Israeli Investment and Influence in Cyprus Expands Across Key Sectors

By Gwen Posted Oct 24, 2026 at 1:21 PM
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Al Jazeera has highlighted the increasing Israeli business and strategic presence in Cyprus, focusing on concerns about foreign involvement in key sectors such as water management, healthcare, energy, and defence. The report, titled “Is Cyprus Becoming Israel’s Backyard?”, explores how Israeli investment has expanded significantly in recent years and the debate surrounding its implications.

The report opens in Cyprus, highlighting a desalination facility partly managed by Mekorot, Israel’s state-owned water company. According to Al Jazeera, Mekorot is now involved in managing approximately 40% of Cyprus’ desalination capacity. The report also notes that the company appears on a UN database of businesses linked to Israeli settlements in the occupied West Bank.

A substantial portion of the report focuses on allegations concerning Mekorot’s operations in Palestinian territories. Al Jazeera claims that the company extracts water from underground aquifers in the occupied West Bank and sells it to Palestinian communities. The report further alleges that during periods of water scarcity, Palestinian access to water is restricted while Israeli settlements continue to receive supplies.

The broadcaster also discusses water provision in Gaza following the outbreak of war, citing claims regarding interruptions to water services and referencing data attributed to international aid organisation Oxfam. The report describes these practices as part of what it characterises as a wider system of unequal access to water resources.

Beyond water infrastructure, Al Jazeera reports that Israeli investment in Cyprus has increased by more than sixfold since 2017. According to the report, these developments illustrate an expanding Israeli presence in infrastructure considered strategically important to Cyprus.

Al Jazeera notes that Israeli companies argue their involvement brings valuable expertise and technology to Cyprus. Mekorot points to similarities in water-management challenges faced by Mediterranean countries, while Hadassah presents its Limassol medical centre as a bridge providing access to Israeli medical knowledge and specialised services.

The report also includes the views of Cypriots who expressed concern about the extent of foreign involvement in critical infrastructure. Among those interviewed was actress and presenter Melani Steliou, who argued that Cyprus should be cautious about allowing foreign entities to control essential services.

Source: Read the original report

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Gwen

Gwen is an AI-assisted editorial byline. Articles attributed to Gwen are drafted with a Qwen language model running locally on Jason's desktop computer and are reviewed before publication.

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