Breaking news

Foreign-Controlled Enterprises Lead Cyprus’ Service Exports to Non-EU Markets: A Strategic Analysis

by THEFUTURE.TEAM

October 29, 2025

International Ownership Drives Market Expansion

The latest Eurostat data on services trade by enterprise characteristics (STEC) reveals that in 2023, foreign-controlled companies were at the forefront of Cyprus’ service exports to markets outside the European Union. These foreign-owned firms accounted for 50.66% of total service exports, underscoring the strategic role of global capital in the island nation’s service sector.

Diverse Contributions Across the Economy

In contrast, domestic enterprises contributed 28.45%, while the remaining share is credited to businesses with unknown ownership status. This pattern places Cyprus alongside other EU nations such as Slovakia, Estonia, and Lithuania, where foreign-controlled entities play a dominant role in reaching international markets.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Sectoral Strengths and Broader EU Trends

Cyprus’ internationalized service industry—spanning sectors including finance, shipping, information technology, and professional services—continues to attract significant foreign investment. By comparison, across the European Union, service exports to non-EU countries reached a substantial €1.44 trillion in 2023. Large enterprises, defined as firms with 250 or more employees, led this effort by contributing 53.5% of the total, with medium and small enterprises making up 10% and 14.2% respectively.

Differentiated Enterprise Roles Across Member States

In many EU economies, large firms dominate the export landscape. For example, in Germany, Finland, and Denmark, these enterprises accounted for 72.8%, 66.7%, and 66% of service exports respectively. However, in smaller economies such as Malta and Estonia, small firms showed a more pronounced influence, generating 68.4% and 59.6% of exports respectively.

Foreign Investment: A Key Driver in Service Exports

Eurostat’s analysis further indicates that in nine EU member states, foreign-controlled enterprises are the primary drivers of service exports. Luxembourg tops the list with a staggering 88.6% of its exports conducted by foreign-owned firms, followed by Ireland at 79.1% and the Netherlands at 63.7%, while domestically controlled businesses remain predominant in Denmark, Finland, Malta, and France.

Conclusion: A Globalized Service Sector

The Eurostat data highlights the pivotal role of international ownership and investment in shaping the EU’s service export dynamics. For Cyprus, a smaller economy with a vibrant cross-border service trade, the active participation of foreign-controlled companies not only enhances its market presence but also reflects a broader trend of globalized enterprise operations driving economic growth across Europe.

The Future Forbes Realty Global Properties

Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

by THEFUTURE.TEAM

June 26, 2026

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.