For decades, the Free Famagusta district has pursued one strategic objective: to extend its tourism season beyond the summer months. The stakes are high. As the region with the largest share of Cyprus’ tourist beds — accounting for 42% nationwide — any progress in lengthening the season would deliver meaningful gains for the local economy and the island’s broader tourism model.

Ayia Napa and Protaras operate at full capacity for roughly six months during a strong season, with hotels, restaurants and leisure businesses running at peak intensity. Yet the challenge remains clear. In October 2025, a record year for Cypriot tourism, only 20% of total arrivals were directed to the Free Famagusta district. That gap underscores the scale of the opportunity.

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A Unified Regional Strategy

Local stakeholders have spent years trying to attract more visitors during the colder months, but results have been uneven. One factor was the long-standing rivalry between Ayia Napa and Protaras, which until recently competed more than they cooperated. Since the summer of 2024, however, the two municipalities have chosen a different path. They have put aside differences and begun coordinating their efforts, creating new momentum for the region’s tourism sector.

Today, the focus is on strengthening the area’s offering in a more integrated way, with the long-term aim of gradually extending the tourism season and attracting both Cypriot and international visitors.

Why Year-Round Tourism Takes Time

Officials involved in the strategy say there is no quick fix. George Tofinis, chairman of the Famagusta Regional Tourism Board, said the push for year-round tourism requires time, planning, incentives and close cooperation between the public and private sectors.

“It is a strategy that needs time, proper planning, incentives and collaboration between the public and private sectors, and it certainly cannot be achieved overnight,” he said.

The approach centers on a broader mix of activities designed to diversify demand. These include international sporting events, cultural productions, festivals, concerts, Christmas programming and outdoor experiences tied to the region’s nature and inland communities. According to Mr. Tofinis, the initiatives launched in recent years show that the destination is gradually being upgraded with new experiences and events.

Air Connectivity And Regional Cooperation

A key part of the plan for 2027 is deeper cooperation between the tourism authorities and hotel operators of Famagusta and Larnaca. The two sides are in discussions with Hermes Airports and major travel organizers to secure more flights in March and November. If successful, the move could extend the tourism season by around two months.

At the same time, a coordinated digital campaign promoting the Famagusta district in foreign markets is being implemented for a third consecutive year. For 2026, it will continue through the autumn and part of the winter, reflecting a calculated effort to capture both last-minute bookings for the shoulder season and early demand for summer 2027.

The campaign is led by the Famagusta hotel association, in close cooperation with the regional tourism board and with financial support from the municipalities of Ayia Napa and Paralimni-Deryneia, Bank of Cyprus, and local hoteliers.

According to Panagiotis Constantinou, chairman of the Famagusta hotel association, dozens of accommodations in Protaras and Ayia Napa will remain open until the end of November this year, while only a limited number of hotels are expected to operate during winter. He added that as efforts intensify and visitor numbers improve, more properties will stay open for longer periods.

“What is needed,” he said, “is support from the state as well, because appropriate incentives and mechanisms are essential to sustain these initiatives.”

Sport As A Tourism Product

One of the strongest pillars in the effort to extend the season is sport. Regional leaders see sporting events — as well as team training camps during the winter — as a significant source of visitor traffic. Mr. Tofinis said sport is now being treated not merely as a parallel activity, but as a tourism product in its own right.

This year’s calendar features several prominent events. The first Cablenet Famagusta Run will take place in Protaras on October 11, while the SwimRun is scheduled for October 17-18, 2026. The 4th International Dragon Boat Regatta will be held at Ayia Napa Marina on October 10-11, and OceanMan will return to Ayia Napa from November 6-8, 2026.

Winter programming continues with the 4th International Winter Swimmers Festival, set for January 16-19, 2027, in Ayia Napa.

Football remains another reliable winter draw, particularly in Ayia Napa, where tournaments and team preparations from January through April continue to bring in visitors. In March, the 3rd Elite Neon Cup, scheduled for March 13-15, 2027, will add another international event to the calendar. Combined with the long-running academy tournament hosted annually in Ayia Napa, it is expected to attract hundreds of guests during a period when tourism activity is typically subdued.

Also on the schedule is the 6th Run4Autism, to be held in Ayia Napa on March 28, 2027.

