Cyprus Business Now: fintech, supermarkets, gambling, shipping, startups, IMF

Traditional banks have won the first battle with fintech companies, but Cyprus must speed up regulatory procedures, cut bureaucracy and attract skilled workers if it wants to compete in digital finance, the Forbes Cyprus Next Gen Banking & Fintech Summit heard on Tuesday.

London Business School professor Costas Markides told the gathering in Limassol that fintech companies had transformed financial services without displacing established lenders. Instead, banks had adapted to the competition by investing in technology, working with fintech firms and buying some of their rivals.

Over the past two decades, fintech providers have gained ground in payments, foreign exchange and digital investment services by making transactions quicker, cheaper and easier. Traditional banks, however, have retained their advantage in mortgages, business lending and wealth management.

Markides pointed to Revolut as an example of the challenge facing digital providers. Many consumers, particularly younger customers, use fintech accounts for everyday spending but still have their salaries paid into traditional banks and turn to those lenders when they need a mortgage.

President Nikos Christodoulides said on Tuesday that Cyprus aims to strengthen its position in financial innovation, presenting the country as a gateway to the European market for international businesses and investors at the Forbes Cyprus’ Next Gen Banking & Fintech Summit in Limassol.

Addressing the event, Christodoulides said Cyprus’ economic stability, European Union membership, skilled workforce and growing technology sector gave it a strong foundation to attract investment in financial technology.

“Our ambition is to strengthen Cyprus’ position as a reliable, agile and internationally connected European gateway for financial innovation,” he said.

He added that the government wanted Cyprus to become a place where fintech companies could establish substantial operations, develop new solutions, attract investment and talent, and expand into European and international markets.

The president pointed to Cyprus’ economic performance and improving public finances as foundations for achieving that ambition, despite geopolitical uncertainty and economic challenges affecting Europe and the wider region.

Prices for the same products at Cyprus supermarkets differ by as much as 226 per cent, according to a new survey by the Cyprus consumers association, which has called for a review of the government’s e-kalathi price comparison platform.

The association’s findings, released this week, also showed that fruit and vegetables at a Nicosia farmers’ market were 26 per cent cheaper on average than equivalent products sold in supermarkets.

The findings have raised fresh questions about price competition, product availability and the accuracy of information published on the platform, which was introduced to help consumers compare supermarket prices.

According to the association, its survey, conducted on September 30, covered all products and supermarkets participating in e-kalathi.

Of the products examined, 54 items, representing 11.3 per cent, showed differences of between 100 and 226 per cent between their highest and lowest listed prices.

The International Monetary Fund (IMF) has lowered its forecast for Cyprus’ economic growth in 2026 to 2.9 per cent from 3 per cent, while raising its projection for 2027 to 3.2 per cent from 3 per cent, according to its latest World Economic Outlook published on Tuesday.

The IMF also expects inflation in Cyprus to reach 3.7 per cent in 2026, before falling to 1.9 per cent in 2027, according to the October 2026 report.

The projections differ from those of the finance ministry, which expects the economy to grow by 3.1 per cent in 2026 and 2.9 per cent in 2027, according to the draft 2027 state budget presented to parliament by Finance Minister Makis Keravnos on October 12.

The IMF’s latest inflation forecasts are also higher than those published in its April 2026 report, when it projected inflation of 2.6 per cent for 2026 and 1.6 per cent for 2027.

Cyprus must strengthen its response to illegal gambling and ensure that player protection goes beyond regulatory compliance, National Betting Authority (NBA) chairman Panayiotis Trisokkas said this week, as the island opened its ninth Safer Gambling Week.

Speaking at the 9th Safer Gambling Conference on October 12, Trisokkas stressed the need for effective regulation, stronger prevention measures and greater use of technology to identify risks before they cause harm.

The conference brought together academics, researchers, regulators and gambling industry professionals from Cyprus and abroad to discuss illegal betting, artificial intelligence (AI), public health concerns and the future of player protection.

“A well-regulated market is a prerequisite for a sustainable market. And a sustainable market is one in which player protection is an integral part of its operation,” Trisokkas said.

Cyprus Deputy Shipping Minister Marina Hadjimanolis is leaving for a 16-day visit to Japan, China and South Korea on Tuesday, seeking to strengthen maritime cooperation, attract new business and promote the Cyprus flag in three of Asia’s major shipping markets.

The working visit, scheduled for October 14 to 29, will include international maritime forums, bilateral meetings with government officials and discussions with shipowners, shipping companies and shipyards.

According to the Shipping Deputy Ministry, the visit forms part of its efforts to expand Cyprus’ presence in Asian markets, strengthen the competitiveness of the Cyprus shipping register and develop new commercial partnerships.

In Tokyo, Hadjimanolis will attend the 5th Capital Link Japan Maritime Forum, where she will hold a one-on-one discussion with Capital Link founder and president Nicolas Bornozis on leadership, maritime policy, competitiveness and international cooperation.

Shipping agents face growing security and compliance responsibilities as geopolitical tensions disrupt maritime trade, the Cyprus Shipping Association (CSA) said during an international industry gathering in Tokyo.

The association’s director general, Dimitris Kouzapas, raised the impact of the war in Ukraine and crises in the Middle East on shipping operations, regional security and global trade during the 2026 annual general meeting of FONASBA, the Federation of National Associations of Ship Brokers and Agents.

