AGP Executive Report

Fintech & Payments: Cyprus is accelerating into cashless life, with card payments making up 74.5% of non-cash transactions in H1 2025, as banks and fintech push mobile banking, digital wallets and new payment tools. Banking Reshuffle: ECB data shows Cyprus banks shut 370 branches and cut 4,634 jobs over the decade to 2025, with everyday services shifting toward e-banking and ATMs. Startup Ecosystem: A Cyprus Mail interview argues the island’s deep-tech and applied AI momentum is rising, but founder risk-taking and access to capital still lag. Innovation Event in Nicosia: Amazon executive Panos Panay headlines a June 17 fireside chat on turning innovation into real-world impact during the EU digital and AI-focused Cyprus Presidency programme. Defence Industry (SAFE): Cyprus backs EU moves to let Canada join the €150bn Security Action for Europe procurement scheme, while Cyprus-France cooperation is framed as potentially worth ~€800m. Energy & Gas Links: ExxonMobil and QatarEnergy outline a path to monetize Cyprus offshore gas via Egypt processing routes, echoing earlier Cronos/Aphrodite-to-Egypt frameworks. Local Tech Infrastructure: TEPAK plans a €104m second campus on the old Limassol Hospital site, expanding health sciences and learning facilities. Transport Pressure: Limassol traffic is now flagged as a business risk, with some high-tech firms reportedly reconsidering staying. Environment & Biosecurity: Greece’s pufferfish invasion is worsening catches, a reminder for the region as warming seas reshape ecosystems. Deep-Tech Support: CEA’s Laurence Petit tells Cyprus that team building is the biggest bottleneck when turning lab research into deep-tech companies.

Cyprus–France Defence Industry: Cyprus is set to deepen defence industrial cooperation with France under the EU SAFE mechanism, with programmes reportedly worth around €800m and linked to a new SOFA framework that could expand facilities such as Mari. Digital Finance: Cyprus is seeing a sharp rise in digital payments as fintech and mobile banking reshape everyday banking, with the Central Bank of Cyprus pushing for a safe, supervised environment. Agriculture & Biosecurity: A decade after the prickly pear cochineal was first detected, Cyprus still faces major unknowns about how far the invasive insect has spread and whether control measures can stop it becoming island-wide. Energy Research & Cybersecurity: Israel, Greece, Cyprus and the US have launched the East Med Energy Center, aiming to boost energy security, cybersecurity and critical-infrastructure protection through joint research and policy work. Public Health: Cyprus unveiled a national blood strategy to improve blood adequacy, quality and donor/recipient safety, including better monitoring and use of modern technology. STEM & Education: Cypriot students won top honours at a European robotics competition in Prague, adding to a busy week for local tech talent. Markets Oversight: CySEC issued a warning about an unauthorised investment platform, reminding investors to check regulatory status before committing funds.

Eastern Mediterranean Energy: Israel, Greece, Cyprus and the US have launched the East Med Energy Center, aiming to boost energy security, cybersecurity and protection of critical infrastructure, with joint research and policy coordination expected to follow. Cyprus Health Policy: Cyprus unveiled a national blood strategy to improve patient safety, blood adequacy and quality, and to modernize stock monitoring and coordination across services. Local Science & Innovation: Cyprus’ agriculture ministry is still tracking the invasive prickly pear cochineal insect, first confirmed in 2016, as questions remain over how far it has spread and whether control measures are working. Regional Tech & Research: A new Eastern Mediterranean Energy Center declaration of intent was signed at Rice University to support natural gas and LNG development plus research and innovation across the four partner countries. Education & STEM: Cypriot students won top honours at a European robotics competition in Prague, adding to a busy week of STEM wins. Markets & Regulation: CySEC issued a warning about an unauthorised investment platform, reminding investors to check licensing before putting money in.

