Cyprus International Business Journal issue 1 by άλφα δημιουργική alfa dimiourgiki

ISSUE NO 1 - 5.2021

cyprus International business

Journal The official Cyprus International Businesses Association Magazine

Energy FINAL TOUCHES FOR ANTICIPATED RESUMPTION OF DRILLING ACTIVITY Shipping CHALLENGES, PROSPECTS AND DEVELOPMENTS Nikos Christodoulides Minister of Foreign Affairs

Building

bridges CYPRUS’ VISION FOR A REGIONAL SECURITY AND COOPERATION FORUM

ISSN 2672-8338 (print) - ISSN 2672-8346 (online)

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Contents CIB Journal, Issue 1 May 2021

Why CIBA? Andreas Pishias

28 Cyprus Shipping Sector: Navigating through Covid

Building bridges Nikos Chistodoulides

38 B2B: To Cloud or Not To Cloud 50 Remote Project Management: Is it here to stay?

Cyprus Shipping Vassilios Demetriades Next Generation EU, a catalyst for investment Yiannis Seitanides An opportunity for Cyprus to diversify its tourism offering Maria Kouroupi

Ready for a restart Νatasa Pilides

Blockchain technology in the energy sector Andreas Poullikkas

International business

Journal

40 Brighter days ahead Marios Lanitis

52 Cyprus as a Modern Business Centre 56 Brexit Implications on CrossBorder Services for Investment Firms 58 RCB Bank: 25 years in Cyprus and looks to further success

64 Putting down roots AFP News Agency

76 Business Communications in Crazy Times 78 Limassol Marina, the success story of the project that changed the face of Limassol

Cyprus: A Modern Fund Jurisdiction Andreas Yiasemides

cyprus

26 BOC: With confidence in shipping

90 Cyprus Revisited: A legal practitioner’s viewpoint 92 What is happening in banking in Cyprus?

70 The Club: Α modern style of networking

94 Can Limassol become a Coastal Metropolis?

special thanks to: Annual edition - Free of charge ISSN 2672-8338 (print) ISSN 2672-8346 (online)

CYPRUS INTERNATIONAL BUSINESS JOURNAL

Welcome note

Editorial

By Doxia-Nikia Hadjivassiliou President Cyprus International Businesses Association

Dear Friends, It is with great pleasure that I welcome you to the First Edition of the Annual Cyprus International Business Journal which is a result of our cooperation with Alfa Dimiourgiki, to whom we express our sincere thanks for the excellent work. As most of you know The Cyprus International Businesses Association is a private association set up by expat executives and is funded entirely by its members. The Association works to support international company members in their everyday operations in Cyprus and to provide information to key stakeholders within Government to help improve the business environment in Cyprus. As we move forward in a COVID-19 “new normal” environment, we aim to provide through the Journal a platform in which thoughtprovoking articles and interviews with key stakeholders in government and in business will provide a clear insight on where Cyprus stands and where it is heading. The aim of the journal is to publish high quality articles which are relevant to the current times which will keep you abreast with the various international initiatives impacting the International Business industry in Cyprus and worldwide. At a time characterised by monumental challenges which drive and transform global economies and societies, we hope that the Cyprus International Business Journal will prove an insightful companion for internationally active business professionals. I look forward to receiving your feedback on this first issue and encourage your input on topics to be covered in future issues. In closing, I would like to thank our members for their continuous support as we navigate through difficult times and remind you that we are always here to support you. Have a pleasant reading! J

MAY 2021

About CIBA

Taking care of you

he Cyprus International Businesses Association (CIBA) was established on 31 December 1992 as a registered not-forprofit company limited by guarantee. CIBA came to existence on the initiative of a number of expatriate business executives who had moved their international operations to Cyprus in order to benefit from the island’s strategic location, bridging Europe to the Middle East, Africa and the Far East, as well as to take advantage of the island’s relaxed atmosphere and Mediterranean climate and its rather simple but competitive and effective tax regime. Since then, CIBA has been active as a non-governmental independent Association relying exclusively on membership fees and on sponsorships income from the promotion of members through its website. CIBA’S daily operations and activities are organised and carried out by its Secretariat and an Executive Committee of 12 persons who are all executives of member companies. All executive committee members are volunteers and do not receive any compensation for their time and service. They are all elected by the Members and meet at least once

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a month. Ever since its creation, CIBA has gone to great lengths to represent and safeguard the interests of the international businesses, their international shareholders, managers and staff. In this respect it has established a close co-operation with other private sector andsemi-governmental organisations, such as Cyprus Chamber Of Commerce and Industry, Cyprus Employers & Industrialists Federation, the Cyprus Shipping Chamber, the Institute of Certified Public Accountants of Cyprus, The Cyprus Fiduciary Association, the Cyprus Bar Association and Invest Cyprus.

CIBA Mission > To Listen, Understand and Address our members’ needs > To Protect our members’ interests by challenging and influencing developments > To Share Local Knowledge > To Promote Business Excellence > To Connect and Network

CIBA Vision > The Strategic Influential Voice Representing International Business in Cyprus

About CIBA

Executive commitee Doxia Nikia Hadjivassiliou President

Liudmila Bozhedomova Vice-President

Frixos Savvides Ex-Officio President

Marios Fotiou Executive Committee Member

Andreas Pishias General Secretary

Pavlos Varnavas Executive Committee Member

Margarita Alexandrou Papadopoulou Assistant General Secretary

Panicos Georgiou Executive Committee Member

Neil Smith Executive Committee Member

Kirill Korneychuk Executive Committee Member

Angelina Markari Executive Committee Member

Antoun Massaad Executive Committee Member

Andreas Andreou Vice-President

CYPRUS INTERNATIONAL BUSINESS JOURNAL

Article By Andreas Pishias, General Secretary, CIBA

Why CIBA TAKING CARE OF THE NEEDS OF INTERNATIONAL BUSINESSES AND HELPING THEM TAKE THEIR GOALS ONE STEP FURTHER

he Cyprus International Businesses Association is the brainchild of a team of international business expats who cared deeply about the island and wanted international business to grow from strength to strength. The Association was, thus, created to support and represent the international companies operating on the island of Cyprus.

What are the key objectives of CIBA? The Association is here to act as a supporting and advocating platform for its members and their staff and help them on issues they face. We act as a focal point through which our members can network. We provide information as well as seminars on topics of common interest which refer amongst other to Cyprus law and legislation as part of our education programme. At the same time, through discussion with members we identify their needs and expectations and work with the government and other professional bodies to create an environment that is friendly yet robust and efficient which can foster the growth of our members.

Who are the members of the Association and who can join? Our membership reflects the complete facet of the Cyprus economy and comprises of Shipping companies, Financial Trading Firms, Legal and Accounting firms, Banks (both international and local), companies active in Information Technology, in Property and in the Leisure and Travel industry, Oil and Gas and the 10

CYPRUS INTERNATIONAL BUSINESS JOURNAL

Andreas Pishias, General Secretary, CIBA

The Association accepts international companies with a physical presence on the island as Full Members as well as local companies that can provide a supporting role to our international members as Supporting Members

Space industry. The Association accepts international companies with a physical presence on the island as Full Members as well as local companies that can provide a supporting role to our international members as Supporting Members.

How has COVID-19 affected international companies and how has this affected CIBA? The impact on international companies was certainly hard. The majority of sectors saw disruption with an impact both on sales and operations. Having said that, the financial impact was in some cases positive as specific companies (e.g., Financial Training, Informational Technology, Internet Gaming and Services etc.) registered growth. All our efforts during this period, were focused on supporting the international business community through information that was accurate and on time to help them manage the impact. At the same time, we focused all our events and networking online. We continue to do so hoping that we shall be able to meet our members and friends physically later in the year.

What are the key priorities for 2021 for the association? Our focus will continue to be on providing our members with the right information to help them deal with the COVID-19 crisis. Concurrently, we shall continue to advocate the need for streamlined public services characterised by speed and efficiency. It is crucial that the shift in technology implementation and the mindset

changes that the pandemic brought be focused in such a way so as to make Cyprus a very attractive business hub for international companies. Furthermore, Cyprus Parliament has approved the EU’s Mandatory Disclosure Regime known as DAC6 which represents one of the most significant changes for tax advisors, service providers and taxpayers in recent years. Failure to meet the requirements of the directive may result in financial penalties and reputational damage, hence we are dedicated to tracking the regulatory changes and making sure that the relevant source information is accessible to our members to assist them and guide them through this changing environment.

Constantly discussing with international companies on the island what would you say are the advantages of operating from Cyprus? I would say that there is a “total package” that one considers when operating in Cyprus. We are the EU country closest in proximity to the Far East, Asian and African markets that are characterised by long-term growth opportunities. With a highly educated workforce and value-adding supporting services (financial/tax/legal) we do offer a supportive environment. Above all, this is combined with an environment that is safe, comfortable, and great for families to live in. We shall constantly work to enhance the quality of life and attractiveness of our island so as to make this a winning combination of business success and personal life quality. J MAY 2021

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Interview By Annie Charalambous

Nikos Christodoulides Minister of Foreign Affairs

Building

bridges CHRISTODOULIDES OUTLINES CYPRUS’ VISION FOR A REGIONAL SECURITY AND COOPERATION FORUM

CYPRUS INTERNATIONAL BUSINESS JOURNAL

yprus Foreign Minister Nikos Christodoulides points to the prevailing dynamic of cooperation in the Eastern Mediterranean, that as conditions evolve and mature, can pave the way for the creation of a regional forum for security and cooperation. “Cyprus, and like-minded countries in the region, share a vision for the Eastern Mediterranean,” he told the Cyprus International Business Journal in an interview. “They want to create a new narrative of peace, stability and prosperity for the region - one that diverges from the frontline narrative of turmoil,” he added. It was this vision that has led in recent years to the creation by Cyprus, together with Greece, Egypt, Israel, Jordan, UAE, Lebanon and Palestine of cooperation networks. “The decision to set up a Permanent Secretariat in Nicosia, to start operating in 2021, is indicative of the momentum and the commitment of participating countries to the burgeoning cooperation that has stemmed from these mechanisms,” he said. “The Secretariat will provide the necessary political umbrella under which these mechanisms will keep evolving and developing,” he added. Initially triggered by the significant energy developments in the region, these cooperation mechanisms have taken on further momentum, as they have evolved and expanded into an array of other areas such as security, education, environment and economic cooperation. The mechanisms, which have a positive agenda and are inclusive, have also grown and diversified in terms of participation, attracting the interest of other countries such as the United States, France and MAY 2021

Interview Nikos Christodoulides

Italy in specific areas of common interest, such as security. Regional cooperation is yielding concrete results, according to Christodoulides. “To mention just a few, during 2020 the Statute of the Energy Forum established in Cairo with the participation of Egypt, Cyprus, Greece, Israel, Palestine, Jordan and Italy was signed last September, and came into effect in March 2021; already France and the US requested and were granted observer status. Then the interstate agreement on the East Med Pipeline was signed between Greece, Cyprus and Israel.” “Moreover, the governments of the Republic of Cyprus and the United States signed an agreement for the establishment in Cyprus of a Regional Training Centre - named “CYCLOPS” for security on land, open seas and ports.” “Of historic importance and part of the dynamic that is developing in the region, are the agreements for the normalisation of relations between Israel, UAE and Bahrain,” he added. Christodoulides, in light of the expanding regional cooperation, also raised the prospect of the establishment of an East Med Forum for Security and Cooperation, which will be inclusive and based on a positive agenda. Such a Forum would, amongst other, enhance the security, stability and cooperation in the wider region. The sole prerequisites for countries to join will be respect for international law, commitment to good neighbourly relations and respect for the sovereign rights and territorial integrity of each and 16

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every country of the region. His regret is that Turkey which repeatedly “violates international law and does not respect the sovereignty and territorial integrity of countries in the region.” And in doing so, he added, Turkey has excluded itself from this network of regional cooperation. But, he also pointed out, Ankara can easily change course and abandon its expansionist policy that belongs to a

Τhe governments of the Republic of Cyprus and the United States signed an agreement for the establishment in Cyprus of a Regional Training Centre - named “CYCLOPS” for security on land, open seas and ports

bygone era and join the vision of the countries in the region The Minister sent the clear message that despite Turkey’s aggressive behaviour in the region, Nicosia has been operating with determination, restraint and pragmatism. “All our decisions and actions have been steadfastly founded on international law. This is reflected in the involvement of energy giants in Cyprus’ Ex-

clusive Economic Zone from the initial stages of our energy programme as well as the reaction of the international community to Turkey’s illegal actions in Cyprus’ exclusive economic zone,” he said. “Their commitment to Cyprus’ energy programme and the continuous interest shown by other major energy companies to invest in Cyprus’ EEZ constitute another vote of confidence in our country’s potential,” he added. Christodoulides believes the shifting dynamics of the Eastern Mediterranean and the Middle East are also reflected in Israel’s recent backto-back agreements to normalise ties with the United Arab Emirates, Bahrain and other countries in the wider region. Cyprus has joined the EU in welcoming this development which they see as making a constructive contribution to the greater goal of peace, cooperation and security in the turbulent region, he said. But he also noted that Cyprus traditionally enjoys excellent relations not only with Israel, but also the Palestinians and with Arab countries. “So, if, and to the extent Cyprus is, or could be part of these shifting regional dynamics, Ι would like to note that precisely given the excellent relations Cyprus enjoys with all the players in the region, we have expressed our willingness to contribute to the further enhancement of relations between Israel and all the Arab countries, either on a bilateral or a trilateral basis, alongside Greece,” he said.

Exemplary EU unity over Brexit With the much-publicised Brexit now a reality, the Foreign Minister underlined that Cyprus had been steadfast in its support and respect for EU unity. And that this had been a major tool for Nicosia as regards promoting and defending the small member state’s own political interests in several policy areas. “All the Member States of the EU realised that if we had negotiated as a bloc with the UK, we would have been stronger together and more effective in promoting the interests of EU businesses and EU citizens, something that would have been harder to achieve, on a bilateral basis,” he said. “Admittedly the unity displayed by the EU and Member States on Brexit was unprecedented, and it should underscore and guide all issues discussed at EU level.”

MAY 2021

Interview Nikos Christodoulides

Rising to the Covid-19 challenge Nikos Christodoulides acknowledges that, as in the case of the world at large, the Covid-19 pandemic has created unprecedented challenges for Cyprus. And it has also highlighted the importance of working together with partners - both within and beyond the EU - in order to tackle the common challenges. “It is certainly true that the pandemic has both amplified challenges and generated novel ones. I believe that a core, key challenge is that the pandemic has led many countries, particularly at the beginning of the pandemic, to insularism, as a form of self-protection in tackling the crisis brought about by the pandemic,” he said. “This trend towards insularism, to challenging multilateralism, started of course before the coronavirus pandemic, triggered by other crises amongst them the financial crisis, as well as the migration crisis. There has been in other words, a shift in many respects away from multilateralism, from coming together to address challenges,” he added. The Minister also said that, throughout the crisis, Cyprus has advocated the opposite. It has, more so than ever, underlined the need for states to come together to effectively tackle the far-reaching ramifications of Covid-19. Cyprus, he explained, has done so in a two-fold manner. Firstly, within the EU, where Cyprus advocated in favour of a strong collective EU response as the only way to address the crisis. “This is also what EU solidarity, as prescribed by the Treaties, provides for. Admittedly, the first reaction by the EU and its Member States to the pandemic was not 18

CYPRUS INTERNATIONAL BUSINESS JOURNAL

ideal. There was a national reaction before there was a collective EU response in many cases, and that is regrettable,” he said. “But this very quickly shifted and the EU mobilised its agencies to coordinate policies in Member States, to ensure that supplies reach all Member States and crucially to make sure EU funds were made available for Member States’ economies,” he added.

