AGP Executive Report

Cyprus Energy & Infrastructure: The Cyprus-Greece ferry link may not survive without renewed state subsidies, with operator Scandro warning the service is only viable for a few peak months and needs flexibility beyond passenger-only operations. Regulation & Finance: CySEC will join an EU-wide supervisory exercise on crypto custody digital resilience, with inspections starting in the second half of 2026. Public Policy: Pension reform is moving to consultation, with the bill set to go to unions and employers’ organisations after labour advisory body meetings in August, targeting first measures from Jan. 1. Business & Markets: CySEC also imposed €126,500 in fines on twelve Cyprus companies, while Cyprus’ inflation eased to 2.9% in July and unemployment rose to 5.8% in July. Tech & Payments: AdsGram added Telegram Ads capabilities across Mini Apps, channels and bots, and Cyprus-based KLM crew operations will overnight in Cyprus as Tel Aviv flights resume Aug. 25. Local Economy: Limassol’s seafront café tender has a new operator under a five-year deal worth €796,260, with capped prices including €1.50 Cypriot coffee. Corporate Moves: Castor Maritime set up a joint venture to acquire the M/V Magic Starlight, and Globus Maritime reported Q2 results. Governance & Costs: New ministers and deputy ministers in Cyprus will receive net annual salaries near €80,000 following a partial cabinet reshuffle. Security & Crime: A 16-year-old was arrested over an arson fire that destroyed Nicosia’s former Corner Pub.

Energy & Infrastructure: Meridiam has moved to take majority control of the Great Sea Interconnector, a key step toward ending Cyprus’ electricity isolation by linking the island to Greece’s grid. Energy Security: Former CERA chair Andreas Poullikkas argues Cyprus needs a balanced, long-term energy strategy covering conventional generation, renewables, storage, interconnection and demand management—not one-dimensional fixes. Business & Finance: Omilia, a Cyprus-based agentic CX firm, secured €58.1m in Series B funding to scale in North America and open its first US office. AI & Policy: A critique of Cyprus’ national AI strategy warns it lacks an execution-ready, costed delivery plan and clear ownership of deliverables. Corporate & Education: PwC Cyprus CEO Andreas Yiasemides was appointed chairman of the University of Cyprus council for three years. New Business Body: Michalis Kammas says the newly formed Cyprus Business Development Organisation will work to deliver government goals, aiming to improve SME and startup access to finance. Economy Watch: Cyprus inflation eased to 2.9% in July, while construction momentum remains strong but future data will show how Middle East tensions may affect plans. Transport & Daily Life: The upgraded Larnaca–Dhekelia road finally opens after a 26-year wait, adding lanes, crossings, bike lanes and bus stops. Public Services: Government employees and pensioners can now change their salary/pension IBAN online via gov.cy. Tech & Talent: Google’s AI leadership reshuffle elevates Demis Hassabis into a wider science role, with a notable Cyprus connection. Security & Justice: A prison officers’ union warns Cyprus’ Central Prisons are “out of control” after two fights in different wings.

Energy Infrastructure: French investor Meridiam has entered as majority shareholder in the Great Sea Interconnector, with Cyprus Energy Minister Michael Damianos calling it “new momentum” and pointing to pending EIB due diligence before any Cyprus shareholding decision. Macroeconomics: Cyprus inflation eased to 2.9% year-on-year in July (from 3.1% in June), with monthly prices down 0.7%, as transport and food inflation cooled while housing and utilities rose faster. Business Support: The Cabinet has brought into force the law creating the Cyprus Business Development Organisation and appointed its first board, aiming to close SME and startup financing gaps. Banking: National Bank of Greece is offering up to five free cash withdrawals per month (per card) from any ATM in Cyprus and Greece for Mastercard debit holders. Markets & Trading: XM launched GOLD24-7, extending gold trading to seven days a week for clients. Property & Economy Watch: Cyprus retail trade growth stayed solid in June, while unemployment in Cyprus rose to 5.8% in July.

