President Nikos Christodoulides has discussed with Saudi Foreign Minister, Faisal bin Farhan Al Saud, the possibility of the electricity interconnection of Saudi Arabia and the Republic of Cyprus, the CNA has learned.

On the sidelines of the 79th session of the UN General Assembly in New York, the President of the Republic on 24 September met with Saudi Foreign Minister, Faisal bin Farhan Al Saud, with whom he discussed the security situation in the Middle East, the deepening of bilateral relations and the current developments on the Cyprus issue.

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According to information CNA has obtained, the President of the Republic also discussed with the Saudi Foreign Minister the possibility of electricity interconnection between Saudi Arabia and the Republic of Cyprus.

After the United Arab Emirates and Egypt, Saudi Arabia is the third country in the Arab world to express interest in participating in this major project, the same sources said.

In 2023, Cyprus was among the EU’s member states with the lowest percentage of citizens interacting with public authorities online (66%), staying close to the average of the EU (69%).

This figure was significantly higher than the country with the lowest score (Romania, 23%) but significantly lower than the highest scoring country (Denmark, 98%), according to data released by Eurostat, the statistical service of the EU.

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The data shows a significant reduction compared to 2022, when the share for Cyprus stood at 90%. During the same period, there was a small increase in the EU level from 68% to 69%.

The data captures the share of EU citizens aged 16-74 that have used a website or an app of a public authority in the preceding 12 months.

The share varied greatly among EU countries, with the highest shares recorded in Denmark (98%), Finland, the Netherlands and Sweden (all 95%). In contrast, the lowest shares were recorded in Romania (23%), Bulgaria (30%) and Germany (58%).

Looking at the different e-government activities in more detail reveals that, in 2023, 42% of people in the EU used e-government services in the previous 12 months to obtain information about services, benefits, laws, opening hours or similar. This was followed by the downloading or printing of official forms (40%), the accessing of personal information (39%), and the making of an appointment or a reservation and receiving official communication or documents (37% for both).

The share of individuals who submitted tax declarations online was somewhat lower at 29%. Similarly, the figures for accessing public databases or registers were 19%, while 18% of people requested official documents or certificates and 17% requested benefits or entitlements online.

In Cyprus, the activity with the largest share was obtaining information about services, benefits, laws, opening hours et cetera (50%), accessing personal information (43%), downloading or printing official forms (31%), requesting benefits or entitlements online (28%) and the accessing of public databases or registers (25%).

These were followed by submitting tax declarations online (23%), requesting official documents or certificates (22%), receiving official communication or documents (19%) and making appointments or reservations (15%).

Compared to 2022, the most significant change was the drop in receiving official communication or documents from 88% to 19%, with drops also recorded in accessing personal information (from 51% to 43%) and making appointments (from 32% to 15%). There was however an important increase in the share of citizens obtaining information (from 41% to 50%), requesting benefits or entitlements online (from 11% to 28%) and accessing public databases or registers (from 15% to 25%).

The Office of the Commissioner for Electronic Communications and Postal Regulation (OCECPR) recorded increases in fixed telephony connections, fixed broadband access, the number of mobile users and fixed and mobile data volumes, according to the statistics for the Electronic Communications Market with data up to June 2024.

As stated in a press release issued by the Office, in terms of fixed telephony and broadband access during the first half of 2024 there was a slight increase in total fixed telephony connections, with 4,019 new connections compared to the second half of 2023.

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It is added that Fiber Optic connections have continued their upward trend, with fiber optic networks now being the main fixed line connection covering 72.9% of the market.

It is added that fixed broadband access showed a slight increase of 2,580 subscribers or 0.7% compared to the second half of 2023, with a particularly significant increase (+6%) in connections with speeds ≥100Mbps, due to the expansion of high-capacity networks and free access speed upgrades. At the same time, the share of subscribers with speeds above 1Gbps increased by 0.5% to 3.3%.

The average data volume per fixed line in Q2 2024 was 1.04 TB, continuing its upward trend, while the total data volume for the first half of 2024 increased by 7.3% compared to the second half of 2023.

In mobile telephony, according to the data, the first half of 2024 saw an increase of 32,858 users compared to the second half of 2023, with the contract subscription rate showing an increase of 1.1% and contracts offering unlimited data, voice and SMS making up 57.1% of total contracts.

It is added that the ratio of mobile users to the population of the Republic of Cyprus increased by 3.6%, reaching 158.8%, an increase attributable to contract subscriptions, as prepaid users decreased by 6,032 in the same period. Total data volume for the first half of 2024 increased by 17.9% compared to the second half of 2023, reaching 116,610 TB, surpassing the 100,000 TB mark for the first time in six months.