Nicosia mobilised the trilateral cooperation mechanisms to create channels of communication between the region and the EU

The other front on which Cyprus acted together with its partners in the region, was to utilise its close bonds with neighbouring countries in the Middle East and Gulf. “Nicosia mobilised the trilateral cooperation mechanisms to also respond to the crisis as well as to create channels of communication between the region and the EU. An example I cannot omit mentioning is that at one of the first peaks of the pandemic, in the early stages, a day after a telephone communication with the Foreign Minister of the United Arab Emirates, H.H. Sheikh Abdullah bin Zayed bin Sultan Al Nahyan, the UAE sent supplies of medical consumables to Cyprus.”

Revised tax deal with Russia ‘positive’ Economic ties between Cyprus and Russia are maintained in the wake of revisions to a tax cooperation regime between Nicosia and Moscow after the decision of the Russian Federation regarding taxation of offshore income. “In September, Cyprus and Russia reached an agreement with respect to the level of the withholding tax rate on dividends and interest payments – in effect as from the beginning of 2021,” he said. “This was a particularly positive development for both sides, ensuring the continuation of the mutually beneficial Agreement on the Avoidance of Double Taxation which put an end to the uncertainty of the business and investment community,” he added. And, given the decision of the Russian authorities to proceed with similar

tax arrangements with other EU countries, Nicosia expects that Russian-owned companies will continue their activities in Cyprus. On Cyprus’ recent decision to scrap its controversial citizenship by investment programme in the wake of a scandal involving politicians and developers, the minister noted that rightly so “there was an immediate, clear political decision to terminate the programme in question.” Around 4,000 Cyprus passports have been issued to foreign individuals in the last seven years. Russians topped the list of “new Cypriots” followed by the Chinese and the Ukrainians. Other nationals who obtained passports under the now defunct scheme were Lebanese, Egyptians, Iranians, Indians and Jordanians. J MAY 2021

Article By Vassilios Demetriades Shipping Deputy Minister to the President

Cyprus Shipping: Challenges, Prospects and Developments

he last 14 months have been marked by an unprecedented crisis that has led to great disruptions and a worldwide lockdown. The COVID-19 crisis has severely impacted the shipping industry and its operations with great difficulties on crew changes. Despite the problems, Cyprus shipping proved to be resilient. The income derived from shipping during 2020 remained at the same level as last year. The contribution of the shipping sector to Cyprus’ economy is approximately 7% of the GDP. Cyprus was one of the first countries worldwide that recognized seafarers as essential workers and introduced practical measures for crew changes. Since May 2020, more than 12000 seafarers have been repatriated or have been able to return to work through Cyprus. On the vaccination of seafarers, Cyprus is actively involved in all the deliberations at global and EU level for a collective and coordinated approach, proposing a practical and realistic solution on the way forward. The shipping industry is facing challenges pertaining to the green and digital transformation coupled with global and European commitments for a stringent legislative framework towards a sustainable path. Compliance with this new regulatory framework requires new solutions, cutting-edge technologies and innovative tools. We must be ready to address all the existing challenges in order to secure a safer, sustainable, and

CYPRUS INTERNATIONAL BUSINESS JOURNAL

Vassilios Demetriades, Shipping Deputy Minister

SEA is our new philosophy and approach for Cyprus Shipping where “SEA” stands for Sustainable, Extrovert and Adaptable

more efficient maritime industry while ensuring that we maintain and further enhance the competitiveness of Cyprus Shipping by exploring its growth potential. One of our persisting priorities is to safeguard, and where possible to upgrade, the business–friendly framework available to foreign investors in shipping. The prolongation of the Cyprus Tonnage Tax System was an important development towards maintaining a stable fiscal environment. There is also a need to provide the industry with a framework that will support sustainable growth. In this respect, we have launched a range of green tax incentives demonstrating our commitment to green transformation and expressing our readiness to support the industry in its path to decarbonization by rewarding operations and innovative approaches that reduce the environmental footprint. The quality of services provided by the Shipping Deputy Ministry is considered as one of its strengths which we are willing to further develop. Towards this direction we made significant progress to simplify formalities and to transform our services to a paperless environment aiming to further increase the efficiency and attractiveness of the Cyprus Registry. We are in the process of formulating a roadmap of actions that will turn all our services digital, creating the framework conditions for the Shipping Deputy Ministry to support the concept of one-stop shop. A prerequisite for a sustainable shipping cluster is to create a culture for seafaring and maritime pro-

fessions in Cyprus. We are an island, a leading maritime centre with a competent and reputable shipping industry. It is an absolute must to change the mindset of young people in order to acknowledge and promote the blue growth potential. We have recently launched a campaign www.seayourhorizon. com and a number of initiatives targeting students at secondary schools to learn about shipping and blue economy studies and professions. We also need to bring closer the academic institutions with the shipping industry to develop a curriculum that reflects new trends of shipping, while supporting research and innovation towards the green and digital transformation of the sector. A maritime nation like Cyprus must have a clear orientation for the future development of the shipping sector in order to ensure that Cyprus has a leading role and involvement in the formulation of the global and European maritime agenda. Cyprus shipping has to be competitive, strong and resilient to crisis and proactive to challenges and new trends. In this journey, there is a need for an ambitious vision and for clear objectives. It is for this reason that the Shipping Deputy Ministry has launched a consultation campaign. In true Cyprus style, we are opening our doors and inviting the global shipping community, the national shipping cluster and the civil society to submit views and ideas in order to co-formulate a long-term strategic vision for Cyprus shipping. SEA is our new philosophy and approach for Cyprus Shipping where “SEA” stands for Sustainable, Extrovert and Adaptable. The consultation campaign which is available on the following webpage www. cyshippingstrategy.com will take place in four different phases addressing all challenging issues faced by the shipping sector, aiming to drive progress and to adjust our sails towards a sustainable, more competitive, more extroverted Cyprus shipping cluster, whilst contributing effectively to a positive change for global shipping. J MAY 2021

Opinion

By Nicholas Pavlidis Head of Shipping, Bank of Cyprus

Bank of Cyprus:

With Confidence in Shipping

hipping connects the world. It is the silent workhorse that transports energy, raw materials, finished & semi-finished goods around the globe. Shipping provides fuel for our cars, food on the supermarket shelves and the clothes we buy in the high street or online. More than 90% of world trade is carried out by commercial ships. At times of crisis, like the recent Covid-19 pandemic, the role of shipping becomes as vital as ever, in maintaining an uninterrupted supply of goods and materials to the world. This is very important for a country like Cyprus. As an island, Cyprus’ prosperity and development has historically been linked to shipping. Over the past few decades, Cyprus gradually developed into an important shipping centre. The country has Europe’s third largest merchant fleet and is one of the largest shipmanagement hubs in the world. Today shipping contributes over €1bn to the Cyprus economy representing more than 7% of GDP. To stay abreast of these developments, in late 2017 Bank of Cyprus established a new Shipping Centre in Limassol, aiming to become a centre of excellence for its existing and prospective shipping clients. The Shipping Centre resides under the Global Corporate Banking and

Markets Division, and enjoys the synergies and expertise of efficient market access, implementation of client hedging strategies and a wide range of Wealth products. As the country’s largest bank, Bank of Cyprus had for many years already been providing services to the Cyprus shipping community. Ship-finance now allows for a full product offering, including payments, FX, interest risk management and operational banking services. Over the past three years, the Shipping Centre gradually expanded its ship-finance portfolio with carefully structured loans, diversified across a select group of shipping companies and asset classes. This approach has served the fledgling department well, enabling the portfolio to withstand difficult conditions, like the current pandemic. In a highly volatile market, with many economic and geopolitical uncertainties, our strategy is to selectively expand with focus on relationshipbuilding, mostly within the Greek and Cypriot shipping communities. In today’s changing world, it is becoming increasingly apparent that there are significant new challenges ahead for shipping and all players involved with it. Environmental targets and required technological innovation are two such important matters. The shipping industry has

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been challenged to play its part in reducing greenhouse gas emissions, which will require the construction of ever more efficient vessels. However, ships represent a significant, long-term capital investment and those already at sea have an important part to play over the coming years. At Bank of Cyprus, we maintain our focus on quality shipping groups and support their aspirations for careful fleet renewal and expansion, be it through ordering new vessels or making secondhand acquisitions. Our Shipping Centre maintains a low profile in the world of shipfinance but remains dedicated to adding value for its clients. An experienced ship-finance team, under the guidance and support of the Bank’s senior management, is keen to distinguish itself by recognising its competences and maximising the competitive advantages. Quick decision making, prioritisation of key issues and tailor-made solutions, are at the core of our efforts to provide client-focused services. By offering high-quality operational banking, and supported by the services of our Global Markets and Wealth Management teams, Bank of Cyprus’ Shipping Centre aims to help its clients manage their business moving into the future. J

T Opinion

he rapid spread of Covid-19 has had a major impact on the global economy with the social distancing measures and the slump in demand for goods having a ripple effect on everything, including the shipping industry. A sentiment widely shared across all European countries as well as all of the other developed markets worldwide, is that despite the social distancing measures, we should by all means

Cyprus Shipping Sector: Navigating through Covid-19

By Kyriakos Christodoulou Associate Partner, Shipping Sector Leader EY Cyprus

keep the economy going. The Cyprus Government tried to balance between keeping the economy and employment at satisfactory levels, while at the same time continuously adjusting the social distancing measures to contain the spread of the virus and safeguard the health system. Specifically, on the measures taken relating to the local shipping industry, the local ports and terminals remained open for business to make sure food and goods kept flowing. The Shipping Deputy Ministry’s (‘SDM’) response to the pandemic, included deferral of payment deadlines for tonnage tax and annual maintenance fees, the extension of validity of certain certificates and the possibility of remote audits. It is also important to mention that SDM remained fully operational and continued to provide its clients its services without any interruption.

CYPRUS INTERNATIONAL BUSINESS JOURNAL

The post-Covid digital disruption As in almost all sectors, same in the shipping sector, we are currently witnessing the acceleration towards digital and technological advancements. This does not mean we will soon see autonomous vessels navigating the waters, but it is certain that there will be increased investments in freight technologies, in companies providing data analysis, artificial intelligence software, supply chain management and more services to be provided electronically. Cyprus SDM’s reaction in relation to the technological advancements was to accelerate the use of digital technologies. A few examples of digital services include the electronic verification of certificates issued by the Cypriot registry, the electronic submission of seafarers’ applications and the acceptance of electronic deck logbooks, whereas the online ship registration process and other services are coming soon. What has become clear from the pandemic is that the government authorities need to speed up in reducing bureaucracy in all public departments. The SDM has already picked up the signal and has started providing some digital solutions to ship owners and operators to save time and new electronic services are expected to be introduced over the next few months that will enhance data entry, cut red tape and reduce human error in a paper-less environment. We should also not forget that even before Covid-19, shipping was already dealing with several challenges such as the impact from IMO2020 sulphur cap, trade sanctions, onshoring, cyber security and significant shift in demand cycles to name a few. Therefore, the shipping industry shall take a step back

and considering availability of financial resources, legal, regulatory and safety issues will need to select how to integrate decarbonisation, digitalisation and other challenges into the industry in a more joined-up and technologically driven sector. The future of shipping in Cyprus Cyprus is an already a well-established maritime cluster. This has been achieved as a result of the island’s historic origins as a shipping nation in the crossover of three continents as well as through its various competitive advantages such as its EU approved tonnage tax system, business friendly environment, legal system closely modelled on its British counterpart, highly skilled professionals in various shipping related professions as well as excellent weather conditions and a safe and easy place for a family to live and raise kids. Adding to the above, the state’s commitment to the industry over time, has resulted in Cyprus becoming the EU’s top third-party ship management centre and one of the largest worldwide. It is also worth mentioning that the Cyprus fleet ranks 11th in ship registration globally. As a recognised international shipping centre, Cyprus participates in various shipping organisations and committees - such as the IMO where Cyprus has been a Council member since 1987, the EU, EMSA, etc. It has also done tripartite meetings with Greece and Malta and bilateral meetings with shipping nations such as China, Singapore, the UK and Poland. We have also seen visits of the Deputy Minister to Lisbon and the Netherlands. Visiting and cooperating with other clusters is an important element of the Ministry’s promotional

The government authorities need to speed up in reducing bureaucracy in all public departments strategy. This includes strengthening the relationships with existing clients but also exploring opportunities for new clients from international shipping clusters. The cooperation with other clusters also helps the collaboration in certain areas of common interest such as blue growth, innovation, marine spatial planning, crew changes issues and the industry’s ongoing efforts to reduce its carbon footprint. A key element of SDM’s current growth strategy is to safeguard and enhance the competitive advantages and improve the quality of its traditional services. But while the cluster is continuously growing from its traditional services, another equally important element of the strategy where the growth will come in the next years, is to attract more ship owners and more companies involved in other maritime-related services such as chartering, bunkering, brokerage, shipping insurance, maritime technology, telecommunication services and procurement services. In formation of its revised strategy, the SDM has recently announced a public campaign that will last until end of May 2021 where it has invited the shipping community to provide their thoughts and ideas in four areas; Environmental Sustainability, Digital Transformation, Global Persisting Challenges (Social Issues & Piracy) and Issues of local and regional interest. The subjects of this public consultation are an indication how the state sees the future of shipping in Cyprus.

Having said the above, it is critical to understand that no growth strategy can be sustainable without local maritime professionals. And we are excited to see that various local Universities and especially the three relatively newly established maritime academies are active in offering shipping related education. There is also increased activity in awareness campaigns for youth and initiatives taken to encourage maritime & blue studies targeting mainly secondary school students. Shipping at EY At EY, we are proud that our team is constantly growing together with our clients, thus developing a dedicated and highly specialized shipping practice in Cyprus. With more than 50 industry experts locally and our ability to tap into our global network, we are proud to be in a position to provide clients with high quality audit, tax services, regulatory and business transformation, in line with their digital journey as well as other consulting services uniquely tailored to their needs, no matter if their businesses are large or small, family-owned, state-owned or publicly listed. Like our clients, we have been in this sector through the highs and the lows and because of that, we are able to approach and understand the sector’s challenges and complexities. Our perspective is not just about the current times, but in the context of a cyclical industry. J MAY 2021

Εconomy By Yiannis Seitanides

Next Generation EU

a catalyst for investment THE INFORMATION TECHNOLOGY AND ELECTRONIC EQUIPMENT SECTORS, TELECOMMUNICATIONS, RENEWABLE ENERGY SOURCES, THE ENVIRONMENT, CONSTRUCTION AND THE AGRI-FOOD SECTOR WILL HAVE ACCESS TO FREE CAPITAL FOR NEW INVESTMENTS

CYPRUS INTERNATIONAL BUSINESS JOURNAL

uring a period of uncertainty, when it comes to the essential restarting of Cyprus’ post-pandemic economy, European plans for supporting recovery open up a new level of investments to mobilise public funds and private capital. The “Next Generation EU” strategy provides for the funding of member states with the amount of €672.5 billion. Within the framework of this recovery instrument, member states will be given subsidies worth a total of €312.5 billion, while the remaining €360 billion will be distributed in the form of loans. Along with the next long-term EU budget for the period of 2021-2027, total funding support channeled through the EU budget will amount to over €1.8 trillion. The fiscal stimulus package falls short of the new US government’s ($1.8 billion) plan but is more targeted by encouraging investments leading digital transition and what has been dubbed the green economy. The information technology and electronic equipment sectors, telecommunications, renewable energy sources, the environment, construction and the agri-food sector will have access to free capital for new investments. At the same time, the promotion of reforms, which constitute prerequisites for accessing funds from the European Recovery Mechanism, and the implementation of employment support actions, are expected to improve the operational environment of businesses in Cyprus. In order to benefit from the Recovery

