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Cyprus and Israel Explore Energy Cooperation Amid Regional Geopolitics

by THEFUTURE.TEAM

October 15, 2024

Cyprus and Israel are entering discussions over potential energy cooperation, a move that could reshape the dynamics of Eastern Mediterranean energy production and distribution. As the global energy landscape continues to evolve, the importance of securing regional partnerships has become increasingly vital, and Cyprus is positioning itself as a critical player in these developments. Recent reports suggest that the Cypriot and Israeli governments are keen to explore how they can work together to unlock the vast energy potential of the region, particularly in the offshore natural gas sector.

At the heart of these talks is a shared interest in exploiting natural gas reserves found in the Eastern Mediterranean. Cyprus, which has made significant gas discoveries in its Exclusive Economic Zone (EEZ) in recent years, seeks to collaborate with Israel to develop these resources. Israel, for its part, has been working to establish itself as an energy exporter and could benefit from aligning with its neighbour to enhance its distribution capacity.

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However, these discussions do not occur in isolation. The Eastern Mediterranean has long been a hotbed of geopolitical tensions, particularly around energy rights. Several countries, including Turkey and Greece, have staked claims on various portions of the sea, complicating efforts to fully harness the region’s energy resources. By partnering with Israel, Cyprus may find a way to solidify its standing within this complex web of interests, potentially leading to a more unified approach to energy development in the area.

SP Global reports that talks between the two countries are still in their early stages, but there is optimism that a deal could be reached. Such an agreement would benefit not only Cyprus and Israel but also the broader European energy market. With Europe seeking to diversify its energy sources, particularly in the wake of recent energy crises, a new supply chain from the Eastern Mediterranean could help alleviate some of the continent’s dependence on Russian gas.

Moreover, any energy cooperation between Cyprus and Israel could boost investment in infrastructure projects, such as pipelines or LNG (liquefied natural gas) terminals, further positioning the region as a strategic energy hub. The potential ripple effects for local economies, job creation, and technological innovation are immense.

As these discussions progress, all eyes will be on how Cyprus and Israel navigate both the opportunities and challenges. Should they succeed, this partnership could set a precedent for how nations can collaborate on energy issues despite the complexities of regional politics.

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Foreign Firms Contribute €3.5 Billion To Cyprus Economy In 2023

by THEFUTURE.TEAM

November 12, 2025

Recent Eurostat data reveals that Cyprus remains an outlier within the European Union, where foreign-controlled companies contribute minimally to the nation’s employment figures and economic output. While these enterprises have a substantial impact in other member states, in Cyprus they account for only 10 percent of all jobs, a figure comparable only to Italy and marginally higher than Greece’s 8 percent.

Employment Impact

The report highlights that foreign-controlled companies in Cyprus employ 32,119 individuals out of a total workforce that, across the EU, reaches 24,145,727. In contrast, countries such as Luxembourg boast a 45 percent job share in foreign-controlled firms, with Slovakia and the Czech Republic following closely at 28 percent.

Economic Output Analysis

In terms of economic contribution, these enterprises generated a total value added of €3.5 billion in Cyprus, a small fraction compared to the overall EU total of €2.39 trillion. Notably, Ireland leads with 71 percent of its value added stemming from foreign-controlled firms, followed by Luxembourg at 61 percent and Slovakia at 50 percent. On the lower end, France, Italy, Greece, and Germany exhibit values below 20 percent.

Domestic Versus Foreign Ownership

The data underscores Cyprus’s heavy reliance on domestically controlled enterprises for both employment and economic output. However, it is important to note that certain businesses might be owned by foreign nationals who have established companies under Cypriot jurisdiction. As a result, these firms are classified as domestically controlled despite having foreign ownership or management components.

Conclusion

This analysis emphasizes the unique role that foreign-controlled enterprises play within the Cypriot economy. While their overall impact is limited compared to some EU counterparts, the presence of these companies continues to contribute significantly to the island’s economic landscape.