Cypriot businesses have proven to be more resilient and globally integrated than many of their European counterparts, according to the latest findings from the European Investment Bank (EIB) Group Investment Survey. The report, which surveyed approximately 13,000 companies across the EU and the United States, highlights the strength and adaptability of Cypriot firms in the face of recent challenges.

Notably, Cyprus has experienced an 18% increase in investment since the pre-pandemic period, a growth that surpasses many other EU countries. This surge is partly attributed to the financial support provided by the EU’s Recovery and Resilience Facility (RRF). Moreover, Cypriot businesses report higher satisfaction with their investment levels compared to the broader EU landscape.

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The survey also reveals that Cypriot companies are leading the way in terms of global trade integration. A remarkable 81% of businesses in Cyprus are engaged in global markets, far exceeding the EU average of 63%. This strong international presence puts Cyprus in a prime position for future growth and competitiveness.

In terms of diversity, Cyprus is also ahead of the curve, with 44% of senior management roles held by women. This compares favorably to the EU’s average of just 23%.

However, despite these successes, Cypriot businesses face challenges. The survey identifies a shortage of skilled labor and limited access to financing as key obstacles, more pressing in Cyprus than across the EU as a whole.

Kyriacos Kakouris, EIB Vice-President, commented, “The EIB Investment Survey underscores the remarkable resilience and global outlook of Cypriot businesses. With investment levels above pre-pandemic figures and strong integration into global trade, Cyprus is well-positioned for sustainable growth. I am optimistic that these ongoing investments in innovation and modernization will propel the country’s long-term prosperity.”

The detailed report on Cyprus, along with insights from other EU nations, was released on 12 February 2025. The results will also inform the EIB’s annual Investment Report, which is due for release on 5 March 2025 at the EIB Group Forum in Luxembourg. This event will bring together industry leaders to discuss key topics such as decarbonization, AI, and the capital markets union under the theme “Investing in a More Sustainable and Secure Europe.”

Cyprus experienced notable economic growth in 2024, driven by increases in construction, manufacturing, tourism, and vehicle registrations. However, trade performance weakened, with both imports and exports declining. The latest data from CySTAT provides a comprehensive overview of these trends.

Key Figures

• Construction Growth: Building permits reached 1.72 million square meters (January–August 2024), an 18% increase compared to the same period in 2023.
• Manufacturing Expansion: Industrial production rose 1.8% from January to November 2024, reflecting steady growth in the sector.
• Increase in Vehicle Registrations: Total vehicle registrations grew 9.1%, reaching 49,616; Private saloon car registrations increased 11.2%, while light goods vehicle sales surged 36.1%.
• Consumer Price Index: Inflation remained moderate, with the CPI rising 1.8% for the year.
• Tourism Growth: Tourist arrivals reached 4,040,200, marking a 5.1% increase compared to 2023.
• Decline in Trade Performance: Imports fell 7%, totaling €12.26 billion; Exports declined 12.5%, amounting to €4.12 billion.

The data highlights strong domestic economic activity but also signals potential challenges in external trade.

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The Central Bank of Cyprus (CBC) has released data for December 2024, revealing a rise in mortgage and corporate loan interest rates, while household deposit rates also climbed. In contrast, the eurozone saw a downward trend, highlighting a growing divergence in financial conditions.

Key Takeaways

• Mortgage rates up: Average housing loan rates in Cyprus hit 4.75%, rising from 4.50% in November, while eurozone rates dropped to 4.15%.
• Corporate loans mixed: Smaller business loans slightly increased to 5.14%, while large corporate loans over €1 million declined to 4.70%.
• Deposits yield more: Household deposit rates climbed to 1.78%, but corporate deposit rates fell to 1.74%.

Mortgage Rates: Cyprus Outpaces Eurozone

New housing loans in Cyprus became more expensive, averaging 4.75% in December, well above the eurozone’s 4.15%. Societe Generale offered the highest rate at 6.60%, while the lowest came from Housing Finance Corporation at 3.32%. Other key players included the Bank of Cyprus (5.35%), Astrobank (4.30%), and Hellenic Bank (4.27%).