Eastern Mediterranean Energy Push: Cyprus, Greece, Israel and the US have agreed to launch the Eastern Mediterranean Energy Center at Rice University in Houston, with a focus on natural gas, LNG infrastructure, grid reliability, cybersecurity and critical-infrastructure protection, plus research and workforce training. EU Research Funding Watch: Cyprus’ EU presidency proposal for the next budget includes cuts that would reduce Horizon Europe by about €7bn (nearly 4%), drawing warnings from university groups that it could hurt Europe’s competitiveness and innovation. Urban Planning in Nicosia: The 2026 URBACT City Festival will bring hundreds of European municipalities and urban practitioners to Eleftheria Square on Sept 29–30, with sessions on climate action, participatory governance, social cohesion and nature-based solutions. Health Policy: Cyprus unveiled a national blood strategy aimed at improving patient safety, blood adequacy and quality, and better coordination using modern technology—especially important given thalassaemia and other chronic transfusion needs. Markets & Regulation: CySEC issued a warning about an unauthorised investment platform, urging caution as supervision tightens across EU financial rules. Local Tech & Innovation: Cyprus promotes tech credentials at an international summit in Dublin, while Nicosia’s digital futures week is set to bring civic voices into policy discussions.

Cyprus Health Policy: Cyprus unveiled its National Blood Strategy to improve patient safety, blood adequacy and quality, and better donor/recipient protection—especially crucial given thalassaemia and sickle cell transfusion needs. Eastern Mediterranean Energy Tech: Cyprus, Greece, Israel and the US launched the East Med Energy Center at Rice University, aiming to boost natural gas development, cybersecurity, critical infrastructure protection, and workforce training. EU Research Funding: The Cypriot EU presidency’s proposed budget “negotiating box” would cut Horizon Europe by €7bn, drawing warnings from university groups that it could hurt Europe’s innovation push. Local Finance Regulation: CySEC issued a warning over unauthorised investment platform j2t.tech, urging investors to check official authorisations. Tech & Innovation Promotion: Cyprus promoted its tech credentials at the Dublin Tech Summit 2026, pitching the island as a base for start-ups and investors. Geopolitics & Defence: A new Cyprus–France SOFA and defence roadmap are sparking debate over whether Cyprus is moving away from neutrality and into higher-risk Western entanglement. Construction Pipeline: Cyprus building permits surged in February, with residential approvals and dwelling units rising sharply year-on-year.

CySEC Warning: Cyprus Securities and Exchange Commission flagged an unauthorised investment platform, warning investors about the website j2t.tech and urging checks against CySEC’s official authorisations. Eastern Mediterranean Energy: The US, Cyprus, Greece and Israel agreed to launch the Eastern Mediterranean Energy Center at Rice University in Houston, aiming to boost natural gas and LNG infrastructure, grid reliability, research and workforce training. Research Funding Pressure: Cyprus’ EU presidency proposal would cut Horizon Europe by about €7bn (nearly 4%), drawing university groups’ criticism that it undermines Europe’s competitiveness and innovation. Tech & Innovation Push: Cyprus promoted its tech credentials at the Dublin Tech Summit 2026, pitching the island as a base for start-ups, digital services and investors. Marine Tech Demo: A robotics project in Dubrovnik Bay showed how coordinated aerial, surface and underwater systems can detect and remove marine litter, with Cyprus-based ISOTECH involved in workshops. Environment & UNESCO: Cyprus is preparing a UNESCO biosphere reserve nomination for the Xeros and Diarizos river valleys, linking conservation with community and sustainable development. Pharma Milestone: Medochemie marked 50 years since its Limassol start, highlighting decades of expansion into a global pharmaceutical exporter. Construction Signals: Cyprus building permits rose sharply in February, with more residential approvals pointing to a strengthening development pipeline.

Space & Earth Observation: Cyprus is rolling out EarthView Cyprus, a partnership between ERATOSTHENES and Cyta, to turn near real-time satellite data into practical tools for wildfire, drought, maritime monitoring and smarter farming. Energy Diplomacy: The US, Cyprus, Greece and Israel have launched the Eastern Mediterranean Energy Center in Houston and agreed a cooperation roadmap, including a new working group on cybersecurity and physical protection of critical infrastructure. EU Policy: The EU Pact on Migration and Asylum starts applying on 12 June, with the Commission pointing to new border tech and faster returns as it tries to balance solidarity and responsibility. Environment & UNESCO: The Xeros and Diarizos river valleys are set to become Cyprus’ first UNESCO biosphere reserve areas, with a nomination dossier planned and a focus on conservation alongside community development. Digital Cooperation: Cyprus’ Digital Cooperation Organisation has launched a Global Expert Community to mobilise specialists and speed up high-impact digital initiatives across member states. Markets & Regulation: ESMA and CySEC are pushing for stronger EU-level supervision as capital markets get more cross-border and tech-driven, including crypto and AI. Local Tech Milestone: Cyprus is set to get its first crematorium after Golden Leaves received its final planning permit, with construction targeted to start in 2026/27.

