The energy exploration licenses for blocks 2, 3, and 9 within Cyprus’ Exclusive Economic Zone (EEZ) have officially expired and will not be renewed, following disappointing results from recent surveys, confirmed George Papanastasiou, Minister of Energy, Trade, and Industry.

This move signals the exit of South Korea’s state-owned Kogas, which held a 20% stake in these blocks. Following the expiry of the licenses, Italy’s Eni—leading the exploration consortium—retains rights to four blocks (6, 7, 8, and 11) in the Cypriot EEZ, in partnership with France’s Total. This is a reduction from the seven blocks they previously held.

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Addressing questions regarding a report by the energy website MEES, which suggested the return of rights to these blocks by the end of January, Papanastasiou confirmed the licenses had expired. The exploration, he noted, revealed no promising natural gas prospects, prompting the decision not to renew.

The Minister called the expiry of the licenses a “natural development,” emphasizing that not every block within Cyprus’ EEZ is expected to contain viable resources.

The exploration rights for blocks 2, 3, and 9 were initially awarded in January 2013 to a consortium including Eni Cyprus and Kogas Cyprus. Total later joined the group. Despite extensive seismic surveys and deep exploratory drilling—reaching depths of 5,800 meters at Amathusa-1 and 5,485 meters at Onasagoras-1—no commercially viable gas was discovered. In Block 3, exploration was disrupted by interference from the Turkish Navy in 2018.

European AI startups have attracted a staggering $8 billion in venture capital funding in 2024, according to the newly released French AI Report. The findings come just days ahead of the Artificial Intelligence Action Summit, set to take place in France.

Key Insights

The report, compiled by Galion.exe, Revaia, and Chausson Partners, highlights a surge in AI investment across Europe. AI startups now account for roughly 20% of all venture capital funding in the region this year—a clear sign of rapid growth in the sector.

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In total, these startups have secured around $8 billion in funding, with 7% of that coming from Series B rounds. Notably, U.S. venture capital is playing a crucial role, contributing one-fifth of early-stage investment and a staggering 50% of later-stage funding.

Investor Sentiment

“American investors are making significant inroads into European AI companies, particularly in the later stages of funding,” the report states, underscoring the growing cross-Atlantic interest in Europe’s tech ecosystem.

The Bigger Picture

However, this influx of U.S. capital also raises concerns. As trade tensions between Europe and the U.S. persist, the heavy reliance on American funding could become a vulnerability. Potential tariff hikes on U.S. imports and Europe’s impending AI regulations—designed to rein in Big Tech—may provoke a response from Washington. With dominant players like Google, Amazon, and Meta headquartered in the U.S., stricter European policies could escalate economic friction.

What’s Next?

Europe is actively working to strengthen its foothold in emerging technologies. The European Commission has unveiled its Competitiveness Compass, a strategic roadmap designed to transform Europe into a global leader in AI, advanced materials, quantum computing, biotechnology, robotics, and space technology.

Key initiatives include the development of “AI Gigafactories” and large-scale “AI Deployment” projects to accelerate industrial adoption. Additionally, a dedicated EU strategy for startups and scale-ups aims to remove barriers that hinder growth, ensuring Europe remains a major player in the AI revolution.

Inflation in Cyprus has remained stubbornly at 3% for the second month in a row, showing little sign of easing—even as government policies, including a zero VAT rate on select goods until the end of 2025, aim to curb rising costs.

The latest data from Eurostat, released on Monday, caught many by surprise. The harmonized inflation rate for January stood at 3% year-on-year, a notable jump from 2.1% in January 2024 but still a far cry from the staggering 6.8% recorded in January 2023.

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Across the Eurozone, inflation edged up slightly, reaching 2.5% in January from 2.4% in December. Cyprus is among eight countries where inflation remains between 3% and 5%, alongside Croatia (5%), Belgium (4.4%), Slovakia (4.1%), Austria (3.5%), Lithuania (3.4%), Greece (3.1%), and Latvia (3%).