Aviation & Energy Costs: Wizz Air swung to an operating loss of €183m in April-June, blaming “extremely volatile” conditions after the Middle East conflict pushed jet fuel costs sharply higher. Middle East Risk to Property: Escalating conflict is adding uncertainty to Cyprus’ property outlook, with buyers and investors watching how regional tensions could affect demand. Construction Momentum: Eurobank Research says Cyprus’ construction sector kept growing in early 2026, with building permits and approved dwellings up strongly year-on-year, though it flags the need to see how the latest regional escalation feeds through. Government & Social Policy: Christodoulides praised the new cabinet and outgoing ministers at the swearing-in of replacements, while a €31m reform is set to modernise Cyprus’ Social Welfare Services and speed up support for vulnerable groups. Housing Relief: The mortgage-to-rent scheme has passed 4,200 applications after a deadline extension to Sept. 30, with over 1,200 homes already approved. Energy Link Deal: Meridiam is set to take a majority stake in the Greece-Cyprus Great Sea Interconnector, but key deal terms and timelines remain undisclosed. Tech & AI: Google has elevated Greek Cypriot Demis Hassabis to lead its global AI science role, as Alphabet reshuffles DeepMind leadership. Economy Watch: Cyprus industrial producer prices edged up 0.3% in June, while Eurostat data shows broader euro area price softness. Crime & Drugs: Cyprus police have seized more cocaine than in all of 2025 already this year, alongside a surge in hashish and a new poppy-stalk opioid trend. Public Finance Transparency: A Treasury list shows the biggest 2025 payments, led by health-related spending including the HIO’s €897.2m contribution to Gesy.

Energy & Investment: French asset manager Meridiam has taken a majority stake in the Great Sea Interconnector, a move Greece says will help end Cyprus’ energy isolation and accelerate the Greece–Cyprus–Israel link, with IPTO staying involved and Nexans set for seabed survey work. Renewables Deal: Qualitas Energy, via Heelstone Renewable Energy, bought the 188MWp Cypress Pointe solar project in Texas from Azimuth Renewables, targeting operations in 2029. Tourism Pressure: Cyprus hotel bookings are steady but August is about 10% behind, while licensing remains a headache: only 141 of 728 hotels hold operating licences, with a 2027 deadline looming. Banking & Savings: Cyprus deposit rates still lag the eurozone, and the Central Bank flags wide differences across lenders; meanwhile, Cyprus’ registered unemployment rose 5.8% in July, largely due to seasonal shifts. Markets & Compliance: The Cyprus Stock Exchange removed a trading warning for CLR Investment Fund after it met minimum market-cap rules, while others keep the label. Water Use: The agriculture ministry says about 35% of free water-saving kits have been distributed nationwide, with rollout expected to finish by mid-September. Environment & Permits: Opok warns a proposed Androlikou quarry would cause “irreversible damage” and calls for licensing to be suspended. Shipping: Eight maritime bodies, including the International Chamber of Shipping, urged the UN and IMO to block compulsory Hormuz tolls.

Banking & Markets: Bank of Cyprus reported €252m first-half profit (+7%) and a 20% higher interim dividend, with key dates set for the ex-dividend (Sept 21), record (Sept 22) and payment (Oct 21). Co-op Banking: Interest is building in shares for a proposed new Cyprus cooperative bank, with a public offer of 42m shares running until Nov 17 via Athlos Capital. CSE Trading: CISCO kept its lead on the Cyprus Stock Exchange in July, taking 36.10% market share including packages, while total monthly trading value reached €17.11m. Tourism & Lifestyle: Nissi Beach was ranked Europe’s second-best for 2026, adding to momentum as Cyprus tourism recovery is described as stable. Shipping & Skills: Cyprus’ shipping sector is pushing for more young talent and women into officer roles, tying competitiveness to education and inclusiveness. Aviation & Maintenance: Cyprus Airways extended its heavy maintenance partnership with Bird Aviation for C-checks and scheduled work in Larnaca. Conservation: EU-backed “Raptors for LIFE” starts in October to protect Cyprus’ griffon vulture, Bonelli’s eagle and Egyptian vulture. Energy & Corporate Deals: Shell’s Aphrodite gas stake is set to be sold to MOL in a $720m deal, as Cyprus still awaits first gas.