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Corporate Loans: Small Business Borrowing Costs Rise

For new business loans under €1 million, interest rates increased slightly to 5.14%. The highest rate was 7.28% (Banque SBA), while the lowest was 4.66% (Hellenic Bank). Notably, Ancoria raised its rate by 0.83%, while most banks saw minor reductions.

For larger corporate loans exceeding €1 million, the average rate dropped significantly from 5.63% to 4.70%. Societe Generale charged the highest rate (6.07%), while Eurobank offered the lowest at 4.12%.

Deposits: A Mixed Picture

Household deposit rates rose to 1.78%, with Arab Jordan Investment Bank leading at 3%. However, corporate deposit rates declined to 1.74%, with the National Bank of Greece offering the highest at 2.38% and the Housing Finance Corporation the lowest at 0.52%.

What’s Next?

The rise in Cyprus’ interest rates signals tighter financial conditions compared to the eurozone, potentially impacting homebuyers and businesses seeking credit. Meanwhile, higher household deposit rates could offer better returns for savers. As 2025 unfolds, all eyes will be on the CBC’s next moves and how they align with broader European trends.

e&’s subsidiary, e& PPF Telecom Group BV, has finalized an agreement to acquire Serbian broadband and pay-TV provider SBB from United Group for $854.6 million (€825 million). This move strengthens e&’s presence in Central Eastern Europe, aligning with the company’s strategy to diversify revenue streams and accelerate growth.

The acquisition will see SBB merge with e&’s Serbian mobile subsidiary, Yettel, to create a leading converged operator. This merger will enhance mobile, fixed broadband, and pay-TV services, benefiting from the region’s high growth potential. The deal is expected to generate synergies and offer a comprehensive range of services, boosting competitiveness in the market.

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The acquisition is being financed through debt raised by e& PPF Telecom, with SBB’s financials integrated into e& PPF Telecom. While the deal will not significantly impact e&’s overall financials, it is expected to strengthen its market position in Serbia.

SBB is a major player in Serbia’s broadband and cable TV sector, with over 700,000 active customers. In 2023, it generated $252.8 million in revenue and had an impressive 50% EBITDAaL margin. This acquisition is expected to add 12% to revenue and 15% to EBITDAaL annually for e& PPF Telecom.

e&’s broader European expansion strategy includes its October acquisition of a controlling stake in PPF Telecom Group, which operates across Bulgaria, Hungary, Serbia, and Slovakia. e& PPF Telecom now serves over 10 million customers in these markets.Forbes has ranked e& 13th on its list of Top 100 Listed Companies in 2024, and CEO Hatem Dowidar is 9th on Forbes Middle East’s Top CEOs list.

Major stock markets in the Gulf showed caution in early trading on Wednesday, as investors remained uncertain about the future of U.S. import tariffs and the Federal Reserve’s approach to rate cuts. U.S. President Donald Trump’s trade advisers were finalizing plans to impose reciprocal tariffs on countries that impose duties on U.S. imports, increasing fears of a global trade war.

In Saudi Arabia, the benchmark index (.TASI) dropped 0.3%, largely due to a 1.6% decline in petrochemical producer Saudi Basic Industries Corp. (SABIC). Saudi Aramco also saw a 0.3% loss. Oil prices, a key driver for Gulf markets, edged lower as U.S. crude stockpiles increased and tariff concerns dampened sentiment, although stronger refining margins helped to limit losses.

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In Dubai, the main share index (.DFMGI) decreased by 0.5%, impacted by a 3.8% fall in Dubai Islamic Bank (DISB.DU), despite the bank reporting an increase in annual profit. However, in Abu Dhabi, the index (.FTFADGI) edged up by 0.1%, buoyed by a 0.5% increase in Aldar Properties (ALDAR.AD), which reported a 37% year-on-year rise in fourth-quarter profit.

