Category: Cyprus News Agency

Foreign direct investment (FDI) in Cyprus remained in negative territory in 2024, despite an improvement in net transactions and stronger returns, according to the latest annual FDI report published Thursday by the Central Bank of Cyprus (CBC).

Based on data compiled by the CBC’s Statistics Department in line with IMF and EU statistical standards, net FDI stock declined further to pound -41.9 billion in 2024, from pound -34.9 billion in 2023. The negative balance reflects the fact that inward FDI stock continued to exceed outward FDI stock, underlining Cyprus’ role as a major investment hub with significant cross-border financial activity.

Transactions improve but remain negative

Net FDI transactions, while still negative, showed a notable improvement. In 2024, net transactions amounted to pound -5.1 billion, roughly half the pound -10.4 billion recorded a year earlier, marking the sixth consecutive year of negative net flows but suggesting some stabilisation in investment movements.

According to the CBC, outward FDI stock fell sharply in 2024 to pound 331.8 billion from pound 366.0 billion in 2023, mainly due to a reduction in equity instruments. Inward FDI stock also declined, to pound 373.6 billion from pound 400.9 billion, driven largely by lower equity positions, although debt instruments recorded a slight increase. Equity continued to dominate both inward and outward FDI, accounting for around 90% of total positions.

Role of special purpose entities

The CBC notes that the parallel movements in inward and outward FDI stocks largely reflect the significant presence of special purpose entities (SPEs) in Cyprus. These entities, which have limited interaction with the domestic economy, tend to hold assets and liabilities of similar size vis-à-vis non-residents, resulting in mirrored movements on both sides of the balance sheet.

When SPEs are treated as non-residents for analytical purposes, net FDI stock falls even further, to pound -50.3 billion in 2024, from pound -42.7 billion in 2023. Under this adjusted view, inward FDI stock stood at pound 75.0 billion, while outward FDI stock amounted to just pound 24.7 billion.

Returns strengthen despite weaker positions

Despite weaker positions, profitability improved. Net income from FDI remained negative at pound -3.4 billion in 2024, as income paid on inward investment exceeded income earned on outward investment. However, both inward and outward rates of return strengthened to 7.8% in 2024, up from 6.7% in 2023. The CBC points to a near-perfect correlation between inward and outward returns over recent years, again reflecting the structure of SPEs.

Europe dominates regional FDI links

Regionally, Europe continued to dominate Cyprus’s FDI landscape. In 2024, outward FDI stock to Europe amounted to pound 202.6 billion, down from pound 227.6 billion a year earlier, while inward FDI stock from Europe declined to pound 295.3 billion from pound 321.3 billion. America remained the second most important partner, with outward FDI stock of pound 60.0 billion and inward stock of pound 73.2 billion.

At country level, Russia remained the largest partner for both inward and outward FDI stocks, followed by the United States, Luxembourg and the United Kingdom. Although Cyprus maintains investment links with many countries-at least 146 destinations for outward FDI and 176 sources of inward FDI-more than 60% of total allocated FDI stock is concentrated in the top ten partner countries.

For the first time, the CBC report also includes analysis by ultimate investing economy, which aims to identify the ‘true’ origin of inward FDI rather than the immediate source. Under this approach, Europe again emerged as the leading region, accounting for pound 212.9 billion of inward FDI stock in 2024, followed by America with pound 87.3 billion. Asia’s share appeared more significant under this methodology than in standard inward FDI statistics.

Services sector continues to dominate

In terms of economic activity, FDI remained overwhelmingly concentrated in the tertiary sector. Inward FDI stock in services reached pound 367.3 billion in 2024, down from pound 395.2 billion in 2023, with financial and insurance activities accounting for the bulk of investment. Outward FDI showed a similar pattern, with pound 216.0 billion directed to the tertiary sector, reflecting Cyprus’s long-standing specialisation in financial services.

The Supreme Court ruled on Thursday to lift the parliamentary immunity of Democratic Rally MP Nikos Sykas, paving the way for a full investigation into a case involving alleged violence against his partner.

The Supreme Court accepted the request of the Attorney General to interrogate the MP for the offenses under investigation, ruling that there are ‘genuine and serious reasons’ of public interest and that there are no political or partisan interests behind it.

The decision was read by the President of the Supreme Court, Katerina Stamatiou, underlining the seriousness of the offenses under investigation.

‘The decision is unanimous. The offenses being examined against the defendant in the application are serious” she said reading out the decision.

The President of the Court noted that the offenses being investigated do not appear to have any connection with the political or parliamentary activity of the Member of Parliament, inside or outside the Parliament, nor has there been any relevant suggestion towards this direction.