Energy & Cost of Living: President Nikos Christodoulides said cutting electricity prices remains the government’s top priority, pointing to VAT relief and the need for more investment in generation and storage as renewables rise but still fall short of targets. Retail & Tax Revenue: Cyprus collected nearly €2m in July from the new €3 online shopping customs duty, with customs processing 650,000 chargeable items in 160,000 parcels—far above earlier expectations, though officials caution the first month may not predict the full-year trend. Public Finance Literacy: The Cyprus Financial Literacy and Education Committee launched moneypedia.cy, a national digital portal with calculators, quizzes and tailored guides to help citizens budget, borrow, invest, insure and plan retirement. Banking & Markets: Bank of Cyprus reported €252m first-half profit and raised its dividend, while Eurobank received an outlook upgrade from UBS. Capital Markets: CSE approved Globalwealth’s share admission and Minerva Insurance set an interim dividend of €0.0003 per share. Corporate Moves: Shell agreed to sell its Aphrodite gas stake to MOL for $720m, while Cyprus Airways renewed a heavy maintenance deal with Bird Aviation. Water Management: Nicosia’s EOA signed an MoU with Mekorot to tackle untaxed water (about 20%) and improve sewerage management and flood response. Labour Inclusion: Christodoulides unveiled new measures to boost employment for people with disabilities, including personalised plans and higher subsidies for social enterprises. Business Confidence & Economy: Coverage also flagged improving Cyprus economic outlook as business confidence strengthens, alongside data on property sales and borrowing costs.

Banking: Bank of Cyprus reported €252m first-half profit (+7% y/y) and lifted its interim dividend by 20%, to €0.24 per share, citing stronger lending growth, resilient asset quality and solid capital. Real Estate: Cyprus logged 2,040 property sale contracts in July, pushing the 2026 total to 12,047 (+14% vs the same period in 2025), with Limassol and Paphos driving most of the increase. Energy & Deals: Shell agreed to sell its Aphrodite gas stake via BG Cyprus to MOL for up to $720m, with Chevron still set to operate; final investment approval remains pending, and first gas is targeted for 2031. EU Funding for Research: Neapolis University Paphos won Horizon Europe Twinning funding to lead a three-year gender-equality-focused research reform project, GENDRIVE. Tourism Strategy: Cyprus launched a public consultation on a National Strategy for Diving Tourism, seeking input until Sept 15. Local Government Finance: Municipalities staged a three-hour work stoppage over funding and autonomy, with Interior Minister Konstantinos Ioannou disputing claims that the state is underfunding reforms. Cost of Borrowing: ECB data show euro-area business borrowing costs rising while mortgage rates stay broadly stable; Cyprus deposit rates also edged up in June but remain below eurozone levels.

Energy & Geopolitics: Turkish media are again raising alarm over Cyprus’ EEZ work, pointing to Block 6 developments and possible warship escort narratives as tensions simmer in the Eastern Mediterranean. Local Government Funding: Municipalities staged a three-hour protest over local government reform, warning residents could face higher local taxes or reduced services unless state funding rises; Nicosia’s mayor said the capital is short by €12.5m and called for inflation-linked funding. Banking & Rates: The Central Bank of Cyprus reported higher deposit rates and easing consumer borrowing costs in June, with new lending rising sharply on large corporate loans. Gas Deal: Shell agreed to sell its Cyprus BG stake to MOL Group in a reported $720m transaction, reshaping ownership in the Aphrodite field. Competition & Prices: The e-kalathi platform showed both price increases and decreases across hundreds of grocery items, but supermarket price gaps remain wide enough to question how intense competition really is. Road Safety Plan: Justice Minister Costas Fitiris outlined the “Nestor” rapid response scheme to speed up removal of vehicles after serious accidents, with insurers expected to reimburse the state. Business & Education: Frederick University expanded ties with Hangzhou Dianzi University to boost cooperation in tech education, while FIT launched a new three-year Paramedic–Ambulance Crew programme. Social Support: Cyprus Red Cross urged the public to donate clean, usable items year-round to help vulnerable families.

Energy & Deals: Shell has agreed to sell its Cyprus Aphrodite gas stake to MOL Group in a deal worth up to $720m, with MOL set to join Chevron and NewMed as partners in the deepwater development. Business Sentiment: Cyprus’ economic outlook brightened in July as the University of Cyprus’ CypERC survey showed stronger confidence in services and retail, even as construction and industry cooled. Transport & Consumer Impact: Hybrid cars are gaining ground in Cyprus, with hybrids at 51.7% of new passenger saloon registrations in H1 2026, while the EU overall saw a rebound in battery-electric registrations. Local Governance: Municipalities are set to stage a three-hour protest Monday against what they call growing central-government interference in local finances and administration. Property & Finance Practicalities: Cyprus property valuers warn that online valuation tools and automated valuation models should be treated as only indicative, not as a substitute for professional assessments. ID & Banking Readiness: Older Cyprus ID cards without an expiry date will become invalid from Monday, Aug. 3—an issue that can quickly affect travel and banking. Digital Insurance: CAN Sigorta is expanding remote, digital insurance services across North Cyprus as it marks 68 years in operation. Cyber Regulation: MiCA’s full effect is now in force in Cyprus, with CySEC reminding investors that crypto-asset services are limited to authorised providers.