Several other European nations also reported inflation above the 2% mark, including Slovenia (2.3%), Luxembourg (2.4%), Portugal (2.7%), Germany and Estonia (2.8%), and Spain and the Netherlands (2.9%). Meanwhile, the lowest inflation rates were observed in Ireland (1.5%), Finland (1.6%), Italy and Malta (1.7%), and France (1.8%).

Breaking down the inflationary pressures, energy prices in the Eurozone climbed 1.8% compared to a modest 0.1% rise in December. Food inflation, however, showed a slight cooldown, with the food, alcohol, and tobacco index rising 2.3%, down from 2.6% previously. Meanwhile, service sector inflation eased marginally to 3.9% from 4%.

Despite government intervention, inflation in Cyprus appears to be holding firm, raising concerns over the effectiveness of current measures in bringing prices under control.

Cyprus experienced a significant surge in new lending, with total loans issued to businesses and households reaching a record €3.9 billion in 2024, marking an 18% increase from the previous year, according to the Central Bank of Cyprus (CBC).

This figure represents the highest level of new lending since the CBC began recording data in 2014. The rise was predominantly driven by a surge in business loans, which saw the largest annual growth since 2017, while household borrowing also recorded its biggest jump in three years.

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Business lending was the main contributor, with new loans to businesses climbing by 27%, reaching €2.44 billion in 2024 compared to €1.92 billion in 2023. This was the highest increase in business lending since 2017 when growth hit 43.6%.

Meanwhile, new household loans rose at a slower pace, up by 5.2%, totaling €1.42 billion, compared to €1.35 billion the year before.

In a contrasting trend, loan restructurings dropped sharply in 2024. The total value of restructured loans fell by 30.6% to €2.46 billion, down from €3.55 billion in 2023. Household loan restructurings saw a steeper drop of 36%, falling from €826.5 million to €529.6 million, while restructured business loans decreased by 29%, from €2.73 billion to €1.93 billion.

A significant portion of the new lending was concentrated in December 2024, when net new loans to businesses and households soared to €598 million, an 86.6% increase from December 2023. Business lending accounted for the lion’s share of this surge, with new loans reaching €401.9 million, compared to €150.2 million in the same month the previous year.

The shift in lending patterns reflects broader changes in the economic landscape. While 2023 saw slower business lending and declining household borrowing due to rising interest rates, the second half of 2024 witnessed a drop in rates following European Central Bank monetary policy decisions, encouraging increased lending.

However, concerns have been raised over the growing reliance on consumer loans. The Fiscal Council has warned that rising household borrowing, coupled with a decline in mortgage demand, indicates increasing financial pressure on households. Additionally, the CBC data reveals a growing preference among banks for financing larger businesses, with smaller loans seeing fewer restructurings, which could indicate financial strain for small and medium-sized enterprises (SMEs).

The Fiscal Council’s 2024 report suggests that the rising imbalance in lending patterns between large firms and SMEs may require targeted policy measures to ensure fairer access to financing across the economy.

Cyprus wasted a staggering 167,000 megawatt hours (MWh) of renewable energy in 2024 due to insufficient storage infrastructure, leaving MPs and solar panel owners frustrated as electricity bills continue to rise.

Members of the Parliamentary Committee on Commerce, Industry, Energy, and Tourism expressed their dismay over the significant loss of energy, which could have been utilized during periods of peak demand. The lack of planning for energy storage infrastructure has left the country’s renewable energy potential untapped, with no clear strategy from the government on how to store and distribute the surplus energy generated from renewable sources.

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The committee criticized both the government and key agencies, including the Electricity Authority of Cyprus (EAC) and the Ministry of Energy, for their lack of coordination. Committee Chairman Kyriakos Hadjiyiannis from the Disy party blasted the authorities for their “absolute absence of policy,” accusing them of misleading citizens into investing in solar panels without ensuring the necessary grid and storage infrastructure was in place to support it.