The Court placed particular emphasis on the principles of the rule of law.

‘The principles of the rule of law dictate equality of citizens’, it says, adding that ‘everyone is equal before the law regardless of status.’

Formulating a bilateral agreement between Cyprus and Israel on the management of the “Aphroditi – Ishai” natural gas field appears to be at the final stages, reliable sources told CNA on Thursday, noting at the same time that a delegation from Israel is expected to visit the island within January for intensive negotiations.

In particular the same sources said that the final draft, which includes the Israeli side’s comments has been sent to Cyprus as was determined during the last meeting between delegations of the two countries which took place in Israel last December.

“Aiming for substantive progress in the process, the arrival of an Israeli delegation is expected in Cyprus for intensive negotiations, an element which indicates that we have reached the final stage of formulating an intergovernmental agreement between the Republic of Cyprus and Israel on the management of the “Aphroditi – Ishai” reserve,” they noted.

CYPRUS DEPARTMENT OF METEOROLOGY

FORECAST FOR THE SEA AREA OF CYPRUS (B)

FOR THE PERIOD FROM 1200 15/01/2026 UNTIL 1200 16/01/2026

Area covered is 8 kilometers seawards.

Winds are in BEAUFORT scale. Times are local times.

Atmospheric pressure at the time of issue: 1025hPa (hectopascal)

Weak high pressure is affecting the area. The weather will be mainly fine with locally increased cloud coverage at times. Tomorrow morning, isolated showers are likely over the west and the north.

Visibility: Good

Sea surface temperature: 19°C

Warnings: NIL

AREA PERIOD WIND STATE OF SEA

West Coast

Afternoon Southwest to Northwest 3, locally 3 to 4 Smooth to Slight

Night Northeast 3 Smooth to Slight

Morning Northeast 3, gradually Southeast to Southwest Smooth to Slight

South Coast

Afternoon Southeast to Southwest 3 Smooth to Slight

Night Northwest to Northeast 3 Smooth to Slight

Morning Northwest to Northeast 3, gradually Southeast to Southwest Smooth to Slight

East Coast

Afternoon Northeast to Southeast 3, locally Southwest to West Smooth to Slight

Night West to Northwest 3 Smooth to Slight

Morning West to Northwest 3, soon locally Variable Smooth to Slight

North Coast

Afternoon Southwest to Northwest 3 Smooth to Slight

Night Southeast to Southwest 3 Smooth to Slight

Morning Southeast to Southwest 3, soon locally 3 to 4 Smooth to Slight

President of the House of Representatives Annita Demetriou received on Thursday Deputy Prime Minister and Minister of Digital Affairs of Poland, Krzysztof Gawkowski, who is paying Cyprus an official visit at the invitation of Deputy Minister of Research, Innovation and Digital Policy, Nikodemos Damianou.

According to a press release by the Parliament, Demetriou underlined during their meeting the importance that Cyprus attributes to the fact that it holds the Presidency of the Council of the European Union this current semester, noting that digital transformation is high on the European agenda. In this context, she highlighted the need to establish a modern and effective legislative framework.

Referring to the Cyprus problem, Demetriou stressed that the ongoing Turkish occupation of part of the territory of the Republic of Cyprus deprives thousands of Cypriot citizens of the right to enjoy their properties in the occupied areas. She underlined the commitment of the Greek Cypriot side to the goal of resuming talks to achieve a just and sustainable solution in accordance with the relevant UN resolutions and the principles and values of the EU.

In his remarks, Gawkowski referred to Poland’s priorities in the field of digital policy and stressed the importance of coordination between EU Member States in addressing common challenges, in particular on issues of cybersecurity and digital resilience.

He also referred to the hybrid attacks that his country’s critical infrastructure is facing, as well as to the migration challenges of his country as a result of the Russian invasion of Ukraine.

Finally, he expressed his country’s appreciation for the initiative of the Republic of Cyprus to transport humanitarian aid to the Palestinians in Gaza.

The importance of effective implementation and supervision of the EU regulatory framework on fake news, disinformation and propaganda was discussed on Thursday at a meeting House President Annita Demetriou had with European Commissioner responsible for democracy, justice, the rule of law and consumer protection Michael McGrath.

The meeting took place on the sidelines of a Conference titled ‘In the Age of Artificial Intelligence: Opportunities and Challenges’, organized by the House of Representatives, in the context of the parliamentary dimension of the Cyprus EU Presidency. Commissioner McGrath was one of the keynote speakers.

