By the end of spring, Larnaca aims to implement a smart parking system as part of its broader initiative to become a smart city. This marks the first step in the “Larnaca Becomes a Smart City” program, which will also include upgrades to street lighting and waste management systems.

Smart Parking System Set To Launch

The tenders for the smart parking system are expected to be awarded in early March, with installation to begin in municipal parking lots in Mackenzie and the city center. Larnaca Mayor Andreas Vyras has stated that the goal is to have the system in place before the start of the tourist season, with an estimated budget of €2 million.

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How It Works

The system will allow both residents and visitors to benefit from more efficient parking. Through an electronic application, users will be able to view available parking spaces and monitor average parking times during peak hours. The sensors, which will be installed in the parking areas, will send data wirelessly to the city’s Smart City platform. Citizens can also make electronic payments through their mobile phones.

Inclusive Features

The system will support a range of special user categories, such as people with disabilities, permanent residents, and delivery vehicles. It will also be integrated with controlled on-street parking areas, including those with electric vehicle charging stations.

Seamless Integration With Other Parking Systems

The plan includes integrating this smart parking system with both public and private parking systems, offering drivers a comprehensive view of all available parking options across the city.

This initiative is a major step toward transforming Larnaca into a modern, tech-savvy city that meets the needs of its residents and visitors while also contributing to a sustainable future.

At the World Governments Summit in Dubai on February 12-13, Cyprus and the UAE took a significant step in advancing artificial intelligence (AI) collaboration by signing a Memorandum of Understanding (MoU). The MoU was signed by Cyprus’ Deputy Minister of Innovation, Nicodemos Damianou, and the UAE Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, Omar Sultan Al Olama.

A Shared Vision For Innovation And Socio-Economic Progress

The MoU, signed during a summit that attracts global leaders in technology, aims to enhance bilateral ties between the two nations. It seeks to foster innovation and tackle socio-economic challenges jointly, facilitating the exchange of best practices and accelerating the integration of AI across both public and private sectors. Both nations are working towards enhancing their respective AI ecosystems.

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Damianou expressed his gratitude for the hospitality and commitment shown by the UAE and emphasized that this partnership would build a more effective and tangible relationship between the countries. He underscored the importance of AI in driving technological progress and its potential to offer solutions to common challenges, highlighting that international cooperation with AI pioneers like the UAE is crucial for its responsible and effective development.

“This MoU reflects our shared commitment to harness AI as a key pillar for the development of our economies, industries, and societies,” said Damianou. He also expressed hope that this partnership could evolve into a regional effort, leveraging Cyprus’ strategic position and the UAE’s technological leadership.

UAE’s Commitment To Global AI Cooperation

For his part, Minister Al Olama emphasized the role of international collaboration in advancing AI. He pointed out that such partnerships align with the goals of the World Governments Summit 2025, underscoring the UAE’s position as a global hub for AI innovation. He stressed that these partnerships are essential for building a sustainable future based on advanced technologies.

AI’s Potential To Transform Global Economies

AI is widely recognized for its potential to revolutionize productivity and significantly impact global GDP. According to PwC, strategic investment in AI technologies is vital to unlocking this potential. The consulting firm highlights that AI can drive labor productivity improvements and, in turn, stimulate economic growth. It predicts that by 2030, 45% of total economic gains will stem from product enhancements driven by AI, fostering consumer demand through increased product variety, personalization, and affordability.

Elon Musk has announced that Grok 3, his AI chatbot set to rival OpenAI’s ChatGPT, is in its final development stages and will be ready for launch in the next week or two. During a video call to the World Governments Summit in Dubai on Thursday, Musk revealed that Grok 3 is already outperforming its competitors in internal tests, particularly in terms of reasoning capabilities.

“Grok 3 has very powerful reasoning abilities, and in our tests so far, it’s outperforming anything we’re aware of,” Musk stated, hinting at the bot’s promising potential. The tech mogul, who founded xAI, is determined to challenge the dominance of Microsoft-backed OpenAI and Google’s Alphabet in the AI space. Musk also co-founded OpenAI, though his recent ventures have clashed with the company.

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Musk’s tensions with OpenAI escalated earlier this week, with a consortium led by him offering $97.4 billion to acquire OpenAI’s nonprofit assets. This marks a continuation of Musk’s ongoing criticism of OpenAI’s shift towards a for-profit model, which he believes undermines the original non-profit ethos. “OpenAI has reached where it is with a dual-profit, non-profit structure. But now, they’re trying to erase the non-profit, which seems excessive,” Musk commented.

On a broader scale, Musk proposed significant cuts to U.S. government spending, claiming that a reduction of $1 trillion or more could eliminate inflation by 2026. “We could see the economy grow at 4-5% in real terms while reducing government expenditure by 3-4% of GDP, possibly a trillion dollars or more. The result would be no inflation from 2025 to 2026,” he explained.

