The Cyprus property market has made an impressive start to 2025, with property sales contracts increasing by 21% year-on-year in January. According to the Department of Lands & Surveys, all districts showed growth, with Famagusta leading with a 40% rise, followed by Limassol at 36%. Larnaca saw a 20% increase, Nicosia registered a 13% rise, and Paphos experienced a 5% growth.

This surge in property sales reflects growing investor confidence, supported by economic stability, foreign investment, and local demand. Limassol continues to attract business buyers, while Famagusta’s coastal properties gain attention. Larnaca’s infrastructure developments are also driving sales, and Nicosia remains stable as the capital.

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However, MPs have raised concerns about rising property prices driven by foreign buyers, which could affect local buyers, particularly young couples. Foreign property ownership is typically permitted within the EU, but some countries impose restrictions. For example, Spain is considering higher property taxes for non-EU buyers in response to its housing crisis.

Market Segment Breakdown

• Domestic Market: Property sales to Cypriot buyers increased by 27%, accounting for 60% of total sales. Growth was significant in Limassol (+50%), Larnaca (+22%), and Nicosia (+18%).
  
• Overseas Market: Sales to foreign buyers rose by 12%. Famagusta (+74%) and Limassol (+16%) saw notable increases, while Nicosia experienced a 10% decline.
  
• EU Citizens: Sales to EU nationals surged by 44%, with Famagusta showing a remarkable 533% increase from just 3 transactions in January 2024 to 19 in January 2025.
  
• Non-EU Citizens: Sales to non-EU buyers grew modestly by 1%, though some districts saw declines, particularly Nicosia (-27%) and Paphos (-15%).
  

Foreign buyers continue to dominate Paphos, where nearly 75% of property transactions are made by non-Cypriots.

Spanish ministers have agreed to cut the legal working week to 37.5 hours, maintaining current salaries, despite opposition from employers’ associations. The decree, led by Labour Minister Yolanda Díaz, aims to improve productivity and well-being.

The proposal still requires parliamentary approval, where the Socialist-led government faces challenges due to a lack of majority. Díaz’s party, Sumar, made the reduction a condition for supporting Prime Minister Pedro Sánchez’s leadership.

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The CEOs’ association CEOE has voiced concerns, claiming the reduction would raise costs and reduce competitiveness. Díaz and the government had been in talks with unions and employers, but discussions broke down in November. CEOE insists the change should be negotiated at the company level, not imposed by law.

Resistance also comes from Economy Minister Carlos Cuerpo, who suggested delaying the change to allow businesses to adapt. While Spain’s strong economic performance and low unemployment provide a favorable context, the central bank has warned of potential inflationary impacts and reduced job creation.

The Cypriot betting sector has shown consistent growth across both land-based and online platforms, continuing its positive trajectory through Q3 2024. The National Betting Authority (NBA) reported a 13% increase in revenue year-on-year, reflecting a robust performance despite changing dynamics in the market.

Revenue Breakdown: Strong Gains In Both Sectors

For the third quarter of 2024, total betting revenue reached €292 million, with €214.6 million generated by online operators (Class B), and €77.3 million coming from land-based operators (Class A). Online betting continues to dominate, with Class B showing a 14% growth compared to Q3 2023, and a notable 24% increase since Q3 2022.

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• Class A Operators: €77.3 million (+9% YoY)
• Class B Operators: €214.6 million (+14% YoY)

Player Winnings: A Significant Increase

Player winnings across both categories rose to €255 million, a 10% increase compared to the same period last year. Notably, the majority of this total (€191.3 million) came from online players, showing continued dominance in digital betting.

• Total Player Winnings: €255.2 million (+10% YoY)
• Class A Winnings: €63.8 million
• Class B Winnings: €191.3 million

Betting Earnings: Online Surge

Betting earnings showed an impressive increase across both land-based and online operators, with a combined total of €36.8 million. The most significant growth was observed in online betting (Class B), which saw a 48% rise year-on-year, compared to the 16% growth of land-based operators (Class A).

• Total Betting Earnings: €36.8 million (+34% YoY)
• Class A Earnings: €13.5 million (+16% YoY)
• Class B Earnings: €23.3 million (+48% YoY)

Trends In Licensed Establishments And Employment

While the number of licensed land-based establishments fell slightly by 3% to 475, the sector remains widespread across Cyprus. The employee count in licensed establishments grew by 3%, reaching 1,518 individuals.

• Licensed Locations: 475 (-3% YoY)
• Employees in Betting Establishments: 1,518 (+3% YoY)

Illegal Betting And Regulatory Actions

The NBA’s commitment to fighting illegal betting continued in Q3 2024, with a 1% increase in the number of blocked illegal websites, bringing the total to over 20,700 sites. This effort reflects growing concerns over the regulation of online gambling in the region.

