Breaking news

Cyprus Retail Sector Records Robust Growth In January

New data from the Statistical Service of Cyprus (Cystat) show that retail trade expanded in January, with both value and volume indices increasing year-over-year.

Retail Trade Gains Drive Economic Momentum

The value index of retail turnover rose 7.4%, while the volume index increased 8.3% compared with January 2025. The parallel rise in value and volume indicates higher sales receipts and increased quantities sold, pointing to sustained consumer demand at the start of the year.

Broad Economic Trends Foster A Positive Outlook

Retail growth aligns with broader domestic indicators. Manufacturing output increased 4.4% between January and November 2025, while authorized building permits reached 2,612,000 square meters, up 30.7% compared with the previous period. The construction data suggest continued investment activity across the sector.

Automotive And Trade Performance Highlight Economic Stability

Motor vehicle registrations rose 5.8% in 2025. Private saloon cars increased 3.2%, while light goods vehicles rose 6.9%. Inflation remained subdued, with the consumer price index increasing 0.1% year-over-year. External trade also expanded, with imports reaching €13.55 billion, up 7.7%, and exports rising 7% to €5.5 billion.

Surge In Tourism Strengthens Economic Recovery

Tourist arrivals totaled 4,534,073 between January and December 2025, up 12.2% compared with the previous year. Tourism remains a key contributor to overall economic performance, supporting services, retail, and transport activity.

Conclusion

January retail growth reflects broader expansion across manufacturing, construction, trade, and tourism. The data show continued economic activity across multiple sectors at the start of the year.

Attacks On Data Centers In UAE And Bahrain Highlight Digital Infrastructure Risks

Recent drone attacks linked to Iran have struck data center facilities in the United Arab Emirates and Bahrain, raising concerns about the vulnerability of digital infrastructure in conflict zones. Facilities operating within the cloud network of Amazon Web Services were among the targets. These incidents highlight how modern conflicts increasingly extend beyond traditional military assets to include critical digital infrastructure.

Critical Infrastructure In The Crosshairs

Iranian drones struck two data centers in the United Arab Emirates on Sunday. A separate strike in Bahrain also affected infrastructure connected to regional cloud operations. The attacks occurred amid escalating tensions following U.S. and Israeli strikes on Iranian targets. Analysts say the incidents demonstrate how data centers are becoming strategic assets in geopolitical conflicts. Patrick J. Murphy, executive director of the geopolitical advisory unit at Hilco Global, said the attacks reflect a broader shift in how infrastructure is viewed in modern security planning. In his view, digital assets now carry strategic importance comparable to energy systems and telecommunications networks.

Industry Response And Strategic Repercussions

Companies operating cloud services in the region responded quickly to the disruptions. Organizations relying on Amazon Web Services infrastructure were advised to move workloads to alternative regions where possible. Major technology providers, including Microsoft and Google, have also reviewed contingency procedures following the incidents. The situation has underscored the importance of redundancy and geographic diversification in cloud infrastructure. Government authorities increasingly classify data centers as critical national infrastructure. Policymakers in the United States, the United Kingdom and the European Union have introduced measures aimed at strengthening the protection of digital assets. Security analysts expect the recent attacks to accelerate efforts to integrate cloud infrastructure into national security planning alongside sectors such as energy, water and telecommunications.

Developments And Industry Reactions

The events also come amid wider debates about the relationship between technology companies and national security policy. In a separate development, the U.S. government recently designated technology company Anthropic as a potential supply chain risk. The company’s chief executive, Dario Amodei, has indicated that the designation could face legal challenge. Technology firms with major operations in the Middle East are reassessing risk management strategies. Expanded multi-region data replication and stronger backup systems form part of these measures, according to Scott Tindall of Hogan Lovells. Meanwhile, comments from OpenAI chief executive Sam Altman have reignited discussion about the growing links between technology companies and government defence programmes.

Looking Ahead

The recent drone strikes illustrate the increasing strategic importance of digital infrastructure in global security dynamics. Data centers are gradually being treated as critical assets within geopolitical conflicts. Continued tensions are likely to prompt additional investment by governments and technology companies in strengthening protection of cloud infrastructure and improving operational resilience across global networks.

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