Culture, Heritage And Nature As Growth Drivers

Beyond sport, the region’s leaders point to culture, history and nature as critical tools for attracting visitors during slower periods. The Medieval Festival of Ayia Napa remains one of the district’s signature events and will take place from October 14 to 18, 2026, drawing visitors from multiple countries.

Another major event, Cyprus Rocks, is currently being held in the Pernera area of Paralimni and runs until October 6.

From November 7 to January 7, 2027, Ayia Napa Biennale will also take place. Meanwhile, the Thalassa Municipal Museum is planning a series of family-focused activities throughout November and December.

From November, the Endless Sun program will resume and run through March. Delivered by the Famagusta Regional Tourism Board, the initiative aims to deepen the visitor experience by connecting guests with the roots, culture and traditions of the inland areas.

The direction is clear: Famagusta is no longer relying solely on summer sun and beach tourism. By combining events, air connectivity, digital marketing and destination cooperation, the district is building a more resilient tourism model — one that could eventually keep visitors arriving well beyond the traditional high season.

A Transport Project With Real Estate Consequences

A preliminary study suggests that a tram system in Limassol could trigger a dramatic rise in property values along its route, creating an estimated €1.5 billion in added value if the project moves forward.

That figure underscores why the debate is no longer limited to mobility. For Limassol and the surrounding municipalities, the tram is increasingly being viewed as a strategic urban-development decision with implications for housing, commerce, connectivity and long-term city planning.

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Vast Economic Upside, But Viability Comes First

Limassol Mayor Giannis Armeftis said that the value uplift along the proposed corridor is not confined to the initial estimate, while making clear that the immediate priority is to determine whether the tram would be operationally and financially viable.

The assessment is being examined jointly with the municipalities of Amathounta, Polemidia and Kourion. At the same time, there is also growing interest from Nicosia, where Mayor Charalambos Prountzos has raised the issue of tram feasibility in the capital as well.

Why Local Authorities Are Reconsidering Mass Transit

Armeftis said the goal is not to build a tram “at any cost,” but to explore whether such a system could serve residents efficiently, reduce environmental pressure and ease daily congestion.

“The aim of both the Municipality of Limassol and the Municipality of Nicosia is not to create a tram at any cost and regardless of expense, but first to determine whether such a project can be viable, serve our citizens, protect the environment, reduce the inconvenience for road users and make our living space more friendly and humane,” he said.

He added that if the studies produce encouraging results, the idea deserves deeper examination, particularly given the limited impact of bus services despite years of subsidies.

Limassol’s Transit Challenge

For Limassol, one of the central questions is how best to connect the port with the city centre through Aktaias Street and link the area to major strategic developments already underway, as well as to the wider Amathounta corridor.

The mayor noted that buses, despite annual subsidies of about €25 million in Limassol, have not delivered the expected results. Their share of total commuter movements remains well below what would be required for a robust public transport system.

Still, he emphasized that buses would not disappear. In his view, buses and tram services could complement one another rather than compete directly.

Two Routes Under Review

Working with the municipalities of Polemidia and Amathounta, local authorities have already commissioned traffic and spatial-planning studies to support decision-making.

Two possible routes are under consideration.

The first would begin on Kolonakiou Avenue in Germasogeia, continue through Griva Digeni and Gladstone Streets, pass along Aktaias Street and the port, and end at the Lady’s Mile roundabout.

The second would connect Ypsonas and Kourion, run through Pafou, Misiouli and Kavazoglou Streets, and continue toward the Amathounta seafront. This option would create an approximate “X” configuration, allowing for additional links and alternative connections.

According to Armeftis, the minimum route length would be about 10 kilometres. At an estimated construction cost of roughly €25 million per kilometre, that would imply a total of around €250 million. If the network expands to 20 kilometres, the cost could rise to €500 million. For a more advanced system, he said, the price could reach €30 million to €35 million per kilometre, or roughly €500 million to €600 million.

What The Numbers Could Mean For The City

Although no final decisions have been taken, Armeftis said the present road situation is simply unsustainable. In his view, the question is no longer whether Limassol needs a more effective transport solution, but which solution can credibly deliver it.