• New Illegal Betting Sites Blocked: 259 sites (+1% from Q2 2024)
• Total Blocked Sites: 20,733

The betting industry in Cyprus is experiencing sustained growth, driven primarily by online operators. The consistent increase in both revenue and player activity, along with the growing efforts to combat illegal betting, indicates that Cyprus is likely to maintain its upward momentum in the coming quarters.

In 2024, the U.S. trade deficit skyrocketed, driven by a surge in imports, while export growth remained sluggish amidst a strong dollar and shifting global dynamics.

Unprecedented Deficit Numbers

The U.S. trade deficit soared to a historic $1.2 trillion in 2024, marking a dramatic increase compared to previous years. American consumers, emboldened by a robust economy, ramped up purchases of foreign goods, while exports saw more modest growth.

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Imports of goods and services jumped by 6.6% to an all-time high of $4.1 trillion. Consumers were particularly drawn to auto parts, weight-loss medications, computers, and various food products from overseas. On the flip side, despite setting a new record at $3.2 trillion, U.S. exports faced headwinds due to a strong dollar, making American goods more expensive for foreign buyers. The decline in exports of industrial supplies, such as cars, machinery, and raw materials, was particularly notable.

The Strong Dollar’s Role

The strong dollar has played a pivotal role in the trade imbalance. While it made imports cheaper for U.S. consumers, it raised prices for foreign buyers purchasing American products. As a result, U.S. car exports, especially in the face of fierce competition from China’s rapidly advancing electric vehicle market, were hit hard.

The Shifting Auto Industry

Chinese automakers, particularly in the EV space, have made impressive gains both in China and globally. According to Mark Zandi, chief economist at Moody’s Analytics, this shift is increasingly pressuring U.S. automakers, such as General Motors, which are struggling to maintain their market share in China. As a result, U.S. car exports plummeted by $10.8 billion in 2024.

Regional Trade Imbalances

The U.S. continued to see the largest trade deficit with China, reaching $295.4 billion. Meanwhile, the U.S. also faced significant trade imbalances with the European Union, Mexico, and Vietnam. However, Mexico surpassed China for the second consecutive year as the largest source of U.S. imports, with a record $505.9 billion in goods crossing the border.

Oil Exports and Shifting Patterns

On a more positive note, oil exports surged, contributing to a petroleum surplus of $44.9 billion. This helped partially offset the broader deficit, but the overall picture remains skewed by continued reliance on foreign goods.

In the coming months, the trade landscape is likely to shift further, especially as President Trump continues to push for tariffs aimed at curbing trade imbalances. His administration has already signed executive orders targeting imports from China, Canada, and Mexico, which could disrupt global trade flows even more.

The Research and Innovation Foundation (RIF) has announced its main funding calls for 2025, with a total budget exceeding €45.3 million. The funding aims to strengthen Cyprus’ research and innovation ecosystem through targeted programs supporting business innovation, knowledge transfer, and international collaboration.

For the first time, RIF will provide funding for establishing production lines for innovative products and developing AI-driven solutions to address public sector challenges. Additionally, the Fast-Track Innovation program will accelerate the commercialization of new products and services.

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Funding Priorities

The 2025 funding programs align with RIF’s five strategic pillars:

• Research
• Knowledge Transfer and Collaboration
• Innovation
• Internationalization
• Infrastructure and Capabilities

Planned Calls by Quarter

Q1 2025

• Innovate
• Seed
• Innovation Support Structures
• New Product Development – Capacity Building
• STEP – Setting up facilities and production lines for manufacturing innovative products/services
• Fast-Track Innovation
• European Partnership – EUROSTARS
• Vision ERC
• Horizon Europe – 2nd Opportunity – MSCA
• AI in the Public Sector
• R&I Internships
• Events Sponsorships

Q2 2025

• Research in Enterprises (ENTERPRISES)
• Proof of Concept
• Excellence Hubs (EXCELLENCE)
• Post-Doc Fellowships
• Cybersecurity Capability Enhancement

Q4 2025

• BRIDGE2HORIZON

Further details on funding eligibility, proposal submissions, and deadlines are available on the RIF website.

In 2024, the UAE’s foreign trade reached a historic $820 billion (AED 3 trillion), marking a significant achievement for the nation. This milestone was driven by a rise in international trade agreements, with Dubai’s ruler, Sheikh Mohammed bin Rashid Al Maktoum, highlighting the pivotal role these partnerships played in the country’s economic growth.

