This article was first published on Politis' newspaper
Cyprus's manufacturing sector grew at a rate of 2.8% in 2025, unchanged from the year before, while its contribution to gross domestic product held steady at 6.5%, according to the Cyprus Employers and Industrialists Federation, known by its Greek acronym OEB. The figures, released ahead of the federation's annual general meeting, point to a sector that has stabilised but failed to accelerate, prompting OEB to lay out an ambitious set of demands for the government's industrial policy through to 2030.
Central among OEB's proposals is the creation of a dedicated Sub-Ministry of Industry, which the federation argues is needed to give industrial policy the institutional weight required for it to be designed and implemented effectively. Alongside this, OEB is calling on the Minister of Energy, Commerce and Industry to update both the national industrial policy and its accompanying action plan for the 2025-2030 period.
The federation's other recommendations span a range of structural and fiscal measures. OEB is pressing for a comprehensive export promotion plan with targeted financial and tax incentives, and has submitted detailed proposals to the Commerce Service on modernising the existing support and subsidy schemes available to exporting businesses. It is also calling for the rationalisation of lease rates on state-owned land plots outside designated industrial zones, and for offsetting measures that would directly benefit industry, including reductions in electricity consumption taxes and the channelling of revenues from emissions allowance auctions back into the sector.
On the EU level, OEB says Cyprus should make an active push within the framework of the next Multiannual Financial Framework for 2028-2034, arguing that the island's geographic isolation and status as an island economy justify enhanced provisions for Cypriot industry in any future settlement.
During 2025, OEB also engaged across a range of active dossiers. It held consultations with relevant ministries on the implementation of the scheme for investments in the processing and marketing of agricultural products, and organised information sessions on available business support funding programmes. The federation also worked to raise awareness of opportunities in the defence and space industries, including dual-use products and industry participation in Ministry of Defence procurement programmes, as well as collaboration with the academic community on research, development and innovation. Separately, OEB raised concerns about unfair competition arising from the application of the Green Line Regulation and submitted recommendations for improving how it is enforced.
In relation to industrial zones, OEB has proposed the creation of a single management body for all state-owned industrial plots and submitted recommendations on infrastructure upgrades covering roads, pavements, lighting, parking, waste management and security. The federation paid particular attention to fire safety in the Yeri-Idalio industrial zone and participated in meetings with the relevant parliamentary committee and ministries.
The full picture of the manufacturing sector's performance in 2025 will be discussed at OEB's annual general meeting on Tuesday, 28 April 2026, at the Landmark Hotel in Nicosia, in the presence of President Nikos Christodoulides.