Clean Energy Finance: Cypress Creek Energy secured $3.5bn to expand Arkansas’ Steel River Energy Center with 1.63GW solar and 1.9GWh battery storage, aiming for full build-out by 2029. Digital Public Services: Cyprus police launched DigiPol on gov.cy, letting citizens request over 30 services online and track applications without visiting stations. Health Tech & Law: Cyprus’ Bar and Medical Associations held a law-and-medicine conference in Nicosia, focusing on patient rights, health data, bioethics and AI in healthcare. EU Budget Talks: Cyprus’ EU presidency proposed a 2% cut for the 2028-2034 budget (about €32.8bn), shaping negotiations on defence, competitiveness, farming and cohesion. Carbon Cost Shield: EU lawmakers agreed to strengthen a “market stability reserve” to curb ETS2-driven heating and fuel price spikes from 2028. Maritime Tech Connectivity: Eutelsat and Tototheo Global will distribute OneWeb LEO for secure, low-latency connectivity to shipping across Greece and Cyprus. Cybersecurity for Ships: Navarino launched Ozora, a fully managed cybersecurity service for the maritime sector. Local Tech & Research: UCLan Cyprus hosted the 13th European Conference on Social Media (ECSM 2026), with sessions on AI, misinformation and digital platforms. Cyprus Shipping Economy: The Cyprus Shipping Chamber reported the sector contributed ~€1.9bn (about 7% of GDP) in 2025.

AI Payments: Visa and OpenAI are teaming up to enable secure, permissioned AI-agent payments using Visa tokenisation and real-time fraud monitoring. Digital Inclusion: Cyprus’ gender equality commissioner Josie Christodoulou argues digital inclusion must start with asking who’s missing from policy and tech design. Local Policy & Tech Governance: Ellak launches Cyprus Open Digital Futures Week to close the gap between EU digital policy and everyday public life, from school platforms to interoperable public infrastructure. Health Strategy: Cyprus is preparing its first National Blood Strategy, a five-year plan to strengthen blood collection and transfusion services. Public Health & Care: Hadassah Medical Center is set to open in Limassol on July 1, bringing advanced medicine and diagnostics to Cyprus. Education & Innovation: Cyprus aims to accelerate progress in technology and innovation, while London Tech Week opens with AI adoption and data infrastructure challenges in focus. Defense & Readiness: Cyprus Defence Minister Vasilis Palmas stressed training and morale during the “Dimitra 2026” exercise. Economy Impact: ECB rate hikes could feed into higher mortgage costs for Cypriots.

AI & HPC Push in Cyprus: CITEA says new national AI and high-performance computing infrastructures, including AI Factory Cyprus and Pharos-CY, are opening doors for research, innovation and faster tech adoption. Digital Policy With Citizens: Ellak launches Cyprus Open Digital Futures Week to co-create digital policy with the public, aiming to close the gap between EU-level AI/sovereignty talk and everyday implementation. Public Health & Climate: Cyprus EU-presidency conference warns mosquito-borne diseases are rising across Europe, urging stronger surveillance, lab capacity and mosquito-control under a One Health approach. Banking Tech: Bank of Cyprus adds real-time merchant location and richer transaction details in its app and internet banking, using Snowdrop Solutions tech to improve payment transparency. Healthcare System Planning: Cyprus unveils its first National Blood Strategy, a five-year plan to coordinate blood collection and transfusion services and secure safe supply. EU Policy for Defence: EU Parliament and Council reach a provisional deal on the Defence Readiness Omnibus to speed procurement, simplify cross-border defence processes and support investment. Quantum for Business: Superpositions Studio opens commercial access to its cloud quantum software platform for finance teams to test whether quantum beats classical methods on their own problems.