Strong Trade Growth

The UAE’s foreign trade saw a robust 14.6% year-on-year growth in 2024, a stark contrast to global trade growth of just 2%. Sheikh Mohammed credited the nation’s ongoing efforts to strengthen economic ties globally, with a particular emphasis on the role of UAE President Sheikh Mohammed bin Zayed Al Nahyan, who has worked tirelessly to cultivate stronger international relationships.

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The Impact Of CEPAs

A key contributor to the UAE’s foreign trade success is the implementation of Comprehensive Economic Partnership Agreements (CEPAs). These agreements, spearheaded by Sheikh Mohammed bin Zayed, added an impressive $36.8 billion (AED 135 billion) to the UAE’s non-oil trade in 2024, marking a 42% increase from the previous year. These agreements are helping to cement the UAE’s position as a global trade hub.

Achieving Ambitious Goals Early

In 2021, the UAE set an ambitious target of reaching $1.1 trillion (AED 4 trillion) in foreign trade by 2031. By the end of 2024, the country had already achieved 75% of this goal, putting it on track to surpass this target well ahead of schedule. This rapid progress reflects the UAE’s strong economic vision and strategic focus on progress over politics.

Exports Surge

The UAE’s exports also saw a significant jump in 2024, rising 32% between January and October compared to the same period in 2023. This performance highlights the strength of the country’s industrial strategy and its growing global market access.

Outlook for 2025

The UAE’s economic outlook remains strong, with the International Monetary Fund (IMF) forecasting 4% growth in 2025, driven by non-oil sectors such as tourism, construction, and financial services.

In conclusion, the UAE’s record-breaking trade figures are a testament to its effective economic strategies and its growing influence in global markets.

The much-anticipated merger between Honda and Nissan, once seen as a potential game-changer for the automotive industry, now faces serious challenges. What seemed like a promising partnership in December 2024 has quickly turned into a high-stakes negotiation, with tensions rising as both companies struggle to align their visions for the future.

Key Essentials:

• Proposal Rejected: Honda proposed making Nissan a subsidiary as part of a restructuring strategy, but Nissan strongly opposed this idea, fearing a loss of control.
• Talks Stalled: After weeks of back-and-forth, the talks have stalled, with both parties finding it difficult to meet the expectations of their shareholders.
• Honda’s Frustration: Honda, frustrated with the slow pace, has warned that if no agreement is reached soon, the talks may collapse.
• Mitsubishi’s Uncertain Role: Mitsubishi Motors, Nissan’s largest shareholder, has decided to hold off on joining the discussions until Honda and Nissan find a resolution.

Tension Over Control

In late 2024, Honda and Nissan initiated discussions on a potential merger to strengthen their positions in the automotive market. Honda saw the merger as an opportunity to reshape Nissan, proposing that the company become a subsidiary to facilitate rapid restructuring. However, Nissan, wary of losing control, rejected this suggestion, leading to a growing divide between the two companies.

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As of February 4, a Nissan executive noted that the likelihood of reaching an agreement was slim: “It is almost impossible to meet the conditions acceptable to both sides’ shareholders. It no longer seems possible to merge.” Honda, frustrated by Nissan’s hesitance, has warned that if its proposal is rejected, the talks will come to an end.

Struggling With Restructuring

Nissan has been in a state of flux for several years, and its performance has continued to deteriorate. In November 2024, the company announced job cuts and a significant reduction in global production. Honda, however, sees these moves as insufficient and has pushed for a more aggressive restructuring. But Nissan’s reluctance to accept Honda’s terms has made the talks increasingly tense.

Is The Merger Still Possible?

With both companies at a crossroads, the possibility of a successful merger appears uncertain. Honda’s push for control clashes with Nissan’s desire for independence, and both companies seem to be at an impasse. As the deadline for talks approaches, the automotive world is watching closely to see if they can overcome their differences—or if the merger will ultimately fall apart.

Shares of Alphabet, Google’s parent company, plunged in after-hours trading on Tuesday after the tech giant’s Q4 earnings report revealed weaker-than-expected cloud revenue and a significantly higher spending outlook for 2025.

Key Figures

• Alphabet’s stock fell 7% to $193 by 4:35 p.m. EST, wiping out nearly $180 billion in market value.
• The company beat EPS estimates with $2.15 per share, slightly above Wall Street’s $2.12 forecast.
• However, revenue came in at $96.5 billion, narrowly missing expectations of $96.7 billion.
• Google Cloud, a major AI-driven growth area, generated $11.96 billion in revenue—below the projected $12.19 billion.
• Alphabet forecasted $75 billion in capital expenditures for 2025, far exceeding analysts’ $58.8 billion estimate.
• Earlier in the day, Alphabet’s stock hit a record high of $207.71 before tumbling post-earnings.

