AGP Executive Report

Energy & Infrastructure: Cyprus says it was left out of the loop as Greece’s Admie sold a 66% stake in the Great Sea Interconnector to French investor Meridiam, with French cable supplier Nexans—raising questions for an island relying on the link for energy security. Agriculture & Biosecurity: Cyprus has brought in about 200 lady beetles from Israel to curb the invasive prickly pear pest (papoutsosyka), targeting Dactylopius opuntiae after damage estimates of up to 20–30% in commercial plantations. Environment & Local Industry: Residents near RAF Akrotiri protested planned British bases antenna expansion, citing health and ecological risks in Ramsar/Natura 2000 protected salt lake areas. Policy & Housing Costs: An analysis argues low ECB rates helped fuel house-price inequality, tying borrowing conditions to uneven outcomes. Finance & Regulation: CySEC imposed €126,500 in fines on twelve Cyprus companies, while retail brokers keep rebranding and expanding beyond forex/CFDs. Tourism & Clean Seas: The Cyprus Sustainable Tourism Initiative launched the “Beachfluencer” campaign, urging beachgoers to post litter clean-up actions to protect tourism assets. R&D & Competitiveness: Cyprus allocated about €112m to R&D in 2025, nearly doubling over the decade despite a dip from 2024. Shipping & Trade: A report highlights hundreds of ships stuck in the Persian Gulf with crews reporting unpaid wages and shortages, underscoring disruption risks for regional logistics.

Energy & Power Infrastructure: Cyprus’ energy debate heats up as the Great Sea Interconnector sparks disagreement over whether it will lower electricity prices, with the European Commission stressing interconnectivity helps cut costs and integrate more renewables. Energy Storage for Industry: Sigenergy pitches SigenStack as modular battery storage for Cyprus businesses, aiming to reduce bills and boost renewable use. Shipping & Finance: Globus Maritime reports Q2 and six-month results, while Castor Maritime announces a joint venture to acquire and operate the M/V Magic Starlight. Capital Markets Compliance: CySEC fines 12 listed Cyprus companies for transparency breaches tied to 2024 annual financial reports. Government & Agriculture: A partial cabinet reshuffle brings new ministers and deputy ministers with net annual salaries near €80,000, while the new agriculture minister faces immediate pressure from livestock farmers over unpaid foot-and-mouth compensation. Mobility Talks: India and Cyprus push for time-bound progress on finalising the India–Cyprus Migration and Mobility Agreement. Tech & Advertising: AdsGram expands into Telegram Ads across Mini Apps, channels and bots. Local Business & Tourism: Cyprus hotels brace for August demand, with licensing gaps still a concern.

R&D Boost: Cyprus allocated about €112m to research and development in 2025, nearly doubling funding over the past decade even as the 2025 figure dipped versus 2024, keeping the island well above 2015 levels. Energy Interconnector: Meridiam’s move to take over 50%+ of the Great Sea Interconnector company is framed as a turning point for Cyprus’ electricity links to Greece, with seabed surveys and financing now pushed forward. Local Infrastructure: The upgraded Larnaca–Dhekelia road (Phase 3) has opened, adding wider lanes, crossings, bike lanes and service-road works. Hospitality Leadership: Ilio Rodoni appointed General Manager of Hilton Nicosia, bringing senior experience from major Hilton properties. Trade & Food Industry: Cyprus beer exports reached €2.33m in 2025, while a Cyprus–Palestine business forum in Nicosia targets partnerships across agriculture, food processing, textiles and IT. Mobile Services: A new consumer survey finds overall satisfaction with mobile services remains high, but complaints handling and connection issues are rising. AI & CX Funding: Omilia, a Cyprus-based agentic CX firm, secured €58.1m Series B to expand in North America and open a US office. Workplace Safety: Cyprus was featured in an ISSA-C Vision Zero campaign video highlighting safety leadership and prevention rules.