He also challenged comparisons with foreign cities where tram systems operate in larger urban populations. Limassol, he argued, effectively serves a far broader user base than its official population suggests, once visitors, workers from other districts and residents of surrounding municipalities are included. On that basis, he said, the market may be large enough to support a viable system.

Nicosia Reopens The Tram Debate

Nicosia is also revisiting the issue. Prountzos has argued that the Ministry of Transport should help finance an updated feasibility study. The municipality is not seeking a brand-new study but rather an update of work completed in the past.

“Our intention is to bring the prospect of a tram back on track, so that all factors are taken into account,” he said. “Not just the construction, operating and maintenance costs, but also the environmental cost of emissions generated by road traffic.”

He said the ministry’s transport department believes the European Investment Bank is unlikely to fund the project because bus penetration in public transport remains too low to justify introducing another mass-transit mode. Nicosia disagrees.

According to Prountzos, buses have been tried for about 17 years, since the current contracts began, without delivering the level of public uptake that was expected.

A Strategic Window May Be Opening

Prountzos believes the timing is now more favorable. The existing Nicosia bus contract expires in 2030, and discussions about the next set of specifications have already begun. That creates an opening to reconsider whether tram infrastructure should be part of the city’s next transport framework.

For both Limassol and Nicosia, the issue is becoming less about nostalgia for rail and more about urban competitiveness. As traffic pressure rises and cities look for cleaner, more efficient ways to move people, the tram has re-emerged as a serious policy option.

Cyprus’ financial watchdog has issued a fresh warning to investors, flagging six websites that appear to be offering investment or crypto-asset services without the required authorisation.

Regulator Cautions Investors Over Unlicensed Operators

The Cyprus Securities and Exchange Commission (CySEC) said the websites do not belong to entities authorised to provide investment services or carry out investment activities under Cyprus law, nor are they authorised to provide crypto-asset services under the European Union’s regulatory framework.

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The websites named in the warning are arongroups.co, growellcapitals.com, fanorenki.de, nevald-ki.io, xyvotrades.com and ambrosiafx.com.

Why The Warning Matters

CySEC urged investors to exercise particular caution before doing business with firms operating through these sites, stressing that they have not been approved to provide the relevant services. In practice, that means consumers could be exposing themselves to unregulated counterparties without the protections that come with licensed providers.

The regulator advised investors to verify the status of any company before transferring funds or entering into an investment arrangement. CySEC noted that its official website, www.cysec.gov.cy, includes information on entities licensed to provide investment services, investment activities and crypto-asset services.

Part Of A Broader Enforcement Pattern

The warning relates to authorisation requirements under Cyprus’ investment services legislation and the European Union’s crypto-asset rules. CySEC regularly publishes alerts about companies and websites that are not authorised to provide regulated financial services in Cyprus.

For investors, the message is straightforward: before engaging with any platform promoting investment opportunities or crypto-asset services, confirm that the firm appears on the regulator’s register. That simple check can help distinguish a licensed operator from one that may be operating outside the law.

OpenAI will begin embedding an invisible watermark into text generated by ChatGPT and Codex for users in the European Union, a move designed to align with the bloc’s sweeping AI transparency rules.

The company said the rollout will take place over the coming weeks for eligible ChatGPT and Codex users across all plans, but only within the E.U. Developers using OpenAI’s API anywhere in the world will also be able to enable the feature for select models starting today, though it will remain off by default. OpenAI is not making text watermarking a global default at launch.

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How The Watermark Works

The watermark is not a visible mark or symbol. Instead, it works by subtly influencing the model’s word choices in a way that leaves a detectable pattern hidden in the text itself. Readers will not notice it, but a compatible detector can identify it. Because the signal is embedded in the language, it remains attached even when the text is copied and pasted.

OpenAI said the system does not identify individual users and does not appear to materially affect model performance when enabled.

Built For The E.U. AI Act

The move is aimed squarely at compliance with the E.U. AI Act’s transparency obligations, which took effect on August 2 and require AI companies to mark AI-generated content in a way that other systems can detect.

That regulatory pressure is reshaping product decisions across the industry. For leading AI developers, transparency is no longer a theoretical policy question; it is now a design constraint.

