Business & economy wrap-up from the day before

The Cyprus Securities and Exchange Commission (CySEC) has alerted regulated entities to strengthened anti-money laundering guidelines and new risk reports, as data from the Financial Intelligence Unit (Mokas) pointed to a sharp rise in suspicious transaction reporting and growing cross-border financial activity.

The regulator said the updated framework, issued through a formal circular, aims to enhance the effectiveness of Cyprus’ system for combating money laundering and terrorist financing, placing greater emphasis on the quality and timeliness of reporting by supervised firms.

CySEC explained that the revised guidance issued by Mokas focuses on improving how entities submit suspicious transaction reports, suspicious activity reports and additional information files, reflecting the increasing complexity of financial crime risks.

The commission stressed that high-quality reporting is a cornerstone of an effective compliance system, urging firms to integrate the new guidelines into their internal procedures and risk controls without delay.

Employment in ICT-related fields across the EU increased during 2025, with Cyprus standing out for its highly educated workforce in the sector.

According to Eurostat, 3.4 million people were employed in the EU with an education in information and communication technology in 2025, marking a rise of 5.1 per cent compared with 3.2 million in 2024.

Cyprus emerged as one of the top performers in educational attainment, with 96.4 per cent of ICT-educated workers holding tertiary qualifications.

This places Cyprus among the leading EU countries, alongside Denmark and France, where the vast majority of ICT professionals have completed higher education.

Across the bloc, more than seven in ten ICT-educated workers held tertiary degrees, accounting for 74.8 per cent of total employment in the sector.

Eurozone finance ministers and central bankers on Friday said the Middle East crisis requires targeted and temporary support measures for households and businesses, warning against broad fiscal intervention as a new energy shock weighs on growth, inflation and public finances across Europe.

Indeed, the message emerging from the Eurogroup gathering in Nicosia reflected growing concern that the economic fallout from the conflict could prove more persistent than initially expected.

Officials warned that energy market disruptions are already feeding through to households, companies and state budgets.

European Commissioner for Economy Valdis Dombrovskis said recent developments have significantly altered the EU’s economic outlook.

“The conflict in the Middle East has triggered a new energy shock affecting inflation, growth and public finances across the EU,” he said.

The Central Bank of Cyprus (CBC) on Friday reported that total assets of investment organisations in Cyprus rose by 3.5 per cent by the end of March 2026, exceeding €8 billion.

The increase reflects continued growth in the sector, with total assets reaching €8.17 billion in March 2026, up from €7.89 billion in December 2025.

At the same time, the number of investment organisations edged slightly higher, rising from 350 at the end of 2025 to 351 in March 2026.

This figure brings the sector close to its previous peak, recorded in September 2025, indicating sustained momentum in the industry.

The data also showed that portfolios remain heavily weighted towards equities and related instruments, which accounted for the largest share of holdings.

Lithuania’s Finance Minister Kristupas Vaitiekūnas said Cyprus and Lithuania can deepen cooperation, particularly in tourism and defence, while visiting Cyprus for the informal ECOFIN meeting in Nicosia on Friday.

Speaking to the Cyprus News Agency (CNA) ahead of the EU finance ministers’ gathering, Vaitiekūnas highlighted shared characteristics between the two countries and pointed to untapped opportunities for closer collaboration.

“We have much more in common than it may seem at first glance, and our businesses and people can find more ways to cooperate, for example in tourism and defence,” he said.

He explained that both countries face similar challenges, including security concerns such as drone threats, while also relying significantly on their financial sectors.

The Cyprus Employers and Industrialists Federation (Oev) announced on Friday that it will support the Green Agenda Summit 2026 as an institutional supporter, with the event set to take place in Nicosia on June 4.

Oev said its participation reflects its strategic focus on sustainable development and economic competitiveness, reaffirming its commitment to responsible business practices.

“Through its endorsement of the Green Agenda Summit, Oev reaffirms its firm commitment to responsible business development and to fostering dialogue on critical issues shaping the future economy, including environment, energy, artificial intelligence, water resources, innovation, sustainability and the green transition of the Cyprus economy,” the federation stated.

“Oev represents thousands of business entities from all sectors of the economy, including professional numerous associations and businesses active in the fields of energy, environment, green growth and sustainability,” it added.

Investment firm Demetra Holdings Plc on Friday announced that it acquired 6,170 of its own shares on the Cyprus Stock Exchange (CSE) on May 21, 2026, as part of its ongoing capital management programme.

Market data provided by the firm indicated that the transaction involved three separate block purchases executed at a uniform price of €1.53 per share.

The internal accounting log showed that the individual purchase blocks consisted of an initial tiny lot of 71 shares, followed by a substantial institutional volume of 5,000 shares, and concluded with a final tranche of 1,099 shares.

Google has rejected claims that it is failing to tackle fraudulent advertising on its platforms, after Cyprus and European consumer groups filed a complaint against Meta, TikTok and Google over alleged breaches of the digital security authority (DSA).

