Cyprus a key hub for ‘digital highway’
A crucial milestone is expected in March for the East to Med Data Corridor (EMC) telecommunications submarine cable system, an ambitious project aimed at creating an “international digital highway,” where Cyprus, Greece and Saudi Arabia are key components.
According to Kathimerini’s Cyprus edition, funding for the EMC cable project will involve prominent banks, including National Bank of Greece (Cyprus), Alpha Bank, Piraeus Bank and AlJazeera Bank, totaling $300 million. The financing is set to pass through Cyprus, primarily facilitated by the NBG (Cyprus), with Alpha Bank Cyprus’ involvement still uncertain.
The project’s primary objective is to start construction of the EMC cable in the summer of 2024. The cable’s first phase aims to connect Europe with Saudi Arabia, followed by a second phase linking Saudi Arabia to the rest of Asia.
Notably, the telecoms landscape has undergone a radical shift as Cyta (the Cyprus Telecommunications Authority), initially involved in the project with a 20% stake, has exited the consortium. Saudi Telecom acquired Cyta’s share, increasing its stake to 70.5%. The EMC cable, originally planned to involve Cyta, will now be spearheaded by Saudi Telecom.
The EMC cable is expected to bring significant upgrades to Cyprus’ telecom infrastructure, particularly benefiting the cybersecurity and big data sectors.
The country, which has grappled with cybersecurity challenges in the past, anticipates a revitalization in this domain. The connection is also expected to attract international technology companies, potentially leading to the establishment of headquarters or regional offices in Cyprus.
In a strategic move, NBG (Cyprus) is positioning itself as a key player in large business loans, marking a shift from its previous retail banking focus. This move aligns with the bank’s relaunch strategy, which includes distancing itself from retail banking. Previously engaged in negotiations for a sale with Astrobank, the bank’s focus on large business loans strengthens its position in the market.
As the EMC cable project progresses, it holds the promise of not only of transforming Cyprus’ telecoms landscape, but also of fostering economic growth and technological advancements in the region.