Akel MP Costas Costa echoed this frustration, pointing out that many areas of Cyprus can no longer accommodate additional solar power due to grid limitations. “People who installed solar panels to save on energy costs are now facing electricity bills of €300-400, compared to €60-70 just two months ago,” Costa said, blaming past decisions for the ongoing crisis.

MPs have called on the government and the EAC to provide answers on when grid upgrades will allow the full integration of solar power. Despite plans for a storage system covering large solar parks, it remains unclear when households will benefit from the system. The committee also urged for a digital tracking system for photovoltaic (PV) applications to ensure greater transparency.

In response, Dipa MP Michalis Giakoumis accused the government of dishonesty, describing the situation as “borderline fraud” and demanding a roadmap for energy storage to prevent further losses of renewable energy.

Egypt’s Suez Canal Economic Zone (SCZone) has secured an impressive $8.1 billion in investments across 255 projects in the last 30 months, according to an official announcement on Monday.

Major Investment Boost For SCZone

The General Authority for the SCZone has successfully attracted 251 projects in its industrial zones and ports, accumulating $6.2 billion in capital investments, which has resulted in around 28,000 new jobs, as stated by SCZone Chairman Walid Gamal El-Din.

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Additionally, four new projects have brought in $1.8 billion in investments, boosting the total capital inflows within the zone. These developments were discussed in a meeting with Mohamed Zaki El Sewedy, Chairman of the Federation of Egyptian Industries (FEI), and other officials from various chambers of commerce.

Strengthening Industrial Ties And Opportunities

The meeting focused on expanding investment prospects, fostering collaboration, and addressing challenges faced by industrial firms with strong export potential. A key objective was to encourage businesses to scale up their operations within the SCZone, leveraging its prime location, advanced infrastructure, and investor-friendly policies.

El-Din stressed the importance of the SCZone in driving Egypt’s economic growth and industrial transformation, citing the Ain Sokhna Integrated Industrial Zone as a flagship example of development. This zone is a testament to Egypt’s growing presence as a competitive global manufacturing hub.

The continued partnership between the SCZone and the private sector, El-Din noted, plays a pivotal role in building a strong ‘Made in Egypt’ brand, supporting local industrial development, and boosting innovation to improve Egypt’s position in global markets.

Acknowledging Achievements And Future Collaboration

El Sewedy praised the SCZone for its efforts in creating a robust investment climate, offering comprehensive services, incentives, and cutting-edge infrastructure. This meeting marked the beginning of a deeper collaboration between the SCZone and FEI, setting the stage for future joint initiatives.

Egypt’s Economic Outlook

Egypt’s economy is projected to grow by 4% in the year leading up to June, bolstered by supportive measures from the IMF, according to a Reuters poll conducted in January 2025. The poll also forecasts a GDP growth acceleration to 4.7% in 2025-26 and 5% in 2026-27.

However, the country’s GDP growth slowed to 2.4% in 2023-24, down from 3.8% in the previous year, primarily due to the ongoing currency crisis and the geopolitical impact of the war in neighboring Gaza, according to the Central Bank of Egypt.

Saudi Arabia’s non-oil economy experienced its most significant growth in more than 10 years this January, driven by an increase in new orders and dynamic business activity, according to the latest survey released on Tuesday.

Record-Breaking Expansion In Non-Oil Activity

The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) jumped to 60.5 in January, up from 58.4 in December. This marks the highest reading since September 2014, signaling continued expansion as any PMI reading above 50 indicates growth.

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The surge was mainly fueled by a remarkable spike in new orders, which grew at the fastest pace since June 2011. The New Orders Index rose to 71.1 in January, a significant leap from 65.5 in December. This robust demand was attributed to strong economic conditions and a wave of new infrastructure projects, boosting both domestic and export sales.

Naif Al Ghaith, Chief Economist at Riyad Bank, noted that the growth in export orders complemented domestic demand, particularly from GCC nations, reflecting effective marketing strategies and competitive pricing.

