of Cyprus headquarters and was organised by Disy MEP Michalis Hadjipantela, in cooperation with the Association of Cyprus Banks, and in the presence of Finance Minister Makis Keravnos.

More than 170 representatives from government bodies, social organisations, banks and financial-services professionals attended.

Hadjipantela said that “today’s conference proves that Cyprus, although a small country, can play an active and substantial role in the dialogue and development of the digital euro”, adding that the island can contribute “to the shaping of European decisions that will determine the financial environment of the coming years”.

Cyprus recorded an increase in motor vehicle registrations in January 2026, according to figures released on Friday by the statistical service (Cystat).

The data showed that the market started the year on a positive footing, while the shift toward hybrid and electric vehicles continued to strengthen.

Specifically, total motor vehicle registrations reached 4,350 in January 2026, marking a 6.7 per cent increase compared with 4,077 registrations in January 2025.

Passenger saloon registrations rose by 4.5 per cent to 3,317 from 3,173 in the same month of the previous year.

Of these saloon cars, 1,294, 39 per cent, were new, while 2,023, 61 per cent, were used. Rental saloon cars, however, recorded a sharp decline of 22.8 per cent to 159.