The complaint was submitted on May 21 by the Cyprus consumers association, in cooperation with 281 consumer organisations from EU member states and under the coordination of the European Consumer Organisation (BEUC).

It followed an evidence-gathering exercise carried out between December 2025 and March 2026 by the BEUC and 13 consumer associations, which, according to the announcement, found that financial fraud remains widespread across Meta, TikTok and Google’s platforms.

The consumer groups said the findings showed that the companies had systematically failed to take effective corrective measures, despite the obligations set out under the DSA.

Cyprus Finance Minister Makis Keravnos on Friday called for increased investment across Europe while warning against weakening fiscal discipline, as discussions turned to stablecoins and financial stability ahead of an informal EU meeting in Nicosia.

Speaking before the gathering of EU finance ministers and central bank governors, Keravnos said the talks would centre on competitiveness, strategic autonomy and the role of investment in strengthening the European economy.

“The slogan of the Cypriot presidency is the EU’s strategic autonomy, and strategic autonomy goes hand in hand with strengthening competitiveness,” he said.

He stressed that boosting investment is essential to address economic and geopolitical challenges, but cautioned that such efforts must not come at the expense of the bloc’s fiscal governance framework.

Hermes Airports CEO Eleni Kaloyirou joined business leaders at the 5th ICPAC Mediterranean Finance Summit, held on 21–22 May in Limassol, taking part in a discussion on the growing importance of close cooperation between chief executives and finance chiefs.

The panel, titled ‘The CEO–CFO Partnership: Trust, Transparency & Transformation’, focused on how strategic alignment, trust-based collaboration and a strong understanding of the business can help companies drive transformation, build resilience and support sustainable growth.

According to the announcement, the discussion also examined the evolving role of the chief financial officer, with CFOs increasingly moving beyond traditional financial oversight to become strategic business partners and broader business leaders.

Cyprus must look beyond traditional ideas of resilience and treat investment funds as part of its wider economic defence, as regional instability, energy pressures and trade disruption move closer to home, according to Marios Charalambides, board member at the Cyprus Investments Fund Association and partner and board member at Grant Thornton Cyprus.

Charalambides noted that, for years, Cyprus has spoken about resilience, pointing to the fact that “the economy is holding up, that growth remains solid, that public finances are improving and that the country continues to attract international business.”

While he described all of this as true, he warned that “under the current geopolitical conditions, those facts on their own are no longer enough.”

The world around Cyprus, he said, is becoming more unstable, with war in the region, pressure on energy prices, disruption to trade routes, sanctions complexity and rising uncertainty no longer distant issues.

For Cyprus, he added, “they are close to home”, particularly as the island is “in a sensitive part of the world” and depends heavily on tourism, services, shipping and cross-border business. This position, he explained, gives Cyprus opportunity, but also creates exposure.

Cyprus is set to remain among the European Union’s fastest-growing economies in 2026, with unemployment expected to fall to a historic low, President Nikos Christodoulides said.

Referring to the European Commission’s Spring Forecasts, Christodoulides said the first figures of the year were already supporting this outlook, with preliminary estimates showing 3 per cent growth in the first quarter of 2026, placing Cyprus among the EU’s top performers.

The president also pointed to the country’s fiscal position, saying Cyprus is projected to record the highest fiscal surplus among EU member states, estimated at 2.1 per cent of GDP this year.

At the same time, public debt is expected to fall further to 50.4 per cent of GDP, while unemployment is forecast to drop to 4.2 per cent, which he described as a historic low.

Limassol-based Island Oil (Holdings) Ltd has received the Silver Award in the Social Leader category at the ESG Shipping Awards International 2026, adding another Cyprus-linked distinction to a ceremony that brought together the global maritime industry in Athens.

The award, received by Dimitris Lemesianos during the ceremony hosted by ESG Shipping Awards in Athens, recognised the group’s work around people, wellbeing, inclusion and responsible growth, both onshore and at sea.

According to the awards organisers, the Social Leader Award is aimed at companies demonstrating best practices in areas such as social reporting, labour practices, human capital development, health and safety, diversity and inclusion, human rights and corporate social responsibility.

Artificial intelligence is no longer only changing the tools people use at work, but it is also reshaping what companies, universities and training centres understand by talent.

Indeed, speakers at a Cyprus Seeds panel discussion that took place at the Doers Summit in Limassol this week argued that deep expertise must now be matched with adaptability, curiosity and the ability to keep learning.

The panel, titled ‘Spot the Skillset: Defining Talent in the Age of AI’ and moderated by Andreas Papadopoulos, manager at PwC Cyprus, brought together voices from technology, entrepreneurship, research and education.

The panel featured Vera Solomatina, SVP People and Culture at inDrive, Michael Economou, founder of Exyde, Chrysanthia Leontiou, head of graduate school at The Cyprus Institute, and Ourania Miliou, education and training manager at CYENS CoE.