According to a House announcement, referring to social media and the spread of fake news, disinformation, propaganda and foreign interventions aimed at influencing electoral processes, Demetriou underlined the EU’s obligation to protect every European citizen, especially young people, from these threats.

She also stressed that the regulations promoted at the EU level to further strengthen the legislative framework aimed at protection, accountability and transparency must be proactive and targeted.

Demetriou noted the importance that the House of Representatives attaches to safeguarding European values, democracy and the rule of law and to the need to promote participation and strengthen citizens’ trust in democratic institutions.

Commissioner McGrath referred to the existing regulatory framework at EU level, highlighting the necessary reforms to further strengthen institutional protection, fairness and transparency.

He also stressed the importance of effective implementation and supervision of this framework at member state level.

15-01-2026

Plenary session

Briefing

Newsletter – 19-22 January 2026 – Strasbourg plenary session

December European Council debrief and vote on Ukraine loan

On Wednesday MEPs will debate the results of the December EU summit and a stronger and more sovereign EU amid rising geopolitical tensions with Presidents Costa and von der Leyen.

Support for Greenland’s territorial integrity and sovereignty

On Tuesday MEPs will discuss the EU’s response to President Trump’s claims on Greenland.

Widespread demonstrations in Iran and the harsh crackdown

On Tuesday, MEPs will debate the recent events in Iran, where authorities have been responding with massive force to nationwide protests that have erupted in recent weeks.

EU-US relations

In a vote on Wednesday, MEPs will assess the state of EU-US relations, calling for a more resilient EU better able to act strategically on its own.

The situation in Venezuela

On Tuesday, MEPs will debate the situation in Venezuela following the abduction of ex-President Nicolás Maduro and the need to ensure a peaceful democratic transition.

EU-Mercosur: request for Court of Justice opinions, and motion of censure

On Wednesday, MEPs will decide whether to seek the European Court of Justice’s opinion on the compatibility of the EU-Mercosur deals with the EU Treaties.

Review of the EU’s foreign, security and defence policies in 2025

The EU’s visibility and political influence does not reflect its global economic and financial importance, warn MEPs, calling on the EU to defend its interests.

Fighting to preserve air passenger rights

MEPs will vote on Wednesday on an update to the rights of air travellers facing flight disruptions, to ensure compensation after a three-hour delay.

Tackling AI deepfakes and sexual exploitation on social media

In a debate on Tuesday, Parliament is expected to call for stronger and faster enforcement of EU laws to prevent AI tools from creating illegal sexual content.

President Christodoulides to present Cyprus Council Presidency priorities

On Tuesday, at 10.30 CET, MEPs will discuss the programme of Cyprus’s six-month Council Presidency, which began on 1 January, with the President of the Republic of Cyprus.

EU Cybersecurity Act

The revision of the EU’s cyber protection regime, to be presented by the Commission on Tuesday, addresses the growth and complexity of the cyber threat ecosystem.

Tackling critical medicine shortages

On Tuesday, Parliament will adopt its position for talks with Council on enhancing the EU availability and supply of key medicines, such as antibiotics, insulin and vaccines.

EU-India relations

On Wednesday, MEPs and the Commission will debate the upcoming EU-India summit and the future of bilateral trade and investment relations.

The 40th anniversary of Spain and Portugal joining the EU

His Majesty Felipe VI, King of Spain, and Portuguese President Marcelo Rebelo de Sousa will address MEPs on Wednesday at 12.00 during a formal sitting.

Competitiveness: new ’28th regime’ for innovative companies

Following a debate on Monday, MEPs will outline proposals for new legislation to support innovative companies, known as the ’28th regime’, in a vote on Tuesday.

Global backsliding in human rights and democracy in 2025

MEPs will debate on Tuesday and vote on Wednesday on their 2025 report on human rights and democracy in the world. The text calls for action to remedy their sharp decline.

Resolutions on human rights and democracy

Parliament will hold urgent debates on the following human rights, democracy and rule of law topics on Wednesday afternoon, followed by votes on Thursday.

Other topics on the agenda

Other topics on the agenda

Further information

Draft agenda

Follow the plenary live

Press conferences and other events

EP Multimedia Centre

European Parliament Press Tool Kit

A 28% decrease in new applications for international protection was recorded in October 2025 compared with the same month of the previous year, according to data published on Thursday by the European Statistical Office (Eurostat).

Specifically, EU member states received a total of 62,010 asylum applications from people originating from non-EU countries, compared with 86,470 in October 2024 and 58,495 in September 2025 (an increase of 6%).

