Saudi Arabia and Cyprus are forging stronger ties in transport, with Saudi Transport Minister Saleh Bin Nasser Al-Jasser exploring port and cruise service collaborations during a recent visit to Cyprus. Amidst a booming economy that saw a 3.6% growth in the second quarter of 2024, Cyprus is enhancing its energy sector with major investments in the Aphrodite gas field, signaling a bright future for both nations.
What are the recent developments in the cooperation between Saudi Arabia and Cyprus in transport and economy?
- Saudi Arabian and Cypriot officials discuss enhancing port and cruise services to strengthen bilateral relations.
- Cyprus’s economy grew by 3.6% in the second quarter of 2024, with significant contributions from the construction sector.
- Aphrodite gas field development progresses with major energy companies investing, boosting Cyprus’s economic zone confidence.
- Retail and industrial sectors in Cyprus show growth, with positive trends in trade turnover and the Producer Prices Index.
- Banking sector shows strength as Bank of Cyprus completes nearly half of its share buyback program.
Enhancing Port Operations and Cruise Services
During a recent visit to the DP World Limassol’s general cargo and cruise terminal, Saudi Arabian Transport Minister Saleh Bin Nasser Al-Jasser discussed potential collaborations with his Cypriot counterparts. Transport Minister Alexis Vafeades and Deputy Minister of Shipping Marina Hadjimanolis showcased the facilities, underscoring Cyprus’s commitment to fostering strong bilateral relations with Saudi Arabia. The discussions focused on mutual interests and ways to bolster the connection between the two nations, especially in transport and shipping operations.
Following the visit, Minister Al-Jasser extolled the meeting’s positive atmosphere and the hospitality extended by the Cypriot officials. The two countries, which already maintain solid ties, are both active participants in the International Maritime Organisation, working together to advance their shared interests within the international transportation community.
Banking Sector and Economic Indicators
The Bank of Cyprus recently announced a significant milestone, having completed about 41% of its maximum share buyback program as of August’s end. With nearly half of the program fulfilled, the bank’s total issued share capital stands at 443,894,907 ordinary shares, each with a €0.10 nominal value. Shareholders are now equipped with the necessary figures to report changes in their stakes per the bank’s latest disclosure.
In other economic news, Cyprus Statistical Service revealed that the island’s economy expanded by 3.6% in the second quarter of 2024 when compared with the previous year. This growth is slightly higher when adjusted for seasonal and working-day variations, pegging the GDP growth rate at 3.7%. Contributing significantly to this uptick, the construction sector boasted a robust growth rate of 10.4%, signaling a vigorous economic environment.
Energy Sector Advancements
Moving to the energy sector, President Nikos Christodoulides optimistically addressed the progress of the Aphrodite gas field development plan, remarking that the modification proposal, estimated at a $4 billion investment, aligns well with the Republic of Cyprus’ strategy. Major players in the energy market, like NewMed Energy, Chevron, and Shell, are contributing to this plan, with Chevron’s involvement especially seen as a confidence boost for Cyprus’s exclusive economic zone. President Christodoulides is poised to engage in further discussions with Chevron representatives during his upcoming visit to New York for the UN General Assembly.
Simultaneously, Christodoulides shed light on the ongoing negotiations for the Great Sea Interconnector project. Engaging with Greece, the European Commission, and the European Investment Bank, the president emphasized the government’s commitment to ensuring the project’s financial viability while prioritizing affordable electricity for consumers.
Retail and Industry Indexes Showcase Growth
The retail sector in Cyprus has also experienced positive trends, with Cystat’s latest report indicating a 3.4% increase in the retail trade turnover value index in July compared to the same month the previous year. The sector’s volume index saw a more modest 1.2% rise, with supermarkets and specialized food, beverages, and tobacco stores experiencing notable gains.
In the realm of industrial production, the Producer Prices Index edged up by 0.9% in July from the prior month, reaching 124.2 points. This increment reflects a varied performance across different sectors, such as stability in mining and quarrying, and gains in electricity supply and manufacturing. Despite this monthly hike, the year-on-year comparison to July of the previous year shows a slight 0.3% dip.
Lastly, the Cyprus Stock Exchange (CSE) showcased a buoyant start to September, with its general index and the FTSE/CySE 20 Index both marking gains. Banking shares, particularly from Bank of Cyprus and Hellenic Bank, drew significant investment interest, hinting at investor confidence in the Cypriot economy’s direction.
With these developments across various sectors, Cyprus continues to demonstrate resilience and adaptability in its economy, fostering growth and seeking new partnerships on the international stage.
FAQ
What recent developments have occurred in the cooperation between Saudi Arabia and Cyprus regarding transport?
During a recent visit to Cyprus, Saudi Transport Minister Saleh Bin Nasser Al-Jasser engaged in discussions with Cypriot officials to enhance port and cruise service collaborations. The meetings highlighted the strong bilateral relations between the two nations, focusing on mutual interests in transport and shipping operations. This initiative aligns with Cyprus’s broader economic growth, which saw a 3.6% increase in the second quarter of 2024.
How is Cyprus’s economy performing, and what sectors are contributing to its growth?
Cyprus’s economy has shown robust performance, expanding by 3.6% in the second quarter of 2024, largely driven by the construction sector, which experienced a notable growth rate of 10.4%. Additionally, the retail and industrial sectors have demonstrated positive trends, with the retail trade turnover value index rising by 3.4% in July compared to the previous year. The banking sector has also shown strength, with the Bank of Cyprus completing a significant portion of its share buyback program.
What advancements are being made in the energy sector in Cyprus?
Cyprus is actively advancing its energy sector, particularly with the development of the Aphrodite gas field, which involves a proposed $4 billion investment. Major energy companies such as NewMed Energy, Chevron, and Shell are participating in this project, boosting confidence in Cyprus’s exclusive economic zone. Additionally, President Nikos Christodoulides is pursuing discussions for the Great Sea Interconnector project, which aims to enhance electricity affordability for consumers.
How are the retail and industrial sectors performing in Cyprus?
The retail sector in Cyprus has shown a positive trajectory, with a 3.4% increase in the retail trade turnover value index reported for July compared to the same month last year. The volume index also saw a modest rise of 1.2%. In the industrial sector, the Producer Prices Index increased by 0.9% from the previous month, though it slightly dipped by 0.3% year-on-year. Overall, these indicators reflect a resilient economy with steady growth and adaptability.