Energy Infrastructure: Meridiam has agreed to take a controlling stake in the Great Sea Interconnector, adding fresh momentum to the Cyprus-Greece electricity link and supporting financing, surveys and construction acceleration, while Greece’s energy minister calls it a “European issue.” Local Transport & Construction: After 26 years, the upgraded Larnaca–Dhekelia road (Phase 3) has opened, with wider lanes, safer crossings, bike lanes and service-road works due to finish by October. Consumer & Retail: Cyprus Consumers Association reports a mixed supermarket price picture in late July, with 805 products up (avg +10.6%) and 908 down (avg -11.9%), and still-large price gaps between chains. Water Management: Famagusta’s water network is set for a smart management upgrade via a €76,000 KIOS-backed project using hydraulic modelling and monitoring tools. Inflation Watch: Cyprus inflation eased to 2.9% in July as transport and food pressures softened, while housing and utilities rose faster. Construction Sector: New data point to continued strength in Cyprus’ construction pipeline, with building permits and lending up year-on-year, though recent regional tensions may affect future releases.

EV Transition Watch: Cyprus is aiming for 85,000 EVs by 2030, but with only about 8,200 on the road and EVs at just 0.77% of the fleet, the jump is huge—and the charging network’s power and coverage gaps are the real bottleneck. Green Shipping: Cyprus will introduce solar electric passenger vessels by April 2027 after a cooperation deal with Indian shipbuilder Navalt, with potential local assembly and a wider push into green and even autonomous maritime tech. Energy Links: French investor Meridiam is set to take a majority stake in the Greece-Cyprus Great Sea Interconnector, but key deal details and timelines remain undisclosed—leaving investors watching for financing and regulatory clarity. Aviation Costs: Wizz Air swung to an operating loss of €183m as Middle East conflict drove jet fuel costs sharply higher, warning the sector faces more pressure ahead. Tech & Industry: Cyprus-based Asbis posted record results as AI infrastructure and server demand surged, while a Paphos AI startup Sainni is betting on real-time sales decision support. Construction Pulse: Eurobank Research says Cyprus construction kept strong momentum in early 2026, with permits and approved dwellings up year-on-year. Workforce Pressure: Cyprus reports rising demand for restaurant, tourism and retail roles, while nurse shortages are becoming critical. Public Safety & Trade: Police say cocaine seizures in Cyprus already outpace all of 2025, alongside a rise in hashish and a new opioid trend involving poppy stalks.

Energy Infrastructure: Meridiam has taken a majority stake in the Great Sea Interconnector, with Greece’s PM Mitsotakis saying it will end Cyprus’ energy isolation and boost eastern Mediterranean grid resilience. Power Market & Resilience: A new Cyprus-focused analysis argues a sustainable electricity grid needs storage, smart-grid tools and flexibility to handle renewables’ variability and extreme disruptions. Water Management: Limassol unveiled a water conservation plan, including a public campaign and upgrades such as replacing 100km of pipes, while the agriculture ministry pushes its “Water, for Tomorrow” free kit rollout (tap aerators and shower restrictors) to cut household use. Renewables Investment: Qualitas Energy (via Heelstone) bought a 188MWp Texas solar project (Cypress Pointe), targeting 2029 operations and expanding its US pipeline. Local Energy Costs: A study warns extreme heat could cost Cyprus €2.3bn–€3.8bn by 2050 unless workplaces adapt, with construction, agriculture and tourism most exposed. Security & Trade Routes: Iran and Oman say they’ve agreed coordinates for a proposed Strait of Hormuz shipping route, warning “third parties” not to obstruct work. Shipping/Industry: Cyprus’ tourism and hotel licensing pressures also surfaced, alongside reports on capacity expansion plans by Jet2 for 2027.

Tourism Pressure: Cyprus hotels say August is running about 10% behind, with operators leaning on last-minute demand and discounts as Middle East-linked uncertainty still weighs on bookings. Hotel Licensing Crunch: Only 141 of 728 hotels hold operating licences, and hoteliers warn that procedural and institutional hurdles must be fixed before the 2027 deadline to avoid “serious consequences.” Shipping & Energy Security: Eight maritime bodies, including the Cypriot-linked International Chamber of Shipping, urge the UN/IMO to block compulsory Hormuz tolls, warning they threaten freedom of navigation and supply-chain stability. Jobs Watch: Registered unemployment in Cyprus rose 5.8% in July to 11,728, though seasonality (education and public administration) explains much of the monthly jump. Industry Output: Cyprus industrial turnover rose 3.5% in May, led by manufacturing, with notable strength in machinery repair/installation and wood products. Banking & Growth: Eurobank reports higher first-half profitability, citing Cyprus as a core growth market and highlighting merger synergies. Labour Market Risk From AI: A World Bank report flags higher AI job displacement exposure in high-income economies, raising questions for future workforce planning. Agriculture Dispute: Livestock breeders block veterinary services in Nicosia over delayed foot-and-mouth compensation, despite a new €6.35m support package approved by cabinet. Online Shopping Costs: Cyprus Customs collected nearly €2m in July from the new €3-per-item duty charge on low-value non-EU purchases. Aviation Maintenance: Cyprus Airways extends its heavy maintenance partnership with Bird Aviation for C-checks and scheduled work at Larnaca facilities.

