The recent decision of the Council of Ministers to declare it a White Zone for a period of two years is causing concern to businesses operating in the industrial zone of Geri, Dali – Tseri. A decision characterized by those directly affected who are active in the fields of recycling, chemical and plastic products, marble, building materials, metal constructions, fuel depots, warehouses of other products and other strategically important units as an antechamber of permanent regulations.
There is disruption over the processes that are taking place behind closed doors to declassify industrial zones from an increased degree of nuisance (category A') to a limited degree of nuisance (category B').
The decision, which was published through two decrees of the Minister of the Interior, Konstantinos Ioannou, on March 20 and June 26, 2026, essentially freezes any new class A industrial development, has caused intense confrontation between local authorities, the business world, while disagreement between competent Ministries is also recorded.
On the one hand, the District Local Government Organization (EOA) of Nicosia, the local authorities and the affected residents welcome the measure as necessary for public health and the environment, the Employers & Industrialists Federation (OEB) and the affected industrialists through the Management Committee of the Industrial Zone of Geri – Dali sound the alarm, considering this decision as the precursor and antechamber for the complete and permanent declassification of the only heavy zone industry in the capital.
The chronicle of the actions before the decision
Starting from the request of the Municipalities of Latsia-Geri and South Nicosia-Dali for the downgrading of the zone from Category A to Category B (limited degree of nuisance), citing adverse environmental impacts and nuisance, the government took the decision to define the areas in question as a white zone.
According to data from the Department of Urban Planning, the industrial zone of Geri – Dali was located in the early 1980s in a barren area, away from residential areas and close to the Nicosia-Limassol road axis, precisely in order to accommodate industries with an increased degree of nuisance. Over the years, however, due to poor urban planning and residential expansions, residential zones got stuck on factory boundaries.
Before the decision on the white belt was taken, OEB and the Management Committee of the Industrial Zone had actively moved to prevent the declassification. In a letter from the general director of OEB, Michalis Antoniou, to the former Minister of Commerce, Giorgos Papanastasiou, dated May 8, 2025, it was emphasized that about 50 companies have invested huge amounts of money in private land by building factories and creating hundreds of jobs and that any declassification would strangle the industry.
At the same time, on June 13, 2025, the Management Committee sent a letter to the president of the EDA Nicosia, Konstantinos Yiorkadjis, clarifying that the Municipalities' claims of uncontrolled pollution are unfounded, as regular inspections by the Department of Environment and the Department of Labor Inspection did not show violations outside the limits.
In addition, it was underlined that from 2023, with the recommendation of the Commission, strict fire safety measures were taken (installation of water spouts, increase of guarantees for recycling units, etc.), eliminating fires in licensed units.
Support of the Ministry of Commerce against declassification
The position of the Ministry of Energy, Trade and Industry is of particular interest. In a letter from the competent officer for the general director of the Ministry to the director of the Department of Urban Planning and Housing, dated June 16, 2025, the Ministry's explicit disagreement with the request of the Municipalities for declassification is expressed. According to the Ministry of Commerce, "the request of the relevant municipalities for the declassification of the industrial zones of Geri, Dali and Tseri from an increased degree of nuisance to a limited degree of nuisance should not be met".
The Ministry warned that such a development would have a knock-on effect on both established industries and future investments. In fact, he cited a relevant Study for the Evaluation of Existing Industrial and Craft Zones and Areas and the Possible Necessity of Designating New Ones on a Pan-Cypriot Scale prepared in 2022, which recorded that not only should they not be reduced, but there is an objective need for the development of more category A zones in Cyprus, as finding suitable areas for heavy industry is extremely difficult.
The decision to freeze developments
Despite the warnings, the Council of Ministers proceeded on March 11, 2026 to approve the decree on the white belt, which was published on March 20 and June 26, 2026. Based on the decree, for the next two years, until March 19, 2028, the siting of new Category A units is suspended. Exceptionally, only additions, building upgrades or changes of technological equipment to legally existing units are allowed, provided that they do not increase their capacity.
Immediately following the publication, the EDA Nicosia issued a statement on 3 April 2026 expressing its satisfaction. He stated that the decision was taken after his own pressures and suggestions, in cooperation with the local authorities, with the aim of ensuring the comforts of the residents and reducing the environmental burden. The EDA noted that this regulation lays the groundwork for a substantial redesign of industrial zones in the context of the upcoming revision of the Local Plans, a report that confirmed the worst fears of industrialists.
Michalis Grigoriou (OEB): Political decision to deindustrialize without documentation
Michalis Grigoriou, head of the Business Development Department of OEB, unleashed harsh criticism against the decision. "The decision on the white belt is not a simple administrative regulation, but constitutes a long-standing absence of strategic planning for manufacturing," he says. Mr. Grigoriou emphasizes that the decision lacks a documented scientific study and is a purely political decision, succumbing to the pressures of the Municipalities.
According to him, the measure directly affects industrialists who bought pieces of land and can no longer develop them, while freezing critical investments. At the same time, in a letter from OEB to the Minister of Energy, Michalis Damianos, dated May 19, 2026 after the decision, the strong disappointment of the industry was expressed. OEB warns that if the declassification becomes permanent through the new Local Plan, Nicosia will lose its only heavy industrial zone, shaking the state's credibility with investors. "If there are industrialists who break the law, strict penalties should be imposed, but not all businesses should be punished," OEB said, requesting an immediate meeting with the Ministry to find a way for a healthy coexistence of residents and industry.
Eric Shukuroglu: A precursor to kick us out of here
The statement of the chairman of the Management Committee of the Yeri-Dali Industrial Zone, Eric Sukuroglou, is on the same wavelength. Mr. Shukuroglu categorically states that the white belt functions as a "precursor to declassification".
"Their goal is to achieve complete declassification and essentially kick us out of here," he says characteristically, referring to "arbitrary actions" that are being taken without taking into account that these businesses offer critical work to the economy, such as manual waste management, composting pruning and cutting marble. Mr. Sukuroglu points out that there have already been individual appeals and objections from factory owners against the act of the Council of Ministers, as the freezing of extensions and the ban on increasing capacity undermines the viability of their units. Furthermore, he stated that the controls by the Department of Environment have been intensified.
In relation to the activity of his own business, the CEO of Premier Shukuroglou Cyprus Ltd, noted that they are licensed green waste managers-compost and potting soil producers. This activity, he said, can only take place in such a zone.
He underlined that Cyprus is known to pay fines for the incomplete management of its waste. "We want to expand, since huge amounts of pruning end up in the OEDA and are eventually buried. In addition, Cyprus is heading towards desertification. Its organic matter-poor soil needs compost. The application of compost in agriculture - quite rightly - is subsidized through the KOAP. But there is very little compost!", he concluded.