Moreover, total data volume (fixed and mobile) during the first half of 2024 showed an increase of 67,644 TB (+8.6%) compared to the second half of 2023, while the percentage of data via fixed broadband access fell below 90%, reaching 85.81% in Q2 2024, due to the increase in mobile contracts with unlimited data, a trend that is expected to continue, the press release concluded.

The government of Cyprus has announced plans to allocate €1.2 billion for co-financed projects over the next three years. These projects, supported in collaboration with the European Union, are aimed at promoting economic growth, modernising infrastructure, and fostering sustainability across key sectors of the Cypriot economy.

This funding aligns with Cyprus’ strategic goals, particularly in driving green development, digital transformation, and social welfare improvements. The projects will draw from EU financial instruments such as the Recovery and Resilience Facility (RRF) and the Cohesion Fund to help member states meet their economic and environmental targets.

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Distribution of Funds Across Ministries

1. Ministry of Transport, Communications, and Works: A significant portion of the funds will be directed toward improving Cyprus’ infrastructure. Investments will focus on upgrading the road network, enhancing public transportation, and modernising ports and airports to boost trade and connectivity. Additionally, there will be a strong emphasis on sustainable transport solutions, including infrastructure for electric vehicles and the adoption of smart transportation technologies to reduce carbon emissions and enhance efficiency.
2. Ministry of Energy, Commerce, and Industry: As Cyprus continues its shift towards renewable energy, this ministry will benefit from substantial funds to expand renewable energy capacity, particularly solar and wind projects. The investments will also support energy efficiency initiatives across industries and the public sector, accelerating Cyprus’ decarbonisation efforts. By reducing reliance on fossil fuels, Cyprus is working to meet its EU climate commitments and strengthen its energy security.
3. Ministry of Education, Culture, Sport, and Youth: Co-financed projects will focus on modernising educational infrastructure and expanding digital learning platforms. The aim is to prepare students for the digital economy through improved access to technology and innovative learning tools. Investments will also support research and innovation, fostering a culture of creativity and preparing youth for future economic challenges. In the cultural and sports sectors, funds will be allocated to enhancing facilities and promoting social inclusion through cultural and athletic initiatives.
4. Ministry of Agriculture, Rural Development, and Environment: A portion of the budget will be dedicated to sustainable agricultural practices, water management, and environmental protection. Projects in this ministry will aim to enhance biodiversity, reduce environmental degradation, and support the country’s transition to greener, more sustainable farming methods.
5. Ministry of Labour, Welfare, and Social Insurance: This ministry will focus on social welfare improvements, including expanding healthcare services, and social housing, and providing more robust support for vulnerable populations. These projects aim to ensure that economic growth benefits are distributed equitably across society.

Cyprus’ €1.2 billion allocation for co-financed projects highlights the government’s commitment to sustainability, economic growth, and social development. 

The Labour Minister of Cyprus has announced a concerted effort to tackle the widespread issue of undeclared work, which has long been a challenge for the Cypriot economy. To formalise the labour market and safeguard workers’ rights, the Ministry is pushing forward new measures aimed at cracking down on employers who engage in illegal employment practices, including failure to declare workers, pay fair wages, or contribute to social security.

The campaign, which is part of a broader government initiative to enhance labour rights and ensure compliance with employment laws, seeks to address both the economic and social impact of undeclared work. With undeclared employment affecting a significant portion of the workforce, particularly in sectors such as construction, hospitality, and domestic services, the Labour Ministry has made it a top priority to enforce stricter regulations and penalties.

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Undeclared Work: A Persistent Challenge

Undeclared work, often referred to as the “shadow economy,” is a global issue that has long plagued Cyprus. It encompasses a range of illegal employment practices, including the hiring of workers without contracts, underpayment of wages, and failure to contribute to social insurance schemes. For years, such practices have not only deprived workers of their legal rights and protections but also cost the government millions in unpaid taxes and social security contributions.

In Cyprus, the problem has been particularly pronounced in sectors that rely heavily on seasonal or informal labour. Construction, tourism, agriculture, and domestic services have been identified as industries where undeclared work is more common, with many workers vulnerable to exploitation due to lack of proper oversight or enforcement.

According to government estimates, undeclared work in Cyprus accounts for a considerable portion of the labour market. This not only weakens workers’ protection but also creates unfair competition between businesses that follow the rules and those that cut costs by circumventing legal employment obligations.

Stricter Enforcement and Penalties

To address these challenges, the Labour Ministry is introducing stricter enforcement mechanisms, including more frequent inspections of workplaces, harsher penalties for employers found violating the law, and enhanced cooperation between government agencies responsible for labour and tax compliance. Employers who are caught engaging in undeclared work may face heavy fines, legal action, and, in some cases, closure of their businesses.