In October 2025, there were 13.8 first-time asylum applicants per hundred thousand inhabitants in the EU. Compared with the population of each EU member state (as of 1 January 2025), the highest rates of applicants were recorded in Greece (58.1), followed by Cyprus (33.9) and Spain (26.3).

Countries of origin

At EU level in October 2025, Venezuelans constituted the largest group of people seeking asylum (8,140 first-time applicants), followed by Afghans (5,920), Bangladeshis (3,400) and Syrians (2,915).

At the same time, Spain, Italy, France and Germany received 74% of first-time applicants. More specifically, Spain received 12,885 applications in absolute numbers, Italy 12,650, France 11,245 and Germany 8,815.

1,710 unaccompanied minors applied for asylum

During the same period, a total of 1,710 unaccompanied minors applied for asylum for the first time in the EU. The highest numbers of unaccompanied minors came from Somalia (245), Egypt (215), Eritrea (200), Afghanistan (190) and Venezuela (180).

The EU countries that received the highest number of asylum applications from unaccompanied minors were the Netherlands (350), Greece (325), Germany (245) and Spain (215).

Building activity in Cyprus recorded an upward trend in the January-September 2025 period, with the number of building permits increasing by 2.7% year-on-year, according to data released by the Cyprus Statistical Service on Thursday.

A total of 5,635 building permits were issued during the period, compared with 5,485 in the corresponding period of 2024. The total value of permits increased by 18.2% to pound 2.76 billion, while the total covered area rose by 21.9% to 2.26 million square metres.

The residential sector showed particularly strong performance. Permits for residential buildings reached 4,223, marking an increase of 14.6%. The total covered area of residential buildings rose by 26.2%, while their total value increased by 22.3%. The number of housing units recorded a significant rise of 22.9%, reaching 10,820. The largest increases were observed in apartment buildings (up 29.4%) and single houses (up 28.6%), while a sharp decline was recorded in mixed-use apartment buildings (-60.3%).

In contrast, non-residential buildings recorded a decline in the number of permits, down 36.5%, despite a modest increase in total covered area (4.2%) and value (16.2%). A downward trend was also noted in road construction, both in terms of the number of permits issued (-50.9%) and their total value (-57.9%).

On a monthly basis, 793 building permits were issued in September 2025, with a total value of pound 319.5 million and a total covered area of 257.3 thousand square metres. These permits provide for the construction of 1,545 housing units.

It is noted that as of 1 July 2024, responsibility for issuing building permits was transferred from municipalities and district administrations to the newly established District Local Government Organisations (DLGOs), with licensing procedures carried out through the new integrated information system ‘Hippodamos’, a development expected to gradually affect the speed and transparency of the permitting process.

The European Commission has announced the launch of the EU Scholarship Programme for the Turkish Cypriot community for the 2026/27 Academic Year, funded under the EU Aid Programme.

In a press release, it says that with a budget of pound 2.5 million per academic year, the Programme continues to open pathways to education, training, and professional development for members of the Turkish Cypriot community across a wide range of academic and vocational fields within the European Union.

With this allocation, the total funding dedicated to the Programme since its establishment has reached pound 43 million, underlining the European Union’s long-term commitment to education and skills development.

It notes that the EU Scholarship Programme supports individuals at different stages of their educational and professional journeys, enabling them to gain academic qualifications, develop professional skills, and build experience in EU Member States.

By investing in education and skills, the Programme “seeks to enhance employability, contribute to addressing skills gaps in the labour market, and support the long-term contribution of beneficiaries to their communities.”

As the 2025/26 Academic Year progresses, around 120 Turkish Cypriot scholars are pursuing studies in 19 EU Member States, with the scholarship process still ongoing. Fields of study include innovative and special education, artificial intelligence and robotics, sustainable renovation, sustainable development, environmental sciences, human rights, and EU languages such as French, Spanish, and German. These disciplines equip participants with the academic and professional skills needed to engage confidently with opportunities across Europe.

Beyond the scholarship period, the Programme promotes continued engagement through its Alumni Connect Initiative, which has brought together approximately 2,450 beneficiaries since 2007. The initiative strengthens professional networks, encourages collaboration, and supports knowledge exchange and lifelong learning, extending the impact of the Programme well beyond individual study periods.

Applications for the 2026/27 Academic Year are open until 24 March 2026 at 23:59 (Cyprus time) and must be submitted online via www.euburs.eu.

For further information, at www.euburs.eu or at euscholarships-cyprus@goethe.de. The EU Scholarship Programme is fully funded by the European Union and has been implemented by the Goethe-Institut since 2022.