Industry Voices Emphasize the Importance of Commitment

Over 150 key figures from Europe’s electric car sector, including executives from Volvo Cars and Polestar, have signed a letter urging the European Union to adhere to its ambitious 2035 zero emission goal for cars and vans. These industry leaders warn that any deviation could hamper the progress of Europe’s burgeoning EV market, inadvertently strengthen global competitors, and weaken investor confidence.

Evolving Perspectives Within the Automotive Community

This call comes in the wake of a contrasting appeal issued at the end of August by heads of European automobile manufacturers’ and automotive suppliers’ associations. That letter, endorsed by the CEO of Mercedes-Benz, Ola Kaellenius, argued that a 100 percent emission reduction target may no longer be practical for cars by 2035.

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Discussion With EU Leadership on The Horizon

European Commission President Ursula von der Leyen is scheduled to meet with automotive industry leaders on September 12 to deliberate the future of the sector. Facing stiff challenges such as the rise of Chinese competition and the implications of US tariffs, the stakes for the EU’s policy decisions have never been higher.

Potential Risks of Eroding Ambitious Targets

Industry leaders like Michael Lohscheller, CEO of Polestar, caution that any weakening of the targets could undermine climate objectives and compromise Europe’s competitive edge in the global market. Michiel Langzaal, chief executive of EU charging provider Fastned, further highlighted that investments in charging infrastructure and software development are predicated on the certainty of these targets.

Regulatory Compliance And The Mercedes-Benz Exception

A report from transport research and campaign group T&E indicates that nearly all European carmakers, with the exception of Mercedes-Benz, are positioned to meet CO₂ regulation requirements for the 2025-2027 period. To avoid potential penalties, Mercedes must now explore cooperation with partners such as Volvo Cars and Polestar.

Conclusion

The industry’s unified stance underscores the critical balance between environmental aspirations and maintaining competitive advantage. With high-level discussions imminent, the EU’s forthcoming decisions will be pivotal in shaping not only the future of the continent’s automotive sector but also its global positioning in the race towards sustainable mobility.

Overview Of A Shifting Landscape

The Israel Advanced Technology Industries Association (IATI) has revealed a striking trend: nearly 45 percent of startups in 2025 are incorporating outside Israel. This marks a significant departure from 2022, when approximately 80 percent of new companies registered domestically. The shift is largely attributed to the relatively easier regulatory environment in the United States, with Delaware emerging as a preferred hub.

Government Policy And Economic Ripple Effects

The tide began to turn in 2023 when an anticipated overhaul of Israel’s judicial system prompted many startups to look abroad. Although the controversial reforms were set aside following the October 7, 2023 attacks and the subsequent conflict, the momentum for U.S. incorporation has persisted. Industry leaders have raised alarms about these trends, warning that the relocation of economic activity abroad could undermine the strong global reputation of Israel’s high-tech sector, which is a critical driver of national economic performance.

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Industry Voices And Strategic Concerns

Dan Shamgar, chair of the IATI’s lawyers and accountants committee and partner at the Meitar law firm, emphasized, “Incorporation abroad gradually shifts economic activity out of Israel and erodes the brand of Israeli high-tech.” Shamgar highlighted that while U.S. policies in the past year have actively encouraged companies to register and operate domestically, economic policymakers in Israel have yet to implement comparable incentives. The absence of robust governmental support raises questions about maintaining the nation’s competitive edge in high technology, which encompasses roughly 20 percent of the country’s economic activity, 15 percent of its jobs, and more than half of its exports.

Challenges And The Road Ahead

Further concerns at the IATI conference include the sector’s reliance on foreign capital, with domestic investment lagging behind, and the critical need for renewed focus on health technology—a market segment that has recently experienced a downturn. These issues underscore the imperative for state intervention to ensure that Israeli high-tech companies continue to thrive on home soil.

Conclusion

The current trend of startups incorporating in the United States is symptomatic of broader regulatory and economic challenges facing the Israeli high-tech industry. As global competition intensifies, the call for policy reforms and strategic incentives in Israel becomes ever more urgent. How the government responds in the coming months will be pivotal for preserving the nation’s high-tech legacy and securing the future of its economic ecosystem.

Steady Winter Demand And Continued Confidence

Larnaca is positioned to sustain a steady influx of tourists during the winter months, bolstered by current booking trends and the operational confidence of local hotels. Industry leaders forecast a strong performance driven largely by the city’s three key traditional markets: the United Kingdom, Israel, and Poland.

Wizz Air: A Strategic Catalyst For Expansion

The robust flight schedule from Larnaca International Airport remains a pivotal factor. Notably, Wizz Air’s extensive network from various European hubs is set to reinforce winter tourism. On September 18, the carrier will commemorate five years of its Cyprus base and the milestone of transporting ten million passengers via a high-profile event in the departures area, attended by Transport Minister Alexis Vafeadis and Deputy Minister of Tourism Kostas Koumis.