The Ministry also aims to strengthen workers’ awareness of their rights through information campaigns. By educating workers about their entitlements, including the right to minimum wage, insurance, and other legal protections, the government hopes to reduce the number of people falling victim to exploitative practices.

Moreover, the use of digital tools to track employment data and improve transparency within the labour market is also part of the government’s long-term plan to combat undeclared work. These technological measures are expected to make it easier for authorities to detect and address violations more efficiently.

The government of Cyprus has outlined its development spending plans for 2025, allocating €1.55 billion to a range of projects aimed at fostering economic growth and improving infrastructure across the island. These expenditures form part of the state budget and represent a strategic investment in key sectors, including transportation, digital transformation, and social services, designed to enhance Cyprus’ long-term economic competitiveness.

This planned development expenditure marks a critical step in the government’s commitment to modernising the country’s infrastructure, supporting sustainable growth, and addressing both current and future economic challenges. The distribution of these funds will be crucial for driving development across multiple sectors and ensuring that Cyprus remains resilient in a rapidly changing global economy.

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Transportation and Infrastructure Upgrades

A significant portion of the allocated €1.55 billion will go towards major infrastructure projects, particularly in transportation. Investments in road networks, ports, and airports are expected to improve the efficiency of both domestic and international travel, which is vital for an island economy heavily reliant on tourism and trade.

Enhancing the country’s transportation infrastructure will not only boost accessibility and connectivity but also help reduce traffic congestion and improve safety on the roads. With the government aiming to promote greener alternatives, part of the budget will also be directed toward sustainable transport initiatives, such as electric vehicle infrastructure and improved public transportation services.

These investments in infrastructure are expected to enhance the country’s overall logistics and supply chain capabilities, providing long-term economic benefits, especially as Cyprus seeks to establish itself as a regional hub for trade and services.

Digital Transformation and Innovation

Cyprus is also focusing on digital transformation as part of its development strategy for 2025. A portion of the €1.55 billion will be channelled into expanding digital infrastructure, improving public sector services through digitalisation, and supporting innovation and entrepreneurship in the tech sector.

As digitalisation becomes a key driver of competitiveness in the global economy, Cyprus is positioning itself to harness the benefits of emerging technologies. This includes upgrading digital government services, fostering cybersecurity, and creating a more favourable environment for tech startups and innovation-driven enterprises. These investments will help Cyprus modernise its economy, increase efficiency, and attract foreign investment.

A Framework of Understanding has been signed between Cyprus and Greece to promote the Cyprus-Crete electrical interconnection.

The framework was signed by the Minister of Energy, Commerce and Industry of the Republic of Cyprus, George Papanastasiou and the Minister of Environment and Energy of Greece, Theodoros Skylakakis on 20 September.

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Based on this framework and following the relevant decisions of the Regulatory Authorities of the two countries provided therein, the project is expected to restart in the coming days, a joint press release from the two Ministries stated.

The signing follows the decisions made during the recent meeting in Athens between the President of the Republic of Cyprus, Nikos Christodoulides, and the Prime Minister of Greece, Kyriakos Mitsotakis, the press release added.

The Framework of Understanding notes that the Electrical Interconnection of Cyprus–Crete will help eliminate the energy isolation of Cyprus by connecting the national electricity transmission system of Cyprus with the corresponding trans-European systems.

This is a project of strategic importance for Cyprus, Greece, and the entire EU, as it will not only connect Cyprus to the European electricity system, facilitating its energy transition but will also promote Greece’s goal of becoming a corridor for the transfer of clean energy, the press release added.

The Cypriot real estate market showed signs of cooling in August 2024, marking a decline in activity after a period of sustained growth. Data reveals a notable slowdown in transactions, with the overall market experiencing a dip in sales and property transfers compared to previous months. This deceleration comes after a strong first half of the year, which saw robust demand in key regions, especially for high-value properties and new developments.

While the market experienced this summer lull, experts remain cautiously optimistic, noting that this trend aligns with historical patterns, as August is traditionally a quieter month for real estate due to seasonal factors. However, the slowdown also reflects broader economic challenges, including rising interest rates and inflationary pressures, which have begun to affect buyer sentiment and investment decisions.

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Market Trends: The Eight-Month Snapshot

Despite the August slowdown, the real estate market over the first eight months of 2024 has largely been positive. Property sales and transfers increased during the initial part of the year, driven by both domestic and foreign investment. Demand for residential properties remained high, with luxury properties and developments in prime locations—such as Limassol, Paphos, and Nicosia—leading the way.

