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Construction Sector Sees Significant Growth In 2022

by THEFUTURE.TEAM

July 15, 2024

The construction sector in Cyprus demonstrated remarkable growth in 2022, with the value added at current prices escalating by 8.9% to €1,442.4 million, a notable rise from €1,325.0 million in 2021, according to the latest Construction and Land Development Survey. This increase underscores a robust recovery and expansion within the sector, reflecting a broader positive trend in the island’s economy.

A Detailed Breakdown of Growth

The overall production value in the construction sector surged by 10.3%, reaching €5,564.7 million in 2022, up from €5,044.9 million the previous year. This substantial rise is indicative of increased activity and investment within the industry, driven by both public and private sector projects. Notably, the value of new construction projects climbed by 15.6%, totalling €3,392.8 million, a testament to the sector’s dynamism and its pivotal role in the country’s economic landscape.

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Sector-Specific Insights

Residential buildings experienced an impressive 21.3% increase in value, highlighting a strong demand for housing and reflecting the sector’s responsiveness to market needs. This surge is partly attributed to favourable financing conditions and government incentives aimed at stimulating residential construction. Conversely, non-residential buildings saw a slight decline of 1.8%, suggesting a potential shift in investment focus or market saturation in certain commercial real estate segments. However, civil engineering projects recorded a robust 18.4% growth, driven by substantial investments in infrastructure development, including roads, bridges, and utilities, which are essential for supporting long-term economic growth.

Employment Trends

Employment within the construction sector also saw a positive trajectory, with a 3.0% increase in the workforce, totalling 37,500 individuals in 2022, up from 36,400 in 2021. This growth in employment is a clear indicator of the sector’s expanding capacity and its contribution to reducing unemployment rates. The increase in job opportunities within construction further underscores the sector’s critical role in the broader economic recovery and growth of Cyprus.

Implications and Future Outlook

The significant growth in the construction sector not only highlights its resilience but also its crucial role in the economic framework of Cyprus. The surge in residential construction points to a thriving housing market, which could attract further investment and drive economic stability. The robust performance in civil engineering projects signals ongoing infrastructural improvements, essential for sustaining long-term economic development.

Moving forward, the construction sector is poised to continue its growth trajectory, supported by ongoing and planned infrastructure projects, coupled with favourable economic conditions. Policymakers and industry stakeholders must, however, remain vigilant to potential market shifts and ensure sustainable development practices to maintain the sector’s positive momentum.

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Competition Authority Launches Comprehensive Review of ExxonMobil Cyprus Acquisition

by THEFUTURE.TEAM

September 16, 2025

Investigation Initiated Over Strategic Acquisition

The Competition Protection Authority has commenced a thorough investigation into the acquisition of ExxonMobil Cyprus Limited’s share capital by Petrolina Holdings Public Ltd through Med Energywise Ltd. This inquiry was formally initiated following a session held on 10 September 2025, after an in-depth review of the pertinent report by the Authority’s Service.

Concerns Over Market Compatibility

Authorities have expressed serious concerns regarding the compatibility of the transaction with established competitive practices. The review indicates that the acquisition may affect several critical petroleum markets, both horizontally and vertically, thereby raising the potential for adverse impacts on market dynamics.

Horizontal Market Dynamics

On the horizontal front, potential effects have been identified in the import market for petroleum products, as well as in both wholesale and retail distribution channels of these products. The consolidation is believed to increase the risk of price rises and coordinated actions, given the direct competitive proximity between Petrolina and ExxonMobil.

Vertical and Adjacent Market Implications

Vertical aspects of the merger are also under close scrutiny. The new entity could restrict competitors’ access to critical infrastructure such as storage facilities, supply channels, and customer bases. These restrictions could further affect the onshore distribution of fuels, the wholesale market for lubricants, and specialized technical services connected with fuel station operations.

Local Market Considerations

Particular attention is being paid to the potential concentration in the retail fuel market. The investigation suggests that a reduced competitive landscape within a four-kilometer radius of the companies’ fuel stations could lead to diminished local competition, adversely impacting consumer prices and options.

Next Steps and Industry Impact

The Competition Protection Authority, which reached a unanimous decision to pursue a full investigation, remains open to submissions from parties that might be affected by this transaction, as mandated by current legislation. A final decision is expected within four months upon receipt of all necessary evidence, potentially setting a significant precedent for future market consolidation cases in the energy sector.