Dorita Yiannakou
Despite international challenges, Cyprus’s shipping sector demonstrated resilience in 2025, maintaining a 7% contribution to the country’s GDP and employing more than 9,000 people onshore, as well as 80,000 seafarers on vessels managed by Cyprus-based companies.
Assuming the Presidency of the Council of the European Union in the first half of 2026 presents an opportunity to strengthen Cyprus’s international profile as a reliable maritime hub and advance initiatives that will benefit the sector, according to officials.
The Cyprus Shipping Chamber has stressed the urgent need for full implementation of the specialized One-Stop Shipping Centre at the Deputy Ministry of Shipping, designed to streamline administrative procedures for the industry.
Strategic role in the economy
Cyprus’s shipping sector continues to play a strategic role in the national economy and on the international maritime stage. Data show it remains the country’s most globalized sector, contributing around 7% of GDP while strengthening its competitiveness.
Adapting to changing conditions, investing in innovation, and fostering collaboration at both corporate and state levels will determine whether the sector maintains its leadership in an unstable global environment.
Global ranking and economic impact
According to the United Nations Conference on Trade and Development (UNCTAD), as of Jan. 1, 2025, Cyprus ranked 12th worldwide in terms of fleet capacity and flag. Revenue from ship management services reached €978 million in the first half of 2025, representing 5.5% of half-year GDP.
The industry continues to support employment in Cyprus while enhancing the country’s reputation as a reliable maritime center.
EU presidency opportunities
Cyprus’s upcoming EU Council Presidency is expected to bring new momentum to the sector. The presidency will allow the country to showcase the strategic importance of shipping for national and European competitiveness, the green transition, and energy security, said Alexandros Iosefidis, director general of the Cyprus Shipping Chamber.
Through the presidency, Cyprus can promote investments in clean fuel production, utilize revenues from the EU Emissions Trading System for the shipping sector’s green transition, and strengthen the implementation of the European Maritime Industrial Strategy, ensuring internationally harmonized rules that maintain a level playing field.
Reforms and policies
Authorities have called for accelerated reforms and policies to maintain Cyprus as a hub for investment and innovation. Full implementation of the One-Stop Shipping Centre is seen as critical to simplifying procedures, enhancing competitiveness, and improving the business environment.
The Shipping Chamber has also promoted a monitoring mechanism to ensure investment-friendly regulations and has supported legislation exempting direct foreign investment in vessels from certain legal requirements.
Challenges ahead
2025 brought increased maritime security threats, including rising pirate attacks in the Gulf of Aden, West Africa, and the Red Sea. International and Cypriot organizations have emphasized the importance of protecting free navigation and the safety of seafarers and vessels in high-risk areas.
Reducing emissions in shipping remains the sector’s biggest long-term challenge. Authorities stress the need for a clear, realistic, global regulatory framework, coordinated under the International Maritime Organization, to guide the transition. Cyprus plans to reinvest shipping revenues in initiatives to support decarbonization, with the Shipping Chamber working with the Deputy Ministry of Shipping to develop funding mechanisms for companies.
