Here are the top business stories in Cyprus from the week starting August 25:

A Europe-wide survey has ranked Cyprus fifth for expat entrepreneurs, citing its strong startup density and solid survival rates, though limited venture capital remains a challenge.

According to research by William Russell, Cyprus recorded 12.79 new businesses per 1,000 working people, one of the highest figures in Europe.

Moreover, more than 87 per cent of startups survive their first year, showing a supportive environment for new ventures.

However, funding remains the main drawback. Venture capital investment stood at just £375,000 (around US$500,000), among the lowest levels on the continent.

Even so, the island appeals to entrepreneurs seeking a Mediterranean base within the EU, supported by a favourable tax regime and a growing digital nomad community.

Europe’s shipping industry will face its first financial bill under the European Union’s Emissions Trading System (EU ETS) on September 30, marking a watershed moment in efforts to curb greenhouse gas emissions from maritime transport.

According to Drewry, the London-based maritime consultancy, around 13,000 ships submitted verified emissions data for 2024 through the EU’s Monitoring, Reporting and Verification (MRV) platform.

The records show that vessels emitted 90 million tonnes of CO2 last year, up 14 per cent on 2023, largely due to rerouting around the Cape of Good Hope after attacks in the Red Sea forced operators to avoid the Suez Canal.

Under the phased scheme, ship operators calling at EU ports are required to surrender allowances covering 40 per cent of those emissions this year.

With EU Allowances (EUAs) trading at about €70, Drewry estimates the bill will reach roughly $2.9 billion this autumn.

Cyprus’ accession to the Schengen Zone is of “key importance,” the association of large investment projects said, arguing that it could strengthen the country’s image as a safe and stable investment hub, improve the business climate and attract international companies to set up headquarters on the island.

Joining Schengen would act as a “powerful lever for development,” the association said in a statement.

It described the step as both a milestone in European integration and a move that would “strengthen the international business community’s confidence in it, making it a safe and stable destination for investment.”

The association noted that membership would abolish internal border controls with other EU states, making it easier for people and goods to move across borders.

That, it said, would affect daily life for citizens, professionals and businesses while at the same time boosting competitiveness in the single European market.

Greek shipowners control 21 per cent of the world’s merchant fleet with 5,520 vessels, maintaining their lead as the largest shipping power globally.

Fleet capacity has grown by 50 per cent over the past decade, showing both resilience and strategic adaptation to shifting trade patterns.

According to Greek news outlet Newmoney, the sector now accounts for 31.27 per cent of the global oil tanker fleet and 25.32 per cent of bulk carriers, while also holding 22.65 per cent of the liquefied natural gas fleet.

In addition, Greek shipping represents 15.79 per cent of the chemical and petroleum product fleet, 11.46 per cent of LPG carriers and 8.92 per cent of container ships.

Crucially, Greek-owned vessels dominate cross-trade activity. More than 98 per cent of their transport capacity is deployed on routes between third countries, giving Greece an outsized role in the global supply chain.

Cyprus leisure centres enjoyed strong business during the August 15 holiday, but industry leaders warned that all-inclusive packages and the rapid growth of Airbnb rentals are putting increasing pressure on restaurants, bars and other venues.

Fanos Leventis, general secretary of the Cyprus association of hospitality venues (Pasika), and president of the association of hospitality sector owners (Osika) Neophytos Thrasyvoulou, outlined this year’s summer traffic in leisure centres, while also pointing to new trends and challenges for the sector, as noted by InBusinessNews.

Leventis said that the overall picture this summer was encouraging, with Cypriots once again visiting the coastal areas of Famagusta, Paphos and Larnaca, despite roadworks that caused inconvenience in the Finikoudes area.

Mountain resorts, he added, had initially recorded weak numbers, partly due to Cypriots travelling abroad and the wildfires.

Cyprus has ranked bottom among EU member states in the latest Sustainable Development Report (SDR), released by the Sustainable Development Solutions Network (SDSN). The island placed 56th globally out of 167 countries, with a score of 73.8, up slightly from 72.9 in 2024.

The 2025 report, published earlier this summer, introduced a simplified SDG Index based on 17 headline indicators.

Since 2015, Cyprus has improved by 4.3 percentage points, compared with an average rise of 5.1 points across the European Union.

Earlier this year, the European Sustainable Development Report (ESDR) also ranked Cyprus near the bottom, 32nd out of 34 countries with a score of 62.7.

Columbia group Asia Region, headquartered in Limassol but with 33 management offices across the world, chief executive Demetris Chrysostomou has rejected claims that Asian shipowners are falling behind their European and American counterparts, calling them “outdated and misleading.”