Constantinos Petrides Finance Minister and Resilience Facility, member states must submit recovery and resilience plans describing their national investment and reform programmes. The plans must provide member states with the opportunity to strengthen their financial development dynamic, to create new employment and financial and social resilience, and to achieve green and digital transition. The plans must be capable of handling the challenges set out within the European Semester framework, especially the particular country-by-country recommendations issued by the Council, which constitutes the process for coordinating European Union member states’ financial policy. Cyprus is entitled to €1.3 billion from the European recovery fund and a total of €2.7 billion over the 2021-2027 period, with the additional €1.45 billion MAY 2021

Economy Recovery Plan

set out in the Multiannual Financial Framework. Taking into account the national contribution within a new EU Multiannual Framework and the EU Recovery Fund, €3 billion worth of projects and reforms will be financed. Speaking at the 5th International Investors Summit, Finance Minister Constantinos Petrides underlined that the money provided by the European Recovery and Resilience Fund “will constitute the blueprint for our growth policies for the next years including actions based on green and digital transition.” “This tool”, he added, “which will provide a mix of grants and loans to member states, is expected to be instrumental in the revamping and the resilience of our economy, including actions related to the green and digital economy.” FLAGSHIP ACTIONS Following the path of strategic investment, so results can be multiplied, the European Commission recommends the creation of flagship European initiatives which must handle issues that are common to all member states, which require significant investment, that will create jobs and development, and which are necessary for the dual transition. The Commission has asked member states to include the following sectors in their localised plans for recovery and resilience investment and reform: Activation — Preparing sustainable clean technologies and accelerating the development and use of renewable energy sources. Renovation — Improving the energy efficiency of public and private buildings. Recharging and refueling — Promoting durable clean technologies to accelerate the use of sustainable, accessible and intelligent transport, charging and refueling stations and expansion of public transport. Connectivity— Developing fast broadband services in all regions and households, including fibre and 5G networks. Modernisation — Digitalising public administration and

CYPRUS INTERNATIONAL BUSINESS JOURNAL

In order to benefit from the Recovery and Resilience Facility, member states must submit recovery and resilience plans describing their national investment and reform programmes

public services, including the judicial and health systems. Scaling up — Increasing European industrial data cloud computing capabilities and developing the most powerful, innovative and sustainable processors. Acquiring new skills and upgrading skills — Adjusting education systems to support digital skills along with educational and vocational training for all ages. For every flagship action sector, member states have been asked to submit an analysis of current national challenges including the existence of market or systematic failures. European Commission instructions for the preparation of the national plans demand a complete and thorough response on the financial and social condition of the member state.

Works for Green transition At least 37% of spending from each recovery and resilience plan must be connected to the climate. This provides for the funding of actions to speed up the development and use of renewable energy sources, improving energy efficiency and efficiency in the use of resources within public and private buildings as well as speeding up the use of viable, accessible and smart transportation. Digital transition A minimum of 20% of spending in every plan for recovery and resilience must be connected to the digital sector. These will involve, for example, investment in the development of 5G connectivity and Gigabit, the development of digital skills through education system reforms and increasing public service availability and efficiency through the use of new digital tools. Reforms first The outline of the strategy for Cyprus leads to a complete return to reforms that have been pending since the time of the memorandum, with the difference now being that there is the “carrot” (incentive) of generous European funding. If the reforms are not implemented, the funds cannot be disbursed. The plan includes four important reforms concerning the education system, public administration, local administration and justice system (improving quality and efficiency).

The six pillars of interventions 1. Green transition. 2. Digital transformation. 3. Smart, sustainable and inclusive development, including economic cohesion, job creation, productivity, competitiveness, research, development and innovation within a well-functioning, defined market featuring strong small and medium-sized enterprises. 4. Social and territorial cohesion. 5. Health and economic, social and institutional resilience, with a view to increasing response and preparedness for crises. 6. Policies for the next generation, children and youth, including education and skill-building.

MAY 2021

Economy Recovery Plan

The Cyprus plan Cyprus’ National Recovery and Resilience Plan, which is necessary for the country to draw on funding from the European Pandemic Recovery Mechanism is structured around five policy axes: -Public Health and Civil Protection- Lessons from the Pandemic (with a budget of €78.5 million). -Accelerating the transition to a green economy (with a budget of €422.5 milion). -Strengthening the economy’s competitiveness and resilience (with a budget of €509.5 million) -Towards a digital age (with a budget of €95.5 million) -The job market, education and human capital (with a budget of €122.5 million)

The allocation of resources and investments > €920 million in total - through the Recovery Fund and the EU’s multiannual financial frameworkfor strengthening competitiveness through investments in a new developmental model, research and innovation, digital governance and reforms such as reform of the justice system. For entrepreneurship in particular, actions worth €201 million are anticipated for the digital upgrade of businesses, to encourage new entrepreneurship and to strengthen the competitiveness of small and medium-sized businesses. > €1.15 billion for green development, investments in clean energy, viable transportation, electricitypowered transportation, the management of water resources, waste management, biodiversity, and handling climate change. Spending of €230 million will concern, among other things, the promotion of Renewable Energy Sources (RES) and individual residential energy efficiency measures, promoting RES for electric vehicle charging systems and more.

Implementation will begin almost immediately as 70% of grants will have to be committed within 2021-2022 and the remaining 30% by 2023. Projects and reforms must be materialised by 2026. One hundred percent of the funding through the “Next Generation EU” programme comes from the EU, with no national co-funding, and foresees a 13% advance payment in 2021. It should be noted that the 2021 budget forecasts €630 million spending connected to works and actions that will be included in the plan. J

CYPRUS INTERNATIONAL BUSINESS JOURNAL

> €547 million for a more socially -cohesive Cyprus based on its human capital. > €254 million on a betterconnected Cyprus. > €80 million for a more effective health system and the strengthening of civil protection.

Opinion

By Maria Kouroupi Hermes Airports Senior Manager Aviation Development, Marketing and Communication

An opportunity for Cyprus to diversify its tourism offering

s the world was increasingly becoming acquainted with new business concepts, such as agility, disruption and Collaborative Decision Management, no one could think that the pandemic would create the greatest perhaps disruption of our times and would force enterprises, Governments and individuals to put all these ‘buzz’ words to good use all at once. The aviation industry is by no means an exception; in fact, the whole travel and tourism value chain has been hit the hardest from the pandemic and is facing serious challenges with some companies being at the verge of collapse. In Cyprus, passenger traffic dropped by 80% in 2020, following some really good years, where the long-sought airline connectivity had finally laid solid foundations with 70 airlines and over 120 destinations being served in 2019. The situation has been similar in the rest of the world and Europe particularly, with the passenger numbers following a free fall since March 2020. The whole air transport system was disrupted with airports and airlines facing financial problems, leading to thousands of

jobs being lost and many aircraft being grounded. According to Airports Council International, currently in Europe 30% of narrow body and 40% of wide body aircraft are being grounded with no visibility as to when and to what extent they will be put back in operation. A lot of experts talk about a systemic crisis much more serious than 9/11, which at the time transformed the industry particularly in relation to aviation security. A disruption brings along the need to adjust, act fast and collaborate. In the current crisis, airlines, and airports together with their contractors had to implement at the ‘speed of the light’ new cleaning protocols, new processes for embarking and disembarking, as well as Covid-19 testing facilities at the airports, and to optimise the use of facilities and resources. Collaboration with the health authorities and other governmental institutions has been a daily routine to be able to deal with this crisis and continue operating. This collaborative approach is necessary to re-establish confidence in the travelling public and bring back demand. Airports and airlines however have one major difference which is very

CYPRUS INTERNATIONAL BUSINESS JOURNAL

important: the airlines have movable assets (their aircraft) and can choose where to deploy them, the airports instead have a very high fixed cost basis and no option as to the area they serve. Instead, it is recorded that airports contribute close to 4% to the GDP in the countries they operate and are a source of regional development. The decision taken by many European Governments to support airlines rather than airports by as much as €3 billion so far could prove to be a negative factor in the recovery of local economies. Clearly this disruption will bring significant structural changes. A lot of studies have been published in recent months from companies such as Mckinsey or BCG, but also from industry organisations such as IATA, ICAO, ACI etc. Whether optimistic or less optimistic, they are all pointing in the same direction in terms of what the future will bring: 1. Recovery will take time with most saying 4-5 years. Of course, some airline CEOs believe that there is a lot of pent-up demand which will ‘explode’ starting from the second half of 2021 and this will lead to a quicker recovery in passenger and flight numbers,

however not in terms of pricing and yields. Whilst this might be good for competition and for the general public, it may cost the survival of the weaker players. 2. Business travel will have a much slower recovery, however, it will not vanish as some people claim. Online meetings have proven useful, but nothing can beat face to face communication and I would add to this the growing ‘bleisure’ customer segment before Covid-19, where people travelling for business take the opportunity to visit the destination and combine this with some leisure activities. 3. There will be demand pressures driven by anxiety and the gradual return of travellers’ confidence. Reduced disposable income may have a negative impact on demand, although past experience has shown that when it comes to their main holiday, people prefer to sacrifice other expenditure to enjoy a holiday and luckily Cyprus falls into the primary holiday category. 4. Leisure travel, visiting friends and relatives and shorter duration trips are expected to drive the return to growth. The experience so far has shown that Cyprus has attracted a younger generation of

Collaboration with the health authorities and other governmental institutions has been a daily routine to be able to deal with this crisis and continue operating. This collaborative approach is necessary to re-establish confidence in the travelling public and bring back demand

travellers, who are more independent, prefer individual travel arrangements rather than groups and are looking for a variety of experiences. This is an opportunity

for Cyprus to explore this segment, understand their preferences, what drives their decision, what kind of promotion is required to reach them. The establishment of bases in Cyprus by the two major low cost airlines and the opening of new destinations across Europe should be seen as an enhancement to distribution options and a way to attract a more diverse clientele. 5. Airlines will still face significant pressure on yields and it seems that the two major low cost carriers, namely Wizz Air and Ryanair are expected to lead growth with easyJet following suit, even though it is containing its planned expansion. The network airlines on the other hand, will be faced with significant challenges, given that the major hubs and long haul travel is expected to have a slower recovery. This could present an opportunity as people would like to decentralise and use less crowded airports and more point to point travel. The future remains uncertain, however we choose to be optimistic, agile and adaptive to take advantage of opportunities, work with everyone and collectively build a better tomorrow. J

MAY 2021

Opinion

By Periklis G. Theodoridis Founder & CEO of TheMagnet® themagnet.com.cy

B2B: To Cloud or Not To Cloud

ompanies are still wondering whether to invest in cloud or not. Let’s try to understand some basics. We know that cloud is the storage, processing, and use of data from remote computers accessed over the Internet. That’s it. Now that we got this out of the way, let’s talk about what cloud really means for companies. Cloud means a whole great deal of flexibility in terms of computing power needs. For example, whenever there is an increased use of a service, through the cloud it is very simple to add extra potential to it, something that would take much longer if a company had to install new machines in its own computer room. Companies do not need to purchase software or purchase and maintain expensive servers and data storage facilities. This saves money, office space and costs on internal support IT staff. They also have almost complete flexibility in terms of storage space and the tools they use. The cloud nowadays, even, provides a pay-per use costing model that follows a payment rule depending on the use of resources on a short-term basis whenever required and exemption from any financial commitment when resources are no longer

needed. Therefore, whenever machines and storage space are not needed, they are released. This is actually one of the best advantages. A typical example is the cloud services of Scaleforce. It offers cloud infrastructure and services such as web accelerate, content delivery network, route DNS, enterprise hosting, eCommerce hosting and many more. You pay only for the resources you really consume. The fair pricing you always dreamed of, is now a reality. You pay only for what you use! Everybody can benefit and the cloud could revolutionize all areas. With Scaleforce services,

CYPRUS INTERNATIONAL BUSINESS JOURNAL

a company can focus on its business instead of worrying about the technologies and uptime and can enjoy a bullet-proof access through well-guarded premises with tight security standards and 24/7 support (https://www.scaleforce.net). Cloud could also bring big profits to the public sector, making it easier to provide integrated and efficient services at a lower cost. Cloud could enhance research as research institutes could complement their specialized internal IT infrastructure by combining them with the cloud, enabling them to store and process huge amounts of data, faster, and innovation, as this makes it much easier and cheaper to try out new products or services. At the same time, the cloud is the best way to improve energy efficiency and reduce environmental pollution due to carbon emissions in the industry. Do you still wonder whether you should go cloud? If still not sure, a free trial could be proven to be a good idea! (https://www. scaleforce.net/cloud-hosting-freetrial). J

#gocloud #costsavings #themagnetcy #themagnetconsulting #scaleforce

CYPRUS INTERNATIONAL BUSINESS JOURNAL

Interview By Annie Charalambous

Νatasa Pilides Minister of Energy, Commerce and Industry

Ready for a restart ENERGY GIANTS PUTTING FINAL TOUCHES TO PREPARATIONS FOR ANTICIPATED RESUMPTION OF DRILLING ACTIVITY

rilling activity in Cyprus by international oil and gas companies is scheduled to commence in the last three months of 2021, Energy Minister Natasa Pilides told The Journal. “That is the position that the companies conveyed to us, we are very fortunate that we still have the slots within their calendars for 2021 and we hope that this will remain the case,” she also said. “But, of course, to a large extent it depends on how things will go with the Covid-19 pandemic,” she added. Pilides also said the government and private energy companies are now doing the preparatory work, looking at technical issues, the budgets and various other details, before the actual drilling takes place. The Ministry also established a specific protocol for people travelling to Cyprus, to work in the oil and

MAY 2021

Interview Natasa Pilides

gas industry. “We are also looking at the airport situation regarding the commencement of flights. We do not anticipate any problems at all with the Cypriot authorities, but crews will be coming from various parts of the world and we need to ensure that they will be able to travel with as few restrictions as possible,” she said. Fortunately, she noted, Cyprus is in the situation where all of the companies involved are in for the long haul, as they have made a long-term commitment. “We talk with the hydrocarbon companies all the time, we have (online) meetings on a regular basis. I think, with regard to Cyprus, we have always been extremely open and transparent and close in our collaboration with the private entities,” she also said. The Minister also clarified that the EU Green Deal and the various objectives that have defined and will be defining the Mediterranean island’s energy policy for the next few years, are also all very important. What must be recognised

CYPRUS INTERNATIONAL BUSINESS JOURNAL

is that natural gas is a bridge fuel in the transition to green energy and one that Cyprus has been trying to introduce in its energy mix through the construction of an FSRU facility (Floating Storage Regasification Unit). “One of our main objectives is for natural gas to be imported so that we can improve our performance as regards electricity production. And to also lower our prices and improve our performance towards our climate-related objectives.” Another point she made is that Cyprus is part of a region made up not only of EU Member States, but many other neighbours who are also taking the green transition very seriously. “I’m referring to Egypt and Israel, whose collaboration is extremely important for Cyprus on the diplomatic but also on the commercial level,” she said. “Because deposits from our own gas fields could actually be exported towards countries in Asia and Africa and not just to European countries.”