Qatar’s market (.QSI) declined by 0.3%, with telecom firm Ooredoo (ORDS.QA) falling by 1.9%. Investor attention is now focused on the upcoming U.S. Consumer Price Index (CPI) report, due at 1330 GMT.

Investor expectations for Fed rate cuts this year have been scaled back, with many now anticipating the central bank will hold rates steady in March and May. Federal Reserve Chair Jerome Powell stated on Tuesday that the economy is in a strong position, and while the Fed isn’t in a hurry to cut rates, it remains ready to do so if inflation drops or the job market weakens.

Europe is stepping up its AI development efforts with a new €50 billion investment, bringing the total European commitment to €200 billion. This initiative aims to help Europe close the gap in the global tech race, currently dominated by the US and China. The new funding builds on the existing €150 billion pledged by the “European AI Champions” initiative, which unites over 70 companies with a combined market capitalization of over $3 trillion. The goal is to position Europe as a global leader in AI, with a focus on creating secure and reliable AI technologies.

Key Facts

• The European Commission will invest an additional €50 billion in AI development, as announced by EC President Ursula von der Leyen during the Artificial Intelligence Action Summit.
• This is in addition to the €150 billion already committed by the “European AI Champions” initiative, which brings together top businesses and investors to develop AI solutions.
• According to von der Leyen, the effort represents the “largest private-public partnership in the world” aimed at advancing AI technologies and creating gigafactories for large language models in Europe.
• The focus of the EU’s investment will be on industrial technologies and critical infrastructure to support AI development.
• The EU aims to ensure that European companies have the resources needed to achieve success on a global scale, similar to CERN’s success in particle physics.

Important Quote

“We want Europe to become one of the leading continents in the development of AI, and that means accepting that it is an integral part of our entire lives. Very often, Europe is last in the race, and the US and China are far ahead of us. But the battle is just beginning, and the final line is moving ever further. Europe can win by implementing AI in key industries,” said Ursula von der Leyen.

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This move is a major boost to AI infrastructure in Europe. At the same summit, French President Emmanuel Macron announced that French businesses would invest €109 billion in AI development over the coming years, a plan similar to the Stargate project launched by President Donald Trump in the US. The French funding will involve partnerships with the United Arab Emirates, US, and Canadian investment funds, as well as French companies like Iliad, Orange, and the aerospace and defense group Thales.

Key Story

This announcement comes as part of Europe’s broader strategy to enhance its competitiveness in the tech sector, which is currently dominated by the US and China. Earlier this month, the European Commission introduced its Competitiveness Compass, a roadmap designed to transform Europe into a hub for new technologies, services, and clean products. The Commission will roll out initiatives for “AI Gigafactories” and “AI Deployment” to accelerate AI innovation and industrial use in key sectors. It will also present action plans for advanced materials, quantum technologies, biotechnology, robotics, and space

Tesla’s significant losses in early 2025 have led to a sharp decline in the net worth of Elon Musk, the world’s wealthiest individual. Tesla’s stock price dip has reignited questions surrounding Musk’s political activities and their potential impact on his company.

Key Facts 

On Tuesday, Tesla shares dropped by 6.3%, closing at $328.50, the lowest point since November 15. The fall was attributed to advancements in autonomous driving technology by Chinese rival BYD and a cautious outlook from Oppenheimer analysts, who noted that Musk’s political activism could trigger a consumer backlash. Analysts cited “worrying” January sales in China and Europe as contributing to the decline. A similar sentiment from Stifel analysts added further pressure, warning that “negative consumer sentiment toward Elon Musk” could harm Tesla’s prospects.

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In February alone, Tesla shares have fallen by 18.8%, losing nearly 32% from their December 17 peak of $479.86. The sharp decline has taken a toll on Musk’s wealth, with Forbes reporting a $42.8 billion drop in his net worth, now standing at $378.8 billion — down from $421.6 billion at the end of January. Despite this loss, Musk remains the richest person in the world, holding a $130 billion lead over Meta’s CEO, Mark Zuckerberg.

