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Cyprus Nears First ‘A’ Fitch Rating In 13 Years: A Milestone In Economic Recovery

Cyprus is on the cusp of achieving its first ‘A’ rating from Fitch in over a decade, marking a significant milestone in the country’s economic recovery. The international rating agency Fitch recently upgraded Cyprus’s credit rating from BBB to BBB+, and Standard & Poor’s followed suit, both reflecting positive economic developments.

The Road to Recovery

In the aftermath of the financial crisis in 2013, Cyprus faced severe economic challenges, including a high ratio of non-performing loans (NPLs) and substantial public and private debt. Over the years, concerted efforts have been made to address these issues, leading to significant improvements. Fitch noted that the NPL ratio had dropped to 7.9% by the end of 2023, the lowest since the global financial crisis, a significant decrease from its peak near 50%.

Policy and Legislative Reforms

The Cypriot government has implemented various policy and legislative reforms to strengthen the financial sector and promote economic resilience. A notable initiative is the revised divestment framework approved by Parliament, expected to further reduce NPLs and enhance the banking sector’s stability. Additionally, the government’s efforts in deleveraging have resulted in reduced household and corporate debt-to-GDP ratios, bringing them closer to the EU average.

Economic Indicators and Future Prospects

The upgrades by Fitch and Standard & Poor’s signal increased confidence in Cyprus’s economic prospects. These improvements, coupled with a positive outlook, pave the way for Cyprus to achieve an ‘A’ rating for the first time since 2011. The return to an ‘A’ rating would signify a restored confidence in Cyprus’s economic stability and growth potential, attracting further investment and boosting economic activity.

Challenges Ahead

Despite these advancements, challenges remain. The non-performing loans, though reduced, still represent a higher percentage of total loans compared to other EU countries. Additionally, ongoing social incentives complicate the resolution of mortgage-related NPLs. The Cypriot economy must continue to navigate these complexities to maintain its upward trajectory.

UAE Job Trends For 2025: High-Demand And Lucrative Roles Revealed

The UAE’s flourishing asset management sector, bolstered by rising investor interest, regulatory advancements, and a surge in Family Offices and Ultra High Net Worth Individuals (UHNWIs), is driving demand for banking and finance talent.

Roles in fundraising and institutional sales are particularly sought after, with professionals in these fields highly valued for their regional networks and industry expertise, according to Michael Page’s UAE 2025 Salary Guides. The comprehensive report, which includes insights from 17 industries, offers an overview of current hiring trends, salary benchmarks, and the recruitment challenges businesses face.

Banking And Finance In High Demand

The report highlights a significant need for compliance professionals, especially those with experience in Dubai Financial Services Authority (DFSA) and Financial Services Regulatory Authority (FSRA) regulations. Chief Compliance Officers and Money Laundering Reporting Officers (MLROs) are among the most lucrative roles in the sector. Jon Ede, Regional Director UAE at Michael Page, pointed out that in 2024, the UAE’s workforce grew by 9%, and the number of new companies increased by 14.5%, showing the success of the nation’s strategic initiatives.

Sales, Marketing, And IT Growth

The sales and marketing sector has seen steady growth, especially in B2B industries like technology, real estate, energy, and logistics. Roles such as Business Development Manager, Chief Commercial Officer, and Strategic Sales Director are in demand, with a premium placed on business development, key account management, and communication skills.

The IT sector, meanwhile, continues to evolve rapidly, with high demand for positions like Head of Software Development, Full-Stack Software Engineer, Agile Product Manager, Senior DevOps Engineer, and Digital Adoption Specialist. The report underscores the significant shift in the UAE talent market for digital professionals in recent years.

Navigating The Skills Shortage

The study also highlights the growing skills shortage, with businesses grappling to find candidates with the right expertise. A staggering 37% of business leaders reported challenges in finding skilled talent, while nearly a third (30%) struggled with employee retention. Nearly half (48%) of employers also cited aligning salary expectations with candidates as a key obstacle.

Ede suggests that businesses can overcome these challenges by offering competitive packages that include benefits, career development opportunities, and workplace incentives, positioning themselves as attractive employers in the competitive UAE job market.

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