Cyprus eyes role as regional energy hub The Energy Minister believes natural gas still has an important role to play for at least a few decades, as part of the broader transition to green energy, but she acknowledges that the financing of such infrastructure works is a hot topic of debate. In July Cyprus President Nicos Anastasiades laid the foundation stone for the €289 million LNG import terminal at Vassiliko, being developed by the Natural Gas Infrastructure Company of Cyprus (ETYFA). Said to be the largest energy project in Cyprus, the natural gas import terminal will have an LNG floating storage and regasification unit and related infrastructure. The midstream project will also include a jetty, a pipeline and mooring facilities, along with other onshore and offshore infrastructure. Construction of the LNG import terminal is likely to be wrapped up in 2022. Other energy infrastructure projects in the pipeline for Cyprus include the Euro-Asia Interconnector and the Euro-Africa Interconnector electricity cables, as well as the East-Med gas pipeline. Pilides sent the message that Cyprus can be a key player in the regional energy arena by embracing renewables, as well as gas. Energy storage, especially as a way to further promote renewables, is very important, she added, “as is the opening of the electricity market.” The Minister believes that would make a huge difference, also in terms of competitive prices, pointing out

Cyprus can be a key player in the regional energy arena by embracing renewables, as well as gas

the transitional phase has opened and companies can now join the market and compete with the Electricity Authority of Cyprus. “But more on a business-to-business basis at the moment,” she said. “Storage and the lifting of our energy isolation through the two electricity cables are important elements in opening up opportunities, because they would provide a much more stable energy system.” “We are working hard to ensure all these elements come together to allow a dynamic move to the green energy era,” was the last message she sent out. J

MAY 2021

Presentation

Enriching lives and progressing society LEADING SOFTWARE AND SERVICES PROVIDER AMDOCS AND ITS 25,000 EMPLOYEES PARTNER WITH THE LEADING PLAYERS IN THE COMMUNICATIONS AND MEDIA INDUSTRY, ENABLING NEXT-GENERATION EXPERIENCES IN 85 COUNTRIES

mdocs’ purpose is to enrich lives and progress society, using creativity and technology to build a better connected world. Our cloudnative, open and dynamic portfolio of digital solutions, platforms and services brings greater choice, faster time to market and flexibility, to better meet the evolving needs of our customers as they drive growth, transform and take their business to the cloud. At Amdocs, we believe in building a better future. As we help our service-provider customers modernise, automate and digitise their businesses, we also seek to make a difference for the benefit of wider society. We do this by prioritising inclusion and diversity, supporting the communities in which we work and creating sustainable products and services. We are committed to diversity, and believe that a gender-diverse, multicultural workforce provides strength and a competitive advantage. We seek to create a welcoming work environment for all employees, regardless of age, disability, ethnicity, gender, religion or sexual orientation, and run internal programmes to increase representation and empower female employees of our company.

Acting on equality We have placed particular emphasis on recruiting more women in core technology roles, while in terms of senior management female general managers are now responsible for more than 40% 44

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At Amdocs, we are committed to diversity, and believe that a gender-diverse, multicultural workforce provides strength and a competitive advantage

of the employee population. But while we have made progress in this area, we believe we can do better and have set ourselves a long-term target: to increase female representation in the company by 20%. We believe these ambitious targets are attainable and reflect our commitment to the importance of gender diversity in the workplace. We are happy to announce that in 2019: • 29% of new hires in software engineering were women • 42% of new hires in software testing were women Over two years, we saw a 100% increase in the number of women in our AQE (testing unit) in Cyprus, going from 25% women in the team to 41%, and 20% to 33% in team lead and project management roles.

Celebrating cultures Amdocs strives to reflect the multicultural society we operate in, and our people come from many different nationalities and cultures. Our most culturally diverse site, in Cyprus, hosts 31 different nationalities and we work hard to ensure that all cultures are celebrated. Among other activities, we sponsor major religious festivals, promote inclusion through our football, basketball, volleyball and cricket teams and we give multicultural trainings to managers. We strongly believe we should support the communities in which we work, placing special emphasis on improving employability for young people. We prioritise financial, digital and English literacy, mentoring and STEM (science, technology, engineering and maths) education. In India, for example, we have trained thousands of people in digital literacy and helped students participate in STEM-related programmes. We are delighted that approximately one in five of our employees are involved in volunteering in their community.

At Amdocs, we are committed to diversity, and believe that a gender-diverse, multicultural workforce provides strength and a competitive advantage

Unleashing potential

We care and we act For our people, for our communities, for the environment • We operate with integrity and responsibility • We live diversity • We produce sustainable products and services • We improve the lives of people in our communities • We protect the environment within Amdocs and beyond

Amdocs at a glance • 25,000 employees • $4.1bn revenue in fiscal 2019 • 350-plus communications and media service provider customers in 85 countries • 600-plus technology and distribution ties to content creators, bringing content to over 1,000 video distributors worldwide • 200-plus partner innovation ecosystem • 35-plus years of always adapting and leading

Amdocs is a people-centric organisation. Engaged and inspired employees are vital to the success of our company, and we encourage employees to unleash their potential, have access to career development, be recognised for their achievements and know that their wellbeing is high on our list of priorities. In 2019, 25% of our positions were filled by our employee internal mobility process.

For more information Visit amdocs.com/careers MAY 2021

Marios E.Lanitis Vice Chairman of the Lanitis Group, one of Cyprus’ largest business groups

CYPRUS INTERNATIONAL BUSINESS JOURNAL

Interview By Annie Charalambous

Marios Lanitis

Brighter days ahead MARIOS LANITIS IS CONFIDENT THAT CYPRUS WILL SUCCESSFULLY NAVIGATE THE CRISIS CREATED BY THE CORONAVIRUS PANDEMIC AND QUICKLY RETURN TO ECONOMIC GROWTH

rominent Limassol businessman Marios E. Lani-

Trilogy Limassol Seafront are only a few of the ambi-

tis is confident the Cyprus economy will be given

tious projects that the group actively participates in their

the opportunity to recover even within 2021 and

construction and development.

perform better in 2022, though he does add a proviso.

The Group’s investment activities also include hotels,

“So long as we behave,” he told the Journal in an inter-

tourism, leisure and entertainment, restaurants, energy,

view.

building materials, trading and agriculture.

Lanitis anticipates improvement across key sectors. “As

Lanitis believes all Cyprus has a pioneering spirit that

long as we behave and the pandemic gets under control

helps it weather economic storms, though Limassol

early this year, tourism will improve, real estate will do

does appear to be one step ahead. “How big is Cyprus

better and all the other sectors of the economy will be

that we have to make a distinction between towns and

recovering, so yes, we can be positive,” he added.

regions? The whole of Cyprus has a pioneering spirit.

He should know, being the Vice Chairman of the Lanitis

What has carried us through the years and the many

Group, one of Cyprus’ largest business groups which

adversities are our country’s strategic location and our

has seen its fair share of ups and downs through the

people’s capabilities,” he said.

years, reflecting in a way the island’s economic cycles.

If you look back at the history of Cyprus, Limassol has

The Limassol Marina waterfront development, the re-

come a very long way from the small commercial town

cently announced Limassol Greens Golf Resort and the

that it used to be 50 years ago, he added. MAY 2021

Interview Marios Lanitis

“The seafront development, the marina, all the luxury hotels, the services and facilities of a business centre that Limassol offers. I would think that over 50% of CIBA members are based in Limassol. And we thank them for that. We trully thank them for their support all these years,” he also said. For Lanitis, all areas of Limassol have a great future and he is unwilling to differentiate between the seafront and other neighbourhoods of the city. In fact, he pointed out that the western part is now being

We need an investment scheme that has the proper and strict checks and balances. Not that there were no checks and balances in the last one, there were, but of course in anything you do, some can find loopholes

developed and will benefit from the new road network and the other big developments that are currently under construction in the area. “But again, we shouldn’t concentrate only on the west side of the city, because Limassol’s east and north parts are also being constantly developed. What is needed is the right and long-term master planning and the right development incentives for all areas. With those in place, there are great prospects,” he said. As for the high-rise buildings sprouting up in the town which have come under criticism by some as regards their future sustainability, Lanitis counters that they are a product of a new policy introduced by the government and embraced by society more generally. “Because we cannot extend horizontally, we have to go up, it is not viable to keep expanding only horizontally,” he noted. He expressed regret that so many years after its launch, the island’s controversial citizenship by investment

scheme was scrapped in a damaging way, in October,

“I don’t know whether and when another investment

in the wake of revelations of abuse of the system, most

scheme will be drawn up, I believe it should as we need

recently in a television documentary.

to attract investors, the right investors,” he said.

“The latest version of the investment scheme which was

“We need a scheme that has the proper and strict

approved by the Parliament in July 2020 benefited both

checks and balances. Not that there were no checks

the investors and the economy of the country. It is a pity

and balances in the last one, there were, but of course

that it was exploited by a handful of people, giving Cy-

in anything you do, some can find loopholes,” he added.

prus and developers a bad image, but I’m sure we will

And as to the most recent challenge, that of the coro-

recover from this,” he said.

navirus pandemic, Lanitis points out that the over 150-

CYPRUS INTERNATIONAL BUSINESS JOURNAL

year old Lanitis business group has survived worse economic and political storms in 1974, 2000, and 2013. He is certain, therefore, that the group will also pull through the Covid-19 crisis, thanks to the flexibility and adaptability of the group, its quality fixed assets and the ability and skills of its human resources to tackle challenges. “We depend a lot on our human capital, our people, we concentrate a lot on our employees, we constantly try to develop them, support them and that’s why we feel very confident about the future,” he said. He acknowledged that the collapse in 2013 of Laiki Bank – the island’s second biggest lender and in which the Lanitis family had a significant stake, was “very painful for our group”. “But we have managed to overcome it, it took us some time but with the quality of our assets, the help of our human capital and the cooperation of our banking associates we have overcome one more crisis,” he said. “I believe we are in the right direction, implementing great improvements but we still have some way to go when it comes to rebuilding confidence in the banking sector…It could have been a bit faster because a sound economy and strong entrepreneurship need a robust banking system.” Asked what the characteristics of a good businessman should be, he said integrity and honesty, but also education and an appetite for calculated risk taking. “Hard work is vital, but not enough; in our days you also need to be able to use smart technology to your advantage.”

I believe we are in the right direction, implementing great improvements but we still have some way to go when it comes to rebuilding confidence in the banking sector…

As for regrets? “Many, in hindsight. But I would have taken the same decisions under the same circumstances. Not taking immediate action and not accepting you made a mistake is a problem,” he said. “Accept a mistake and fix it, be honest with yourself and others. Leave mistakes behind, learn from them and move on.” J

MAY 2021

Opinion

By Sina Zavertha Manager, Management Consulting KPMG Limited, szavertha@kpmg.com, 22 209000

Remote Project Management: is it here to stay?

ith the outbreak of the pandemic and the partial or universal lockdowns, remote working is becoming widely accepted, with a growing number of companies adopting it as a compensatory measure. Statistics support this, with a recent survey conducted by Gartner Inc. showing that 88% of organizations all over the world made it mandatory or encouraged their employees to work from home, as the spread of the coronavirus accelerated. While working from home is quite feasible for many professions, concerns arise as to whether Project Management can be as effective without direct contact between the Project Manager, the team members and the rest of the stakeholders. Communication is widely known as one of the key success factors of a project. Working remotely surely makes more difficult to monitor the progress, as well as maintaining the team’s engagement. Especially in project environments, it is common to have the most constructive dialogues outside the meeting room during a break or in a corridor, where a thought or phrase can be the stimulus for further discussion, which can lead to identification of risks and even to the prevention of an error or failure. In addition to communication, an equally important component of

Project Management is leadership. Although these two concepts are not identical, a successful Project Manager must be a great and responsible leader. Yet another, non-negligible concern arising from the new reality, is the possible undermining of the Project Manager’s ability to make the right choices, take initiatives, promote new skills and effectively distribute roles and responsibilities. Lacking the full picture of the capabilities of each member of the team, the Project Manager may resort to tested solutions that can work on the one hand but will not be the optimum solution on the other. Also, by working remotely, the Project Manager may have difficulty in adequately perceiving the vulnerabilities of the team, making it challenging to undertake appropriate action in order to prevent an impending crisis. Although technology has undoubtedly helped to improve communication problems with the variety of applications that are now available, teleconferencing and “instant messages” are not a panacea. In matters of effective communication and leadership style, the experience of the Project Manager, the interpersonal skills she/he has and their continuous development, as well as the “leading by example” principle will play a vital role. In order to ensure that the team maintains its pace and momentum, the existence

CYPRUS INTERNATIONAL BUSINESS JOURNAL

of powerful communication channels is a necessity for now and for the future. The Project Manager should be the first to use the smart tools and technologies, should be “visible” and available, communicate proactively with the team and participate actively and timely in conversations, demonstrating that way constant commitment. The Project Manager should show trust in the team members, so that they act more autonomously while in parallel following the policies and procedures and their defined roles. At the same time the Project Manager should allow proper and accurate monitoring of the result, and adjustment of tactics where needed. Although the unprecedented facts of our time have greatly impacted the delivery of projects around the world, they provide concurrently an opportunity for both businesses and individuals to innovate and revise their future strategy. Thus, technology does make remote Project Management feasible, but on an individual level, is not enough. Project Managers will have to keep up and invest in upskilling, adopt “hybrid” approaches based on each situation and put more effort in maintaining team motivation and engagement, so that they not only survive the crisis, but thrive. J

Opinion

Cyprus as a Modern Business Centre Embracing the New Challenges Ahead

he technological leaps that the world has made since 2000 have brought an unprecedented amount of change to the way we live and work. Technology has made things possible that were unthinkable 20 years ago and has allowed industries to converge giving way to completely new industries and products. One of the areas that has been affected the most from the new reality is tax. The ease and pace of doing business cross-border together with the creation of new industries and the re-conceptualisation of traditional business models have put traditional international and local tax rules and concepts into question whether they are fit for purpose. It must be highlighted that until recent changes spearheaded by the Organisation for Cooperation and Development (OECD), the international tax rules had been rather static for almost 100 years. The recent developments in the international tax scene have been as radical and fast as the developments in technology. In addition to technology, the global financial crisis of 2008 and the current Covid-19 crisis have increased the need of jurisdictions worldwide to seek and protect their tax base and their ability to collect revenue. It is safe to say that we, as tax professionals, are living our own “inter-

national tax revolution”, this revolution is characterised by increased transparency on taxpayer activities and the need to better align profit with the place where actual activities are undertaken and value is gener-

Probably the most important driver of all international tax developments made over the past years on both a global and European level is the work of the OECD’s Base Erosion and Profit Shifting project (BEPS)

ated (which for digital businesses is especially complex to identify). Within the context of this revolution for digital business models and beyond, we are challenging the long standing concept of transfer pricing (the tax method for pricing related-party interactions) and refining

CYPRUS INTERNATIONAL BUSINESS JOURNAL

concepts lying at the foundation of international tax such as the concept of a permanent establishment (a presence of business in a country that is considered of sufficient permanence and importance to be taxable in that country - to the extent of the business conducted in that country - even though the business may have its tax residency/head office located elsewhere in another country). Probably the most important driver of all international tax developments made over the past years on both a global and European level is the work of the OECD’s Base Erosion and Profit Shifting project (BEPS). The first major phase of the BEPS project was completed by the OECD in 2015 and further phases are still ongoing. BEPS has led at EU level to the introduction of a number of anti-avoidance rules through the introduction of the EU Anti Tax Avoidance Directive (ATAD). Pursuant to Cyprus’ obligation as an EU Member State, the provisions of the ATAD have been fully transposed on phased basis into the Cypriot corporate tax legislation over the last few years. Furthermore, the BEPS and other OECD projects have resulted in the introduction of a number of cross-border reporting layers for taxpayers spanning from transfer pricing (expressed through Coun-

try-by-Country Reporting, Global Master File, Local File), to information on financial account beneficiaries (expressed through the “CRS” on global scale, “DAC3” within the EU and “FATCA” with respect to the United States of America) and disclosure of specific details of cross-border tax arrangements falling within certain “hallmarks” (expressed within the EU through “DAC6”). In the midst of these revolutionary changes, Cyprus has not remained idle, but has, through the introduction of a number of tax measures in its tax legislation and the development of new industries (such as the funds industry), continued to evolve. For example, there was the introduction of the Cyprus Notional Interest Deduction (NID) as from 2015 aiming at the deleveraging of the Cyprus economy following the global financial crisis which has been key for businesses to redirect away from debt financing while at the same time resulting in considerable corporate tax efficiencies. It should be noted that the EU Code of Conduct Group (Business Taxation) has issued guidance on how a NID regime should ideally be designed and the Cyprus NID regime has been assessed by this EU Group as “not harmful” since its introduction as from 1 January 2015. As already mentioned, one of the