Aviation Maintenance: Cyprus Airways renewed its heavy aircraft maintenance deal with Bird Aviation, with scheduled technical support carried out at Bird’s Larnaca facilities to keep the fleet available and compliant. Energy & Policy: President Nikos Christodoulides told ANT1 that cutting electricity prices remains the government’s top priority, pointing to VAT relief and arguing the target is achievable while pushing for more investment in conventional generation and storage. Customs & Retail: Cyprus collected nearly €2m in July from the new €3 online shopping customs duty, with 650,000 chargeable items processed in 160,000 parcels—an early sign of strong low-cost e-commerce demand. Shipping Finance: Frontline plc (Limassol) agreed to sell two 2017-built VLCCs for $270m, targeting net cash proceeds of about $179m and a one-off special dividend of $0.80 per share. Agriculture Conservation: Florida’s agriculture commissioner announced permanent protection of 1,675 acres of working agricultural land via easements, including two timber projects in Levy and Putnam counties. Biodiversity: A new EU co-funded programme in Cyprus will protect three birds of prey—griffon vulture, Bonelli’s eagle and long-legged buzzard—by tackling poisoning, electrocution, collisions and illegal killing. Tourism Demand: Nissi Beach was ranked Europe’s second best for 2026, adding another boost to Cyprus’ tourism recovery narrative. Property Market: Cyprus logged 2,040 sale contracts in July, pushing 2026 activity above last year’s pace, with Limassol and Paphos driving most of the increase.

Energy & Industry Deal: Shell is exiting Cyprus’ Aphrodite gas field in a deal worth up to $720m, with MOL taking over Shell’s stake via BG Cyprus, while Chevron remains operator and first gas is still targeted after a 2027 final investment decision. Power Reliability: A former energy minister says Cyprus’ shortages reflect failures by EAC and CERA, as the island faces a looming power crunch. Tourism & Services: Nissi Beach has been ranked Europe’s second-best beach for 2026, adding momentum to Cyprus’ tourism recovery. Digital Consumer Trends: Eurostat data shows 34.1% of people in Cyprus bought event tickets online in 2025, well above the EU average. Property Market: Cyprus logged 2,040 property sale contracts in July, pushing the 2026 year-to-date total past 12,000. Shipping & Trade Security: A Cypriot shipping executive is backing a toll-free Strait of Hormuz push as maritime security concerns persist. Construction & Housing: First homes have been handed over at Dhekelia under a £48m service-family accommodation programme, with solar and heat-pump energy measures built in. Wildfire Response: A wildfire near Lania–Limnatis was contained after a multi-asset firefighting response, mainly burning agricultural land and wild vegetation. Business Finance: ECB figures highlight a Cyprus-versus-eurozone gap in deposit rates, even as Cyprus deposit returns ticked up in June. Maritime Policy: The EU’s maritime services sanctions approach faces enforcement friction, with a “maritime services ban” still colliding with real-world shipping realities. Sector Planning: Cyprus launched a public consultation on a National Strategy for the Development of Diving Tourism, with feedback due by Sept 15.

