Dr Nakis Antoniou: Larnaca is standing on the cusp of transformation

Dr Nakis Antoniou, President of the Larnaca Chamber of Commerce & Industry, examines the dynamic changes and investments being made in the city, which are set to transform it into a vibrant and modern urban centre.

In a recent interview with GOLD magazine, Antoniou talks about the planned redevelopment of Larnaca Port and Marina, interest of overseas universities, prospects for real estate development and more.

Among other things, he also discusses the particular challenges faced by the city and how these are being overcome.

Recently, government projects worth €180 million have been announced for Larnaca. How do you foresee them affecting the development of the city? What benefits will they bring to businesses there?

The recent announcements made by the President of the Republic include several key development initiatives that mark a turning point in Larnaca’s growth. These projects are expected to significantly enhance the city’s economic profile.

The Government’s approval for the establishment of a University School of Marine Sciences, under the Cyprus University of Technology in Larnaca, is a milestone for the city. This long-standing request by the Larnaca Chamber of Commerce & Industry and other local bodies will elevate Larnaca’s status as an educational hub. It will also stimulate the local economy by attracting students, academics and researchers. Additionally, it will drive demand across sectors including services, housing and technology, while creating jobs and encouraging private investment.

The planned redevelopment of the Larnaca Port and Marina is another transformative project, which will enhance the city’s role as an economic and commercial centre. The upgrading of the port will support maritime trade and logistics, while the new Marina will boost tourism and yachting activities. These investments are expected to generate new business opportunities and attract international investors, particularly in the shipping, tourism and real estate sectors.

Considering recent difficulties in getting some projects off the ground in Larnaca, what challenges do businesses in in the city face and how does this affect investor confidence in the broader district?

Despite the city’s potential, businesses in Larnaca face several structural and operational challenges. Lengthy approval processes for permits and licences remain a significant obstacle. Major infrastructure projects, such as the redevelopment of the Port and Marina, have experienced prolonged delays due to administrative inefficiencies. Such delays create a perception of unpredictability and inefficiency, deterring both local and foreign investors who often seek streamlined processes and a timely return on their investment. In today’s fast-moving economy, time-to-market is critical and any slowdown can shift investor interest to more agile districts.

Although Larnaca benefits from an international airport and a strategically located port, the city still faces challenges to its infrastructure. While the port and marina developments are on the horizon, the current state of transport infrastructure, including roads and public transport, are not up to par with what people expect. Despite Larnaca’s growing potential, some sectors still struggle to find a sufficiently skilled workforce. There is a need for more specialised education and vocational training programmes, particularly in areas such as technology, engineering, and maritime services.

The relatively small size of the labour pool in Larnaca compared to larger cities like Limassol and Nicosia can sometimes be a limitation. Investors often prioritise regions with a ready, skilled workforce, to ensure smooth operations and growth. If they believe that local businesses in Larnaca will face difficulties finding skilled employees or need to rely heavily on foreign labour, they may hesitate to commit to long-term investments in the district. Addressing these issues effectively is essential for Larnaca to position itself as a business-friendly destination.

You have mentioned that the state is looking to invest in the education sector in Larnaca. How is this spending viewed by local business organisations?

The state’s decision to invest in the education sector in Larnaca is viewed positively by the business community, especially considering the long-term economic benefits it could bring to the district. Business organisations in Larnaca generally view investments in education as essential for the district’s development.

The creation of a university or the expansion of educational opportunities could significantly enhance the local economy and lead to an increase in demand for housing, commercial spaces and other infrastructure. This would benefit local construction companies, real estate developers and service providers.

Therefore, the business community anticipates a boost in both direct and indirect economic activity in the district. Furthermore, the establishment of higher education institutions, particularly in fields like technology, business and engineering, can also boost local businesses that rely on talent and expertise.

To attract a wider array of international universities, there needs to be a more deliberate effort by both the state and the private sector. This would involve not just providing incentives but also marketing Cyprus as a global education hub. These could include favourable tax rates, grants or financial incentives to encourage foreign universities to set up campuses or research centres in Larnaca. Our local businesspeople have already formed partnerships with British universities like UCLan and expanding the partnerships between local universities and top-tier global institutions could be an effective way to attract an international academic presence from countries like the USA and others in Europe.

What efforts are being made to speed up technological advancements by businesses in the area to keep pace with a changing landscape?

Businesses in Larnaca are increasingly recognising the need to adapt to technological change in order to remain competitive and resilient. Many companies are investing in digital technologies such as cloud computing, Artificial Intelligence (AI) and the Internet of Things (IoT), to improve operational efficiency, increase productivity and offer innovative solutions to their customers.

Larnaca offers a dynamic market for new businesses and technology investors, with many efforts being made by the local business community to support startups and promote innovative products and services. Public-private partnerships, as well as grants from European programmes, help strengthen local entrepreneurship. These initiatives and efforts aim to enhance Larnaca’s technological competitiveness, creating a favourable environment for innovation, the development of new technologies and attracting talented professionals in the technology sector.

What new private sector and public sector plans are underway for the further development of Larnaca?

Larnaca is undergoing significant development, with both the public and private sectors investing in various projects to enhance the city’s infrastructure, boost economic growth and improve the quality of life. ​The Government plans to invest approximately €30 million in the upgrade to the Larnaca Marina and the surrounding area. This project includes dredging the marina entrance, upgrading the sea zone, restoring the preserved dock and constructing a new yacht club to serve as the Marina’s management centre. These improvements aim to boost the Marina’s capacity and appeal. ​

Over the next two years, Larnaca Municipality has allocated €35 ​​million for various infrastructure projects. Key initiatives include the restoration of the old hospital and its transformation into a modern city hall, the redevelopment of Makarios Avenue and the renovation of the Acropolis and Alkis Squares. These projects are designed to enhance the city’s aesthetics and functionality.

​As for private sector initiatives, one visionary project, led by Lefkaritis Group, bbf: and Foster+Partners, aims to transform the former industrial area along the Dhekelia Road into a sustainable beachfront community featuring residential units, retail spaces, dining options, a 5-star hotel and resort, a conference centre and extensive green areas, including the planting of approximately 20,000 pine trees. Construction work on the first phase, focusing on residential complexes, is set to begin towards the end of the year. Both the public and private sectors are contributing to a cohesive and ambitious transformation strategy. These developments not only reflect confidence in Larnaca’s potential but also create new opportunities across tourism, infrastructure, real estate, logistics and innovation.

How do you envision the future Larnaca district?

Larnaca stands on the cusp of transformation. With the realisation of these strategic public and private initiatives, the city is set to become a more dynamic, sustainable and cosmopolitan urban centre, combining tradition with innovation, and economic vitality with cultural preservation – emerging as a key player in Cyprus’ national development and a magnet for international investment.

This interview first appeared in the April edition of GOLD magazine. Click here to view it.