Marios Andreou Partner, Head of Tax Advisory, PwC Cyprus

Chrysilios Pelekanos Partner, In charge of Tax Reporting & Strategy, PwC Cyprus

key drivers of the BEPS project was the better alignment of profit with the place where actual activities take place. In order to make the country even more attractive for individuals to live and work here, a number of tax measures towards individuals have been introduced which help Cyprus based businesses attract high-calibre personnel (including through the 50% deduction for personal income tax purposes for staff earning more than €100,000 per year) and also provides such highcalibre personnel (who may among other benefits have participation in the share capital of companies they work for) and the owners of businesses to benefit from full exemption on certain categories of passive income (through the application of the Cyprus non-domiciled regime). Furthermore, the Cyprus Government is taking decisive actions towards streamlining the process for the transferring of the operations of international Groups to Cyprus. For example, through the implemen-

Joanne Theodorides Director, Tax Advisory, PwC Cyprus

Stavros Supashis Manager, Tax Advisory, PwC Cyprus

tation of the Fast Track Business Activation Mechanism all necessary procedures for the registration and incorporation of a company in Cyprus together with its registration with various authorities (e.g. direct and indirect tax authorities and social insurance services as an employer) can be completed within a matter of days while employment and residence permits can be issued within a matter of weeks. Cyprus has to be equally decisive in maintaining its “largely compliant” status provided by the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes in its latest peer review assessment (adopted by the Global Forum in December 2020). Cyprus must also maintain the momentum of the 2020 positive evaluation by Moneyval with respect to combating money laundering and terrorist financing and ensure that Moneyval’s recommendations are translated to actions by the Cyprus authorities. The combination of the above measMAY 2021

Opinion Cyprus as a modern business centre

ures with the simplicity of Cyprus’ corporate tax system along with its competitive headline corporate tax rate of 12.5%, the application of the intellectual property (IP) tax regime (following the recommendations of the EU Code of Conduct Group and “Action 5” of the BEPS project) and the number of innovative centres of excellence in research based here in Cyprus benefiting from EU initiatives have led to a steady increase in the number of international companies positioning their R&D activities in Cyprus (together with their regional or international IP centres). Nevertheless, there is still more to be done in this field in order to incentivise innovation in Cyprus. Some actions that can be taken from a tax perspective, is the extension of the breadth of application of the measures already mentioned as regards individuals, the potential introduction of super deductions and tax credits for R&D (always subject to what is allowable under EU law). The effects of both the BEPS project and the recent Covid-19 crisis do not limit themselves to the introduction of domestic or regional (e.g. such as EU Directives) legislative amendments but extend also to a global scale thus affecting the core of international relations between countries. For example, the BEPS project led to the preparation and implementation of the Multilateral Instrument (an international agreement introducing certain amendments to tax treaties without the need for bilateral negotiations) or to countries renegotiating their tax 54

treaties on a bilateral basis in an attempt to increase tax revenue. For example, Russia through the renegotiation of its tax treaties with Cyprus, Luxembourg, the Netherlands and Malta aims to ensure both an increase in collection of tax revenue and a level playing field in the

Cyprus must maintain the momentum of the 2020 positive evaluation by Moneyval with respect to combating money laundering and terrorist financing

relations of Russia with traditional investment hubs (within this context Russia intends to renegotiate more treaties such as Russia’s treaties with Switzerland and Hong Kong). We are noticing a steady increase in the operations that foreign Groups intend to undertake in Cyprus (through the hiring of top level executives, expansion of operations beyond holding and financing) which is a vote of confidence in Cyprus. Of course the reasons for this extend

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beyond tax as Cyprus provides a robust legal framework providing security to investments (whether through the Cyprus limited liability company or the Cyprus international trust) and ease of access to a number of jurisdictions, a result of its unique geographical location. Taking all of the above into consideration together with the global discussions taking place in the still ongoing phases of the BEPS project (sometimes labelled as BEPS 2.0), now is the time to consider a corporate tax reform in Cyprus which will provide for the gradual introduction of environmental taxes, exploring new horizons (such as the taxation of philanthropy) and cater for incentives favouring investment in the productive sectors of the economy (such as tertiary education, tourism and the healthcare industry) and innovation in general whilst at the same time retaining in Cyprus the businesses that have already made Cyprus their home. These topics are also addressed in our Restart Cyprus Publications (issued May and December 2020) and we will discuss a possible Cyprus corporate tax reform in more depth in a future article in the next edition of this publication. Concluding, we are living in both turbulent and exciting times, times where those who embrace change, thrive and ensure longevity. Cyprus should continue to embrace change looking with optimism to its future as a modern, transparent and innovative international business centre within the EU. J

24th Annual Global CEO Survey

10 Cyprus th

CEO survey From one decade to the next

The survey is available on our website in English and Greek.

Opinion

By Dr Marios Kyriacou MNK RISK CONSULTING

Brexit Implications on Cross-Border Services for Investment Firms

he EU Passporting system enables investment firms that are authorised in the European Economic Area (“EEA”) to trade freely in any other EEA country without obtaining any additional authorisation in that country. The transition period for the UK’s withdrawal from the European Union came to an end on the 31st of December 2020. And with that passporting too. As a result of the UK leaving the EU single market and customs union, the UK is currently considered as a third country and passporting rights of UK investment firms to the EEA no longer hold. The last-minute agreement that was reached between the EU and the UK does cover most matters governing their future relationship, however no consensus was reached on the provision of cross-border services between the UK and the EU. UK investment firms that wish to provide services within the EU, will now have to either comply with the market access regulatory requirements of the said EU member state or rely on equivalence decisions. Over the years, the EU legislation developed a system to allow market access for firms based outside EEA. The EU legislation allows,

From 2022 and onwards, UK firms that wish to provide investments services to professional clients or eligible counterparties in Cyprus, are required to establish a branch in the Republic or apply to CySEC for the granting of a Cyprus Investment Firm Authorisation

within specific areas, the European Commission to decide whether the financial services regime of a country achieves outcomes “equivalent” to its own. EU financial services law includes around 40 areas for equiva-

CYPRUS INTERNATIONAL BUSINESS JOURNAL

lence decisions. Equivalence allows for market access in specific areas but does not cover most core banking and financial activities, such as the acceptance of deposits or the provision of investment services to retail (non-professional) investors. Progress made on this front has been slow and the EU and UK are still in negotiation on how to move forward with specific equivalence determinations. In the absence of equivalence decisions, the EU Member States may allow UK firms to provide investment services in their territories in accordance with their national regimes. Apropos of Cyprus, the current national framework requires third-country firms that wish to provide investment services to retail clients on a solicited basis to establish a physical presence in the Republic of Cyprus. At the same time, the provision of investment services solely to professional clients and eligible counterparties is subject to equivalence decisions, and governed by the Regulation (EU) No. 600/2014 of the European Parliament and of the Council of 15 May 2014 on Markets in Financial Instruments and Amending Regulation (EU) No 648/2012 (“MiFIR”).

Until the EU and the UK conclude agreements on cross-border services and equivalence decisions, the Cyprus Securities and Exchange Commission (“CySEC”) has established a national Temporary Permissions Regime (“TPR”), in accordance with MiFIR discretion to member states in the absence of an equivalence decision by the EU Commission, giving the opportunity to UK firms, currently not operating through a branch in the Republic of Cyprus, to continue providing investment services solely to professional clients and eligible counterparties on a cross-border basis until the 31st of December 2021, thus ensuring a smooth transition to a post-Brexit era. From 2022 and onwards, UK firms that wish to provide investments services to professional clients or eligible counterparties in the Republic of Cyprus, are required to establish a branch in the Republic or apply to CySEC for the granting of a Cyprus Investment Firm (“CIF”) Authorisation. Currently, 52 UK firms are providing investment services to CIFs, acting as their Liquidity Providers or otherwise, and in total 86 CIFs have trading arrangements with UK firms. On the 19th of February 2021, CySEC published a Press Release announcing the launch of a dedicated section on its website to serve as a Brexit Information Hub in an aim to assist the interested parties to remain informed on Brexit related matters and compliant with their legal obligations following the transitional period of the UK’s withdrawal from the EU. The Brexit Information Hub includes all Brexit related Announcements/Circulars issued by CySEC and an extensive set of Questions and Answers (Q&A). As regards CIFs and other EEA investment firms that are compliant

with the Directive 2014/65/EU of the European Parliament and of the Council on Markets in Financial Instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (“MiFID II”), that wish to continue providing investment services within the UK, the Financial Conduct Authority (“FCA”) has established its own Temporary Permissions Regime (“TPR”). The FCA TPR enables EEA investment firms that were passporting services into the UK when the transition period ended, to continue their operations for a limited period, i.e. until March 2022, while seeking for full Authorisation from the FCA. Around 1,500 EEA investment firms have entered the FCA’s Temporary Permissions Regime. The establishment of TPR by the FCA to ensure smooth transition to a post-Brexit epoch was of paramount importance since international investment firms have always been an important part of the UK’s financial services industry. International investment firms’ presence in the UK contributes significantly to the country’s vibrant financial markets, providing services

to UK businesses, and raising significant amounts of assets. Financial services are considered the UK’s core competence and dominant industry and makes up about 7% of its Gross Domestic Product. In addition to the TPR, the FCA has established the Financial Services Contracts Regime (“FSCR”). The FSCR enables EEA investment firms that previously passported services into the UK, and which have not entered the FCA TPR, as well as those EEA firms exiting the FCA TPR without obtaining a UK Authorisation, to continue servicing UK contracts that entered into effect prior to the end of the transition period for a limited period depending on the regulated activity provided. In conclusion, the main question remains with UK investment firms as to whether the EU will grant the UK an “equivalence status” enabling the provision of investment services in EU without the obligation of a branch establishment. In regards to EEA MiFID-compliant investment firms the situation appears to be more clear cut as determined by FCA’s TPR and FSCR regimes. J

MNK Risk Consulting is a financial services advisory boutique firm. Its market focus is Central Banks, Banks, Asset Managers, FX Brokers, Investment Funds & Fund Managers, Electronic Money Institutions and fintech. Dealing with the set-up and licensing of such entities, regulatory compliance outsourcing and advisory, specialised risk management and measurement consulting, professional training as well as listings. Its competitive advantage is unmatched technical expertise, and their ability to offer value-adding services (beyond regulatory compliance) and bespoke solutions. IBM Global Business Services, the largest consulting services organization in the world, has approved MNK RISK CONSULTING LTD as a QUALIFIED IBM SUPPLIER; client engagements with IBM include large-scaled consulting projects with central banks and international financial institutions. MAY 2021

Article By Dr. Kirill Zimarin

RCB Bank: 25 years in Cyprus and looks to further success in the future

n 2020, RCB Bank celebrated 25 years of history and successful presence in Cyprus. Today, after 15 years as CEO of RCB Bank, I can proudly state that I am managing one of the three significant local banks, a fully-fledged Cypriot banking institution, playing a vital role in supporting the real economy of the country. This tangible support is granted in various forms such as through financing clients from the most important pillars of the economy such as tourism, energy, education, the pharmaceutical industry and retailing. Therefore, this is not simply a notable success for the management and the people of RCB Bank but one that we share with our valued clients and the market alike. During these trying times with the pandemic, we can only be realistic as we are yet to see the full impact of COVID-19 on the economy. Tourism is one of the most crucial sectors of the economy and a full tourism season has been lost. The banking sector is of course affected when its clients are facing challenges and that is precisely why the Central Bank of Cyprus and the ECB have stepped in to offer tools that will help the sector but also the economies of the Eurozone, a goal that was of course shared with the facilities made available on an EU level as well. In our case, we extended our support to our clients since the beginning of the pandemic and will continue to do so because we know them well and are confident that they will overcome the difficulties caused by the pandemic. At the same time, the banking system is in a transitional stage with consolidations taking place and supervision becoming increasingly stricter. With

CYPRUS INTERNATIONAL BUSINESS JOURNAL

Dr. Kirill Zimarin, CEO of RCB Bank

Despite the environment, at RCB Bank we choose to be realistic but also optimistic, cautious but confident and determined to overcome yet another crisis

high NPL ratios on the agenda for the majority of the other banks, the COVID-19 pandemic poses new and unprecedented challenges for the banking sector in that many clients are faced with unique problems such as those from the tourism industry with consequences that will be felt on all levels of society and of course the economy. Despite the environment, at RCB Bank we choose to be realistic but also optimistic, cautious but confident and determined to overcome yet another crisis. Moving forward, our strategy revolves around further expanding our loan portfolio of business clients, to offering new technological and pioneering digital products and services. We also have the best corporate banking team that goes to great lengths to know the business of each client, their abilities and a credit committee that has the reputation of being tough. In short, we are professionals and this professionalism and in depth analysis is what led us to becoming the safest bank with strong foundations and without facing the NPL problems the sector is dealing with right now. After all, the very future of Cyprus lies with those companies that have the solid foundations and the prospects to grow and we remain committed to being their partners. It is together with our clients that we have been able to help Cyprus grow for 25 years and intend to continue doing so in the many years ahead. Future goals are related to continuing to support our existing and also new clients that have solid foundations and the prospects to grow. For RCB Bank this is the essence of corporate banking: to help our clients grow their business. When we took the decision to focus our strategy on local business we did so knowing the excellent

prospects of the market and the companies and clients that are in a position to expand their businesses and boost the economy overall. We will therefore continue to remain focused on providing products and solutions on many levels and on remaining not just in touch with European and international trends but totally synchronised with what is on offer. The celebration for our 25th anniversary was different due to the unprecedented circumstances. As we could not gather together with our clients and collaborators we chose to give back to society and those in need. This is precisely what we did throughout 2020. Firstly, we purchased and donated 12 medical ventilators to the health authorities of Cyprus at the very beginning of the COVID-19 pandemic because our success gains true value when it is shared with the people of our country. We continued with the same rationale by donating the symbolic amount of €25,000 to each of the following four charities: The Independent Social Support Body, the Cyprus Institute of Neurology and Genetics, FONI: The Council of National Policy on preventing the abuse of children and the Sophia Foundation for children. This after all is in line with the more than €8 million Euros we have donated to an array of charities and local communities over the past 15 years. Let’s not forget that life must be at the epicentre of all our efforts and for us that is firmly embedded in our culture, our business and our social corporate responsibility that supports hundreds of causes every year. Today, we look to the future with confidence, despite the fact that we know that 2021 will not be an easy year for Cyprus and our economy as it entails challenges until we weather the storm of this pandemic. Challenges are however there to make us stronger and more determined to look to the future with confidence. Our goal is to further increase RCB Bank’s market share in the local business of Cyprus, remain a leader as far as technology and innovation are concerned and with the needs of our clients always in mind while remaining loyal in protecting and supporting life! Life, in all its aspects and forms, be it from a business or a human perspective. Therefore, with significant history as a solid foundation, we sail into the future, aiming for further success not only for us but also for Cyprus and its people. J MAY 2021

Dr. Kirill Zimarin re-elected as President of the Association of International Banks in Cyprus

Dr. Kirill Zimarin, CEO of RCB Bank Ltd has been

arising from this unique global pandemic and which have

reelected to the Presidency of the Association of

of course had their impact not only on the economy of

International Banks in Cyprus during the 18th Annual

Cyprus but that of Europe and the world alike. “We look

General Meeting that took place online last December.

to the future with realism since 2021 will also present

Dr. Zimarin, who has been President of the Association

challenges for the banking sector and the market at

since 2008, will continue to chair the Association for the

large. We are however confident that the members

next two years.

of the Association will join the collective effort of the

Mr Adnan Nuwayhed of Banque SBA and Mr Ziad

state and the market in restarting the economy and in

El-Morr of BLOM Bank have been elected as Vice

preparing the ground for the return of growth.”

