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The Deputy Ministry of Shipping in Cyprus has revealed a budget forecast for 2026 showing a slight surplus, with planned expenditures amounting to €18.7 million and revenues projected at €20.3 million. This positive outlook was shared during a Parliamentary Finance Committee session in late October. Director General Stelios Chimonas highlighted a notable growth in the Cyprus shipping registry, which expanded by roughly 20% since September 2023. Additionally, the number of companies registered under the Tonnage Tax System has increased by 4.5%. A 4% rise in revenues compared to the 2025 budget underscores the success of the ministry’s strategic efforts to bolster the shipping sector.
The ministry employs 155 staff members, with a workforce comprising 94 women and 61 men. It oversees a comprehensive structure including three administrative directorates, six overseas offices, and 29 departments and services. Its mission focuses on sustainable development of Cyprus as a maritime hub, aiming to strengthen the national economy and elevate the country’s international maritime reputation. The vision extends to becoming a modern, sustainable, and competitive shipping center that plays a significant role in global maritime policy.
Cyprus’ Annual Action Plan for 2026 outlines core responsibilities such as updating shipping legislation, promoting investments, enhancing maritime education, protecting the environment, and implementing international maritime strategies. The ministry also manages the Tonnage Tax System, supports cruise tourism, and fosters maritime connectivity with other nations. Priorities for next year fall under three strategic pillars: improving registry competitiveness and quality, nurturing the national maritime ecosystem, and boosting operational efficiency via digital transformation and staffing enhancements.
Nearly €9.9 million will be invested across these areas, with €2.61 million allocated to registry improvements, €6.05 million to maritime ecosystem development, and €1.2 million set aside for administrative and digital upgrades. The plan emphasizes resilience as a guiding principle amid ongoing geopolitical instability, EU sanctions targeting Russia, a Turkish embargo, environmental challenges, and rapid technological change. Despite these hurdles, Chimonas assured MPs that the registry remains robust, having already offset losses from Russian-linked vessels withdrawing due to sanctions.
Addressing the impact of the Turkish embargo, Chimonas noted that while precise financial losses can’t be easily quantified, the ministry is focusing on shipowners and shipyards unaffiliated with Turkish ports. This targeted outreach highlights the benefits of the Cyprus flag, and personal engagement with companies has been fruitful in reducing negative effects. The ministry also commits funds for the international promotion of the Cyprus flag and maintains active involvement in EU and global maritime forums, including continued contributions to the International Maritime Organisation.
Ship management remains a vital contributor to the Cypriot economy, accounting for about 5.5% of the Gross National Product and generating revenues of €13.4 million against expenses of €6 million. Cyprus holds the status as the EU’s largest ship management center. The ministry also aims to grow cruise tourism and attract mega-yachts, with legislative efforts underway to facilitate the latter. The Cyprus–Greece ferry link has been extended through 2027, and plans are underway to introduce new routes, like a potential connection to Lebanon.
The maritime ecosystem development agenda includes enhancing sea connectivity, safety, gender equality, and education. Specific budget allocations support onboard training, scholarships, and gender-equality initiatives. However, staffing shortages present a significant challenge, with roughly 35% of positions vacant, including key roles like directors and maritime traffic controllers. Until vacancies are filled, the ministry relies on independent inspectors and continues recruitment efforts. Plans are also in progress for a new ministry building to replace costly leased offices in Limassol, with the project moving through planning and environmental review stages.
Overall, the ministry’s 2026 strategy reflects a strong commitment to overcoming geopolitical and operational challenges, advancing Cyprus’s position as a major maritime hub while investing in sustainable growth and digital modernization.