Inside TextGrain, OpenAI’s Watermarking Method

Alongside the announcement, OpenAI published a technical report on the method, called textGrain. The paper, co-authored with researchers from the University of Pennsylvania and Yale, describes a technique that uses a secret key to influence next-word predictions. Over many such adjustments, the pattern becomes detectable by a system that has access to both the text and the key.

The approach is designed to flag likely AI-generated passages without adding any visible markers for readers.

Limits Remain A Core Concern

OpenAI also acknowledged that the system is not foolproof. In internal testing, replacing 10% of words with synonyms reduced detection accuracy from about 92% to 66%. The company said short passages, math-heavy answers, and translated text are also more difficult to detect.

Those limitations are why OpenAI said it will initially provide detector access only to approved researchers and expert organizations, which it believes are best positioned to evaluate reliability and responsible use.

The company further cautioned that the absence of a watermark does not prove human authorship. A passage may be too short, too heavily edited, or generated by another company’s model. As OpenAI put it, the watermark can indicate that an OpenAI system generated or processed part of a passage, but not how much human judgment, editing, or creativity was involved.

A Broader Industry Shift Toward Provenance

The announcement follows Anthropic’s decision to watermark text generated by Claude, a policy it is applying globally. That move drew criticism from some users, who argued they were providing the direction, context, and judgment while the model simply served as a tool.

OpenAI had previously built a text watermark but did not release it, reportedly in part because of concerns that users would migrate to rival systems that did not impose the same disclosure standards.

Now, with the E.U. drawing a firmer line on AI transparency, provenance is becoming a competitive and compliance issue at once. Anthropic, Google, Meta, Microsoft, and OpenAI have all committed to the E.U.’s code of practice on AI-generated content, signaling that watermarking and content attribution are likely to become a defining feature of the next phase of the AI market.

Europe’s appeal is often measured in cities, coastlines and cultural landmarks. But for travellers willing to trade urban itineraries for open roads, the continent offers something equally compelling: some of the world’s most accessible wildlife viewing.

From flamingos and seals to deer, starlings and golden eagles, much of Europe’s wildlife can be seen without leaving the car. That accessibility is part of the reason these routes are gaining attention, especially among travellers looking for experiences that combine scenery, convenience and a strong chance of sightings.

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Car rental company Avis (avis.co.uk) has ranked Europe’s best wildlife driving routes, weighing up the reliability of sightings, proximity to airports, route practicality and compactness, as well as online popularity based on Google searches and Instagram appearances.

Southern England’s New Forest tops the list, followed by Denmark’s Wadden Sea. Spain, meanwhile, claims two places in the top 10.

New Forest Wildlife Drive, England

Taking first place is the New Forest in southern England, which scores 93 out of 100 in Avis’ wildlife routes index.

The 32km drive begins in Lyndhurst, passes through Bolderwood and the Rhinefield Ornamental Drive, and finishes in Brockenhurst. At just 45 minutes to one hour, it is among the quickest routes in the ranking, yet it still offers a strong wildlife payoff.

The area is best known for its free-roaming New Forest ponies, but visitors can also expect to see fallow and roe deer, along with buzzards circling overhead. October is a particularly rewarding time to visit, when the deer rut brings the annual mating season into full view.

Wadden Sea Route 11, Denmark

In second place is Denmark’s Wadden Sea Route 11, which scores 80 out of 100.

The drive runs for around 65km from Ribe via the Gammel Hviding marshes to Skærbæk, taking approximately one hour to one hour and 25 minutes. It is also the most accessible route in the ranking, with Esbjerg Airport just 30km away.

Wildlife along the wider Wadden Sea landscape includes migratory birds, seals and harbour porpoises. In autumn, the area becomes even more striking thanks to Denmark’s famous Black Sun phenomenon, when starling murmurations move across the sky in shifting patterns before settling to roost.

Ebro Delta Birding Drive, Spain

Spain’s Ebro Delta birding drive ranks third, with a score of 74 out of 100.

The route stretches just 25km and can be completed in 45 to 60 minutes, though birdwatchers may want to set aside a full day to make the most of the stops along the way.

The drive passes through Poblenou del Delta, Pont de Través, Encanyissada, Migjorn and Alfacada, crossing lagoons, wetlands and rice fields rich in birdlife. Species commonly seen here include flamingos, glossy ibis, purple herons, spoonbills, marsh harriers and waders.