Presidents. Following this year’s election process, the

The Association of International Banks was set up

rest of the members of the new Board of Directors are

in Limassol in 2002, with the aim of representing the

the following: Mr Samer Boulos – Jordan Ahli Bank;

interests of international banks in Cyprus. Since its

Mr Khalil Letayf – Societe Generale; Mr Henry Awad –

inception, the Association has played a leading role with

Byblos Bank; Mr Krassimir Velchev – FinBank; and Mr

regards to issues affecting or otherwise impacting upon

George Abi Chamoun - BankMed.

the international banking sector. The Association brings

During his address, Dr. Zimarin referred to the problems

together 17 banks. J

CYPRUS INTERNATIONAL BUSINESS JOURNAL

Article

By Dr. Andreas Poullikkas Chairman, Cyprus Energy Regulatory Authority

Blockchain technology in the energy sector

nergy systems are undergoing rapid changes to accommodate the increasing volumes of embedded renewable generation, such as wind and solar photovoltaics (PV). Renewable energy sources (RES) have undergone massive development in recent years, enabled by climate change boosted by energy policy initiatives. RES are variable, difficult to predict and depend on weather conditions, hence raise new challenges in management and operation of electricity systems, as more flexibility measures are required to ensure safe operation and stability. Flexibility measures include the integration of fast-acting supply, demand response and energy storage services. Adding to the transformational change caused by RES, energy systems are on the brink of entering the digital era as shown by the massive deployment of smart meters in numerous countries. To achieve ambitious emission reduction goals, smart management and control need to be adopted, tasks that are increasingly challenging as energy systems are growing to become more active, decentralised, complex and ‘multi-agent’, with an increasing number of actors and possible actions. Advanced communication and data exchanges between different parts of the power network are to an increasing extent required, making central management and operation more and more challenging. Local distributed control and management techniques are required to accommodate these decentralisation and digitalisation trends. Blockchain technologies were primarily designed to facilitate distributed transactions by removing central management. As a result, blockchains could help addressing the challenges faced by decentralised energy

CYPRUS INTERNATIONAL BUSINESS JOURNAL

systems. Blockchains are shared and distributed data structures that can securely store digital transactions without using a central point of authority. More importantly, blockchains allow for the automated execution of smart contracts in peer-to-peer (P2P) networks. They can alternatively be seen as databases that permit multiple users to make changes in the ledger simultaneously, which can result in multiple chain versions. Instead of managing the ledger by a single trusted centre, each individual network member holds a copy of the records’ chain and reach an agreement on the valid state of the ledger with consensus. New transactions are linked to previous transactions by cryptography which makes blockchain networks resilient and secure. Every net-

The potential of blockchains in the energy industry has just started to be realised as shown by the increasing number of startups, pilots, trials and research projects

work user can check for themselves if transactions are valid, which provides transparency and trustable, tamper-proof records. Blockchain technology is primarily known from cryptocurrency applications that are recently experiencing an unprecedented rise with market capitalisation surpassing. While opinions on the long-term future of cryptocurrencies may be divided, several key applications have been identified for different sectors. The potential of blockchains in the energy industry has just started to be realised as shown by the increasing number of startups, pilots, trials and research projects. Today it is believed that blockchain technology is a game-changer for energy suppliers. Several energy utility companies

have taken interest in exploring the potential benefits of blockchain technology, as an enabling technology for low-carbon transition and sustainability. Blockchains have the potential of radically disrupting energy related products and commodities, as they become digital assets that can be traded interoperably. Blockchain technology could potentially provide solutions to some of the challenges faced by the energy industry. Requirements for future energy systems can be summarised by three key principles: (a) decarbonisation, (b) decentralisation and (c) digitalisation, with a shift to empower consumers. However, current structure of energy and electricity markets is inadequate to achieving this vision, as small players’ participation in the markets is practically excluded and incentives for active consumer participation have so far proved not sufficient. Blockchain developers are establishing transactional digital platforms that can be completely decentralised and can enable P2P energy trading. They are developing local energy marketplaces and Internet of Things (IoT) applications that can play a significant role in the vision of the smart grid. Blockchain technologies can clearly benefit energy system operations, markets and consumers. They offer disintermediation, transparency and tamper-proof transactions, but most importantly, blockchains offer novel solutions for empowering consumers and small renewable generators to play a more active role in the energy market and monetise their assets. Blockchains have enabled applications of sharing-economy in the energy sector, offering novel market models and energy democratisation. Blockchains are a fast-moving area of research and development. Currently Blockchain technologies face a variety of challenges to achieve market penetration, including legal, regulatory and competition barriers. Additional research initiatives, trials and applications will show if the technology can reach its full potential, prove its commercial viability and finally be adopted in the mainstream for the benefit of energy consumers. J MAY 2021

Sylvain Estibal, Director, Middle East and North Africa (left), with Jo Biddle, Chief Editor, Middle East and North Africa

AFP News Agency (Agence France-Presse)

Putting down roots 30 YEARS ON, LEADING INTERNATIONAL NEWS AGENCY AFP HAS NO REGRETS OVER CHOOSING TO MAKE CYPRUS ITS REGIONAL HEADQUARTERS

CYPRUS INTERNATIONAL BUSINESS JOURNAL

Interview By Annie Charalambous

here are plenty of good reasons why the small Mediterranean island of Cyprus has been hosting the Middle East regional headquarters of international news agency Agence France-Presse for over 30 years now. This is what Sylvain Estibal, Director, Middle East and North Africa and Jo Biddle, Chief Editor, Middle East and North Africa, told the Cyprus International Businesses Association’s Journal in an interview. “First of all, Cyprus is in the EU, it is a very safe and very wellequipped place with reliable access to a lot of high technology and good communication connections,” Estibal said. “It is also close to Beirut, we can hire people from Lebanon easily. And we are not under any political pressure from the government, in other countries political pressure can be unpleasant,” he added. Biddle, who was posted to Cyprus once before, back in the mid-1990s as a junior reporter, goes one step further. “You can easily take advantage of the proximity of the island to the Middle East, not this year of course because of Covid which made travelling almost impossible, but (normally) you can take the airplane and go to Petra or Cairo or Beirut, you can explore the Middle East,” she said. “Plus the weather here in Cyprus is great,” she added. AFP - the world’s oldest news agency – currently has 82 staff members based in Cyprus and some 250 in the region. Overall, France’s leading news agency, which came to Cyprus in 1987, now has over 100 subscribers in Cyprus alone. In addition, AFP is a world leader in digital verification and information which needs excellent internet connections and that’s why both media experts welcomed 5G technology coming to Cyprus. “Everyone has to be fast, we have agreements with TVs around the region, we do have a very forceful presence and a very strong transmission network considering that all pictures come here,” Biddle said. “We edit all pictures here and we have to have a very high technology level, we can’t be slow…5G technology is good,” she added and her top-ranking colleague couldn’t agree more. At the same time, they gave the

thumbs up to the government’s handling of the coronavirus crisis with Estibal describing it as “really, excellent”. “We trust the government’s way of handling the crisis. They took action promptly, and during the quarantine they constantly kept us up to date,” he added. Authorities in Cyprus were very helpful with AFP people leaving and coming back to do various jobs, with getting special permits and other logistics, he also said. On the downside, the island could have a more active cultural life and direct flights to France where most AFP personnel travel regularly. Plus, electricity charges could be lower. But they are quite pleased with Cyprus’ standard of living, saying Paris and other European countries are more expensive. J

AFP is a world leader in digital verification and information which needs excellent internet connections and that’s why both media experts look forward to 5G technology coming to Cyprus

MAY 2021

Opinion

By Andreas Yiasemides President, Cyprus Investment Funds Association (CIFA)

Cyprus: A Modern Fund Jurisdiction

trategically located between Asia, Africa, and Europe, Cyprus is an attractive jurisdiction for the setting up of Alternative Investment Funds (AIFs) and Alternative Investment Fund Managers (AIFMs) as a gateway to both European markets and the region. Furthermore, Cyprus, a member of the European Union, is a strong reputable financial centre with an English-based common law system that provides stability and predictability. Cyprus, one of the most university degree educated countries, offers cheap yet skilled and experienced labour. The country offers significant, competitive advantages when compared with other fund jurisdictions. Tax incentives and regulatory synergies are in place to attract not only the funds themselves but also fund managers and investors. Being a regulated EU member state, Cyprus combines a modern international business and economic environment with the necessary infrastructure for the funds’ industry while fully harmonising its platform with EU fund regulations and international best practices. Cyprus has aligned its national regime by closely mirroring the rules established under the UCITS, AIFM, and MiFID Directives. Cyprus’ growth in the funds industry is evident not only from the rapid growth in Assets under Management (218.5% increase of total AuM from 2016 to 2020) to more than 8 billion Euro but also from the arrival of international

names to the island for the single goal of offering services to investment funds. Also, and despite the economic crisis and uncertainty the COVID-19 pandemic has created, there was an annual increase of 3.8% during 2020. Further, the sector’s success story is demonstrated by new collaborations with internationally renowned custodians and the acceptance of Cyprus Funds for listing on Clearstream’s Vestima, Bloomberg and Thomson Reuters platforms. Despite the above positive developments, Cyprus is still a relatively new jurisdiction for the funds’ industry and must not be complacent. Both Cyprus Securities Exchange Commission (the regulator) as well as the Cyprus Investment Funds Association (CIFA) efforts should continue to boost and develop the sector even further. In 2018, the House of Representatives (HoR) passed the Registered Alternative Investment Fund (RAIF) law, which allows for this type of fund to be registered rather than licensed, resulting in a significant reduction in the time needed and the costs related to establishing a fund. The regulator supervises the AIFM and the AIFM the RAIF. More recently, the HoR had also passed the Mini Alternative Investment Fund Managers (Mini Manager) Law, which sets up a lighter and more flexible regulatory and licensing regime for Cyprus-based sub-threshold alternative investment fund managers. Mini Manag-

CYPRUS INTERNATIONAL BUSINESS JOURNAL

ers are eligible to manage AIFs, AIFLNP and RAIFs under certain conditions. More bills regarding the funds’ industry, like the regulation of the fund administration service providers, are in line to be released in due course. The Cyprus fund management industry is fast becoming one of the most promising sectors of the economy. It should be a vital driver for the economy’s recovery following the detrimental effects of the COVID-19 pandemic. Banks and governments alone can’t finance a strong economic comeback especially for the industries and small and medium-sized enterprises which are most affected by the crisis; therefore, policymakers will need to enable capital markets to play a significant role. Regulated funds facilitate business investment by channeling household savings to companies while allowing investors to save for their most critical financial goals, such as retirement, education, and buying a home. Through capital raised from private and institutional investors via AIFs, an alternative way of financing, funds can contribute to long-term projects in the development of infrastructure, healthcare and education, substituting traditional banking finance. Further, investments in both Cyprus and other countries’ real economy are facilitated through the use of funds in sectors that include shipping, hospitality, technology, real estate, and renewable energy. J

The Club A modern style of networking and collaboration

TWO YEARS AGO PHOENIX LEADERS ESTABLISHED CYPRUS’ FIRST PRIVATE MEMBERS’ CLUB IN NICOSIA TO PAVE THE WAY FOR PROGRESSIVE DISCUSSION AND COLLABORATION AMONGST CYPRUS’ BUSINESS COMMUNITY - AND THEN ALONG CAME COVID-19. VALENTINA KISLAYA, FOUNDER AND CEO OF PHOENIX LEADERS, TALKS TO THE JOURNAL ABOUT NAVIGATING THROUGH A GLOBAL PANDEMIC AND PROVIDING THE PERFECT SETTING FOR SAFE AND SECURE NETWORKING. 70

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Interview By Annie Charalambous

Valentina Kislaya, Founder and CEO of Phoenix Leaders

“When we opened The Club in 2018, the aim was to provide a place which helps foster and nurture positive relationships across the business community primarily through intimate tailored events” she said. The idea was born out of personal experience as a “newcomer” to the island where she was struck by how challenging it was to network and make authentic connections if you are new to the landscape - “I wanted to change the status quo for the better”. Before the pandemic restricted travel opportunities, The Club played host to leading academic and best-selling author Francis Fukuyama, former Head of MI6, Sir Jeremy Sawers, and former President of the European Council, Herman van Rompuy. At the same time, memorable were the smaller industry-specific roundtable discussions led by The Club’s members during drinks evenings. However with the arrival of the first national lockdown in Cyprus, The Club (like so many businesses) was forced to shut its doors to Members. And being a business which is centred around a physical building and a carefully curated events programme, they were forced to think about their strategy going forward and how to have more of a digital presence. Very quickly the team was able to offer their events programme online and found that they were able to keep in contact with Members albeit from a laptop. “However; one thing the first lockdown taught us was that nothing beats meeting face to face - we all need human interaction to keep us inspired, challenged and, well, sane. And at The Club we are delighted to be able once more to open our doors to allow some much needed respite from a year spent at home.” Whilst the concept of a private members’ club is still relatively unknown in Cyprus where the business community is used to meeting almost exclusively in offices or restaurants, Kislaya believes places like The Club will actually benefit from the trend in remote working. “Firstly, for those who have spent their lives working in an office, having suddenly to spend the whole day working from home - not to mention juggling commitments of childcare - is challenging,” she said. “The Club offers a change of scene, first class dining and a variety of meeting rooms MAY 2021

Interview Valentina Kislaya

for those meetings you really can’t conduct over Zoom or Skype. Our meeting rooms which range from intimate studies to our main boardroom are fully equipped with state of the art technology, video conferencing facilities and are completely sound-proof to ensure privacy and confidentiality at all times. We also offer a menu throughout the day from light breakfast bites to three course lunches to drinks after work, meaning that our Members’ needs are fully catered for and they are safe in the knowledge that their guests will be impressed on every visit to The Club,” she added. Secondly, she said, networking and socialising have already become a victim of the pandemic since people simply do not want to be in busy bars and restaurants nor attend huge conferences. People, she added, want to feel safe and secure in their surroundings and know that every precaution is being taken to look after their health and safety. “And that is exactly what The Club offers.” Set against the backdrop of the scenic Presidential Park, The Club is a unique space which connects both established and emerging members of the local business community allowing for a modern style of networking and professional collaboration. J

CYPRUS INTERNATIONAL BUSINESS JOURNAL

About The Club The Club is Cyprus’ first private members’ club and combines modern working spaces with intimate events offering Members the opportunity to meet international leaders from a range of sectors and industries. phoenixleaders.co.uk/the-club/

MAY 2021

Opinion

By Mary Chamatsou Managing Director, MSPS Cyprus msps.net

Business Communications

he pandemic panic has made us all wonder what happens next. The market and brands, big and small, have been profoundly affected. People’s behaviours, perceptions, and feelings have radically changed. In a nutshell, everything is different! So, what is the best way to communicate during these crazy times? How can a brand remain strong and relevant? There are many best practices out there, and we already know them. As marketers and communication professionals, we just need to consider how they can be applied to the current situation. Most importantly, it’s essential to remind ourselves, now more than ever, that we are all customers and consumers, too. We know what makes us feel good or bad when we receive one of those Covidrelated messages! The reality is, we want all of our clients to survive through this economic recession. But it’s going to take some new action and effort, lots of understanding and humanity, and most importantly, a focus on building trust.

