By Leta Kalamara

 

 

Strong investment activity is recorded in construction and infrastructure, telecommunications, transport, real estate, with demand being fueled from Greece and abroad, in IT and Data Centers, in the food industry, in the health sector, and also in retail trade. Banks are not left behind in this investment spree.

 

The energy sector has the first say in investments, which is leading the market for two reasons. The first concerns the energy transition, which changes the energy mix, with green energy gaining ground.

 

The second reason concerns the geopolitical developments, which led to the imposition of sanctions and the restriction of the supply of Russian natural gas and Russian oil.

 

More specifically:

 

ENERGY

 

Investments in the energy sector amount to tens of millions underlining their significant contribution to the national and global economy.

 

The largest energy Greek companies have revealed extensive plans confirming the above estimates.

 

The implementation of the objectives of the National Energy and Climate Plan until 2050, in terms of gross added value, translates into +16 billion euros for constructions, +27 billion euros for machinery and equipment, +3.5 billion euros for metal products, +15 billion for vehicles and +6.5 billion for professional services.

 

INFRASTRUCTURE – CONSTRUCTIONS

 

Moderate optimism prevails in the construction market, which has a high backlog of public and private projects.

 

At the same time, however, the construction industry faces significant obstacles, such as the rising cost of materials, the environment of high interest rates and, above all, the lack of engineers and labor.

 

TELECOMS – DATA CENTER

 

The bet of phasing out copper and replacing it with modern fiber optic networks (FTTH) is dominating the telecommunications market. Based on the announcements of major telecom companies – OTE, Vodafone, Nova, and PPC – which is also entering the technology sector,  more than 95% of the connections will be FTTH in about 5 years.

 

Key to increasing the use of fiber optic networks is the digitization of the public and private sector, which in combination with new technologies such as Artificial Intelligence multiplies the needs for investments in Data Centers. The mobility observed in this sector maintains the expectation that, in 4 to 5 years, Greece will be the number 2 hub in the Mediterranean, after Marseille (today number 1) based on available capacity.

 

TRANSPORT

 

A series of investment are launched in domestic freight transport, logistics and airports, with the aim of promoting the country as a transit hub of SE Europe, in combination with strengthening the competitiveness of the internal market, due to the rise of e-commerce and courier services, but also of serving the growing tourist flows.

 

REAL ESTATE

 

Expectations for the Greek real estate market for the next period remain positive, despite increased construction costs and high interest rates.

 

In the housing sector, prices are now only slightly away from the historically high level of 2008. Demand, which is also fueled by the interest of foreign nationals, remains greater than supply and this maintains the upward trend of prices. Based on the estimates, in the coming years the rate of price increase is expected to be contained at the level of 3% to 5%.

 

Greece's food sector on development track

 

 

The funds available to the food sector – industry and retail – exceed 1.2 billion euros, in order to support the development plans that have been implemented and are about to be completed in the next two or three years.

 

The food industry is constantly progressing. In addition to investments directed at productive empowerment, digital upgrading, innovation, energy autonomy, optimization of operating costs and the expansion of networks, it also focuses on acquisitions. So far this year in the wider industry, 13 acquisition deals have taken place that change the share dynamics of companies and "mortgage" new development plans.

 

In terms of industry, the most high-profile development projects include the expanded development program of Vikos by 100 million euros, the two-year plan of the Athens Brewery that foresees funds of 90 million euros, the 50 million euros that Kri Kri will invest for the strengthening its extroversion, the creation of the eighth factory of the Hellenic Dairies group in Cyprus, the 20 million euros for the new ION factory in Arta as well as the approximately 30 million euros that Barba Stathis will invest which, among other things, include the creation of a new unit in Larissa. In organized retail, only the top 6 of the market – Sklavenitis, Lidl, AB Vassilopoulos, Metro, Masoutis and Kritikos – are launching investments that exceed 800 million euros and focus on cost savings and strengthening the network.

 

Artificial Intelligence: The Greek proposal for AI Factories

 

 

The Greek proposal for the creation of an Artificial Intelligence factory in Greece will be submitted in the next few days, following the relevant call of the European Commission in September.

 

Artificial Intelligence Factories (AI Factories) gather computing power, data and talent as necessary elements to create innovative models of Generative AI and evolve its applications in various critical areas. It is an initiative of the European Union that is expected to strengthen Europe's capabilities in the field of artificial intelligence (AI) as well as high performance computing (HPC). This initiative supports the creation of ecosystems/hubs that promote innovation, collaboration and growth.

 

AI Factories are to be linked to Member States' AI initiatives creating a dynamic AI ecosystem, also benefiting from digital innovation hubs already in operation. The call for the creation of European AI Factories is supported by almost 1 billion euros from the EU's "Digital Europe" and "Horizon Europe" programs and from an equal amount of funding from the member states.

 

The proposal is coordinated by the agency of the Ministry of Digital Governance that is responsible for the development and operation of the " Daedalus" supercomputer, while the National Natural Sciences Research Center "Demokritos" that will be the headquarters of the AI Factory plays a decisive role, the National Technical University of Athens, the "Athina" Research Center as well as the Hyperfund in order to leverage resources and mobilize the innovation ecosystem.

 

The civic-centric use of artificial intelligence is a strategic choice of the government of Kyriakos Mitsotakis, as it can be a key pillar for a more effective digital state.

 

The Greek Artificial Intelligence factory

 

It will reportedly provide a set of services in order to be a "one-stop-shop" where businesses and organizations can get expertise and support for the development of artificial intelligence applications, data and tools, and even support for their business viability.

 

Greece will rely on the new Daedalus supercomputer to create a pioneering innovation ecosystem, with activities and services focused on thematic areas. Initially, it will focus on three strategic pillars: health, sustainability (Energy, Climate Change, Environment) and language together with culture in order to strengthen innovation in these axes and bring significant benefits to the Greek economy and society.