MiCA crackdown: Cyprus Securities and Exchange Commission says the MiCA transition ended on July 1, meaning crypto-asset services can now only be offered by authorised providers; CySEC also warns clients using unauthorised firms miss MiCA safeguards and urges checks via ESMA’s register, with 22 CASPs licensed as of June 30 and more applications still under review. Property market: First-half data show fields and plots led transaction values across Cyprus, drawing both locals and foreigners—especially in Limassol and Paphos—reflecting expectations of future development and infrastructure-driven growth as demand shifts away from pricier completed homes. Energy reliability: Electricity Authority of Cyprus unions have suspended planned industrial action until September after citing worsening conditions and periodic power cuts, while blaming state inaction and urging faster fault repairs. Deal-making in energy: Shell agreed to sell its BG Cyprus unit to MOL Group for up to $720m, tied to the Aphrodite gas field stake, with closing expected in early 2027 subject to approvals. Cyber business: eSafe Cyber Security and CyberLion announced a strategic distribution partnership covering Greece, Cyprus, Malta and Italy, aiming to expand access to cybersecurity vendors through eSafe’s regional services. Sustainable consumption: Cyprus NGOs Enalia Physis and SPOT Marine Life launched the island’s first Sustainable Seafood Guide, ranking fish species as recommended, caution or avoid based on scientific and market-specific criteria. Housing scheme under strain: Renovate-Rent is struggling to attract applicants, with only 84 applications so far against a much higher target and a small share of the budget reportedly committed. Labour & skills gap: A Cyprus-focused analysis argues the bigger risk isn’t AI taking jobs, but Cyprus having jobs without enough people to fill them, as demographics tighten the labour supply.

Energy Deal: Shell has agreed to sell its 35% non-operated stake in BG Cyprus (Aphrodite gas field, Offshore Block 12) to MOL Group for up to $720m, with closing expected in early 2027, as Cyprus pushes ahead with its gas-export ambitions. Banking & Rates: The Central Bank of Cyprus set the reference interest rate at 11.32%, a legal benchmark used to determine whether lending terms could be classed as usury. Banking Results: Eurobank reported €738m profit in H1 2026, with Cyprus contributing €231m. AI & Jobs: A new look at Cyprus’ labour gap argues the bigger risk isn’t AI taking jobs, but employers struggling to find enough people as vacancies rise and demographics tighten the workforce. Tourism Pressure: European hotspots are seeing earlier “max capacity” crowds, with Cyprus among destinations flagged as likely to feel too hot for traditional summer travel by 2030. Education Expansion: The University of Cyprus won approval for four new English-taught undergraduate degrees starting in 2027, widening options for local and international students. Public Sector Procurement: Cyprus Police is adding 80 Hyundai Tucson 4x4 hybrid SUVs to modernize frontline patrols. Housing & Consumer Finance: Coverage highlights how Cypriots are increasingly choosing fixed-rate home loans to avoid interest-rate shocks, alongside signs of household debt edging higher.

Energy & Security: Cyprus’ gas-export plans face fresh risk after a drone strike hit Egypt’s Damietta port, damaging two gas vessels and reigniting concerns that the US-Iran conflict could spill into the Eastern Mediterranean. Gas Deal: Shell has agreed to sell its Cyprus business (BG Cyprus) to MOL Group in a deal worth up to $720m, with MOL also buying Shell’s Aphrodite gas field interest. Banking & Rates: The Central Bank of Cyprus set the CBC reference interest rate at 11.32% under its usury framework, while a CBC brief highlights how ECB policy is shifting Cyprus lending toward longer-term fixed-rate mortgages. Housing & Finance: Cyprus borrowers are increasingly choosing fixed-rate home loans, and Eurobank reported €738m net profit for H1 2026, with Cyprus contributing €231m. Public Sector & Business Climate: University of Cyprus secured approval for four new English-taught bachelor degrees starting in 2027, and Cyprus Police received 80 new hybrid SUVs to upgrade frontline patrols. Agriculture: Paphos winegrowers protested compensation limits after the agriculture ministry limited payouts to specific grape varieties affected by downy mildew. Markets & Policy: Cyprus’ growth outlook and inflation dynamics remain in focus as CBC warns financial stability risks are still elevated.

