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Biden’s Decision On Cyprus Hailed As A Landmark Moment

US President Joe Biden’s latest move has been described by the Cyprus government as a “historic development,” opening the door for the Republic of Cyprus to access US defence equipment, supplies, and services through key programmes such as Foreign Military Sales, the Excess Defense Articles (EDA) initiative, and other military assistance channels, according to a statement from the Presidency.

This decision is a direct result of the strategic focus and diplomatic efforts spearheaded by President Nikos Christodoulides, which are already bringing significant benefits in defence and foreign policy, the statement added.

The announcement follows President Christodoulides’ meeting with President Biden at the White House last October, underscoring a new milestone in US-Cyprus relations. The Republic of Cyprus is increasingly recognized as a cornerstone of stability and security in the Eastern Mediterranean, with a vital role to play in fostering peace and addressing regional humanitarian challenges.

Through its inclusion in the EDA programme, Cyprus can now acquire surplus US defence equipment either as a grant or at significantly reduced costs, a development expected to accelerate the modernization of its military capabilities. Simultaneously, participation in the Foreign Military Sales programme allows Cyprus to procure advanced defence technology directly from the US government, further aligning the two nations’ shared strategic interests. Additionally, Title 10 programmes will bolster Cyprus’ capabilities in areas such as land and maritime border security through specialized training and equipment.

The Presidency highlighted that this decision marks a major upgrade in bilateral defence cooperation, solidifying Cyprus as a dependable regional partner. It also contributes to enhancing the National Guard’s modernization efforts, fortifying national defence, and strengthening Cyprus’ geopolitical influence.

“This strategic partnership underscores Cyprus’ role as a pillar of security, stability, and diplomacy in the region while reflecting the political stability and international credibility of the Cypriot state,” the statement said.

The White House echoed this sentiment, with President Biden’s determination, issued under the Foreign Assistance Act of 1961 and the Arms Export Control Act, stating that the provision of defence articles and services to Cyprus would advance US security interests and promote global peace.

Addressing the Secretary of State, Biden authorised the necessary steps to notify Congress and ensure the decision’s publication in the Federal Register. “This action demonstrates the strategic value of Cyprus in the broader geopolitical landscape and reinforces the deepening cooperation between the two nations,” the statement read.

The decision is also seen as a powerful message of support for Cyprus’ efforts to resolve the ongoing division of the island, which has been split since 1974 following Turkey’s invasion and occupation of the northern third. Despite decades of UN-led negotiations, a lasting solution remains elusive, with the most recent talks in 2017 at Crans-Montana ending without agreement.

Cyprus Services Sector Shows Robust Performance In 2025 As Tourism, Digital Innovation, And Shipping Surge

The Employers and Industrialists Federation (OEV) reported growth across Cyprus’ services sector in 2025, with increases recorded in tourism, professional services and administrative activities. Data show continued expansion across multiple sub-sectors, reinforcing the role of services in economic output and employment.

Service Sector Leadership

Accommodation and food services grew by 9.5%, while administrative and support activities increased by 7.4%. Professional, scientific and technical activities rose by 4.6%, followed by information and communication at 4.3%. Transport and storage recorded growth of 2.8%, while real estate activity increased by 0.4%. These figures indicate broad-based expansion across service industries.

A Remarkable Tourism Surge

Tourist arrivals reached 4,534,073 in 2025, marking a 12.2% increase year-on-year. December arrivals totaled 156,959, up 18% compared with the same period a year earlier. Tourism continues to support revenue generation and seasonal demand across the economy. Growth in visitor numbers contributes to activity in hospitality and related sectors.

Driving Digital Transformation

OEV is supporting digital adoption through initiatives such as the DiGiNN Cyprus Digital Innovation Hub. The program focuses on improving business processes, skills development and technology integration. Additional efforts include the establishment of a Digital Transformation and Innovation Committee and international engagement through business missions. These actions support the adoption of digital tools across sectors.

Resilient Shipping Sector

Shipping accounted for about 7% of Cyprus’s GDP in 2025, remaining a key component of the economy. The Cyprus Registry recorded its highest tonnage in 20 years, with an increase of nearly 20%. Fleet growth strengthens Cyprus’ position within European Union shipping registries and global maritime markets. The sector continues to contribute to economic stability.

Strengthening The Economic Foundation

OEV is organizing conferences, workshops and exhibitions to support business development across sectors. These initiatives focus on improving operational practices and industry collaboration. Continued investment in services and digital infrastructure is expected to support economic performance.

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