Musk also discussed his partnership with the UAE, announcing plans to collaborate on the “Dubai Loop,” an ambitious underground high-speed transport system. He likened the concept to a “wormhole,” though details remain scarce.

In his remarks on international politics, Musk suggested that the U.S. should take a step back from global affairs. “The U.S. has been too pushy in the past. I think we should generally leave other countries to their own business,” he stated, drawing attention to his more isolationist stance.

This statement comes on the heels of controversial remarks made by former U.S. President Donald Trump, who proposed a drastic plan for the Gaza Strip that has drawn fire from the Arab world.

Musk’s continued focus on reshaping both the AI landscape and international relations underscores his willingness to challenge established norms in technology and geopolitics.

Cyprus is on the verge of facing legal action from the European Union for failing to implement new regulations aimed at speeding up the approval process for renewable energy projects. On Wednesday, the European Commission issued a reasoned opinion to Cyprus and seven other EU member states, marking the second stage in the Commission’s five-step procedure for dealing with non-compliance.

Eight EU Countries At Risk Of EU Court Referral

The Commission’s decision follows the failure of these countries to transpose the EU laws into their national legislation. Alongside Cyprus, the other nations facing action include Bulgaria, France, Italy, the Netherlands, Spain, Slovakia, and Sweden. These laws are designed to simplify and expedite the permit process for renewable energy and infrastructure projects, which are essential for integrating additional capacity into the electricity grid.

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The Commission has emphasized that these laws set clear deadlines for granting permits, with a presumption that renewable energy projects and their associated infrastructure are of “overriding public interest.”

New Accelerated Procedures For Renewable Projects

One of the most significant provisions is the creation of renewable energy acceleration zones, where projects can benefit from shorter approval timelines due to their minimal environmental impact. These rules were intended to be implemented across all 27 EU member states by July 2024, but only 18 countries have complied so far, with the eight aforementioned nations lagging.

Pressure Builds On Cyprus And Other Holdouts

The Commission is now giving these eight countries two months to respond and take the necessary actions. If they fail to do so, the Commission could refer them to the European Court of Justice, a step that could result in significant fines.

This latest development comes shortly after Cyprus received several letters of formal notice from the Commission on various environmental issues, including directives related to air pollutants and hazardous substances in electrical equipment.

Cyprus is taking strong measures to combat the increasing risk of wildfires in its mountain villages. A new strategy, introduced by the Forestry Department and Mountain Commissioner Charalambos Christophinis, aims to protect both the environment and local communities.

Main Causes Of Rising Fire Risk

The risk of wildfires has grown due to rural abandonment and climate change. These factors have caused a dangerous buildup of flammable material. Prolonged droughts and lack of rainfall have only made the situation worse. Authorities are particularly concerned about the mountainous and semi-mountainous regions, where the risk to lives and property is highest.

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Creating A Fire-Resistant Barrier

A key component of the new plan is the creation of a “protective ring” around vulnerable areas. This protective ring will be placed within a two-kilometer radius of state forests. The goal is to reduce the accumulation of flammable material, making it harder for fires to start and spread.

Collaboration For Success

These measures are part of the ‘Vegetation Management Study for Fire Protection of Forests and Parasitic Communities’ program. The Ministry of Agriculture will implement these changes within state forests, while local governments will manage areas outside the forests.

Prevention And Vigilance Are Key

“Preventing fires and staying vigilant are our strongest tools,” authorities stated. They emphasized that cooperation from local communities and government bodies is crucial to ensuring the safety of all residents.

Recent Wildfires Highlight Urgency

Cyprus has faced severe wildfires in recent years, including one in June that destroyed more than 3,300 hectares of land and forced evacuations. The Paphos area was hit hardest, with nearly two dozen homes damaged. While no lives were lost, the event highlighted the urgent need for better fire prevention strategies. The wildfire season typically begins in late April and lasts for several months.

The Bank of Cyprus has made history by becoming the first organization in both Cyprus and Southeastern Europe to earn the prestigious ISO 37301 certification, an international standard for compliance management systems. This accomplishment places the bank in an exclusive group of European financial institutions recognized for their rigorous approach to compliance.

ISO 37301, endorsed by the European Banking Authority, provides a comprehensive framework focused on risk management and process optimization within Compliance units. It is a significant milestone that not only enhances the integrity and transparency of the organization but also improves its reputation by showcasing a commitment to ethical business practices and the best compliance standards.

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Marios Skandalis, Chief Compliance Officer at Bank of Cyprus, expressed the significance of this achievement: “The ISO 37301 certification is not just another accolade; it serves as an independent validation of the effectiveness of our Compliance function. It represents a lasting legacy for our customers, investors, and partners, reinforcing the trust we share with them.”

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.