The United Arab Emirates proposed a roadmap for the implementation of specific projects aimed at highlighting Cyprus as an energy hub in the wider region and towards Europe, according to sources.
The visit of the President of the UAE, Mohammed bin Zayed Al Nahyan, to the Republic of Cyprus on Sunday, 14 December was preceded by intensive contacts at various levels to identify projects that fall within the UAE’s areas of interest, with government sources stressing that the UAE’s interest in investments in Cyprus is “strong.”
On Saturday, 13 December, the UAE Minister of Foreign Trade held meetings with Ministers to discuss specific investment opportunities and also participated in a business forum organised by the Presidency, the Cyprus Chamber of Commerce and Industry (CCCI), and Invest Cyprus, with the participation of a representative of the UAE Chamber of Commerce, as well as Cypriot and Emirati business people.
According to government sources, energy cooperation appears to be among the UAE’s top priorities for investment in Cyprus, as they submitted a proposal for the formulation of a Comprehensive Strategic Energy Partnership, which would serve as a roadmap for the implementation of specific projects. These projects would not only aim to promote energy initiatives but also to position Cyprus, through cooperation with the UAE, as an energy hub for the wider region and towards the EU, encompassing a broad range of actions, including renewable energy sources, energy storage, natural gas, etc.
Furthermore, according to the same sources, there was a clear willingness to explore specific investment projects, with priority given to the LNG Terminal, which was identified by the UAE as the most mature project, along with their participation in Cyprus’ Exclusive Economic Zone (EEZ), AI-enabled Data Centres, port infrastructure such as the port of Larnaca and the commercial port at Vasiliko.
Interest was also expressed in investments in private-sector mixed-use development projects, subsea data cables, electricity interconnections, renewable energy and storage projects, as well as the technology park in Pentakomo. According to information, the UAE is also expected to study extensively the Invest Cyprus project bank.
Moreover, within the broader framework of the UAE’s interest in investments in the Republic of Cyprus, a Memorandum of Understanding was signed during the business forum between CCCI, Invest Cyprus, and the Federation of UAE Chambers of Commerce & Industry, providing for the establishment of the UAE–Cyprus Joint Business & Investment Council. This Council will operate as an institutionalised mechanism of bilateral cooperation, aiming to promote investments, strengthen business connectivity, and establish a permanent dialogue between the involved economic stakeholders.
“The message being sent is that a new chapter of ambitious, practical, and strategic cooperation is opening, where diplomacy is translated into investments, political trust is converted into development, and Cyprus emerges as a stable and reliable hub in the Eastern Mediterranean, a country capable of attracting investments while simultaneously strengthening the role of the European Union in its wider neighborhood,” government sources note.
Strengthening UAE–EU relations during the EU Presidency
A key priority of the Cyprus Presidency of the Council of the EU is the further strengthening of relations between the European Union and the Gulf Cooperation Council, with specific substance and measurable steps. In this context, cooperation with the Republic of Cyprus on technical and political issues has proven valuable for the UAE, government sources estimate. On a number of issues, such as the launch of talks for the conclusion of a Free Trade Agreement between the EU and the UAE, the Republic of Cyprus provided substantial and effective assistance in achieving positive decisions.
According to sources, the Republic of Cyprus is among the EU member states that responded to the UAE’s request to send a letter to the competent Trade Commissioner, supporting the request to advance a separate Free Trade Agreement, with a relevant letter from the Minister of Foreign Affairs dated 16 July 2024, and intends to send a new letter to the President of the European Commission to expedite technical procedures.
(Source: CNA)