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Record Summer Occupancy And Evolving Accommodation Trends

Summer tourism continues to excel, with hotel occupancy rates remaining fully satisfactory and overnight stays in July up by 3% compared to the previous year. This robust performance is complemented by a growing preference among international visitors for Airbnb accommodations, as a significant number of new listings have recently joined the platform.

Ambitious Development Plans Reflect Investor Confidence

Renewed interest in expanding tourism infrastructure is evidenced by the Larnaca Town Planning Department. With 1,295 building permit applications recorded in the first seven months of 2025—a 53% increase from the same period in 2024 and a 73% increase from 2022—the future of Larnaca’s urban landscape is bright. Among these proposals are plans for 20 new boutique hotels in the commercial center, signaling strong investor confidence both locally and abroad.

This strategic alignment of increased visitor capacity and infrastructure development underscores Larnaca’s potential to not just weather seasonal fluctuations, but to emerge as a durable, top-tier destination in a competitive tourism market.

Investing In Human Capital

In a bold move that underscores the growing importance of human capital in today’s business landscape, Sklavenitis Cyprus has taken innovative steps to ensure its workforce is both valued and supported. The supermarket chain has introduced a policy to pay a 14th salary to all employees—including those from Papantoniou Supermarkets—cementing its status as the sole retailer in Cyprus to implement such a comprehensive benefit.

A Significant Investment In People

This initiative is far from symbolic. With an estimated total cost of €2 million, it represents a committed investment in the company’s most valuable asset—its people. By providing an additional salary, Sklavenitis reinforces a culture of inclusivity and fairness, acknowledging every employee’s contribution to its success.

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Robust Benefits For Long-Term Stability

Complementary to the 14th salary, the company has launched a robust benefits program designed to address both financial and personal security. An Automatic Cost of Living Adjustment (ATA) of 12.56 per cent ensures that wages remain aligned with inflation, safeguarding real income stability for its team members.

Comprehensive Health And Life Support

Sklavenitis further enhances employee welfare through access to a Group Life and Health Insurance Plan and a Provident Fund co-funded by the employer. These measures not only provide immediate protection but also empower employees to plan confidently for the future.

Exclusive Perks And Incentives

The company extends its commitment beyond conventional benefits by offering store discounts, a birth allowance, and holiday gift vouchers valued at €100 during both Easter and Christmas. These additional perks enhance employee satisfaction and underline Sklavenitis’ people-first ethos.

A Strategy For Mutual Success

In an industry where employee engagement directly impacts customer satisfaction, Sklavenitis’ comprehensive approach stands out as both a progressive and strategic business decision. By investing in its workforce, the company not only nurtures a supportive workplace but also drives superior corporate performance, setting a new benchmark for responsible employment practices in Cyprus.

Rising construction expenses and their subsequent impact on housing availability were the focal points during high-level discussions in Brussels. At the center of these talks was Stephanos Pierides, Secretary General of the Federation of Associations of Building Contractors (Oseok) and Head of Environmental Issues at the European Construction Industry Federation (Fiec), who highlighted the escalating financial pressures faced by the industry.

Industry Leaders Address Affordability Challenges

During his visit, Pierides engaged in separate meetings with Cypriot Members of the European Parliament, including Loukas Fourlas, Michalis Hatzipandelas, and Costas Mavrides. The discussions underscored how surging costs are straining the construction sector and exacerbating issues of housing affordability across Europe.

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Enhancing Strategic EU Collaboration

Pierides also met with Demetris Petrides, an Attaché at the Permanent Representation of Cyprus to the EU, with a clear agenda to bolster cooperation leading up to Cyprus’s forthcoming Presidency of the Council of the European Union in 2026. This dialogue is seen as instrumental in aligning national and EU-level policies that influence the future trajectory of the construction sector.

Commitment To Sustainability And Resilience

As Chairman of Fiec’s Subcommittee on Environment, Pierides actively contributed to discussions with Energy and Housing Commissioner Dan Jorgensen. Key topics included water adequacy and the pivotal role of the construction industry in supporting Europe’s transition towards greater resilience and sustainability.

The Road Ahead

Oseok’s involvement in Fiec not only reinforces Cyprus’s strategic stance but also ensures that national interests are effectively represented in shaping European policies. This active participation is crucial as the construction sector navigates growing challenges while steering towards a more sustainable future.

Overview Of Mixed Sector Performance

The Cyprus turnover value index for services and transport in the second quarter of 2025 revealed a blend of robust growth and modest declines compared to the same period in 2024. According to data from the state statistical service (Cystat), key sectors exhibited varied performance profiles, reflecting both resilience and emerging challenges across the economy.

