Could you provide an overview of the current size and contribution of the resident shipping industry in Cyprus, and its overall impact on the national economy? And how does it rank compared to other jurisdictions?

Cyprus shipping plays a pivotal role in the economic, social, and political development of Cyprus, serving as a key pillar of the country's economy and generating high-quality employment opportunities. Notably, Cyprus is home to 250 shipping companies, providing 9,000 jobs onshore, while over 55,000 seafarers are employed on Cyprus flag vessels.

 The Shipping Deputy Ministry remains globally recognised as a high-standard registry, ranking among the largest in the world. It has played a decisive role in securing Cyprus’ significant position on the global maritime map and in strengthening its influence in international shipping affairs. 

Despite the ongoing challenges facing the global shipping industry, Cyprus has implemented a targeted action plan both domestically and internationally to attract new, high-quality vessels to its registry. As a result, the Cyprus fleet has seen substantial growth.

 Since September 2023, there has been a remarkable surge in vessel registrations and an overall strengthening of the Cyprus fleet. Specifically, from September 2023 to the end of 2024, the Cyprus fleet has grown by 18%, with 198 newly registered vessels, bringing the total gross tonnage of the Cyprus fleet to more than 25 million tons. Additionally, in 2024, the number of companies registered under the Cyprus Tonnage Tax system increased by 15%, further reinforcing Cyprus’ position as a competitive and attractive maritime hub.

How has Cyprus strengthened its position as a global maritime hub, and what are the key advantages that make the country attractive to international shipping companies?

The foundation upon which Cyprus builds its reputation as a reliable and high-quality maritime hub lies in its ability to successfully combine a business-friendly regulatory framework, a competitive and transparent tonnage tax system, and a proactive maritime administration. These elements create an attractive environment for international shipping companies, reinforcing Cyprus’ position as a leading global shipping centre. 

A key pillar of this success is the Shipping Deputy Ministry’s ongoing commitment to maintaining the highest safety standards for its fleet, protecting the environment, and improving working and living conditions for seafarers. At the same time, Cyprus ensures full compliance with international and EU obligations, further enhancing the credibility and reliability of its shipping sector. 

Additionally, the Shipping Deputy Ministry implements a range of strategic initiatives to further advance Cyprus’ shipping industry. These include promoting a culture of quality across Cyprus flag ships, delivering responsive and seamless 24/7 customer-focused services, accelerating the digitalisation of maritime administration, supporting maritime and blue professions, and ensuring seafarers receive high-quality training. Innovation is also at the core of Cyprus’ maritime strategy, with ongoing efforts to integrate smart technologies, enhance operational efficiency, and support sustainable shipping solutions.

Collectively, these efforts strengthen Cyprus’ reputation as a safe, socially responsible, and forward-thinking maritime hub, one that not only contributes significantly to the national economy but also creates jobs, fosters specialisation, and builds expertise within the sector. 

The global shipping industry is under increasing pressure to reduce emissions. What initiatives is Cyprus undertaking to promote greener shipping and compliance with International Maritime Organization (IMO) environmental regulations? 

Environmental sustainability is admittedly one of the main challenges that the global maritime industry faces. Issues like the reduction of GHG emissions, the elimination of pollution and the transition to cleaner technologies have taken over the shipping world that seems to be in a constant battle to reduce its environmental footprint. In this race for sustainability, the shipping world has to pursue environmentally friendly technologies. 

IMO plays a leading role in embodying environmental values into the global framework of shipping. Cyprus, as one of the leading advocates of sustainable shipping, fully supports the 2023 IMO Strategy on Reduction of GHG Emissions from Ships and we are closely collaborating with all the IMO Member States for the strategy to reach its end goals. Cyprus actively contributes to the goals and efforts taking place for environmental sustainability through its integrated maritime policy. 

Cyprus is offering green incentives to shipowners who register their vessels under the Cyprus flag and whose vessels demonstrate effective greenhouse gas emission reductions. This is translated to up to 30% reduction on the annual tonnage tax of complying Cyprus flag vessels.

With growing competition from other maritime jurisdictions, how is Cyprus ensuring its shipping sector remains competitive, particularly in areas such as digitisation and maritime technology?

Digital transformation plays a pivotal role in the Cyprus Shipping Deputy Ministry's vision for the future of the island's shipping sector. With the full digitalisation of the Shipping Deputy Ministry (SDM) scheduled to be completed within 2025, SDM aims to improve its efficiency, competitiveness, and sustainability. 

Digital transformation will strengthen the global reputation of Cyprus shipping and will be a key point for Cyprus to maintain its competitive edge in the fast-evolving global maritime landscape. Digital transformation aligns also with the environmental goals of the Shipping Deputy Ministry, to reduce its environmental footprint. 

A sustainable, innovative and resilient Cyprus maritime industry is our Ministry’s vision, and the digital transformation is one of the ways we are following in order to accomplish our goal.  

What recent policy or regulatory changes have been introduced to enhance the Cyprus shipping registry, and how are they benefiting shipowners and operators?

Cyprus has introduced several recent policy and regulatory changes to enhance its shipping registry, which are significantly benefiting shipowners and operators.

One key development is the establishment of the One-Stop Shipping Centre in November 2023. This specialised maritime service centre aims to provide efficient, high-quality support to shipping companies and maritime-related businesses based in Cyprus. The centre facilitates the processing of requests related to various shipping and maritime activities, creating a streamlined process that enhances service delivery for the industry.