Late spring and summer are strong periods for breeding birds, while September and October bring major migratory movements through the delta.

Camargue Wildlife Drive, France

The Camargue wildlife drive in France places fourth, scoring 73 out of 100.

At roughly 90km, the route takes about 2.5 hours to complete, though longer stops can easily extend the journey. It runs from Arles to Étang de Vaccarès and Pont de Gau, before continuing to Saintes-Maries-de-la-Mer.

Pink flamingos are the headline attraction, but the Camargue is also home to herons, white Camargue horses and black bulls. September is the best month for flamingo sightings, although the other species can be seen throughout the year.

Scotland’s North Coast 500

Scotland’s North Coast 500 completes the top five with a score of 71 out of 100.

It is by far the longest route on the list. The full circuit covers around 830km and takes roughly 14 to 16 hours of driving, which most travellers break into several days. The route runs from Inverness through the Black Isle, Wester Ross, Durness, Dunnet Head and John O’Groats before returning to Inverness.

Along the way, drivers can pass habitats that support red deer, pine martens, harbour seals and golden eagles. May to September offers the most favourable road-trip conditions, while autumn is especially appealing for those hoping to witness the red deer rut.

Europe’s Top 10 Wildlife Driving Routes

1. New Forest wildlife drive, England
2. Wadden Sea Route 11, Denmark
3. Ebro Delta birding drive, Spain
4. Camargue wildlife drive, France
5. Scotland’s North Coast 500
6. A149 North Norfolk Coast, England
7. Monfragüe National Park roads, Spain
8. Hortobágy Route 33, Hungary
9. Lake Kerkini wildlife drive, Greece
10. Andøya scenic route, Norway

Cyprus’ construction industry continued to post robust gains in June 2026, underscoring sustained momentum across residential, civil engineering and land development activity.

June Permits Rise As Value And Floor Area Expand

According to the statistical service, Cystat, 751 building permits were authorised during the month, up 18.3 per cent from June 2025. The permits carried a combined value of €469.5 million and covered 394,717 square metres, with plans for 2,122 dwelling units.

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The first half of the year painted an even stronger picture. Between January and June, the number of permits climbed to 4,401 from 3,399 a year earlier, a rise of 29.5 per cent. Total value increased by 48.2 per cent to €2.57 billion, while authorised floor area advanced 47.1 per cent to 2.10 million square metres. Planned housing units rose sharply as well, jumping 67.8 per cent to 11,100 from 6,616 in the corresponding period of 2025.

Residential Projects Lead The Market

Residential building permits accounted for most of the activity, with 3,227 issued over the six-month period, up 26.9 per cent year on year. In June alone, 543 residential permits were authorised.

The value of residential developments reached €2.21 billion during the half-year period, a 66 per cent increase from €1.33 billion. Residential permits issued in June were worth €423 million.

The segment also drove most of the volume growth. Permits issued during the period provided for 7,832 homes in residential apartment blocks, up 85.3 per cent from 4,227 a year earlier. In June alone, apartment blocks accounted for 1,165 of the homes approved.

Another 837 units were planned in residential and commercial apartment blocks, compared with just 164 in the same period last year, representing a 410.4 per cent increase. June accounted for 542 of these units.

Single houses increased modestly by 4.2 per cent to 1,760, with 291 approved in June. Homes in buildings containing two housing units rose by 25.2 per cent to 671, including 124 during the month.

Non-Residential And Civil Engineering Activity Remains Mixed

Non-residential building permits rose 11.2 per cent to 406 in the first half, including 76 issued in June. Civil engineering permits increased by 27.6 per cent to 250, with 37 authorised during the month.

Despite the overall expansion, performance across categories was uneven. The authorised area of non-residential projects fell 35.2 per cent to 175,897 square metres, from 271,621 square metres a year earlier. June accounted for 33,268 square metres.

By contrast, civil engineering projects recorded a sharp increase in authorised area, rising 182.9 per cent to 18,363 square metres from 6,490 square metres. June contributed 471 square metres.

In value terms, non-residential projects declined 28.9 per cent to €226.3 million, with June permits worth €29.8 million. Civil engineering project values increased 41.9 per cent to €92.9 million, including €7.1 million in June.

