Beyond Gas: Why Cairo and Nicosia Are Partnering on Tourism, Trade, and Two Continents
Updated 11/2/2025 9:00:00 AM
Arab Finance: The deepening strategic relationship between Egypt and Cyprus is undergoing a significant economic transformation, positioning the two nations as key energy and trade partners in the Eastern Mediterranean. This exclusive interview with Polly Ioannou, Ambassador of Cyprus to Cairo, sheds light on the rapid acceleration of bilateral ties and the promising areas of future cooperation.
The economic momentum is starkly evident in trade volumes, which the Cypriot Ambassador notes have recently experienced a substantial 130% increase. This surge underscores a deliberate focus by both governments to cultivate commercial exchange, moving beyond traditional diplomacy to tangible business outcomes.
1-First, congratulations on the 65th anniversary of Cyprus’ independence, which falls on October 1st. I would like to ask: what is the nature of the historical relations between Egypt and Cyprus?
This year, we are celebrating the 65th anniversary of Cyprus’ independence, and at the same time, we are celebrating 65 years of diplomatic relations between Egypt and Cyprus.
The historical relations between the two countries have always been strong and excellent, marked by mutual understanding and respect throughout shared history. This is thanks to the distinguished geographical location of both countries.
The two countries cooperate with each other, ensuring that no decision is taken by either country that affects the other. We share common traits, such as respect for international law, and we always seek to further strengthen our bilateral relations.
2-What is the volume of trade exchange between the two countries?
The economic sector is one of the main areas Cyprus is focusing on in its cooperation with Egypt. It is a sector that requires more focus and cooperation to develop.
We are pleased to see the growth in bilateral trade, which has increased by 130%. However, given the strong relationship between the two countries, we believe that more needs to be done in this area.
We are exploring some new areas for expansion and cooperation to boost trade exchange between Egypt and Cyprus.
3-What new areas are being explored to expand trade exchange between Egypt and Cyprus?
These areas are being explored by businessmen from both countries. As governments, we support and assist them by facilitating dialogue and convergence, which helps strengthen economic relations between officials and businessmen in the two countries and identify more potential areas for cooperation.
Our role as governments is to establish the political and legal framework that enables economic and trade collaboration. Through further meetings and communication between businessmen and officials, we reach a point where we discover more economic opportunities for cooperation.
In the services sector, there are great opportunities for cooperation, such as tourism, financial services, transport, and logistics.
As an economic news agency, Arab Finance has an audience of businessmen, and we aim to present more opportunities that Cyprus offers as a European country, including company formation and many financial services. Establishing a company in Cyprus can serve as a gateway for commercial expansion across all European Union (EU) countries.
4-Last February, Egypt and Cyprus signed two agreements to begin developing Cypriot natural gas discoveries. What is your opinion on the importance of these agreements and their progress so far?
We are looking for the opportunity to begin implementing these agreements to develop and invest in the natural gas fields through Egyptian expertise. However, there had previously been a delay due to reasons beyond the control of the two countries. For example, the Aphrodite natural gas field, discovered many years ago, has faced obstacles related to the implementing companies and other factors that prevented the execution of the agreement and investment in the field.
The recent agreement with Egypt has provided an opportunity to accelerate investment in these fields and move forward. The opportunity is now available to invest in Cypriot natural gas fields through Egypt, and there are currently no obstacles between the two countries in this regard.
We also believe that economic cooperation in the natural gas field is beneficial for both countries and serves their mutual interests. Committees have been established between Egypt and Cyprus to accelerate the implementation of the agreement to develop Cypriot natural gas discoveries.
Egypt has great expertise in natural gas exploration and possesses strong infrastructure that will help speed up the execution of the agreement. Furthermore, the agreement serves Egypt's aspiration and vision to become a regional energy hub.
5-What are the future scenarios for economic cooperation between the two countries?
Cyprus welcomes cooperation with Egypt in any future fields of partnership. I believe that we should focus on investing in Cypriot natural gas fields through Egypt, a goal that took many years to reach the current agreement.
Success in investing in natural gas fields will open new horizons for wider cooperation in fields beyond natural gas and will lead to momentum in economic activity between Egypt and Cyprus.
6-What are the most prominent opportunities for cooperation between Egypt and Cyprus in tourism and antiquities?
Generally, Egypt and Cyprus are two tourism-focused countries, with a large part of their income depending on tourism revenues. There is constant cooperation between the two countries in this field, and we are trying to organize joint tourism programs so visitors to Cyprus can visit Egypt at the same time and vice versa.
Visiting Greece can also be part of these programs, as some tourism offices coordinate these trips between the countries. Some large cruise ships also do this, as they visit Cypriot and Egyptian ports together.
We seek further cooperation in tourism with Egypt, and it requires greater awareness of Egyptian tourist attractions among Cypriot visitors, and we support this.
7-How do you view the importance of economic blocs and their role in economic progress?
As a member state of the EU, we see economic blocs as extremely important. Cyprus can be Egypt's gateway to the EU, just like Egypt can serve as Cyprus's gateway to expansion in Africa.
We are very pleased with the development and growth of economic relations between Egypt and the EU, which have recently reached the level of a strategic relationship, not only economically but also politically.
There is a serious dialogue between the EU and Egypt, along with a great European interest in Egypt and investment opportunities there. Egyptian-European relations are constantly evolving, and there is a major opportunity for Egypt to benefit from its strong relations with Cyprus to expand and penetrate the EU.
8-What are the current and future aspects of cooperation between Egypt and Cyprus in the field of electrical interconnection?
The infrastructure for electrical interconnection is still in the study phase. Such projects require enormous cost and in-depth studies. The challenge here is to secure funding for such major investments.
9-The region is currently suffering from geopolitical tensions, especially the war in Gaza. The US has proposed an agreement for a ceasefire. What is your opinion on the economic impact on the region if this agreement succeeds?
First, war hinders economic growth in any country and negatively affects it. Egypt and Cyprus have been genuinely affected by the ongoing war in the region. It is important for us now to reach a ceasefire in Gaza, introduce humanitarian aid to those in need in Gaza, rebuild Gaza, prevent the displacement of its residents, and implement a two-state solution.
Cyprus believes that both Palestine and Israel should live in peace and security, which would lead to regional stability. I believe that if the US agreement for a ceasefire in Gaza succeeds, it would support economic development and growth in the region as a whole.
10-How can Egypt and Cyprus cooperate in the field of renewable energy?
Renewable energy is a vital and important field. We have discussed cooperation with Egypt in this area, and we see the importance of investing in this sector, but so far, the interested groups and companies that can begin implementation have not been identified.
11-Finally, how do you see the future of relations between the two countries?
I affirm that the relations between Egypt and Cyprus are strategic and have been for a long time, and they will remain so. We always strive to further strengthen these relations with Egypt.
Additionally, the Cypriot-Egyptian Businessmen Association is currently being established to introduce businessmen from both sides to investment opportunities in each country.
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