Cyprus Business Now: strategic projects, GDP growth rate, RIF scheme

The director general of the Finance Ministry and the Interior Minister reassured the House internal affairs committee about recent concerns regarding the regulations for facilitating strategic development projects.

During a parliamentary briefing held as part of an ongoing discussion on the new regulatory framework, officials from the finance and interior ministries proposed several modifications to address the committee’s reservations.

Key concerns among committee members centred on the primary funding sources for strategic developments.

Specifically, questions were raised about whether these projects could be financed through loans or share issuance.

Cyprus’ economy grew steadily in the third quarter of 2024, with GDP rising by 3.9 per cent year-on-year, according to a flash estimate released on Thursday by the state’s statistical service.

This growth was primarily driven by robust activity in hotels and restaurants, wholesale and retail trade, repair of motor vehicles, information and communication, and construction.

Moreover, seasonally and working day-adjusted data showed similar growth, with a rate of 3.8 per cent.

In comparison, 2023 recorded slower growth, with GDP increasing by 2.4 per cent in the third quarter and 2.5 per cent in the final quarter of the year.

The Research and Innovation Foundation (RIF) has announced a new funding cycle under its PhD in Industry programme.

According to an official announcement released on Thursday, the new programme will allocate a total of €1.25 million to bolster Cypriot business innovation and competitiveness.

Through this initiative, companies can secure funding of up to €150,000 over three years to employ a PhD student for a research project closely aligned with the company’s objectives.

The aim of the programme is to support scientific talent while driving economic growth.

Cyprus-based software engineering firm Pale Blue recently announced the launch of Eventorio, an event companion app designed to streamline event planning and improve attendee experiences.

Following the launch of the app, Pale Blue co-founder and director Mike Yerou spoke to the Cyprus Mail about Eventorio’s origins, the company’s future plans, and his outlook on the local market.

“From the outset, we prioritised user experience, aiming to make Eventorio intuitive and enjoyable for everyone involved,” he stated.

The Supreme Court on Wednesday ruled that it is not unconstitutional nor a violation of European Union law for the construction of luxury camp sites, also known as ‘glamping’, to be subject to planning permission being granted.

Parliament had passed an amendment to the 2018 law regarding environmental assessment impacts on construction projects in June, moving glamping facilities from the law’s ‘second annex’ to its first.

Projects which fall under the second annex are subject to environmental impact assessment studies if it is deemed necessary due to a range of outside factors, whereas projects which fall under the first annex are subject to such studies regardless of circumstances.

The Cyprus Stock Exchange (CSE) ended Thursday, November 14 with losses.

The general Cyprus Stock Market Index stood at 205.44 points at 13:06, reflecting a decrease of 0.54 per cent.

The FTSE / CySE 20 Index was at 125.12 points, reflecting a drop of 0.56 per cent.

The total value of transactions amounted to €1.03 million at the aforementioned time during trading.

In terms of the sub-indexes, the main, alternative and investment firm indexes fell by 0.71 per cent, 0.17 per cent and 2.27 per cent respectively. The hotel index remained stable.

The biggest investment interest was attracted by Vassiliko Cement Works Public Company (no change), the Bank of Cyprus (+0.44 per cent), Hellenic Bank (-0.46 per cent), Salamis (no change), and Demetra (-2.31 per cent).