Speaking on a panel examining European maritime resilience, Kouzapas said “Cyprus had an important role to play in supporting security and stability in the Eastern Mediterranean,” drawing on its geographical position and experience in shipping.

He stressed the need for better preparedness, closer coordination between authorities and the industry, and more effective information sharing as maritime operators respond to changing security threats.

Kraken, through its parent company Payward, has awarded six postgraduate scholarships at the University of Cyprus, supporting students in finance and data science as the international financial technology group strengthens its links with the island’s academic community.

The scholarships were presented on Monday, October 12, during a ceremony in Nicosia, with three awarded to MSc Finance students and three to MSc Data Science students for the 2026 – 2027 academic year.

The initiative forms part of a partnership between Payward and the university’s Faculty of Economics and Management, with recipients selected through established university procedures based on academic merit and financial need.

The awards will contribute towards students’ tuition fees, although the published announcement did not specify the individual amounts.

Cyprus startups raised €112.8 million across 28 funding rounds in 2026, bringing the sector close to its full-year total for 2025 with three months remaining, according to analysis by Dionysis Partsinevelos, an associate at venture capital firm 33East and an analyst at G4 Ventures.

In an update published on Tuesday, Partsinevelos said 21 additional rounds had been announced over the five months since his previous funding review in May, with 17 disclosing their amounts and collectively raising €100m.

The total for 2026 stands at $131.9m, with a median investment of $1m, while the €112.8m raised so far compares with approximately €120m in 2025.

Partsinevelos counts funding rounds by announcement date, uses the currency reported by each company and converts amounts at a year-to-date average exchange rate of approximately $1.16 per euro, excluding grants.

The Cyprus Chamber of Commerce and Industry (Keve) will hold a seminar in Limassol on November 9, 2026, covering employment termination, workplace rights and obligations, and Cyprus’ new teleworking legislation.

The seminar, titled “Termination of Employment and Teleworking”, will take place at the Atlantica Miramare hotel from 8.45am to 5.15pm and will be conducted in Greek.

The programme is aimed at business owners, directors and deputy directors of companies and organisations, as well as officers and staff responsible for employment matters within their organisations.

Employment termination will be one of the main topics, with the seminar examining lawful and unlawful dismissal, forced resignation and voluntary departure, as well as the circumstances in which employment termination is covered by the law.

The American Chamber of Commerce in Cyprus (AmCham Cyprus) has welcomed Complytek AI as a new business member, strengthening its network of companies operating in technology, regulatory compliance and financial crime prevention.

Complytek AI is a Cyprus-headquartered technology company specialising in artificial intelligence-powered compliance, know-your-customer (KYC) checks, anti-money laundering (AML), identity verification and risk management solutions.

The company develops technology to help regulated businesses meet increasingly complex regulatory requirements while accelerating their digital transformation.

AmCham Cyprus said Complytek AI’s expertise in regulatory technology and AI-driven compliance aligned with its commitment to innovation, business excellence and promoting Cyprus as a leading technology and business hub.

Cypriot investment firm Demetra Holdings Plc bought back 4,341 of its own shares at an average price of €1.371, the investment company announced on Tuesday.

The purchases were carried out on Monday through the Cyprus Investment & Securities Corporation Ltd (CISCO), in accordance with authorisation granted at the company’s annual general meeting on June 30, 2026.

The transactions took place on October 12, 2026, and comprised four separate purchases.

Hybrid cars accounted for more than half of all passenger saloon car registrations in Cyprus during the first nine months of 2026, while the share of fully electric vehicles declined, according to the Cyprus Statistical Service (Cystat).

Hybrids represented 53 per cent of passenger car registrations between January and September, up from 44 per cent during the same period of 2025, highlighting their growing presence in the local vehicle market.

By contrast, the share of fully electric cars fell to 4.2 per cent from 4.7 per cent, while petrol-powered vehicles declined to 34.8 per cent from 42.8 per cent.

Diesel-powered cars also lost ground, accounting for 8 per cent of registrations, compared with 8.5 per cent a year earlier.

The figures come as hybrid and electric vehicles continue to gain ground across the European Union, where almost 40 per cent of cars produced in 2025 belonged to one of these categories, according to a report from Eurostat.

Aegean Airlines will maintain its flight routes to and from Paphos International Airport in 2027, providing continued air links with Athens and onward connections to key European tourism markets, the Paphos regional tourism board (Etap Paphos) announced on Tuesday.

The decision was welcomed by Etap Paphos, which said the airline’s continued presence would support the district’s long-term tourism development and help maintain stable air connectivity.

The airline is expected to operate two or three weekly flights between Athens and Paphos, depending on the period of the year, offering additional travel options for passengers and visitors.

Etap Paphos said the service would strengthen the district’s accessibility from Greece while also improving connections with important international markets.

HELLENiQ ENERGY has brought its first large-scale battery energy storage facility into operation in Thessaloniki, Greece, following an investment of approximately €50 million aimed at improving the use of renewable electricity.

The group’s renewable energy and storage project portfolio under development includes more than 1 GW of storage projects in Greece, Romania, Cyprus and Bulgaria, highlighting its wider regional expansion.

The facility, developed by HELLENiQ Renewables at the group’s Thessaloniki industrial site, has an installed power capacity of 100 megawatts (MW) and a storage capacity of 200 megawatt-hours (MWh), making it one of the largest electricity storage projects in Greece and Southeast Europe.

The investment marks an expansion beyond renewable electricity generation into infrastructure designed to make green energy more efficient and reliable.