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Cyprus And Bahrain Step Up Cooperation In Defence And Trade

Cyprus and Bahrain are looking to strengthen cooperation in defence, maritime security and investment as Nicosia seeks to deepen its links between the European Union and the Gulf region.

Cyprus Ambassador to Bahrain Andreas Eliades said closer coordination had become increasingly important amid ongoing regional security developments.

Stronger Defence And Security Links

Speaking to Bahraini newspaper Al Watan, Eliades pointed to recent security developments in the Gulf, including attacks by Iran on Bahrain and other Gulf Cooperation Council countries.

He said Cyprus had used its EU Council presidency to support dialogue and consultations between EU member states and regional partners.

Bilateral ties received a boost following President Nikos Christodoulides’ official visit to Bahrain and the opening of Cyprus’ embassy in Manama. Nine agreements and memoranda of understanding were signed during the visit, covering defence, higher education, culture, tourism, diplomatic training and search and rescue.

Eliades said Cyprus now has diplomatic missions in all six GCC capitals, positioning the country as a potential “bridge” between Europe and the Gulf.

Shipping And Economic Cooperation

Maritime security is another area where the two countries see room for closer cooperation. Eliades highlighted freedom of navigation as a strategic priority for both Cyprus and Bahrain.

Economic ties could also expand across financial services, fintech, technology, logistics and tourism. According to Eliades, Cyprus can offer Bahraini companies a route into the European single market, while Bahrain can provide Cypriot businesses with a platform for expanding into Gulf markets.

He described the outlook for bilateral relations as “very promising”, adding that the new embassy in Manama marked “a new chapter” in relations between Cyprus and Bahrain.

Cyprus Loan Growth Accelerates To 14% In September

Lending in Cyprus accelerated in September, with the annual growth rate of total loans reaching 14%, up from 11.8% in August. Deposits also recorded a stronger monthly increase, according to the Central Bank of Cyprus (CBC).

Total deposits rose by a net €697.1 million to €60.2 billion at the end of September. Total loans increased by €857.8 million to €29.6 billion, according to the CBC’s October 2026 Monetary and Financial Statistics.

Deposit Growth Strengthens

Deposits recorded a monthly increase of €697.1 million, more than four times the €171.5 million rise in August. However, the annual growth rate remained unchanged at 6.5%.

Deposits held by Cyprus residents increased by €639.9 million. Household deposits rose by €93.8 million, while deposits held by non-financial corporations grew by €373 million. Other domestic sectors contributed a further €173.1 million.

Annual Loan Growth Reaches 14%

Total loans increased by a net €857.8 million in September, compared with €114.6 million in August. The annual growth rate accelerated to 14%, up from 11.8% a month earlier.

Lending to Cyprus residents rose by €470.8 million. Loans to households increased by €52.2 million, while lending to non-financial corporations grew by €110.1 million. Other domestic sectors recorded a larger increase of €308.5 million.

The figures cover deposits and loans held by monetary financial institutions in September 2026.

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