New Developments in Cyprus: Mergers, Shipping, and Digital Growth

Encouraging Mergers Among SMEs

Cyprus is actively working to stimulate mergers and acquisitions among its small and medium-sized enterprises (SMEs). This initiative aims to foster growth, enhance competitiveness, and drive innovation across various essential sectors. The government’s action plan, which was approved by the Council of Ministers in August 2023, is set to be implemented from 2024 to 2027.

Government Action Plan

During a conference organized by the Cyprus Chamber of Commerce and Industry in collaboration with Hellenic Bank, Finance Minister Makis Keravnos presented this action plan. He indicated that the plan was devised to tackle the persistently low levels of Mergers and Acquisitions (M&A) activity in Cyprus, attributing this issue to the structural characteristics of local businesses.

“M&A in Cyprus are at very low levels, primarily due to the type of businesses, particularly family-owned enterprises in conventional sectors that lack a culture of mergers,” Keravnos remarked.

Challenges in Digital Transformation

In the face of rapid change, businesses must navigate various challenges associated with digital transformation. Marios Kapiris, the Director of Kyndryl—an esteemed global IT services provider with a presence in Cyprus—highlighted the issue of “technical debt.” This term refers to the long-term costs and complexities that arise when organizations opt for quick, short-term technology solutions over more robust, well-structured approaches.

“Ultimately, every business accumulates technical debt as it strives to modernize in today’s swiftly evolving landscape,” Kapiris elaborated. This commentary aligns with the findings of the 2024 Readiness Report by Kyndryl, where technical debt was identified among the top five modernization challenges facing organizations.

Growing Maritime Sector

Cyprus is also stepping up its efforts to strengthen its maritime industry, with President Nikos Christodoulides placing shipping as a key priority for the country during its upcoming EU Council Presidency in 2026. Speaking at the 36th Annual General Meeting of the Cyprus Shipping Chamber in Limassol, President Christodoulides reaffirmed the government’s commitment to supporting the local shipping sector through targeted, sustainable policies.

Milestones in the Maritime Industry

The President acknowledged the Chamber as a pivotal player in establishing Cyprus on the global maritime map since its inception in 1989. Expressing gratitude to Themis Papadopoulos, the outgoing president of the Chamber, he noted that the Cyprus shipping registry has expanded by over 18 percent in the last two years, with the Tonnage Tax System witnessing a 15 percent increase during the same timeframe.

“We’re just getting started,” he stated, pointing to a renewed effort to enhance Cyprus’ appeal as a maritime hub, citing increased interest from international shipping firms following his visit to New York in April.

New Business Support Center

The business community has welcomed the launch of Cyprus’ new Business Support Center, seen as a critical stride toward reducing red tape and facilitating both foreign and domestic investment. Established by President Christodoulides this week, the Center serves as a one-stop solution for companies wishing to establish or expand operations in Cyprus.

At the inauguration, Christodoulides emphasized that this initiative reflects Cyprus’ broader aims to reduce bureaucracy and digitalize public services. “Our objective is a Cyprus with fewer obstacles, making it easier to do business,” he said.

Maritime Heritage and Challenges

According to House President Annita Demetriou, Cyprus’ maritime legacy can only be fully restored when Cypriot-flagged vessels navigate freely from Famagusta and Kyrenia. She expressed support for renewed negotiations concerning Cyprus’ maritime situation, stating that the shipping sector is vital to the economy and a source of national pride.

Demetriou commended Cyprus for maintaining its global reputation in shipping, even amidst geopolitical challenges like the war in Ukraine and unrest in the Middle East. “Cyprus prides itself on being a reliable and stable partner,” she concluded, noting that the country boasts the third-largest merchant fleet in the EU and the 11th largest in the world, employing over 9,000 professionals on land and more than 55,000 seafarers at sea.

Commitment to Compliance and Resilience

Demetriou recognized the swift changes in the global maritime landscape, ensuring that Cyprus remains dedicated to adhering to sanctions and international regulations. She emphasized the responsibility and clarity with which the nation must respond to emerging challenges within the maritime sector.

Annual General Meeting Highlights

The Cyprus Shipping Chamber held its 36th Annual General Meeting in Limassol, attended by senior officials, diplomats, and industry representatives. Addressing the assembly, President Christodoulides praised the Chamber’s role in the continued development of Cyprus’ shipping industry, reiterating the government’s commitment to the sector as a crucial pillar of the national economy.

Financial Success of Aegean Airlines

In other news, Greek airline Aegean reported significant revenue growth and improved performance during the first quarter of 2025, traditionally the slowest period for airlines. The company’s revenue soared to €306.0 million—up by 14 percent from the previous year—while total passenger traffic increased by 8 percent, reaching 3.1 million.

International traffic alone rose by 12 percent, and total available seat kilometers increased by 11 percent to 4.1 billion. The airline also reported an impressive EBITDA of €43.8 million, marking the highest first-quarter performance in Aegean’s history.

Growth of Freedom24

Additionally, the digital investment platform Freedom24, launched just three years ago in Greece, has already surpassed 100,000 active users, becoming a preferred option for a tech-savvy generation of investors interested in managing their capital through modern technology.

George Karageorgos, heading Freedom24’s Greek operations, noted a staggering 71.6 percent growth in their customer base in 2024 alone, with client assets tripling to €330 million. “This significant milestone reflects the rapid growth and trust that Greek investors have in transparent and user-friendly digital investment solutions,” he stated.

Leadership Changes at payabl.

In an important move within the fintech sector, European company payabl. has appointed Christia Evagorou Papamichael as the new deputy group CEO, a step that strengthens its leadership during ongoing European expansion. In her new role, she will collaborate closely with the Group CEO and board to drive long-term planning and execution strategies.

Since her arrival at payabl. earlier this year, Christia has managed corporate operations across legal, compliance, risk, finance, and HR, bringing over 15 years of governance and strategic expertise to her new role.

Conclusion

In summary, Cyprus is poised for growth and innovation through the encouragement of mergers among SMEs, revitalization of the maritime sector, and advancements in digital transformation. The ongoing developments not only enhance the local economy but also position Cyprus as a competitive player on the international stage. As logistics and transportation evolve, GetTransport.com stands ready to offer affordable and reliable solutions globally, catering to various needs such as office relocations, cargo deliveries, or the transportation of bulky goods. The convenience and fairness of GetTransport.com enable users to make fully informed decisions without breaking the bank. Embrace the ease and efficiency of GetTransport.com today—book your ride!