The company, headquartered in Limassol but with 33 management offices across the world, Responding to industry debate on regional divides, he pointed to the strength and safety record of Asia’s leading maritime nations.

“When we look at the leading shipowning nations in Asia such as Japan, South Korea and China, it becomes clear that safety, quality and high performance are firmly embedded in the way these owners operate,” he said.

He went on to add that “Japanese and Korean shipowners have long been synonymous with rigorous standards, placing operational excellence and safety at the core of their philosophies.”

The long-awaited call for investor interest in the Paphos marina at Potima is expected to be announced in late August or early September, according to Paphos Chamber of Commerce and Industry (Evep) president George Mais.

He told the Cyprus News Agency (CNA) that the Deputy Ministry of Tourism is set to post the tender documents soon, following delays caused by legal checks.

“Very serious preparation is needed for the joint ventures that will be submitted for evaluation,” he said, adding that wider participation would strengthen the project by allowing the best proposal to be chosen.

The tender announcement had initially been expected in June but was pushed back due to a review by the legal service.

Turning to infrastructure, Mais also described as “expected” the problems arising from a fresh delay in the new Paphos–Polis Chrysochous road.

Cyprus’ tourism industry set a new record in 2024, surpassing four million visitors for the first time while posting revenues of more than €3.2 billion.

The record came despite geopolitical instability in the Middle East and economic pressures in Europe, underscoring the resilience and adaptability of the island’s hospitality sector.

According to the annual report of the Cyprus hoteliers association (Pasyxe), arrivals between January and December reached 4,040,200 million, a 5.1 per cent increase from 2023, while revenues climbed to €3.209 billion, almost 20 per cent higher than in 2019, the last year before the pandemic.

Tourism’s contribution to GDP was put at 18.3 per cent, with employment in the industry exceeding 62,000 jobs.

President of the Pasyxe Thanos Michaelides said 2024 had been “a year of significant progress for the hotel and wider tourism industry of Cyprus.”

Cyprus’ public debt is expected to fall close to 50 per cent of GDP by the end of 2025, well ahead of earlier targets that foresaw a drop below 60 per cent by end-2026, Finance Minister Makis Keravnos said on Wednesday after the council of ministers meeting.

Referring to the EU’s 2025 European Semester Spring Package assessment for Cyprus, he said the report acknowledges that economic growth remains strong despite a fragile international environment, while primary surpluses are high and debt is being reduced rapidly.

This faster decline, he noted, will “free up additional economic potential to increase development spending and defence.”

At the same time, Keravnos underlined that Cyprus is no longer classified as a country with macroeconomic imbalances, citing improvements in external and private debt.

The report, he added, also finds that efforts to diversify the economic model are bringing steady results, and that Cyprus is improving on most UN Sustainable Development Goals.

Faced with acute labour shortages but also a growing economy, Cyprus is stepping up efforts to turn brain drain into brain gain, rolling out new tax breaks, family support schemes and a digital platform aimed at bringing back professionals from abroad.

At the opening of the World Conference of the Cypriot Diaspora in Nicosia, President Nikos Christodoulides praised expatriates for their role abroad, emphasising that reunification remains the government’s top priority. Eight Cypriots were also honoured for their contribution to the homeland.

Deputy Minister to the President Irene Piki, meanwhile, outlined the progress of the Minds in Cyprus initiative since its launch in London earlier this year, saying it is intended to connect people, ideas and opportunities and depends on the active participation of the diaspora.

Invest Cyprus and the Institute of Certified Public Accountants of Cyprus (Selk) have signed a Memorandum of Understanding (MoU) to enhance cooperation and further develop the Cyprus business ecosystem.

The agreement provides a framework for closer collaboration, with both organisations set to share expertise, exchange information and promote initiatives that support the professional services sector and attract foreign direct investment.

Planned joint activities include business meetings, conferences, roundtables and sector-specific reports, as well as the exchange of insights on regulatory and economic developments.

Commenting on the partnership, Invest Cyprus chairman Evgenios Evgeniou said the agreement reflected a shared vision of strengthening Cyprus’ competitiveness and creating what he described as “a thriving, transparent, and sustainable business environment.”

Hellenic Bank has received all necessary supervisory approvals to complete its merger with Eurobank Cyprus on September 1, according to the announcement, marking what it described as a new chapter for the country’s banking sector.

Under the transfer of Banking Business and Collateral of 1997, all assets and liabilities of Eurobank Cyprus will be transferred to Hellenic Bank on that date.

The consolidation will create a strong and modern financial institution, which the lender said will be able to offer upgraded banking and insurance services while supporting the development of the Cypriot economy.

At the same time, the bank confirmed that the process of changing its name from Hellenic Bank Public Company Ltd to Eurobank Limited is progressing.