Published on December 14, 2025
The UAE and Cyprus have taken a significant step towards strengthening their economic ties with the establishment of a new business council, aimed at fostering strategic investments and expanding business opportunities between the two nations. This move is expected to open doors for increased collaboration in key sectors such as energy, technology, logistics, and real estate, further bolstering both countries’ economic growth and global competitiveness. The formation of the council marks a pivotal moment in enhancing bilateral trade relations, with a clear focus on harnessing synergies to drive mutual prosperity.
During a recent high-level visit, discussions centered on enhancing bilateral collaboration between the two nations, with a particular focus on key sectors such as oil and gas, renewable energy, logistics, real estate, technology, and artificial intelligence. The visit provided a platform for exploring new opportunities and synergies, emphasizing the potential for further cooperation in areas that are vital to both economies.

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One of the key outcomes of the visit was the signing of a Memorandum of Understanding (MoU) which led to the establishment of a Business Council. This council is set to play a pivotal role in fostering deeper private sector collaboration between the two countries. It aims to promote partnerships across various sectors, with the shared goal of boosting economic growth and facilitating trade and investment.
The country, a member of the European Union, boasts a services-driven economy, with sectors such as tourism, information and communications technology (ICT), and professional services acting as the main pillars of growth. Over the years, both countries have experienced robust economic expansion, driven by strategic diversification, technological advancements, and substantial investments in infrastructure. The importance of these investments is clear, as they contribute to the broader economic landscape, helping to create new opportunities in both nations.

One of the key aspects of this partnership is the geographical and strategic positioning of the two countries. One country views the other as a gateway to Europe, while the other benefits from key investments in sectors such as green energy, artificial intelligence, and infrastructure. These investments are not only contributing to the development of crucial industries but also playing a central role in driving the growth of bilateral trade. This cooperation is further deepened by the growing number of private sector engagements, with businesses from both nations exploring opportunities in each other’s markets.
The economic outlook for the country is positive, with a GDP growth rate of 3.2% recorded in the first half of 2025. This growth is supported by strong consumer spending and increased investment, reflecting a healthy economic climate. The ongoing diversification efforts in both countries have led to stable economic conditions, with the focus on creating a more sustainable and resilient economic foundation. The future is looking bright, with both nations placing a strong emphasis on innovation, particularly in the fields of technology and renewable energy.

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Trade figures between the two countries are also showing positive signs. While non-oil foreign trade between the two nations had remained steady over the past five years, recent statistics reflect impressive growth. From January to September 2025, non-oil trade reached a value of US$176 million, marking a 39.4% increase compared to the same period in 2024. This growth is also significant in comparison to the previous year, with a 25.1% increase in trade volumes. These figures are a clear indication that the partnership is yielding tangible results, and the potential for further growth in trade remains strong.
Cypriot companies continue to make significant strides in the UAE market, with nearly 1,850 companies currently operating in the region. This serves as a testament to the importance of the UAE as an economic hub and a springboard for businesses seeking to expand into key European markets. Cyprus remains an important gateway for companies from the UAE, facilitating trade and business engagement across the broader European region. As both countries continue to strengthen their economic relationship, the role of private sector collaboration becomes increasingly vital in driving mutual prosperity.
The continued collaboration between the two countries is expected to accelerate the pace of growth in key sectors. This includes the UAE’s expanding footprint in renewable energy, technology, and infrastructure, areas where Cyprus has increasingly become an important partner. Likewise, Cyprus’s growing expertise in sectors such as tourism and ICT offers the UAE opportunities for further investment and engagement.
A significant milestone in this evolving partnership occurred earlier this month, when the Chamber of Commerce announced the formation of a new Business Council designed to enhance economic relations between the two countries. The council aims to expand cooperation between the business communities, focusing on sectors such as trade, investment, and joint ventures. The council’s primary goal is to foster strong business ties, increase bilateral trade, and promote partnerships that will benefit both economies.
The formation of this council underscores the strategic importance of the UAE as a key business hub, not only for Cypriot companies but also for investors from across the globe. Dubai’s position as a leading international business center is further affirmed by the council’s efforts to foster deeper economic cooperation between the two countries. This is evidenced by the significant number of Cypriot companies already registered with the Dubai Chamber of Commerce. By the end of Q3 2025, 612 Cypriot companies were active members, with 71 new companies joining during the first nine months of the year. These figures reflect the growing interest from Cyprus in expanding business operations in the UAE and the broader Middle East region.
The inaugural Annual General Meeting (AGM) of the newly formed Business Council was recently held, marking a significant step in the ongoing efforts to enhance economic ties between the two nations. The meeting was attended by key stakeholders, who discussed strategies for further collaboration, shared opportunities for growth, and outlined the next steps for fostering stronger economic ties. The formation of the Business Council reflects a shared commitment to strengthening the bilateral relationship and building a foundation for long-term economic success.
The UAE and Cyprus have strengthened economic ties by forming a new business council, aimed at driving strategic investments and expanding business opportunities in key sectors such as energy, technology, and real estate. This collaboration is set to foster mutual growth and enhance bilateral trade relations.

As both countries continue to grow their economic relationship, the UAE-Cyprus partnership is poised to play an increasingly important role in driving regional growth and promoting global investment. Through continued collaboration, shared goals, and strategic investments, the two nations are set to pave the way for a prosperous future, offering new opportunities for businesses and investors alike. This partnership is a reflection of both countries’ commitment to economic innovation, sustainability, and long-term prosperity.

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Tags: business council, Tourism news, Trade Relations, UAE

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