Banking Innovation: Bank of Cyprus rolled out a real-time merchant location feature in its Mobile App and Internet Banking, showing merchant names/logos and exact payment points on a map to make transactions easier to verify. EU Digital Policy: Cyprus’ EU presidency pushed forward transport and maritime priorities in Luxembourg, while ministers also advanced work on EU digital rules including European business wallets and cybersecurity/digital networks progress. Payments & Compliance Tech: FXBO integrated IDWise to strengthen KYC, fraud prevention and AML inside brokers’ existing CRM workflows, and DECTA was named to The Payments Power 50 2026 for end-to-end payments scale. Maritime Connectivity: Eutelsat and Tototheo Global formalised a partnership to distribute low Earth orbit connectivity for maritime and government users, targeting Greece and Cyprus. Energy Cooperation: Egypt and Cyprus discussed accelerating Aphrodite/Cronos gas projects and broader regional integration, as Kuwait also sought deeper KPC cooperation with Egypt on oil and gas. Local Tech & Regulation: CGCA highlighted Cyprus’ leading role in European gaming regulation at a June 9 press conference, outlining supervision and transparency priorities. Science & Health: UNIC honoured longevity researcher David Sinclair with an honorary PhD, while South Australia’s omega-3 testing programme credits Cypriot-Australian Prof. Maria Makrides. Environment & Water: Mazotos residents protested an €85m desalination plant, arguing rushed studies and potential coastline damage. Space/AI/Research Angle: Cyprus’ push as a hub for space and AI innovation continues to surface alongside broader EU tech sovereignty debates.

EU Border Tech: The EU’s entry/exit system (EES) is fully live across 29 countries, and travellers are already reporting long queues—experts warn waits could reach six hours this summer, with disruption possibly lasting up to two years. Cyprus in Energy Talks: Egypt and Cyprus discussed accelerating Aphrodite and Cronos gas projects, aiming to speed investment decisions and regional integration. Cyprus Finance & Tech Autonomy: Cyprus’ finance minister Makis Keravnos heads to Luxembourg to chair Ecofin, with EU talks also touching on technological autonomy and economic/energy security. Payments & Fintech Recognition: DECTA was named in The Payments Power 50 2026 for end-to-end payments, citing over €1bn in annual transactions. Robotics in the Classroom: Cypriot student teams returned from Robotic Day Prague 2026 with multiple distinctions, including first places in Roadside Assistance and Ketchup House. Maritime Strategy in Brussels: EU member states backed conclusions on the EU maritime industrial strategy and ports strategy, pushing competitiveness, resilience, digitalisation and decarbonisation. Shipping Update: Sallaum Lines took delivery of two new ro-ro PCTCs (Ocean Express and Ocean Navigator) under the Cyprus flag, both LNG dual-fuel. Local Governance & Trust: Cyta held a forum on responsible governance, focusing on moving from corporate governance principles to real-world implementation. Energy Science Spotlight: The 2026 Global Energy Prize shortlist was released, including a Cyprus nominee.

Space & AI Strategy: Cyprus is positioning itself as a hub for space technologies, Earth Observation and AI, with a Nicosia forum pushing “space to solutions” for climate resilience, agriculture, disaster management and security. EU Tech Governance: Ireland’s EU Telecoms ministerial agenda (hosted in Luxembourg under the Cypriot Presidency) spotlights protection of minors online and resilience of subsea cables, alongside progress on the Digital Networks Act and cyber security. Maritime Tech & Policy: Cyprus advanced EU transport and maritime priorities in Luxembourg, including decarbonisation after 2030 and a ports strategy, while shipowners keep investing in digital transformation (Centrofin with Lloyd’s Register). Energy & Environment Research: EMU hosted an international exergy, energy and environment symposium, underlining research-to-industry links for efficiency and sustainability. Food Safety Data Push: Cyprus plans a National Food Safety Authority to coordinate controls and build a unified, data-based national food safety strategy. Local Innovation & Recognition: Eurobank Research was named Cyprus’ top forecaster, and Bank of Cyprus won “best bank” honours from Global Finance. Defense Cooperation: Cyprus and France signed a SOFA to enable French troop deployment under conditions, deepening Eastern Mediterranean operational ties.