Plot Division And Road Projects Accelerate

Activity in plot division rose particularly strongly, with 423 permits issued in the first half versus 248 a year earlier, an increase of 70.6 per cent. Of these, 80 were authorised in June. The value of these projects more than doubled to €28.8 million, up 102.2 per cent, including €5.4 million in June.

Road construction also showed notable momentum. Permits more than doubled to 95 from 47, a rise of 102.1 per cent, with 15 issued in June. The value of road projects climbed 148.6 per cent to €8.3 million, of which €4.2 million was approved in June.

What The Data Signals

For Cyprus, the latest figures suggest a construction cycle that remains firmly in expansion mode, driven primarily by residential demand and a sharp increase in apartment-led development. The gains in permit value and floor area indicate not only more projects, but larger ones—an encouraging sign for builders, suppliers and related services across the real estate value chain.

The Research and Innovation Foundation (RIF) has launched a public consultation on Cyprus’ proposed research and innovation funding portfolio for 2028 to 2034, inviting stakeholders to weigh in before the November 2 deadline.

A Blueprint For The Next Investment Cycle

The consultation is designed to help shape the country’s next wave of support for research, innovation and technological development. RIF is seeking feedback from the research community, businesses, organisations and citizens through its online consultation tool, with the findings expected to inform the structure and priorities of the new funding framework.

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The proposed portfolio is intended to create a more coherent support system that can turn talent, knowledge, technology and ideas into measurable economic and social gains. In practical terms, it spans the full research and innovation value chain — from talent development and research excellence to infrastructure, knowledge transfer and the commercialisation of research outputs.

From Research Capacity To Market Impact

Beyond academia, the framework is also expected to support innovative entrepreneurship, strengthen innovation inside businesses, mobilise private investment and improve Cyprus’ international competitiveness. The broader objective is to help position the island economy as a higher-value, knowledge-driven hub.

RIF said the consultation is focused on the overall structure and intervention logic of the proposed portfolio, rather than the detailed design of individual funding programmes. Those programmes will be developed later and opened to separate public consultations.

The foundation has urged participants to consider the framework as a whole, rather than focusing narrowly on individual actions. The input collected during this stage will be used to refine the portfolio so it better reflects the needs of the wider research, technological development and innovation ecosystem.

Stakeholder Input Will Shape The Final Design

According to RIF, the consultation will also help determine the financial resources required to implement the portfolio throughout the 2028 to 2034 programming period. The final framework will be used to guide public support for research, technology development and innovation in Cyprus over much of the next decade.

The foundation said the success of the new programming period will depend on broad participation across the ecosystem. It is therefore encouraging researchers, businesses, organisations and citizens to submit their views before the consultation closes on November 2, 2026.

More information on the consultation is available here. RIF can also be found at research.org.cy.

Cyprus’ industrial sector posted a solid gain in July 2026, with the Industrial Turnover Index rising 5 per cent year on year to 168.8 units, according to figures released Monday by the Statistical Service of Cyprus (Cystat). The increase was driven by stronger domestic market activity, even as export turnover registered a sharp decline.

Over the first seven months of the year, the index rose 3.9 per cent compared with the same period in 2025, underscoring a steady, if uneven, expansion across the industrial economy.

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Manufacturing Leads The Gains

Manufacturing, the largest component of the index, reached 164.5 units in July, up 4.8 per cent from a year earlier. For January through July, the sector was up 3.9 per cent.

Within manufacturing, electronic and optical products and electrical equipment delivered the strongest annual performance. The category surged 85.3 per cent in July to 187.2 units, while remaining 11.7 per cent higher over the first seven months of the year.

Furniture, other manufacturing and the repair and installation of machinery and equipment also performed strongly, climbing to 190.6 units. Turnover in the category rose 38.4 per cent in July and 4 per cent in the January-to-July period.

Textiles, wearing apparel and leather products reached 155.9 units, increasing 12.1 per cent in July and 4.3 per cent over the seven-month period.

Wood and wood products, excluding furniture, stood at 205 units, up 6.2 per cent in July and 18.2 per cent for the year to date. Other non-metallic mineral products reached 188.6 units, rising 3.9 per cent in July and 1.9 per cent over the first seven months.

