The number of new businesses in Northern Cyprus has dropped sharply

Business activity continues to decline in Northern Cyprus. According to the Chamber of Craftsmen and Entrepreneurs (KTEZO), fewer than 500 new businesses were opened in the country since the beginning of 2026. By comparison, there were about 1,100 in 2025 and 1,750 in 2024.

The most noticeable decline is being seen in manufacturing industries with high added value. If 40 new businesses appeared last year in the fields of furniture production, aluminum structures, welding and metalworking, this year there were only 13.

The number of new companies in the construction sector is also shrinking. In professions related to formwork, reinforcement, masonry and painting work, the number of new businesses fell from 14 to 8.

The situation in the real estate market is no better. The number of new agencies dropped from 68 to 25.

In the most widespread employment sectors — cafes, restaurants, hairdressers and beauty salons — the number of new establishments fell over the year from 210 to 72.

The decline has also affected the automotive sector. Despite the increase in the number of vehicles, the number of new businesses in this sector fell from 22 to 14.

KTEZO said the published data accurately reflects the real situation in the economy, with only a minimal margin of error. According to the organization, the deterioration in the business climate was the result of poorly thought-out and inconsistent economic policy.