Cyprus Energy & Industry: Cyprus’ energy crunch stays in focus as temperatures near 43°C pushed electricity demand to a record 1,341MW, while the island also faces wider pressure from drought and heat across Europe. Housing & Construction: The UK’s £48m APOLLO programme has delivered the first 46 of 138 service-family homes at Dhekelia Station, with seismic safeguards and cooling measures built for Cyprus conditions. Banking & Consumer Costs: The Central Bank of Cyprus reports June deposit rates rising while consumer borrowing costs eased, with corporate lending driving a sharp jump in new loans. Retail Competition: e-kalathi tracking shows prices moved both up and down in late July, but supermarket price gaps remain wide enough to raise competition questions. Grocery & Food Industry: Cyprus retail trade kept momentum in June, with turnover value up 8.3% and volume up 5.5% year-on-year. Shipping & Logistics: A Cypriot shipping executive backs calls for a toll-free Strait of Hormuz to protect safe, unrestricted passage. Energy Deals: Shell’s Cyprus gas stake is being sold to MOL in a $720m deal, reshaping the island’s offshore energy landscape. Tech & Automation: ENCY Hyper, developed in Limassol, expands offline robot programming capabilities for faster collision resolution and on-site validation. Diplomacy: UN chief Guterres’ Cyprus visit revives expectations of renewed talks, but the key question is whether substance changes beyond past efforts. Environment: Cyprus steps up enforcement against illegal construction waste dumping, targeting fire risks and public health. International Context: A Gulf of Suez earthquake was felt across Cyprus and the region, highlighting seismic risk.

Retail & Consumer Demand: Cystat reports Cyprus retail trade (excluding motor vehicles) stayed resilient in June, with turnover value up 8.3% year-on-year and volume up 5.5%, building on May’s gains and outperforming Eurostat’s wider EU trend. Energy Deal (Aphrodite): Shell agreed to sell BG Cyprus to MOL Group for up to $720m, transferring MOL a 35% non-operated interest in Block 12 and setting up a completion target for early 2027. Power Reliability: EAC unions suspended planned industrial action until September after recent power-cut conditions “validated” long-running warnings, while pledging rapid fault repairs. Maritime Security & Trade Routes: Maritime Cyprus backed the updated BMP Maritime Security (Ver.2, 2026), and a Cypriot shipping executive urged a toll-free Strait of Hormuz to protect safe passage. Housing & Property Signals: A Cyprus valuers’ association warned against treating online/automated valuations as anything more than indicative, while UK Cyprus base housing projects continue with new homes completed for military families. Business Confidence: CypERC says Cyprus’ economic sentiment improved in July, driven by stronger services and retail confidence, even as construction and industry softened. Construction/Infrastructure: A £48m contract is delivering 138 resilient homes for service personnel at Dhekelia, with seismic and cooling measures plus solar and EV charging.

Maritime Security: Maritime Cyprus highlights the release of BMP Maritime Security Ver.2 (2026), consolidating global guidance for merchant shipping through high-risk areas as geopolitical threats and piracy evolve. Energy Deal: Shell has agreed to sell its 35% non-operated stake in Cyprus’ Aphrodite gas field (Block 12) to MOL Group for up to $720m, with closing expected in early 2027, as partners move toward final investment decisions. Power Supply Pressure: EAC unions suspend industrial action until September, pointing to ongoing electricity system strain and warning that rolling power cuts reflect long-standing concerns about supply adequacy. Seafood & Environment: Enalia Physis and SPOT Marine Life launch Cyprus’ first Sustainable Seafood Guide, grading local species as recommended, caution, or avoid to help consumers back small-scale, responsible fishing. Workforce & Skills: A Cyprus-focused piece argues the real labour risk isn’t AI taking jobs, but employers struggling to fill vacancies as demographics tighten the labour pool. Tourism Capacity: Reports say European hotspots are hitting “max capacity” earlier, with Cyprus in the wider travel squeeze as crowds and heat stress industry operations.

Energy Deal: Shell agreed to sell its 35% non-operated Aphrodite stake via BG Cyprus to MOL Group for up to $720m, with closing expected in early 2027—another reshuffle as Cyprus pushes gas exports and partners line up LNG routes. Infrastructure & Housing: The UK’s APOLLO programme has completed the first phase of 46 new Service Family Accommodation homes at Dhekelia Station, part of a 138-home build aimed at modern standards and resilience in Cyprus. Construction & Skills: Cyprus’ labour gap is widening even as AI use is high among people but low among businesses, raising the risk of “jobs without enough people” across sectors like construction, retail, tourism and food services. Housing Policy: Renovate-Rent is struggling to attract applicants despite promising cheaper homes and near-free renovations, with only 84 applications against a far larger target. Agriculture: Paphos winegrowers protested compensation limits after the agriculture ministry restricted payouts to specific grape varieties hit by downy mildew. Cyber & Smart Homes: Authorities warn that ordinary connected devices can be repurposed as disguises for online criminal activity, spotlighting smart-home security risks. Tourism Pressure: Europe’s hotspots are seeing earlier, heavier crowds, with experts saying destinations are hitting capacity “earlier and earlier.” Energy Security: A drone incident at Egypt’s Damietta port has reignited concerns for the Eastern Mediterranean energy corridor Cyprus relies on.