Big Number

$12.5 billion – The value of Musk’s fortune plummeted by on Tuesday as a result of Tesla’s stock slide.

The Bigger Picture

Musk’s stake in Tesla, which is valued at over $150 billion, remains the cornerstone of his fortune. Other key assets, including his holdings in SpaceX, X (formerly Twitter), and xAI, contribute to the rest of his wealth. While Tesla shares are still up 30% since Election Day, the momentum has waned, particularly after the company’s Q4 revenue missed Wall Street’s expectations. Additionally, car sales in Europe and China have been disappointing, further weighing on investor sentiment.

Musk’s political involvement has also raised eyebrows. Ahead of the 2024 election, he donated nearly $290 million to Trump and associated causes, becoming an influential figure in Trump’s second-term efforts. Notably, he is also heading the DOGE agency, which aims to downsize the federal government.

During Tesla’s struggles and his ongoing political engagement, Musk’s wealth has experienced a significant setback, with questions mounting about how his public persona will affect his companies in the future.

The European Commission has given its stamp of approval for Cyprus’ request to receive a €76.9 million payment under the NextGenerationEU program — the EU’s flagship initiative designed to drive recovery towards a more sustainable, digital, and competitive future.

This funding, part of Cyprus’ Recovery and Resilience Plan (RRP), comes after Cyprus completed nine reforms and seven investment projects. These milestones pave the way for improvements that will directly benefit Cypriot citizens and businesses, including advancements in digitalization, healthcare, environmental sustainability, energy, research, and connectivity.

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Key initiatives include the creation of a streamlined government process to foster strategic investments, helping reduce administrative burdens and driving economic growth. Another flagship project involves the Cyprus Transmission System Operator, which has introduced a Market Management System to make the electricity market more competitive, promising lower prices and better service for consumers.

This payment is the third installment under the Recovery and Resilience Facility (RRF), the financial backbone of NextGenerationEU, which aims to strengthen EU economies post-pandemic. Cyprus’ recovery strategy focuses on preparing the nation for a greener, digital future, with a focus on sustainable investments in critical sectors.

The European Commission has forwarded its preliminary assessment to the Economic and Financial Committee (EFC) for review. If the EFC provides a positive opinion, a formal payment decision will be made, releasing a further €378.1 million to Cyprus.

Since Cyprus began its RRF journey, a total of €1.2 billion has been allocated to support its recovery and transition plans. This new payment will bring the total disbursed funds to €454 million, marking over 24% of the plan’s approved goals being fulfilled.

Cyprus has made significant progress in the 2024 Corruption Perceptions Index, climbing three places to 46th out of 180 countries. The country’s score rose from 53 in 2023 to 56, marking the second consecutive year of improvement and reflecting the impact of anti-corruption measures.

The Corruption Perceptions Index, published by Transparency International, evaluates countries based on perceived public sector corruption, as assessed by experts and business leaders. Cyprus’ steady progress brings it closer to ranking among the world’s most transparent jurisdictions.

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President Nikos Christodoulides expressed optimism about Cyprus’s potential to become a leader in anti-corruption efforts. However, experts warn that maintaining progress will require persistent reforms and a commitment to accountability.

Cyprus is set to introduce its long-anticipated green tax system in May 2025, as the government moves into the final stages of preparation, Finance Minister Makis Keravnos confirmed on Tuesday.

Speaking at the Association of Cyprus Tourist Enterprises (ACTE) General Assembly, Keravnos reiterated that the implementation stems from prior commitments, making the reform unavoidable. While the framework is largely in place, the final adjustments to compensatory measures are still being fine-tuned. The government plans to unveil both the tax scheme and its accompanying relief measures simultaneously.

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The upcoming fiscal overhaul will be formally presented on February 26, outlining key elements of Cyprus’ green transition strategy. Once announced, the reforms will move into their implementation phase, marking a significant step toward aligning the country’s economic policies with environmental sustainability goals.