"I see the Cypriot economy continuing on a positive and realistic growth path in the coming year. There is confidence in the market, good momentum in investment, and a clear willingness from both the public and private sectors to keep moving forward," Nayef Kassatly, Managing Director, Kassatly Chtaura says.
In an interview with CBN as part of the IN Business Forecasting 2026 series, Kassatly continues, "Cyprus has shown that it can adapt quickly to challenges. The main risks remain external ones—geopolitical tensions, energy prices, and global inflation—but these are manageable. With prudent policies, support for local businesses, and continued investment in infrastructure and energy, Cyprus is well-positioned to maintain stability and growth."
Within the framework of the same interview, Kassatly talks about how he anticipates the beverage and FMCG manufacturing sector will perform in the coming year as well as how it may be impacted by the mergers and acquisitions trend.
Among other things, the Managing Director also talks about what can be expected from his own company in the new year.
How do you foresee the development of the Cypriot economy in the new year, and what are its prospects? What do you see as the biggest risks, and how might they be addressed?
I see the Cypriot economy continuing on a positive and realistic growth path in the coming year. There is confidence in the market, good momentum in investment, and a clear willingness from both the public and private sectors to keep moving forward. Cyprus has shown that it can adapt quickly to challenges. The main risks remain external ones—geopolitical tensions, energy prices, and global inflation—but these are manageable. With prudent policies, support for local businesses, and continued investment in infrastructure and energy, Cyprus is well-positioned to maintain stability and growth.
How do you expect your company’s sector in particular to perform in 2026? What major trends or changes do you anticipate, and what do you consider the most significant challenges?
The beverage and FMCG manufacturing sector is expected to continue growing in 2026, driven by exports and premiumization. Key trends include healthier formulations, sugar reduction, sustainable packaging, and stronger brand storytelling. The main challenges will be cost control, supply chain volatility, and maintaining competitiveness in global markets, which require scale, efficiency, and constant innovation.
A strong trend taking root in the Cypriot business landscape is mergers and acquisitions. Do you expect this trend to become more pronounced in your sector as well?
Yes, we do. As markets become more competitive, consolidation is a natural evolution. In our sector, M&A can create efficiencies, expand market access, and accelerate innovation. Cyprus’ stable legal and regulatory framework makes it an attractive base for such strategic moves.
What should we expect from your organisation’s plans and strategy for growth and expansion in 2026? What specific actions do you intend to take to support this direction?
Our focus in 2026 will be on capacity optimisation, export expansion, and product innovation for Freez Mix and other brands. We are investing in advanced production technology, strengthening our international partnerships, and expanding into new markets. Sustainability and operational excellence remain core pillars of our strategy.
The new year will see the implementation of tax reform, taking place 22 years after the previous tax reform. How do you expect it to affect the Cypriot economy, businesses, and Cyprus’ ability to attract foreign investment?
A well-structured tax reform can significantly enhance Cyprus’ competitiveness. If implemented with clarity and stability, it will support businesses, improve transparency, and further strengthen Cyprus’ appeal as a hub for foreign investment. For manufacturers and exporters, predictability and fairness in taxation are key drivers of long-term investment decisions.