Opening the discussion, Papadopoulos said the aim was to explore what skills truly matter in the age of AI and how these are evolving as technology increasingly cuts across disciplines, industries and job functions.

The global housing crisis is transforming modest studio apartments into high-cost luxury assets.

In Manhattan, median monthly rents hit a record $5,099 in April 2026, with a tiny 30-square-metre studio averaging €3,325.

Brooklyn follows closely at €3,200, while prime London districts exceed €2,300.

Surprisingly, Limassol, Cyprus, is rapidly catching up to established European luxury hubs.

Driven by foreign corporate relocations and limited supply, a 30-square-metre flat in Limassol now approaches €900 per month.

This rapidly narrows the gap with Paris’ prestigious 16th arrondissement (€990–€1,230), squeezing local household budgets.

Aleksandra Sulimko, COO of TheSoul Group, said organisations do not get stuck because they lack tools, strategies or technology, but because of how people react when uncertainty becomes uncomfortable.

Speaking during a keynote speech titled ‘Mindset Is Not What You Think’ at the Doers Summit in Limassol, Sulimko said the real challenge in business transformation, particularly in the age of artificial intelligence, is not only whether companies can adopt new tools, but whether people can recognise their automatic reactions when they do not know what to do.

For Sulimko, mindset is not about attitude, beliefs or motivational slogans. It is about behaviour under pressure.

Drawing on what she described as three worlds, the emergency room, psychotherapy and corporate leadership, Sulimko said one conclusion had become clear across all of them. “We don’t get stuck because we lack tools. We get stuck because of how we react,” she said.

That idea shaped the rest of her keynote, as she linked AI transformation not only to systems, strategy or technology, but to how people behave when pressure, ambiguity and fear arrive at the same time.

The Research and Innovation Foundation (RIF) has announced a proposal writing workshop aimed at supporting applicants to its technology commercialisation funding call, scheduled to take place later this month.

The workshop will be held on May 29, 2026, between 10.30am and 12.30pm at the foundation’s premises.

It is designed to assist participants preparing submissions for the “Exploration of Industrial Application of Technology and Know-how” (CONCEPT/0326) call.

According to the foundation, the main objective of the session is to equip participants, particularly first-time applicants, with the necessary knowledge and skills to prepare strong proposals.

The training will include presentations and practical guidance intended to enhance understanding of proposal writing and improve the quality of submissions.

The event is targeted at individuals from research organisations, businesses, and other public and private sector bodies who have little or no prior experience in preparing proposals.

The Paphos regional tourism board (Etap) participated in a European project meeting in France focused on smart tourism, digital innovation and sustainable destination management, according to an official announcement.

Specifically, the board participated in the SMART-TOUR project’s thematic workshop during a two-day meeting held from May 20 to May 21, 2026, in Perros-Guirec, located in France’s Brittany region.

The initiative, titled Smart Tourism, Smart Destinations, brought together European partners working on data-driven approaches to tourism planning and the use of digital tools to enhance destination competitiveness.

During the meeting, partners reviewed progress achieved so far and discussed planned activities for the remainder of 2026, with particular focus on tourism statistics, performance indicators and the development of digital tools and services supporting the sector.

The European Union saw a modest monthly recovery in construction output during March 2026, according to a report from Eurostat.

At the same time, locally-sourced data indicates that Cyprus’ building sector continues to expand despite rising material costs.

Specifically, construction production in the euro area and EU rebounded during this time, increasing by 0.8 per cent and 1.2 per cent respectively compared with February, following declines of 0.8 per cent and 0.4 per cent the previous month.

On an annual basis, however, construction activity remained weaker, with output falling by 1.2 per cent in the euro area and 0.6 per cent across the EU compared with March 2025.

The monthly increase was driven primarily by strong gains in civil engineering and building construction, with euro area output rising by 5.7 per cent in civil engineering and 1.1 per cent in buildings, alongside a smaller 0.5 per cent increase in specialised construction activities.

A high-level panel moderated by Elias Neocleous, managing partner at Elias Neocleous & Co LLC, placed funding strategy at the centre of discussions during this year’s Doers Summit, amidst efforts of further cementing Cyprus as a serious business and technology centre.

The panel discussion titled ‘Capital on Your Terms’ examined how founders can navigate fundraising in a high-valuation environment, where access to capital is no longer the primary challenge but securing it under favourable conditions is.

Participants explored the full fundraising journey from early growth to exit, focusing on how strategic decisions shape value, control and long-term success.

The discussion brought together Alfredo Gomez Soria, regional director EMEA at Plug and Play, Elias Neocleous, Fabian Cabeza, associate at Elias Neocleous & Co LLC, Demetris Roti, partner at Elias Neocleous & Co LLC, and Oded Lieberman, entrepreneur in pharma, biotech and medtech.