Substantial Gains In Accommodation And Food Services

Accommodation and food service activities led the upswing with an 11.7% increase, underpinned by a strong upswing in accommodation services at 13.9% and a 9.3% boost in food and beverage operations. This trend underscores the sector’s capacity to attract both local and international clientele, bolstering Cyprus’s tourism appeal.

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Steady Momentum In Administrative And Support Services

Administrative and support service activities improved by 7.2% overall. Notably, the rental and leasing segment rose by 7.8%, while travel agency and tour operator services increased by 4.9%. Complementing these figures, security and investigation operations surged by 11.4%, and office administrative support grew by 9.6%, indicative of growing business operational needs and corporate confidence.

Emerging Trends In Digital And Information Services

The information and communication sector advanced by 4.4%, with publishing and programming and broadcasting growing by 5.2% and 3% respectively. Telecommunications and related IT services also reflected moderate gains, with computer programming and allied activities seeing a 3.4% increase, while information service activities surged by 17.3%, signaling robust digital transformation across the economy.

Professional And Technical Service Sectors

Professional, scientific and technical activities recorded a 3.6% rise. Within this domain, legal and accounting, management consulting, and advertising services experienced modest yet significant growth, while sectors such as architectural and engineering, and motion picture and sound recording saw slight declines of 3.1% and 3.3% respectively.

Transport And Storage: Mixed Performance

The transport and storage sector delivered a 2.1% gain overall. Land transport rose by 5.7%, with water transport increasing by 4% and air transport modestly rising by 0.7%. Support functions including warehousing and postal courier services also reflected positive momentum, though real estate activities experienced a contraction of 1.8% in turnover compared to the previous year.

H1 2025 Sectoral Outlook

Analyzing the first half of 2025, trends maintained a similar pattern with accommodation and food service activities up by 10.9%, administrative and support services by 8.2%, and information and communication at 6.3%. Professional services improved by 4.1% while transport activities continued their steady progression at 2.1%, even as real estate faced a cumulative decline of 3.4%. These figures highlight both the sectoral dynamism and the nuanced challenges that policymakers and business leaders must navigate in a rapidly evolving economic landscape.

Pioneering A New Energy Landscape

Bioland Promithia, a prominent arm of Bioland Energy Group Ltd, has officially registered in the Competitive Electricity Market (CEM) register, effective October 1, 2025. This strategic move underscores an evolving energy sector in Cyprus, promising enhanced market competition, improved transparency, and a decisive shift toward green energy.

Innovative Pricing And Flexibility

At a recent event organized by Eptagon Group in Larnaca on September 10, Bioland Promithia unveiled plans designed to cater to diverse consumer needs. The company is set to offer tailored electricity supply programmes for residential, commercial, and industrial sectors. By implementing a three-zone flexibility model—day, afternoon, and night—the firm aims to provide cost-effective solutions that align with the unique energy profiles of its clients.

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Expertise And Strategic Vision

Demetris Constantinides, CEO of Bioland Energy Group, highlighted the importance of this initiative as a critical step towards establishing a fair and competitive energy environment in Cyprus. With four years of experience in the CEM Trial and a robust portfolio of corporate clients, Bioland is well-equipped to transition into this new regime. The company projects a significant reduction in electricity tariffs by at least 30 percent within the next three years, a move that promises considerable financial relief for consumers.

Commitment To Sustainability And Innovation

With a 14-year track record in the renewable energy sector, Bioland Energy Group has consistently invested in research and innovation to drive cost-efficiency and sustainability. Drawing on green energy generated from its photovoltaic parks, the company actively supplies businesses under the Transitional Regulation of the Electricity Market. Its impressive roster of commercial and industrial partners already benefits from competitive pricing, reinforcing Bioland’s commitment to advancing Cyprus’ energy transition.

In a decisive maneuver amid escalating tensions, Britain has unveiled a comprehensive sanctions package designed to disrupt the financial channels supporting Russia’s military endeavors.

Strategic Counteraction In Response To Escalation

British officials have linked these measures to recent surges in Russian drone and missile strikes on Ukraine, as well as a concerning breach of NATO airspace over Poland. Officials stress that the imposition of such sanctions is critical to curtailing the illicit cash flows that enable Russia to sustain its aggressive operations.

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Targeted Disruptions Across Maritime And Supply Networks

The new measures extend to 70 ships engaged in transporting Russian oil, alongside 30 companies and individuals involved in providing key materials such as electronics, chemicals, and explosives used in weapon systems. Notably, the sanctions pinpoint entities from both China and Turkey, reinforcing Britain’s broader campaign to isolate the Russian economy.

Implications For Global Security And Economic Stability

Foreign Minister Yvette Cooper underscored that these targeted restrictions signify the next phase of the United Kingdom’s efforts to combine economic pressure with strategic security support. This initiative not only aims to weaken Russia’s military logistics but also sends a clear message to the international community on maintaining the rules-based order in the face of rising geopolitical instability.