Energy & LNG: Eni and TotalEnergies have taken a final investment decision for the Cronos Block 6 gas field offshore Cyprus, with first gas planned for export via Egypt’s Damietta LNG facility—cementing Egypt as the East Med hub for Cypriot gas. Security & Ports: Cyprus’ gas-export plans face fresh risk after a drone strike hit Egypt’s Damietta port, damaging vessels and raising fears of wider spillover from the US-Iran conflict. Gas M&A: Shell agreed to sell its 35% non-operated Aphrodite stake (BG Cyprus Ltd.) to MOL Group for up to $720m, with gas sales expected to go to EGAS and completion targeted for early 2027. Housing & Construction: The first phase of the APOLLO programme delivered 46 new service family homes at Dhekelia Station, part of a 138-home build worth £48m, designed for seismic resilience and summer cooling. Local Economy & Finance: Eurobank reported €738m net profit for H1 2026, with Cyprus contributing €231m, while the CBC highlighted how ECB policy shifts are changing loan structures in Cyprus. Consumer & Solar: Police in Paphos arrested a suspect over a €9,800 solar panel deal that never materialised, warning residents to verify contractors. Agriculture: Paphos winegrowers protested compensation limits that exclude some grape varieties affected by downy mildew.

Energy & M&A: Shell has agreed to sell its 100% BG Cyprus Ltd. stake in the Aphrodite gas field to MOL Group for up to $720m, with gas sales expected to go to EGAS and completion targeted for early 2027—another sign Cyprus’ offshore portfolio is being reshaped toward LNG. Banking & Finance: The Central Bank of Cyprus says ECB policy shifts have changed local lending, with more longer-term fixed-rate mortgages bringing Cyprus closer to eurozone financing conditions; meanwhile Eurobank reported €738m net profit in H1 2026, with Cyprus contributing €231m. Agriculture: Paphos winegrowers protested compensation limits after the agriculture ministry accepted damage declarations only for four grape varieties hit by downy mildew, arguing other varieties were also wiped out. Construction & Housing: The UK MOD says the first phase of a 138-home programme for service families at Dhekelia Station is complete, with 46 new earthquake-resilient homes delivered under APOLLO. Security & Risk: A British man accused of spying on RAF Akrotiri for Iran remains in custody as extradition proceedings move forward, highlighting Cyprus’ strategic role. Consumer & Solar: Police in Paphos arrested a suspect accused of taking €9,800 for solar panels that were never installed, urging residents to verify contractors.

Energy Deal: Shell agreed to sell its 100% BG Cyprus Ltd to MOL Group for up to $720m, transferring MOL a 35% non-operated stake in the Aphrodite gas field (Block 12) with gas destined for Egypt’s EGAS; completion is expected in early 2027, subject to approvals. Local Energy Oversight: Former energy minister George Papanastasiou says Cyprus should have had a say in the BG-to-MOL change of ownership, since it is the licensor for Aphrodite and could refuse with documented reasons. Power Security: Cyprus may lose up to half of its conventional electricity capacity by 2030 unless key projects land, with lawmakers hearing that ageing units at Dhekelia and Vasiliko could be withdrawn under EU rules. Banking & Risk: The Central Bank of Cyprus flagged an ECB reverse stress test showing banks can model geopolitical shocks, but gaps remain in how scenarios translate into solvency and liquidity. Consumer Protection: Police in Paphos arrested a 67-year-old over a €9,800 solar panel scam where promised installations never happened. Industrial Signals: Cyprus industrial output prices rose 2.3% year-on-year in June, with manufacturing up 1.8% and electricity supply up 3.6%. Security & Diplomacy: A British man accused of spying on RAF Akrotiri for Iran remains in custody as extradition proceedings move forward.