Basic metals and fabricated metal products increased to 184.5 units, with turnover up 3.5 per cent in July and 7.6 per cent between January and July. Food products, beverages and tobacco products advanced more modestly to 152.6 units, up 1.4 per cent in July and 2.9 per cent year to date. Rubber and plastic products rose to 160.6 units, gaining 1.5 per cent in July and 2.2 per cent over the period.

Some Industrial Segments Remain Under Pressure

Not all manufacturing segments shared in the improvement. Machinery and equipment, motor vehicles and other transport equipment recorded the steepest decline, falling 13.2 per cent year on year in July to 159.5 units. The category was also 1.1 per cent lower over the January-to-July period.

Refined petroleum products, chemicals, chemical products and pharmaceutical products and preparations also weakened, declining 10.1 per cent in July to 133.3 units. The category was marginally lower, by 0.3 per cent, over the first seven months of the year.

Paper and paper products and printing fell to 113.3 units, down 4.2 per cent in July and 2.7 per cent year to date.

Utilities And Resource Sectors Also Advance

Beyond manufacturing, water supply and materials recovery posted the strongest annual increase among industrial subsectors, with the index rising to 174.6 units. Turnover in the segment climbed 16 per cent in July and 12.8 per cent over the first seven months of the year.

Materials recovery reached 162.2 units, rising 20.3 per cent in July and 24.1 per cent during the January-to-July period. Water collection, treatment and supply stood at 185.6 units, up 12.9 per cent in July and 5.9 per cent year to date.

Mining and quarrying also expanded, reaching 209.4 units, with turnover up 7.4 per cent in July and 4.5 per cent over the seven-month period. Electricity supply recorded a more moderate gain, with the index at 184.7 units, up 3.4 per cent in July and 1.7 per cent from January to July.

Domestic Demand Outpaces Exports

The split between domestic and foreign demand was stark. The local market index rose to 175.3 units in July, up 7.4 per cent from a year earlier and 4.7 per cent over the first seven months of 2026.

By contrast, the export market index fell 8.6 per cent in July to 134.8 units and was 0.5 per cent lower for the January-to-July period. The divergence suggests that Cyprus’ industrial momentum remains supported primarily by internal demand, while external markets continue to weigh on performance.

As the year progresses, the data point to a sector that is growing, but not evenly. Domestic strength is cushioning softer export conditions, leaving policymakers and businesses to monitor whether the gap narrows in the second half of the year.

Cyprus’ annual inflation rate remained unchanged at 5.2% in September 2026, according to Eurostat’s preliminary estimate, keeping the country well above the euro area average of 3.8%.

On a monthly basis, however, prices in Cyprus are expected to have declined by 0.4%, suggesting some short-term easing even as the broader annual trend remains elevated. The latest reading confirms that inflation has held at August’s level after a steady climb in previous months.

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A Steady Rise Over Recent Months

Based on the Harmonised Index of Consumer Prices, Cyprus recorded an annual inflation rate of 3% in April, followed by 3.5% in May, 4.1% in June and 4.4% in July, before reaching 5.2% in August. In September 2025, the corresponding rate had been flat, underscoring how sharply price growth has accelerated over the past year.

The gap with the euro area is now significant. At 3.8%, inflation in the eurozone is 1.4 percentage points below Cyprus, highlighting the island’s more persistent price pressures.

Energy Remains The Main Driver

Across the euro area, energy is expected to post the strongest annual increase among the main inflation components. Prices in this category are estimated to have risen by 18.8%, up from 14.3% in the previous month.

Services are also expected to show continued momentum, with annual price growth forecast at 3.2%, compared with 3% in August. Inflation in food, alcohol and tobacco is estimated to have accelerated to 1.4% from 1.1%.

Some Relief In Industrial Goods

By contrast, non-energy industrial goods are expected to see a slight slowdown, with annual inflation easing to 1.1% from 1.2% in August. While modest, the decline suggests that price pressures in some parts of the economy are beginning to cool.

The latest figures point to a mixed picture for policymakers: weaker monthly prices may offer a degree of relief, but the annual rate remains elevated in Cyprus and continues to outpace the wider euro area by a wide margin.