Advertising Remains A Powerhouse

Alphabet’s core ad business continues to thrive, bringing in $72.46 billion in Q4—easily surpassing forecasts of $71.66 billion and shattering Q3 2024’s $65.85 billion record.

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The Bigger Picture

Despite its dominance in digital advertising—where 75% of its revenue originates—Alphabet is pushing hard into AI with its Gemini chatbot. However, like Meta, it’s committing to aggressive spending in 2025, a move that investors are scrutinizing amid uncertain returns.

With cloud growth slowing and capital expenditures rising, Alphabet’s ability to balance AI ambitions with profitability will be key to its stock’s performance in the months ahead.

Global gold demand soared to an all-time high in 2024, driven by aggressive central bank purchases and a surge in investment interest, according to the World Gold Council’s annual report.

Key Figures

• Nearly 5,000 tonnes of gold were traded last year, surpassing the 4,899 tonnes recorded in 2023, including over-the-counter (OTC) investments.
• Central banks continued their buying spree, surpassing 1,000 tonnes of purchases for the third consecutive year.
• The National Bank of Poland emerged as the top buyer, adding 90 tonnes to its reserves, followed by Turkey (75 tonnes) and India, which made steady purchases throughout the year.

What’s Next?

Gold prices shattered 40 all-time highs last year and continue to rise in 2025. Futures on the New York Mercantile Exchange (NYMEX) climbed to $2,875.8 per ounce this week, according to FactSet.

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With rate cuts expected, the opportunity cost of holding gold is likely to decrease, keeping investment demand stable.

Investment Surge

• Total gold investment jumped 25% to a four-year high of 1,180 tonnes, primarily fueled by ETFs.
• Demand for gold bars and coins remained steady, with robust purchases in China and India.
• India’s gold demand spiked following a government reduction in import duties from 15% to 6% in July.
• Across ASEAN nations, including Singapore, Indonesia, Malaysia, and Thailand, investment demand saw double-digit growth.
• Wealthy investors continued to hedge risks through OTC gold investments, which operate outside traditional exchanges.

Jewelry Market Struggles

Despite the bullish investment climate, gold jewelry demand fell 11% year-on-year, making it the only segment to decline. High gold prices and sluggish economic growth are expected to keep demand weak in 2025, according to analysts.

While central banks and investors drive record-breaking gold purchases, consumer markets remain under pressure, setting the stage for another year of market shifts in 2025.

The Kuwaiti Ambassador to Cyprus, Abdullah Musaed Al-Khorafi, has underscored the vital need to deepen dialogue between Kuwait, Cyprus, and the Gulf Cooperation Council (GCC) nations, as well as the broader Arab world. He made these remarks during a luncheon held at his Nicosia residence on February 4, which brought together key diplomatic figures.

The event was hosted in honor of Annita Demetriou, President of the House of Representatives of Cyprus, and was part of a series of high-level diplomatic gatherings organized by the Kuwaiti Embassy in Cyprus. Among the attendees were the ambassadors and heads of Arab diplomatic missions in Cyprus, as well as representatives from the U.S. and Swiss embassies.

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Ambassador Al-Khorafi took the opportunity to lead an expanded discussion on pressing regional and international developments, focusing particularly on the Middle East. Topics included the ongoing crises in Syria, Lebanon, and Palestine, with a strong emphasis on how these events affect regional stability.

The luncheon also served as a platform for talks on enhancing cooperation between Cyprus and GCC countries, as well as broader Arab nations. The discussions highlighted opportunities to strengthen ties in key sectors such as education, culture, trade, investment, and tourism. The aim is to build closer connections between people and foster mutual benefits.

In his opening speech, Ambassador Al-Khorafi stressed the importance of promoting dialogue at both governmental and societal levels, not only between Kuwait and Cyprus, but across the entire GCC and Arab world. He expressed his gratitude for the presence of President Demetriou, noting that her participation symbolized Cyprus’ commitment to advancing relations with Kuwait and its regional partners.

President Demetriou, in turn, thanked the ambassador for his hospitality, reflecting on the fruitful discussions and shared goals for enhancing Cyprus’ relations with Kuwait and the wider Arab world. She reaffirmed the importance of cooperation and strategic partnerships between Cyprus and the GCC countries, especially in areas of mutual interest and concern.

This meeting, according to Demetriou, was a testament to the strong diplomatic relations between Cyprus and Kuwait, as well as the ongoing efforts to broaden and deepen ties with the Arab world.