CYPRUS INTERNATIONAL BUSINESS JOURNAL

Adjust-Adjust-Adjust! Yes, probably your business has to adjust. Do any of your products or services need to adapt to the changing circumstances we are all facing? Covid is prompting businesses across the board to rethink how to keep things running -except perhaps Netflix and Zoom who seem to be doing just fine!

Best practices for Business Communications during the Pandemic

Don’t Go Quiet Now Communication is critical right now. It is vital to continue interacting with your audience, but be cautious; you have to be extra mindful of what you are saying, and how you are saying it.

in Crazy Times 3 Be Human If there is one thing this crisis is bringing out, it’s the humanness of brands and companies. All businesses are made of people, and now we have the opportunity to see the more vulnerable, helpful, and sometimes unexpectedly human side of brands. This is a great opportunity to create positive energy. People will always remember how you made them feel and how you gave them hope in a time of crisis. When someone is there for you in a tough situation a degree of loyalty and appreciation is built, and this is something that cannot be bought, it has to be created. This is an opportunity to create a long-lasting emotional tie between consumers and brands.

Avoid doing ‘business as usual’

Don’t just assume that your pre-planned campaigns won’t need some tweaking. To put it simply, your marketing cannot be the same as before. Review any of your pre-planned messages: now they might be ill-timed, tone-deaf, or in poor taste, given what’s going on in the world today. For instance, KFC recently pulled its ‘fingerlicking good’ campaign amid health suggestions for personal hygiene and frequent washing. Avoid creating a campaign with people hugging, after the social distancing and avoiding physical contact regimes. What might have been the perfect message a year ago might now be potentially off-putting and damaging for your brand. Review all of your automated campaigns, just to make sure that their tone of voice resonates with the public sentiment right now. Have a careful eye when you review it so you can see it from the perspective of your audience and the emotional state they’re in. Don’t stay silent about Covid because this might lead to a disconnection with your audience at a time when they may need to hear from you, just always have in mind that: right message + wrong time = really bad idea.

Make your communications count by building trust

Marketing is all about communication: what you’re communicating, how you are doing it, and how well it ultimately lands. Communication today should be crafted with the careful eye of the emotional state of its audience. While this pandemic is going on, remember to be genuine and helpful, and get generous wherever you can. More so now than ever, there’s a growing trend to offer free, valuable resources for people, putting consumers’ well-being and satisfaction first, even before the need to generate revenue. At the end of the day, building trust is a huge step towards growing your customer and fan base. Also, in times like these, it is just the right thing to do.

MAY 2021

Presentation

Limassol Marina, the success story of the project that changed the face of Limassol Limassol Marina is undoubtedly one of Cyprus’ greatest success stories. A €400 million investment, one that stood the test of time through the unprecedented challenges of the past decade, the innovative mixed-use masterplan development has been gaining momentum and popularity year on year since its official launch in 2010. A unique integrated project and a ground-breaking achievement for the island and the city of Limassol, the superyacht destination is now just months away from its full completion. 78

CYPRUS INTERNATIONAL BUSINESS JOURNAL

landmark project for Cyprus, Limassol Marina has already contributed significantly to the Cyprus economy and has attracted considerable foreign investment to the island, boosting its competitiveness. The award-winning Marina has also been a driver for strengthening the infrastructure of the yachting industry in the region and for upgrading Limassol’s historical city centre; continually seeking to improve the image of Cyprus abroad.

The Mediterranean’s most exciting superyacht destination The project combines residential and commercial developments, together with marina facilities that are home to yachts ranging from between 8m – 110m in length. There are 650 berths, 211 luxury apartments and 74 beautiful villas with private mooring or direct access to the beach. Today, 90% of the residential properties have been sold to over 40 different nationalities. Limassol Marina properties are enjoyed as holiday homes or as permanent residences. The project also attracts yacht owners from Limassol or nearby cities who use the Marina’s berths on an annual basis. Comprising a unique living on the sea lifestyle, the project includes an exciting range of exceptional cafes and restaurants, luxury designer boutiques, shops, gym and spa, and an unparalleled repertoire of cultural events, exhibitions and concerts. This unique blend of high-end retail, dining and entertainment options is what makes Limassol Marina one of the most visited destinations in the region. On a daily basis, the project hosts thousands of locals and tourists, who enjoy the Marina’s full-service offering.

The final countdown Over a decade after its highly-anticipated launch, the development of the island’s first superyacht marina is drawing to a close. Limassol Marina’s final phase, the unique apartments on the sea at “Castle Residences”, will be completed in a few weeks when they are handMAY 2021

Presentation Limassol Marina

ed over to their owners. Surrounded by water, the cluster of luxurious homes offers apartments and duplexes with uninterrupted views of the sea, the marina and the coastal city of Limassol. Set on a private island and accessed by a bridge, they are located just steps away from the beach, in close proximity to the development’s luxury dining, shopping and leisure facilities. The remaining 7 out of 74 ready to

State-of-the-art yachting facilities and services

move in villas on the sea, are three and four-bedroom villas with private berths for luxury yachts up to 20m attached to their garden. All property residences benefit from 24-hour security, property management, concierge and rental services. Limassol Marina has a total of 285 residences, so these last available units are part of a great success story for the island and the changing face of Limassol. Prices for the available villas with private berth(s) start from €3.6 million and Castle Residences remaining apartments, surrounded by water, start from €2 million.

and attractive year-round berthing packages with competitive year-round pricing which provides great value for money and maximum flexibility by satisfying the needs of every individual boat owner, regardless of the season. Managed by Francoudi & Stephanou Marinas, the marina offers visitors and berth holders an extensive list of state-of-the-art amenities and professional services. Owners and crew can enjoy dedicated parking, security and access control, marina-wide wifi, high-end washroom facilities, the marina’s bug-

CYPRUS INTERNATIONAL BUSINESS JOURNAL

A wonderful home away from home throughout the year, Limassol Marina has been designed to cater to the full spectrum of the entire yachting community. This includes a variety of modern conveniences and amenities tailored to the specific needs of all boat owners and crew, a full-service concierge offering

gy service and other concierge services, along with facilities such as slipway, 100-ton travel lift, in-house boatyard for light repairs and maintenance and much more. A dedicated marina team is always available to provide a full range of technical and concierge services to accommodate all needs.

Looking ahead The delivery of “Castle Residences” will mark the end of an unprecedented journey for the team behind the project’s fruition, for the city of Limassol and for the island of Cyprus. As an award-winning destination, Limassol Marina is the only Blue Flag marina in Cyprus and the recipient of the prestigious 5 Gold Anchor Platinum Award, the highest distinction for exceptional marinas globally for the provision of outstanding customer services and facilities. Recently, the accolade for the best development in the category of “Land Development Company Project” has also been added to the collection. The award celebrates its innovative architectural design and engineering ingenuity. The Marina continues to strive for improvement and ways in which to implement innovative best practices and technologies into the operation, be this in terms of enhanced service levels, stringent health

and safety regulations, and increased environmental initiatives. Going forward, the project will continue to expand Cyprus’ presence on the international yachting map exponentially. The project looks to the future with positivity and is confident of its growing impact in Cyprus and the region at large, both as a commercial endeavour and as an epicentre for yachting enthusiasts the world over.

Contribution to society Limassol Marina continues to have a remarkable impact on the local community and the country’s economy. Most notably, the development has, directly or indirectly, also created more than 1,000 jobs since inception. The project continues to grow in terms of its offering, with several international fashion, lifestyle and yachting brands having established store presence. Despite the challenges of the Covid-19 pandemic, the Marina is striving to maintain as near normality as possible whilst adhering to relevant health regulations. Its success is made possible by a team of over 700 highly qualified employees who are equally driven by the ethos and overriding ambitions of the project, as well as the positive feedback received from visitors, customers and the general public. J MAY 2021

Presentation

MAP S.Platis

Leading financial services consulting Group in Cyprus MAP S.Platis is a leading financial services consulting Group with clients that include regulators, banks, funds and fund managers, investment firms, brokers, fintech firms, insurance firms and payment and electronic money institutions. Our expert team, currently comprising over 400 high-calibre professionals, provides unique and tailored solutions in licensing, regulatory compliance, risk management, internal audit, human resources, regulatory technology, information technology, executive training and innovation consulting to financial and other firms in the UK, Cyprus, Hong Kong and the EU. Thanks to our vast regulatory compliance experience in supporting local and international financial services institutions, continued interaction with regulatory authorities, multidisciplinary and diverse team of professionals, unparalleled track record, global network of associates and wealth of resources, our internationally recognised and award-winning

team can support any client’s needs efficiently and effectively. Our team proudly displays a substantial and documented success record in receiving authorisations and supporting EU Investment Firms regulated by the CySEC and other EU regulators, with full passporting ability to all EU Member States, including receiving successfully authorisations and registrations of Investment Firms in various offshore jurisdictions.

Key Facts and Figures 300+ successful

license applications

100% success

in license applications

1000+ clients of global

activities in the regulated financial services industry

15+ years of experience 400 employees with diverse backgrounds

Today, MAP S.Platis carries proudly the tradition and solid reputation of the most innovative, reliable and highly professional provider of advisory and training services to financial institutions with global operations. 84

CYPRUS INTERNATIONAL BUSINESS JOURNAL

• Financial Advisory Services - Licensing, Regulatory Compliance Consulting, Internal Audit, Financial Forensics. • Risk Management – MAP Risk Management Services Ltd (MAP RMS www.maprms.com ) specialises in the provision of Risk Management and Capital Adequacy services in the financial services industry. • Regulatory technology – MAP Financial Technologies Ltd (MAP FinTech – www.mapfintech.com) is the technology provider to the financial services industry, specialising in regulatory reporting solutions across a number of complex and challenging EU Directives and international regulations. • Professional Training - The only expert Education Provider in Cyprus (European Institute of Management and Finance EIMF – www.eimf.eu ) specialising in the financial services industry. • HR Consulting, Recruitment and Temporary Placements – MGR Human Resources Ltd (MGR – www.mgr-hr.com ) is a broad HR Consulting practice, Training Centre, licensed Recruitment Agency and licensed Temporary Placements Agency, with offices in Nicosia and Limassol. • Innovation Consulting – MAP Innovation Ltd (www.mapinnovation.eu) assists companies to remain competitive in a constantly changing business environment. • Information technology (IT) - Microstorm Ltd (www.microstorm.com.cy) is a leading information technology (IT) firm with more than 30 years’ experience, delivering specialised solutions in the areas of IT support, networking, security, infrastructure, cybersecurity, IT governance, software development and Microsoft O365.

Contact Details • Limassol Office: 74 Archiepiskopou Makariou C, Amaranton Court, 3rd Floor, Mesa Geitonia, 4003 Limassol Tel: +357 2535 1335 Fax: +357 2535 1330

• Nicosia Office: 2 Diagorou, ERA House, Floors 9-12,1097, Nicosia Tel: +357 2287 7744

• London Office: 200 Aldersgate, EC1A 4HD, London, United Kingdom Tel: +44 207 060 5540

• Malta Office: Office 3, Sterling Building, Enrico Mizzi Street, Ta’ Xbiex XBX 1453 T: +356 21669690 Website: www.mapsplatis.com | Email: info@mapsplatis.com MAY 2021

Profile

Tonis Toumazis

A titan in construction ATLAS PANTOU: FROM A SMALL TECHNICAL OFFICE TO A DYNAMIC GROUP OF COMPANIES WITH AN ANNUAL TURNOVER OF €100M By Annie Charalambous

here is a witty play of words behind the name of Limassol-based Atlas Pantou group of companies whose figurehead for the past 33 years has been Famagusta-born Tonis Toumazis. What started out as a small technical office, some 80 years ago, has grown into a dynamic construction-oriented group of companies. Toni’s father Panayiotis, who also served as a member of parliament for a decade after Cyprus gained its independence from Britain as well as a cabinet member for two years in the early 1970s, came up with the name Atlas Pantou. Here is where the twist comes; Atlas was the Titan of Greek mythology who supported the heavens and whose picture appeared on early atlases. Pantou, in Greek, means “everywhere”, so this could be an allusion perhaps to the message of strength the company and its founders wanted to project. But Tonis smiles and explains that ‘Pantou’ represents the three first letters of Panayiotis and the first three letters of Toumazis - nothing more and nothing less.

CYPRUS INTERNATIONAL BUSINESS JOURNAL

“My father was witty, he had a way with words and a good sense of humour,” adds the 68-year-old University College London graduate in civil engineering. Tonis also holds an MSc in structural engineering from Imperial College, London, and an MA in Advanced Architectural Studies from the city’s Bartlett School of Architecture. “He was a very fair and wise man who never imposed his will on anyone. This is my modus operandi too.” Tonis also refers to Atlas Panton, the holding company of Atlas Pantou whose name again is a play on words. Panton, in Greek, means ‘Of All’, but in this case it only represents the first three letters of Panayiotis and Tonis. In the meantime, Atlas Pantou Group has left its mark throughout Cyprus with landmark projects such as the Olympic Residence Towers, also known as the ‘Twin Towers’, on the coastal front of Limassol which were the island’s tallest buildings from their construction in 2012 until recently. Among other significant projects are the Ministry of Foreign Affairs, the Famagusta General Hospital, Columbia Beach Resort in Pissouri, My Mall and currently Sky Tower and Ararat Grand Residences high rise buildings, in Limassol. Another jewel in the crown is the Limassol Del Mar which expresses the island’s ‘new wave’ of architecture through its unique high-rise curvilinear design. And these are just a few examples. The group of companies under Toni’s guidance is made up of 20 leading companies – spanning from construction to technical and civil engineering projects. Power stations, sewerage, drainage and pumping stations, military facilities, and parallel breakwaters are some of them. It has an annual turnover of over €100 million. Members of the group (apart from Atlas Pantou) are Telmen Ltd (one of the biggest Electromechanical companies on the island), Multistage International, based in UK, Conagro (trading of construction and agriculture machinery), Asber Ltd (Asbestos Removal), Mel Ltd (Quarries), etc. Tonis - who is either the founder or main shareholder of all the group’s companies – is trying to

We are in construction and this is a field where each project has a life duration of two or three years. Ongoing projects need to be finished. So, we have yet to feel the pain

delegate management. “I’m trying to hand over management, to others. To start with, I no longer run any company as the CEO,” he says. “But I’m not giving up on knowledge. I’m currently concentrating on becoming more computer-savvy…I admit my weaknesses, that’s my strong point,” he adds. Tonis has three children, Alexandros, Ioulita and Aegli and his long-term plan is for them to join as shareholders of the companies. But for the soft-spoken engineer what counts the most is that they do what’s best for them, what makes them happy.

Negative fallout on three fronts Tonis says Atlas Pantou has yet to feel the pain from the economic fallout of a very “unusual” 2020 sparked by the worldwide coronavirus pandemic and the ongoing regional political crisis. But a handful of crucial developments could usher in a bleak new year for the economy and the construction sector. “We are in construction and this is a field where each project has a life duration of two or three years. Ongoing projects need to be finished. So, we have yet to feel the pain,” he says. “But we do expect that two-three major economic and other developments will also have a negative impact on us,” he adds. To start with, Cyprus’ tourism last summer was severely hit by Covid-19 and this can only have a negative domino effect on the economy. Major develMAY 2021

Profile Tonis Toumazis

opers will be hesitant about taking on new projects until there is a re-start of the economy, he argues. Second, the Mediterranean island’s controversial Citizenship for Investment scheme was suspended on November 1 after it once again came under strong criticism both at home and overseas. Investments in high-end property which were part of the investor scheme has fuelled demand for luxury towers, especially in coastal Limassol, but the suspension will inevitably affect it. Third on Tonis’ list of negative consequences are the ongoing provocative actions in the Eastern Mediterranean region by Turkish President Tayyip Erdogan. Erdogan has for months been carrying out illegal activities in both Cyprus’ and Greece’s Exclusive Economic Zones in full violation of international law. “Turkey is out of control. It is about time the EU puts its foot down and in a unanimous decision force Ankara to stop these activities which create uncertainty in the region,” he says.