The First Wave Of AI On Wall Street Is About Hiring, Not Replacing

Before artificial intelligence begins displacing large numbers of Wall Street workers, it is creating a new class of jobs across the banking industry.

Posts for AI-related roles at major banks, including JPMorgan Chase, Citigroup and Capital One, climbed 49% this year to 139,819 listings, according to an analysis from enterprise hiring data firm Draup, provided exclusively to CNBC. The surge underscores a shift in how financial institutions are approaching AI: not merely as a back-office efficiency tool, but as a strategic capability being embedded across core business lines.

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Agent Skills Are Emerging As The New Hiring Frontier

The fastest-growing area is centered on AI agents, according to Draup, which aggregates data from public job postings and platforms such as LinkedIn. References to agent orchestration — the ability to design multiple agents that work together on a task — jumped 1,721% this year.

“This is arguably the hottest skill on Wall Street,” said Vijay Swaminathan, CEO of Draup, in an interview. “It’s a massive opportunity. They need people who understand data and people who understand AI and where to put it.”

The hiring data suggests banks are moving beyond chatbots and pilot projects into the next phase of AI deployment, one that could reshape productivity, operations and even headcount planning. To deliver on AI’s promise of automation, firms are increasingly building systems in which agents handle discrete parts of a workflow, from data inspection to document review to compliance checks.

From Engineers To Embedded Business Builders

Earlier AI hiring waves were dominated by engineers and data scientists building models or adapting them to proprietary data. The current phase is broader. Banks are now hiring people who can embed AI directly into business functions.

That often requires what the industry calls forward-deployed engineers — professionals who combine technical fluency with deep domain knowledge, whether in trading, operations or human resources.

“There is a lot of complexity in an enterprise,” Swaminathan said. “Sometimes these complexities are visible, but many times they are hidden. It takes a long time even to automate a simple process.”

He pointed to something as routine as automating employee vacation approvals. What appears simple on the surface can quickly become a network of exceptions, edge cases and policy-specific rules.

For that reason, agent orchestration has become especially valuable. The role requires deciding which agents are needed, what each should do, which tools to use and when human oversight must remain in the loop.

The Tech Stack Behind The Buildout

The skills in demand also point to the technical architecture supporting the AI push. Mentions of LangGraph, a framework for building multistep workflows, rose 679%, while references to LlamaIndex, which connects AI applications to data, increased 291%. Mentions of retrieval-augmented generation, or RAG, climbed 259%, according to Draup.

At the same time, banks are placing more emphasis on the human skills needed to deploy AI effectively.

“Our analysis shows that there is a renewed focus on soft skills like problem solving, creativity, ability to ask tough questions, being assertive [when it comes to] deeper understanding of the processes,” Swaminathan said.

Governance And Risk Are Becoming Core Priorities

As AI becomes more deeply embedded in financial institutions, governance has emerged as a major hiring theme. Demand for “responsible AI” roles surged 657% this year, while references to AI governance and risk management rose 394% and 359%, respectively, according to Draup.

Security teams are also focused on limiting systemic vulnerabilities, particularly those created by third-party tools or external model connections.

Governance-related skills now account for more than 16,000 references in the Draup data, nearly twice the roughly 8,400 tied to training, deploying and running models.

“There is a lot of focus on making sure that the third parties that we are using in these products are not going rogue from a cybersecurity standpoint,” Swaminathan said.

Higher Pay, Scarce Talent, And Internal Retraining

The rise in demand is also showing up in compensation. Roles tied to generative AI and agents typically pay more than other technology positions in finance, with generative AI managers earning a median base salary of about $190,000, according to Draup.

But higher pay has not solved the talent shortage. These are highly specialized roles, and banks continue to struggle to fill them.

As a result, major institutions are leaning heavily on internal reskilling programs to train existing developers and business experts, Swaminathan said.

The shift is likely to have broad workforce implications. JPMorgan Chase CEO Jamie Dimon has spoken of “huge redeployment plans” as AI assumes more work, reflecting a broader trend across finance: jobs are not simply disappearing, but being reconfigured.

“I think the more we prioritize those soft skills with the right amount of technical skills, people will adapt and learn,” Swaminathan said. “It’s a very exciting time for the right talent.”