Energy & Deals: Shell has agreed to sell its 100% Cyprus unit BG Cyprus Ltd. to MOL Group for up to $720m, tied to customary adjustments and milestone payments, as Shell exits the Aphrodite gas stake (35% non-operated interest in Block 12) while MOL moves to acquire the interest and EGAS is set to buy produced gas. Banking & Finance: Eurobank reported €738m net profit for H1 2026, with Cyprus contributing €231m, as the group raised its outlook after stronger performance. Housing & Credit: The Central Bank of Cyprus says borrowers are increasingly choosing longer-term fixed-rate mortgages, reducing exposure to interest-rate shocks and narrowing lending/deposit rate gaps. Consumer & Regulation: Cyprus police arrested a Paphos man accused of taking €9,800 for solar panels that were never installed, after investigators found the claimed installer company did not exist. Public Policy: Cyprus is restoring parents’ names on future biometric ID cards after public backlash, while also asking the European Commission about issuing two ID versions. Workforce: The Council of Ministers approved grants for nursing and midwifery students starting 2026-27, up to €5,750 total, with a requirement to work in Cyprus healthcare for at least two years. Business Events: The Digital Agenda Cyprus Summit 2026 returns in Nicosia on 14 October, with AI as a core theme.

Energy & Gas Deal: Shell agreed to sell its BG Cyprus unit, holding a 35% non-operated interest in the Aphrodite field in Block 12, to Hungary’s MOL for up to $720m, as Shell exits to focus on its LNG chain; the sale is expected to complete in early 2027, subject to approvals, while Chevron’s local arm and other partners continue work toward a final investment decision. Banking Results: Eurobank reported €738m net profit for H1 2026, with Cyprus operations contributing €231m, as the group lifted its outlook amid resilient growth and ongoing geopolitical uncertainty. EU Diplomacy: EU envoy Raffaele Fitto wrapped up his first Cyprus visit “here, above all, to listen,” meeting President Nikos Christodoulides, Turkish Cypriot leader Tufan Erhurman and Foreign Minister Constantinos Kombos, while the Turkish Cypriot side criticised the EU’s approach. Macroeconomy: Cyprus annual inflation eased slightly to 4% in July, and household debt edged higher in Q1 2026. Financial Stability: The Central Bank of Cyprus flagged ECB work on banks’ ability to model geopolitical shocks, noting gaps still need fixing in risk assessment detail and consistency. Tourism & Business: Louis Hotels launched a redesigned website to speed bookings and highlight family-friendly stays across Cyprus and Greek islands. Corporate/Legal: Marilena Raouna left her deputy European affairs minister role after parliament rejected an extension.

Energy & Investment: Shell has agreed to sell its 35% non-operated interest in Cyprus’ Aphrodite gas field to Hungary’s MOL for up to $720m, with MOL targeting a final investment decision in 2027 and first gas in 2031. Property & Housing: Cyprus’ new-build market logged 3,594 sales worth €1.149bn in H1 2026, with Limassol leading by value, Nicosia by volume, and Paphos topping the price segment. Tourism Revenue: Despite steady arrivals, tourism earnings fell sharply—down 16.5% in the first five months of 2026 to €798.2m, and May revenue dropped 4.8% to €355.2m. Banking & Regulation: Bank of Cyprus won Euromoney’s Cyprus Best Digital Bank award, while CySEC announced 14 online autumn seminars for certified professionals on market abuse, ethics and AML/AMLA. Consumer & Business Services: The government approved a new online platform to let shoppers check product recalls and safety flags in one place; Cyprus Police also warned about fake SMS links demanding “traffic fine” payments. Logistics & Labour: Limassol port truck drivers staged a work stoppage over fears that a relocated container X-ray scanner is too close to the terminal entrance. Aviation: easyJet signed a long-term base maintenance deal with Bird Aviation in Larnaca, supporting A320 heavy checks for seven years.