2026 has been characterised as year for strengthening the actions and, by extension, influence at a national and European level of the Cyprus Employers & Industrialists Federation (OEB), its President George Pantelides says, noting that the Federation's goal is to ensure an environment that allows businesses to grow and prosper.
In an interview with InBusinessNews in the context of its IN Business Forecasting 2026 series, Pantelides emphasises that a priority for the Federation is the provision of specialised services to businesses and the further utilisation of technology to support its members.
Regarding the trend of acquisitions and mergers, he indicates that OEB believes that "when they are carried out with transparency, proper data assessment and long-term planning, they can work positively for the Cypriot economy by enhancing the productivity, innovation and international competitiveness of our businesses."
Regarding the tax reform, the President of OEB states that "it is one of the most important institutional interventions of recent decades and can substantially change the country's competitiveness," underlining that "OEB has submitted documented recommendations so that the reform is balanced and practically applicable for small, medium and large businesses."
How do you think the Cypriot economy will perform in the new year and what are its prospects? What do you consider to be the biggest risks and how can they be addressed?
The Cypriot economy is expected to enter 2026 with stable, but more moderate momentum compared to the previous period. Growth will be supported mainly by private consumption, the resilience of the services sector and the continuation of domestic and foreign investments.
For the Cyprus Employers & Industrialists Federation (OEB), the outlook remains positive provided that the effort to improve competitiveness and productivity continues.
The labour market continues to operate at high employment levels, however, staff shortages and pressure for increases in labor costs pose a serious challenge.
The country needs a predictable, business-friendly regulatory framework
At the same time, the international environment remains unstable, with geopolitical uncertainties in the wider region requiring constant vigilance.
The greatest risks are identified in high energy costs, the general slowdown of the European economy, and the possible effects of prolonged geostrategic tensions on international trade.
Addressing them involves targeted reforms and modernisation of the electricity market, as well as strengthening economic diplomacy.
OEB insists that the country needs a predictable, business-friendly regulatory framework, as well as investment in innovation and digitalization, to safeguard its resilience.
How do you estimate that your company's sector of activity will develop in 2026, what are the biggest trends/changes you expect to occur and what are the most significant challenges?
2026 is expected to move in an intensely transitional environment with the main axes being the green transition, digital transformation, artificial intelligence and new regulatory compliance requirements at the European level.
Cypriot businesses will be called upon to accelerate investments in energy efficiency, RES and the circular economy, to adopt advanced digital tools, automation and AI solutions in production and services, and to adapt to changes in work.
At the same time, the internationalisation of Cypriot businesses, extroversion, and participation in European value chains will be intensified, with OEB functioning as a catalyst for networking, training, and transfer of know-how.
The biggest challenges we foresee for 2026 mainly concern the increased cost of adapting for businesses to green and digital requirements, the difficulty of finding suitably qualified human resources, the uncertainty caused by geopolitical developments and the ever-changing EU regulatory framework.
In this environment, OEB will focus on strengthening the competitiveness and resilience of Cypriot businesses, demanding a friendlier business and tax environment, utilisation of European resources and financing tools, reduction of administrative burdens and targeted skills upgrading actions so that the business world can not only respond but also utilise the major changes of the coming period.
A strong trend that seems to be taking hold in Cypriot business is that of acquisitions and mergers. Will we see it strongly in your sector as well?
The trend of acquisitions and mergers has now become established as a strategic growth tool in the Cypriot economy, as businesses seek greater scale, diversification, access to new capital and resilience to the increasing demands of the digital and green transition.
Acquisitions and mergers, when carried out with transparency, proper data valuation and long-term planning, can work positively for the Cypriot economy.
The consolidation of forces, the acquisition of know-how and the strengthening of competitiveness through corporate synergies are factors that push this trend to continue upward in the coming years.
We expect this mobility to be felt, especially in sectors where significant investments are required to comply with new standards or to enter international markets. Businesses seeking to accelerate digital upgrading, enhance extroversion or transition to greener infrastructure will likely turn to strategic partnerships or integrations.
OEB believes that acquisitions and mergers, when carried out with transparency, proper data valuation and long-term planning, can work positively for the Cypriot economy by enhancing the productivity, innovation and international competitiveness of our businesses.
What can we expect in terms of your organisation's plans and growth and expansion strategy in 2026? What moves do you intend to make in this direction?
For OEB, 2026 is a year of strengthening its action and, by extension, its influence at the national and European level. The goal is to ensure an environment that allows businesses to grow and prosper.
Our priority is to provide specialised services to businesses and further utilise technology to support our members.
We are also moving forward with the creation of new institutions for consultation with the business community, the development of training programs for the green transition and digital upgrading, as well as the promotion of policies that reduce the regulatory burden.
At the same time, we place particular emphasis on connecting the labour market with the real needs of businesses and on upgrading the business environment.
The new year wil see the implementation of the tax reform, which takes place 22 years after the previous one. How do you estimate that it will affect the Cypriot economy, businesses and the attraction of foreign investment?
Tax reform is one of the most important institutional interventions of recent decades and can substantially change the country's competitiveness.
OEB believes that a reform that simplifies the system, reduces administrative costs, aligns with Cyprus' international obligations and offers stability can act as a catalyst for new investments.
But investors don't just look at the tax rate, they look at the big picture: how quickly they can set up a company, how predictable the environment is, how much bureaucracy they face, how stable the rules are over time.
OEB has submitted documented recommendations so that the reform is balanced and practically applicable for small, medium and large businesses.
(Source: InBusinessNews)