Cyprus–Israel–EU security links: A new report argues Cyprus has become a key Eastern Mediterranean partner for Israel, boosting crisis logistics and defence cooperation without being a formal base. Regional energy & innovation: Greece, Cyprus, Israel and the US are set to launch the East Med Energy Center, a permanent platform for energy, technology, innovation and research under the EastMed Act. Nicosia city-centre delivery push: ETEK wants President Christodoulides to personally drive a measurable upgrade of central Nicosia, including a delivery office, faster permitting and incentives to reactivate empty properties. Corporate tax reform impact: C. Savva & Associates outlines how Cyprus’ 2026 corporate tax changes (12.5% to 15%) affect cross-border investors, while noting retained incentives and dividend-related adjustments. Tech & mobility in Europe: Cyprus is among countries backing cross-border autonomous vehicle testing, aiming to speed up coordinated trials across the EU. Space industry tie-up: Vast and ESA (for the Czech Republic) sign an agreement for a private astronaut mission to the ISS, pending approvals. Public health coordination: Cyprus’ EU Council presidency hosts a mosquito-borne diseases conference in Nicosia, focusing on preparedness and cross-border action. Local environment: A sea turtle sighting off Konnos beach highlights nesting season for endangered green and loggerhead turtles. Fintech spotlight: Nicosia-based Mercuryo claims 60th place in Sifted’s Southern Europe fast-growth startup ranking. Financial literacy: The Central Bank of Cyprus will host a June 18 round table on financial literacy, sharing new local research on savings and investment attitudes. Knowledge transfer: RIF’s CKTO marks three years, supporting research commercialisation and training across Cyprus’ innovation ecosystem. AI/space connectivity for travel: Wizz Air plans Starlink internet across its fleet from 2027.

Public Warning System: Cyprus Civil Defence has launched CY-Alert, a new national Public Warning System powered by GCC Computers and Intersec, now fully operational from 2 June. Research-to-market: The Research and Innovation Foundation’s Central Knowledge Transfer Office (CKTO) marks three years, supporting 137 cases and training 13 local Knowledge Transfer Offices to boost commercialisation of research. Local transformation: Paralimni-Deryneia is pushing over €55m in upgrades, including a coastal promenade extension aiming to run 17km from Kapparis to Konnos Beach. Energy and heritage skills: Cyprus’ Office of Public Works won a Europa Nostra Grand Prix for training that helps improve energy efficiency in heritage buildings. AI for education: Cyta-backed AI-XRAY is set to train Cyprus youth and teachers on responsible AI. Sustainability spotlight: Lidl Cyprus renews its green commitment with new results from projects like AKTI coastal and seabed clean-ups and school visits. Animal welfare: Cyprus animal welfare groups suspend Trap-Neuter-Return programmes for stray cats after reports of volunteer abuse and lack of state protection.

Cyprus–India Defence Ties: Cyprus President Nikos Christodoulides’ India visit delivered a new defence cooperation agreement, deepening security, expertise-sharing and regional stability links between the two democracies. Energy & Connectivity: Tototheo and Eutelsat signed up for maritime, enterprise and government connectivity, while Cyprus’ push for stronger climate governance and water security continues alongside wider Eastern Mediterranean corridor talk. AI for Local Problems: NVIDIA’s partnership is set to power a Cyprus supercomputer upgrade, and an AI-XRAY initiative aims to train youth and teachers on responsible AI. Energy Efficiency at Home: A European Commission JRC report says heating and cooling drive ~70% of household energy use in Cyprus, with cooling demand far higher than EU norms; heat pump swaps could cut energy and emissions sharply. Water Saving Drive: Larnaca launched a campaign urging residents to cut daily water use as Cyprus targets self-sufficiency by 2050. Public Safety & Regulation: CySEC fined Limassol forex firms over missing risk warnings in CFD trading ads. Animal Welfare: Cyprus animal groups suspended stray cat sterilisation Trap-Neuter-Return programmes after volunteer attacks and alleged lack of state protection. Heritage & Research: Archaeologists uncovered a major Late Roman defensive wall at ancient Amathous, adding to Cyprus’ excavation momentum.