Additionally, the Shipping Limited Liability Company (S.L.L.C.) Law of 2022 was a major regulatory milestone. This law strengthens Cyprus's position as a competitive shipping hub by simplifying the formation and registration of a Shipping Limited Liability Company (S.L.L.C.). It also establishes a dedicated Registrar for S.L.L.C. and creates an official registry, under the supervision of the Shipping Deputy Ministry. This change is part of the broader effort to improve the services provided by the One-Stop Shipping Centre. It is anticipated that the said Law shall enter into force and shall be implemented, once the necessary new EU harmonisation legislative amendments and relevant subsidiary legislation are adopted and once the required digital and administrative infrastructure are fully in place.     

Another important change is the introduction of tax incentives and environmental discounts. Under the Tonnage Tax (Environmental Incentives) Order of 2021, shipowners of both Cyprus and EU vessels are eligible for a discount of up to 30% on the annual tonnage tax. This incentive is granted based on a vessel's emission reductions and the use of alternative fuels, supporting Cyprus' commitment to reducing carbon emissions and promoting environmentally sustainable shipping practices. In 2024 alone, 15 companies benefitted from these incentives, achieving a total reduction of €100,787 in their tonnage tax for 68 vessels.

These policy changes, along with other initiatives, make Cyprus an even more attractive destination for shipowners and operators by offering a competitive regulatory environment, efficient services, and tax incentives that support both business and sustainability goals.

Given the current geopolitical climate and economic uncertainties, how resilient is Cyprus’ shipping sector, and what measures are being taken to mitigate risks?

Shipping, being an international industry with particularities, is vulnerable to the volatile geopolitical climate and political and economic developments. We have recently witnessed how the safe transport of goods, for example through the Suez Channel, could be disrupted because of attacks.

After its independence, recognising the political, economic and social importance of shipping, Cyprus has managed to develop a strong shipping sector, solidifying its standing as a leading maritime ecosystem, encompassing a quality ship registry, ranking amongst the top registries worldwide and a robust maritime cluster. In 2023, we celebrated 60 years since the establishment of the Registry of Cyprus Ships, which despite the difficulties and challenges we faced, remains a strong and reputable ship registry of excellence and quality. 

Through our active participation both in EU and IMO, we work closely with other states, relying on policies based on principles and values governing international law, ensuring at the same time a level playing field, supporting the long-standing objective of the sustainable growth of international shipping. We continue to build strong bilateral relations with third countries, in the interest of Cyprus shipping, while we work very closely with the private sector and our valuable partners, the Cyprus Union of Shipowners and the Cyprus Shipping Chamber aiming to effectively react and proactively adapt to ensure that we are able to tackle the challenges and safeguard the sustainable growth of shipping sector. In a nutshell, we continue to reinforce the successful operating framework of Cyprus Shipping, enhancing the resilience of the sector.  

The well-being of seafarers has become a top global issue. What steps is Cyprus taking to improve working conditions, training programmes, and career opportunities in the maritime sector?

The well-being of seafarers and the safeguarding of their profession are two concepts interrelated and mutually dependent that require a multifaceted approach. Seafarers challenging working conditions necessitate working in a physically and mentally demanding environment. The establishment of proactive mental health support, the provision of comprehensive training in respect to cybersecurity and new technologies, the adjustment of working and resting hours in conjunction with regulatory measures, policies and initiatives, as well as changes in maritime education and training relating to the changes required due to digitalisation and decarbonisation in shipping, are steps towards addressing the concerns of seafarers’ wellbeing and take their profession to the next level.

Cyprus acknowledges the importance of seafarers’ contribution to the maritime industry and supports all actions taken to enhance their education and training, to ensure their welfare and to safeguard their profession. A number of measures has been taken to ensure that full and complete effect is given to the provisions of the STCW 78 Convention but more importantly to ensure that seafarers serving on board Cyprus flag vessels possess the knowledge and competence required for their position on board the vessel.

A control mechanism for following up companies and seafarers’ compliance with the relevant provisions of the STCW78 Convention, with national legislation and reaction on non-compliances, is established and implemented. All seafarers or prospective seafarers conducting an approved training program authorised by the Government of the Republic of Cyprus are educated and trained to levels of knowledge and competence equal to or higher than those agreed internationally.

The steps we are taking with regards to career opportunities in the maritime sector include the intensification of the promotion of maritime studies and maritime professions to primary schools and high schools. We are offering the opportunity to students to get to know about the shipping sector, maritime studies and the shipping professions. 

New activities with the Ministry of Education, Sport and Youth are under way as well as new collaborations with local private universities. We strive to further contribute to maritime education. In this respect, the Shipping Deputy Ministry is also offering two scholarships for post-graduate studies at the IMO International Maritime Law Institute and at the IMO World Maritime University which are specialised in maritime studies. Within the framework of the efforts of the Shipping Deputy Ministry to promote gender equality within the maritime sector, these two scholarships can be earned by Cypriot women provided that the required conditions are met.  

What is your vision for the future of Cyprus shipping, and what strategic goals would you like to achieve during your time as Minister? 

My vision is a strong and sustainable Cyprus shipping sector and having a prominent position on the global shipping map. Therefore, my objective is to create the appropriate framework and solid foundations, which will allow the substantial strengthening and resilience of Cyprus shipping.  

This can be achieved through targeted actions based on the following three pillars: the human resources, the presence of Cyprus at the international shipping fora, and the cooperation with the shipping community. The contribution of the human resources is undoubtedly extremely important, and our priority is to further strengthen the Deputy Ministry with properly trained ship surveyors and maritime affairs officers, as well as to invest on the know-how and expertise of the existing personnel. The participation at the high-level international fora, is very important, giving us the opportunity to be part of the decision-making process and formulating policies. Finally, the cooperation with the shipping industry is essential, in a sector with so many particularities and stakeholders.