Broad-Based Growth Across Sectors

Saudi Arabia’s non-oil sector saw a significant uptick in activity throughout January 2025, with the expansion spreading across all industries. Businesses were not only ramping up production but also hiring more staff for the ninth consecutive month to help manage increased demand and clear backlogs.

The survey revealed that 35% of companies had increased their input purchases, and delivery times were notably shorter — the most significant decrease in 10 months. With the anticipation of continued demand, firms increased their inventories, bringing stock levels to their second-highest point since 2009.

However, this surge in demand did come with its challenges. Input prices climbed at their second-fastest rate in over four years, driven by both stronger demand and external geopolitical factors. This prompted companies to increase output prices at the fastest rate in a year.

Economic Outlook And Growth Drivers

Saudi Arabia’s economy grew by 1.3% year-on-year in 2024, buoyed by the robust performance of its non-oil sector, as per preliminary data.

The growth was primarily fueled by a 4.3% increase in non-oil activities and a 2.6% rise in government services, according to the General Authority for Statistics (GASTAT). However, the oil sector faced challenges, contracting by 4.5% during the year.

This mixed performance underscores the ongoing efforts of Saudi Arabia to transition from an oil-dependent economy to one with more diverse sources of revenue.

The fourth quarter of 2024 saw a more impressive performance, with real GDP expanding by 4.4% compared to the same period in 2023, marking the highest quarterly growth in two years. This surge was largely driven by non-oil activities, which grew by 4.6%. The oil sector posted a modest growth of 3.4%, while government activities rose by 2.2%.

Saudi Arabia’s ongoing diversification efforts are clearly paying off as the country makes significant strides in reducing its reliance on oil, positioning itself for sustainable economic growth in the years to come.

Elon Musk, the world’s richest man and self-proclaimed “first friend” of President Donald Trump, was hit the hardest on Monday as the stock market reacted to Trump’s tariff announcements. Shares of Musk’s electric car company, Tesla, took a significant hit, with import duties expected to erode the company’s profits.

Key Takeaways

• Tesla’s stock plummeted by 5%, marking the largest percentage drop among 46 U.S. companies valued at $200 billion or more.
• This decline wiped out $11.8 billion from Musk’s net worth, the largest loss of the day for any billionaire.
• Musk, Tesla’s largest shareholder with a 13% stake, saw the stock’s value drop to its lowest point since January 2, dipping by as much as 7.5% during morning trading.
• The broader market was also volatile, with the S&P 500 losing 1.9% before slightly recovering to end the day down by 0.8%. The brief suspension of tariffs on Mexico provided some relief to the markets, tempering the anticipated negative effects.

Why Tariffs Hurt Tesla

Tesla, like many other automakers, finds itself in the crosshairs of Trump’s tariffs, especially due to its reliance on a complex North American supply chain and significant operations in China. Tesla’s CFO, Vaibhav Taneja, warned last week that any tariffs imposed would directly affect the company’s earnings, as it continues to depend on global supply chains for parts and manufacturing.

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Other companies facing similar tariff woes include Nvidia and Apple, both of which generate a substantial portion of their revenue from China.

Key Figures

• $20.9 billion: Tesla’s revenue from China in 2024, which represents more than 21% of the company’s global sales.

Musk’s Reaction

Musk, who has been outspoken about his opposition to tariffs in the past, remained unusually quiet on social media regarding the new tariff-related challenges. His only comment so far was a succinct “Well, okay” in response to an Ontario official’s announcement to cancel a $68 million contract with SpaceX due to the tariffs.

Despite the threat of tariffs and the possibility of losing federal tax credits for electric car buyers, Tesla’s stock has seen remarkable growth since Trump’s election, rising 53% since November.

Forbes Ranking

Musk’s fortune now stands at $410 billion, which is over $150 billion more than it was on Election Day, making him $160 billion wealthier than Amazon founder Jeff Bezos, the second-richest person in the world.

In a surprising move, U.S. President Donald Trump has signed an executive order to create a sovereign wealth fund within the next 12 months, which could include the acquisition of the popular short-video app TikTok. The fund’s purpose would be to manage U.S. assets and generate wealth for the nation, with Trump promising it would benefit American citizens.