Despite facing tightening global liquidity and macroeconomic headwinds, the FinTech sector continues to assert its leadership in the MENA region. In the first half of 2025, FinTech emerged as the most resilient and appealing arena for venture capital investments, proving its worth as a catalyst for financial innovation and inclusion.

Addressing Structural Financial Gaps

In many parts of MENA, a significant proportion of the population remains underbanked and underserved by traditional financial institutions. FinTech companies are uniquely positioned to address these persistent challenges by bridging critical access gaps and driving financial inclusion. With the proliferation of payment apps, digital wallets, and micro-lending platforms, investors have witnessed firsthand how these solutions pave the way for scalable growth and eventual exits. Early-stage momentum in the region is underscored by a doubling of pre-seed deals year-over-year, reinforcing the sector’s capacity for rapid innovation and sustainable expansion.

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Highly Scalable and Replicable Business Models

One of the key factors behind FinTech’s dominance is the inherent scalability of its business models. Once the necessary infrastructure and regulatory approvals are in place, these models have demonstrated robust performance across borders. The first half of 2025 saw a marked acceleration in deal activity, with payment solutions leading the charge with 28 deals in MENA—a significant increase over the previous year. Lending platforms, in particular, experienced a meteoric 500% year-over-year increase in funding, emerging as the fastest-growing subindustry. Such replicability makes FinTech an attractive proposition for investors seeking high-growth opportunities in diverse markets.

Supportive Regulatory And Government Backing

The strategic support offered by key government initiatives in the UAE and Saudi Arabia has been instrumental in propelling the FinTech sector forward. Progressive frameworks, such as the UAE’s open finance and digital asset directives, coupled with Saudi Arabia’s live-testing sandboxes, have materially lowered entry barriers for startups. These measures not only foster innovation but also streamline the path to commercialization. Consequently, the combined efforts of these regulatory bodies have enabled the UAE and Saudi Arabia to account for 86% of MENA’s total FinTech funding in H1 2025.

The resilience of FinTech in MENA is not merely a reflection of contemporary market trends—it signals a fundamental shift in the region’s economic fabric. With an unwavering commitment to addressing real financial challenges, scalable and replicable business practices, and robust regulatory support, FinTech is setting the benchmark for sustainable innovation. As capital markets become increasingly discerning, this sector stands out as a beacon of long-term growth and transformative impact.

Transaction Overview

The Bank of Cyprus (BoC) announced on Thursday the successful launch and pricing of a €300 million unsecured, subordinated Tier 2 Capital Notes issue under its €4 billion Euro Medium Term Note Programme, scheduled for September 10, 2025. The transaction garnered strong investor interest, reflecting deep market confidence in the bank’s financial prospects.

Investor Demand And Market Reception

Demand surpassed expectations with over 100 institutional investors participating, driving the final order book to exceed €3 billion—more than ten times the issued amount. This overwhelming response underscores robust investor confidence from both local and international markets.

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Pricing And Yield Improvements

The strong demand allowed BoC to secure a final pricing spread of 195 basis points, notably tighter by 35 basis points than the initial indication. The effective yield of 4.321 percent compares favorably against the initial rate of 4.67 percent, outperforming the bond currently being refinanced and even recent Senior Preferred bond issuances. Analysts note that these improvements position the bank’s offering competitively against Greek bonds.

Bond Specifications And Redemption Terms

The new notes, priced at 99.632 percent with a fixed annual coupon of 4.25 percent, will reset on September 18, 2031, and mature on September 18, 2036. BoC has retained the option to early redeem the notes anytime within a six-month period commencing March 18, 2031, subject to regulatory consents. Settlement is slated for September 18, 2025.

Market Ratings And Capital Impact

Moody’s Investors Service Cyprus Limited rated the new notes Ba1, further solidifying market confidence. These notes will be listed on the Luxembourg Stock Exchange’s Euro MTF market. Proceeds are set to be on-lent to BoC Public Company Limited for general funding purposes, qualifying as Tier 2 capital. The issuance is expected to bolster the group’s Total Capital Ratio by approximately 300 basis points while maintaining an optimised capital structure.

Additional Strategic Moves

In related developments, BoC has invited holders of its outstanding €300 million Fixed Rate Reset Tier 2 Capital Notes—callable between April 23, 2026, and October 23, 2026—to tender their notes at a purchase price of 102.3 percent of the principal amount. Additionally, the bank intends to repurchase its existing subordinated bond maturing in 2031 at the same pricing, further streamlining its debt profile. The transaction was coordinated by stalwarts such as BofA Securities Europe SA and Goldman Sachs Bank Europe SE, with additional participation by Barclays Bank Ireland PLC, Citigroup Global Markets Limited, Morgan Stanley Europe SE, and Cisco acting as Co-Manager.