Data from the Department of Lands and Surveys highlights that, while August saw a reduction in transaction volumes, the overall market remained relatively resilient. The first eight months of the year saw a notable rise in the value of properties sold, suggesting that the high-end property segment continued to perform well. Additionally, certain regions, particularly Limassol and Paphos, managed to retain significant market momentum even during the quieter summer months.

Limassol, a hub for foreign investment and a hotspot for luxury developments, has consistently been one of the strongest-performing regions, attracting both individual buyers and investors seeking rental properties or high-end real estate. Paphos, known for its appeal to foreign retirees and holiday home buyers, also maintained steady demand, particularly from non-EU buyers taking advantage of Cyprus’ attractive property offerings and lifestyle benefits.

Regional Interpretation

While the overall market has slowed, certain regions continue to show resilience. Limassol and Paphos, in particular, remain key players in the market, with these areas seeing the highest levels of foreign interest. Limassol’s status as a business and investment hub, coupled with its array of luxury properties, continues to attract international buyers, particularly from the Middle East, Russia, and Europe.

Paphos also continues to hold strong appeal for foreign buyers, especially retirees and those looking for holiday homes. The district’s affordability compared to Limassol, combined with its high quality of life, makes it a popular choice for non-EU investors, who have been a consistent driver of demand in the region.

Natural gas prices in Europe have dropped significantly, reaching €33 per megawatt-hour (MWh), marking one of the lowest levels seen in recent months. This sharp decline in prices comes as a result of improved supply conditions, lower demand due to mild weather, and increased storage levels across the continent. The drop is providing temporary relief for both consumers and industries, which have been grappling with high energy costs since the onset of the energy crisis exacerbated by geopolitical tensions and supply chain disruptions.

Improved Supply and Market Conditions

The fall in natural gas prices can be largely attributed to the easing of supply constraints that plagued Europe over the past two years. Following the invasion of Ukraine by Russia and the subsequent reduction in Russian gas exports to Europe, the continent experienced a significant energy crisis, driving prices to record highs. However, European countries have since diversified their energy sources, with increased imports of liquefied natural gas (LNG) from the US, Qatar, and other global suppliers, leading to a more stable supply.

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Additionally, Europe’s natural gas storage facilities are well-stocked ahead of the winter season. European countries took concerted steps to fill their reserves during the summer months, in part to avoid a repeat of the energy shortages seen in previous years. According to market analysts, storage levels across the continent are at approximately 90% capacity, which has contributed to the current drop in market prices.

Mild Weather Reduces Demand

Another factor contributing to the significant price decline is the unexpectedly mild weather across much of Europe, which has reduced demand for natural gas. Typically, as temperatures begin to drop in the autumn months, energy demand surges as homes and businesses increase their heating usage. However, with warmer-than-usual temperatures, the demand for heating has been lower, thereby reducing the immediate need for natural gas supplies.

Market experts are closely watching weather forecasts, as any sudden cold snap could reverse the trend and lead to a price rebound. Nonetheless, the current mild conditions have provided a much-needed reprieve for both residential and industrial consumers, who have been dealing with soaring energy bills.

Long-Term Outlook Remains Uncertain

Despite the current decline in prices, the long-term outlook for natural gas in Europe remains uncertain. While short-term supply and demand factors have led to lower prices, the overall volatility in the global energy market remains a concern. Geopolitical tensions, particularly in relation to Russia, continue to pose risks to energy stability. Moreover, the transition towards renewable energy sources and the ongoing efforts to reduce reliance on fossil fuels could lead to structural changes in the natural gas market in the coming years.

Energy analysts warn that the market could remain volatile, with prices subject to sudden shifts depending on factors such as weather patterns, geopolitical developments, and policy changes related to energy transition. Furthermore, while storage levels are currently high, they could be quickly depleted if winter conditions turn harsher than anticipated, leading to renewed pressure on supply and a potential price surge.

The annual inflation rate in Cyprus dropped to 2.2% this August, compared to 2.4% in July, according to data published by Eurostat.

Meanwhile, in the EU, the annual rate of inflation dropped to 2.4% in August compared to 2.8% in July.

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There was also a reduction in annual inflation compared to August 2023, from 3.1% in Cyprus, 5.2% in the eurozone and 5.9% in the EU.

The lowest annual rates were registered in Lithuania (0.8%), Latvia (0.9%), Ireland, Slovenia and Finland (all 1.1%).

The highest annual rates were recorded in Romania (5.3%), Belgium (4.3%) and Poland (4.0%).

Compared with July 2024, annual inflation fell in twenty Member States, remained stable in one and rose in six.

In August 2024, the highest contribution to the annual euro area inflation rate came from services (+1.88 percentage points, pp), followed by food, alcohol & tobacco (+0.46 pp), non-energy industrial goods (+0.11 pp) and energy (-0.29 pp).