The sovereign wealth fund could be structured similarly to other such funds in countries across the globe, particularly in the Middle East and Asia, which use them to make direct investments. While the executive order provided little detail on the fund’s operations, it directed the U.S. Treasury and Commerce Departments to submit a comprehensive plan, including funding mechanisms and investment strategies, within 90 days.

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Trump has previously expressed support for creating a government-backed investment vehicle during his presidential campaign. He envisioned it as a tool to fund key national projects such as infrastructure, manufacturing, and medical research. The fund would likely be financed through innovative sources, including tariffs, though no clear explanation has been provided yet on its structure or funding.

In contrast to typical sovereign wealth funds, which rely on a country’s budget surplus, the U.S. operates at a deficit, which makes the funding approach more complex. Treasury Secretary Scott Bessent emphasized that the fund’s creation would focus on monetizing U.S. assets, particularly those on the country’s balance sheet. However, many experts believe that the creation of such a fund would require Congressional approval, as it may involve legislation to authorize new funding sources.

The possibility of the fund purchasing TikTok has drawn significant attention. Trump suggested that the fund might acquire the social media platform, which has around 170 million U.S. users, after its ownership by Chinese company ByteDance became a subject of national security concerns. A law mandating ByteDance to sell its U.S. assets or face a ban took effect in January, but Trump has delayed its enforcement by 75 days, citing ongoing negotiations. Trump stated that if a suitable deal could be reached, TikTok would potentially become part of the sovereign wealth fund. However, he also indicated that this was not a certainty, leaving the decision still to be made.

This announcement follows reports that the Biden administration had also explored the idea of establishing a similar fund. However, as Trump’s plan unfolds, it remains uncertain whether it will materialize within the expected timeframe. Sovereign wealth funds manage over $8 trillion globally, and with this new initiative, the U.S. could join the ranks of nations leveraging such funds for national investment purposes.

Brussels is pressing ahead with the enforcement of its landmark AI Act, which includes new guidance on prohibited AI practices, despite threats from former US President Donald Trump regarding the regulation of American tech companies.

The AI Act is seen as the world’s most comprehensive AI regulation. On Sunday, the European Union began enforcing provisions that ban certain practices, including the creation of facial recognition databases through internet scraping. New guidance on how these rules should be applied will be released by the European Commission on Tuesday, with further provisions targeting high-risk AI applications, such as those in healthcare, to be rolled out by 2027.

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The EU’s push for enforcement comes as US-based tech companies, supported by Trump’s administration, express concerns over the regulation. Trump has warned that the EU’s treatment of American firms could result in retaliation, particularly regarding fines imposed on companies like Meta and Google. Trump’s administration has also signaled a shift in the US stance on AI regulation, promoting a less restrictive approach, including the announcement of a $500 billion AI infrastructure project backed by SoftBank and OpenAI.

Despite this pushback, the European Commission is steadfast in its commitment to enforcing the AI Act. The law requires companies developing high-risk AI systems to be more transparent about their processes and undergo risk assessments. Non-compliance could lead to hefty fines or even a ban from the EU market.

Big Tech has raised concerns that the EU’s transparency requirements could stifle innovation, particularly rules allowing third-party inspections of AI models for risk assessments. Meta has been vocal about the “onerous” nature of these provisions. However, Brussels continues to assert its position as the global leader in trustworthy AI, even as it navigates increasing opposition from the tech sector.

Caterina Rodelli, an EU policy analyst at Access Now, suggests that the approach to implementing the AI Act could shift under the new US administration. “There’s a risk that regulators could relax the rules, potentially undermining their effectiveness,” she noted.

While the EU’s recent bans have been clear, much is still to be determined in negotiations over the Code of Practice for general-purpose AI, which will affect major AI models such as Google’s Gemini and OpenAI’s GPT-4. These discussions, which involve hundreds of stakeholders, are set to conclude in April.