Yearning for Famagusta The 46 year long Turkish occupation of his birthplace, the ‘ghost town’ of Famagusta, weighs heavily on Tonis who has sought to channel his frustration into action to spread the word about Varosha. “We have been passive, we have not done enough, we should have found a way to get the message across to the rest of the world. Over 20,000 people lived in that fenced off area, we should not allow the Turks to just settle it,” he says. “I’m working on a project focusing on how to promote the Varosha issue, the apathy of the European politicians and the ignorance of Cypriot politicians have allowed Turkey to behave in a very hostile and selfish way. This is just not fair,” he adds. Tonis is appalled that there are Cypriots who do not know what was once known as the “French Riviera of Cyprus” - the once booming resort area of Varosha in the city of Famagusta abandoned since the 1974 Turkish invasion and occupation - is in total disrepair. This plight may have earned it the name of ‘ghost town’

CYPRUS INTERNATIONAL BUSINESS JOURNAL

I’m working on a project focusing on how to promote the Varosha issue

for decades but worrying signals from Ankara suggesting it plans to settle it, came true in October. Turkey partially opened Varosha in full violation of international law and UN resolutions clearly providing that only its legal Greek Cypriot inhabitants should be allowed to go back under UN control. “I feel I have an obligation towards Cyprus to do all I can to raise awareness about this…both my parents died deprived of their right to go back to Famagusta. There is much heartache over this,” he says. Tonis is vice president and board member of the Famagusta Chamber of Commerce and Industry – among a dozen other high-profile economic and social posts he holds. To name a few, he is chairman of the board of KYKEM, and on the board of OEB, CCCI, Ygeia Foundation etc. He has received numerous awards. Late last year, Tonis Toumazis was awarded by the Cyprus Chamber of Commerce and Industry the Business Leader award, in the category Construction/Real Estate. Honouring Atlas Pantou’s 80-year history and with respect for the art of construction, as well as our land and culture, two years ago Tonis took the initiative for the group to fully finance and publish the first comprehensive book on the history of construction in Cyprus. A select group of 10 professors and scholars, based on modern research on the history, archaeology, and architecture of Cyprus, recorded the raw materials, the techniques, and the construction forms in their diachronic course through the political, social, financial, and cultural changes on the island. Abundantly illustrated and with a glossary of technical terms, this bilingual edition aspires to be an essential handbook for both experts and non-experts of the past and modern-day generation. J

Presentation

George Z. Georgiou & Associates LLC

Professionalism, passion for excellence and devoted to client-service George Z. Georgiou & Associates LLC is a full-service law firm based in Nicosia, Cyprus with over 50 lawyers, legal consultants, arbitrators and support staff. It is internationally recognised for its expertise, professionalism and client-service, with rankings in the main legal directories of Chambers & Partners, Legal 500 and Who’s Who Legal. It is the sole Cypriot member of the international law alliances Ius Laboris and GALA. As a member of these alliances, the Firm is able to provide prompt, fully coordinated, yet locally-specific advice from countries across the globe, to any client, on most areas of law.

Areas of Practice:

Additional Services

• Administrative Law • Arbitration • Banking & Finance • Commercial • Corporate • Dispute Resolution • Data Protection & Regulatory • Employment & Pensions • EU Law • Family law • Intellectual Property & Media • Litigation & International Commercial Litigation • Probate • Property & Construction

• Business Advisory & Corporate Relocation Services: helping clients relocate to or within Cyprus • Property A-Z: a one-stop-shop for all things property related, from land valuations to depositing of title deeds • Corporate Services: all matters relating to the management and day-to-day administration of companies • HR Advisory Services: assistance to HR departments as and when they need it • GZG Academy: providing bespoke practical training on all aspects of Cypriot law and professional skills

George Z. Georgiou & Associates LLC is dynamic and energetic law firm which prides itself on its devotion to professionalism, passion for excellence and commitment to the legal services it provides.

www.gzg.com.cy admin@gzg.com.cy tel +357 22763340 - fax +357 22763343 MAY 2021

Opinion

By Chryso Pitsilli Dekatris Co-Managing Partner, Dr. K. Chrysostomides & Co LLC, Law Firm

Cyprus Revisited: a legal practitioner’s viewpoint

ny introduction of Cyprus to the international community typically starts with a reference to its geographical position and the almost cliché phrase that ‘it lies at the crossroad of three continents’. This reference is then projected to describe how influences from the three continents and the rest of the world, blend into a multi-cultural amalgam which make Cyprus a unique destination. Musing over what still makes Cyprus attractive to the international business community, I find it difficult to fare far from the ‘clichés’ as I conclude that what distinguishes Cyprus, is indeed a unique amalgam of both business and cultural factors. Chrysostomides law firm is one of the ‘pioneer’ firms supporting the development of Cyprus into an international business centre over the last four decades and in my career with the firm, I experienced the vigorous evolution of this industry from the viewpoint of a legal practitioner. I recall the times when setting up a company belonging to ‘non-residents’ was a rather rigid process requiring, among others, the insertion of restrictive provisions in the Memorandum of Association, a permit from the Central Bank under the Exchange 90

Control Laws and often, the views of customs, immigration and other competent departments. Exchange controls are long gone, and the Cypriot national borders are extended to the much broader EU borders. Short of the Brexit hiccup, freedom of services, capital and freedom of establishment predominate, and governmental supervision is aligned with, and fine-tuned at EU level. Wrapping up the reminiscent trail, I highlight the turning points that impacted and moulded Cyprus’ development as a business centre: EU accession, joining the Eurozone, 2013 banking crisis and the ensuing economic adjustment package bringing surveillance and austerity measures. In 2021, in the midst of the Covid-19 era, what, if anything, still makes Cyprus an attractive business jurisdiction? Having alluded to the earlier formalistic licencing processes needed to establish a ‘non-resident’ company in Cyprus, one cannot fail to observe that rules, regulations and processes have not eased. In fact, they have intensified and have become globalised in an effort to level the playing field, protect individuals and combat new types of threats which keep cropping up, whether they are called anti-competitive practices,

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data theft, money laundering, terrorism or pandemics. The marked difference nowadays, is perhaps that rules and regulations are not so much imposed and ‘policed’ by authorities as embedded in the mode of operation, and complied with by the regulated entities. Starting from the premise that we operate in a globalised market and in our part of the world, businesses are being regulated at both EU and national level, what are the current challenges and how can these be turned into opportunities if one operates from within Cyprus? Being a lawyer, I cannot but start from the legal system: English common law bestows flexibility, continental law enhances the functioning of the administrative machinery while EU law harmonisation keeps the legal system abreast with current developments. The Companies Law is a prime example of this blending process; at its core, it remains a replication of the English Companies Act 1948 but aligned with EU law and modernised to cater for today’s new business environment of virtual meetings, electronic registers and dematerialised shares. GDPR1 and the NIS Directive2 are stark examples of how EU harmonisation makes our jurisdiction

compliance ready. In an era where digitalisation is affecting virtually every aspect of society, it is vital to safeguard personal data, cybersecurity and the reliability of the networks and information systems. The pandemic has accelerated and heightened the need for businesses to process personal data, operate online e-stores or adapt to remote working patterns. In turn, this compels greatest vigilance in consumer protection, and cybersecurity. The speed and efficiency with which Cypriot courts support the business community remain an open issue, but it is an area where rapid leaps are expected. The first steps towards e-justice have been taken, once again, accelerated by the pandemic. Despite the practical difficulties, the Cypriot courts are delivering justice through robust decisions, an example of which is mentioned further down. In parallel, there are ample opportunities for faster resolution of disputes through arbitration. Cyprus is a contracting state to the New York Convention, and local arbitrations can be staged, either through the three main local arbitral insitutions or through ad hoc arbitral tribunals with the participation of legal or other professionals well versed in their subjects. The economic policy followed by consecutive governments over the years has been constantly supportive of entrepreneurship, mindful to maintain financial stability and a balanced social welfare programme. Government agencies and competent bodies are accessible and open to discussion. The current government’s focus,

The speed and efficiency with which Cypriot courts support the business community remain an open issue

as expressed by the Minister of Finance in presenting the 2021 budget, is to secure jobs, green growth, digital transformation, research and innovation because these areas will change the lives of future generations. Technology, telecommunications, e-commerce and vigorous IP right protections are core to any modern state and Cyprus, assisted by a skilled and highly trained workforce and immigration laws which can allow the employment of professionals from third countries, has a lot to exhibit in this respect. Artificial intelligence and virtual reality become the new infrastructure platforms on which entire industries, like software development and online gaming are being deployed. Intellectual property rights and trademarks linked to technology and innovation need to be safeguarded and in a recent EU trade mark infringement action, the Nicosia District Court issued its first pan-European interim injunction protecting the claimants’ EU trade marks. Major infrastructure projects, such as the two airports, ports and marinas combined with good road networks, facilitate the movement of people and goods. Energy, both renewable and non-renewable

sourced, is a dynamic and promising new sector of the economy. The tax regime and the extensive network of treaties for the avoidance of double taxation, facilitate business. While largely remaining stable, the tax system is nonetheless being streamlined with the OECD BEPS3 Framework and the European Anti-Tax Avoidance Directive (EU 2016/1164) which seek to ensure that profits are taxed where economic activities are performed, and value is created. In the process, issues such as transfer pricing, transparency and real economic substance are being addressed. Cyprus is a good location for entities to invest in setting up their headquarters and establishing substance. Reliable infrastructure, availability of quality commercial and residential premises, an annual income tax exemption of 50% for high salaried employees are just a few factors which favour Cyprus as a good business destination. It is impossible to capture all the pros and cons of setting up a business in Cyprus. In a world which strives to create uniform rules across the globe, there will always be challenges to be addressed and dealt with. As the pandemic has demonstrated, there can be no fool-proof planning and developments will always be volatile. Cyprus’ track record over the past four decades lead me to believe that its authorities, working in sync with a dedicated professional services industry possess the maturity, the frame of mind and the resilience to put Cyprus high on the map of international business. J

General Data Protection Regulation (EU 2016/679) Directive on security of Network and Information Systems (EU 2016/1148) 3 (Domestic Tax) Base Erosion and Profit Shifting 1 2

MAY 2021

C Opinion

yprus banking is part of the Eurosystem, with the Central Bank of Cyprus being part of the European Central Bank. However, banks in Europe (and in Cyprus) have less robust balance sheets and weaker profitability than in other jurisdictions, thus hindering their facing of the current challenges. In contrast, during the first quarter of 2021, the largest US banks are ex-

What is happening in banking in Cyprus?

By Constantinos Loizides Managing Partner, Aepias Limited

pected to return capital to shareholders by buying back more than USD10billion of shares and about 15% of shares over the next two years, thus boosting earnings per share. Clearly 2020 results of the largest US banks reflect a resilient performance, with consensus for fourth quarter net income only about 10% less than 2019. This will not be happening in Europe soon. European banks have meaningfully lower profitability than US banks. With interest rates continuing at low levels and with quality of bank loans expected to further deteriorate, this situation will not change. Smaller banks will even face tougher times in attracting capital for these challenges and to satisfy, over the next three years or so, another regulatory requirement called MREL (Minimum Required Eligible Liabilities). This is

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intended to build an additional financial buffer capable of absorbing losses of a bank in case it enters resolution (like Laiki Bank did), without affecting the depositors. Each bank’s required MREL level is determined on a case-by-case basis, but it may challenge many banks. Thus, the need for bank consolidation will be becoming more urgent. The European Central Bank is aware of the need to supervise and even faciliate such mergers. In Cyprus, compared to March 2013 when the Bank of Cyprus bail-in was decided, banks are much better prepared to face COVID, in terms of both capital and liquidity. They are also helped by quick action of the Central Bank and the Ministry of Finance, responding in unprecedented close cooperation. However, beyond low interest rates and deteriorating loans, banks in Cyprus face two additional challenges: high non-performing exposures and the operating in Cyprus of too many banks. With a working population of less than 700,000, having more than ten banks is surely superfluous. This overbanking squeezes profits, reducing ability to make more provisions for problematic loans to enable their restructuring or sale. Meeting MREL requirements is also challenging: in a small overcrowded market, with high NPEs, and a moribund stock exchange with no liquidity, attracting foreign bank investment of any form (capital or subordinated debt) is not the easiest of tasks. The market itself will thus inevitably decide how and when bank numbers are reduced, either through need or opportunity. However, the

The need for bank consolidation will be becoming more urgent. The ECB is aware of the need to supervise and even faciliate such mergers

larger banks in Cyprus appear currently not to have any strategic interest to absorb smaller banks, for two reasons: (1) the incremental balance sheet size can be achieved internally without the hassle of a bank merger and additional staff, and (2) the two largest banks already have a significant share of the market, the increase of which may raise regulatory concerns, in addition to not obviously providing any tangible benefit. All banks are now urgently focusing on reducing operating costs; increasing staff productivity; reducing NPLs; accelerating digital operations / products and services; and focusing on arriving at a post-COVID business model that would be generating recurring profitability. Banking will of course benefit if the macro economic environment improves and in particular if the private sector is supported by the Government to protect some industry sectors from collapsing altogether. This may not be the time to adhere to strict Debt to GDP targets,

as revival of the economy may then be greatly hindered. Some proposed actions, from the general to the specific, may help additional discussion in other more appropriate forums: A. The State needs to urgently become more efficient, with a larger digital footprint, and a marked reduction in bureaucratic procedures. B. The judicial system needs a drastic revamp – justice delayed is not only justice denied but also has significant negative economic sideeffects. C. Approved infrastructure projects must be implemented as quickly as possible, bypassing obstructional appeals. D. Vaccination must continue effectively until herd immunity is achieved by the summer making Cyprus an attractive tourist destination. E. Attracting Foreign Investments is a high priority after the passport scandal. Focus could shift towards foreign corporations rather than indi-

viduals, with tax and other incentives focusing on specific industries (asset management; back office processing for funds; shipping; IT research and development; medical tourism; education etc.). The EU has to allow some flexibility in member states trying to attract foreign investment! F. Long-standing wounds need to close. The resolution of Laiki Bank takes significantly more years than that of the Lehman Brothers liquidation!!! G. The creation of private equity in Cyprus (as was started and is thriving in Israel) would be a godsend for Cyprus, with practical incentive schemes relatively easy to implement. Unfortunately, even the modest EUR20mm Equity Fund announced by the Government has stalled. The positive news is that all the above are well known, are well understood, and most are acted upon, making us optimistic and hopefull for the future! J MAY 2021

Opinion

s the times are changing and urbanisation increases rapidly, cities should consider creating the conditions that would allow them to adapt to the challenges and provide the best quality of life to their habitants. Reports show that by 2050, almost 70% of the world population will be living in cities. Limassol has all the prerequisites and can mobilise great forces to meet modern challenges so that the

Can Limassol become a Coastal Metropolis? city is properly developed, thus provid-

By Yiannis Armeftis Architect

ing benefits to all its residents. And this is something I can confirm through my personal experiences daily. But the question concerning me most of the time is, what are the challenges Limassol faces, and how the opportunities the city offers could be utilised to achieve that? How can Limassol become an attractive destination for foreign companies, a hub of research and development, and a city that would serve the needs of the live-work-play city experience? Shouldn’t citizens be able and have all the resources to live in the city, work in the city, and spend quality time in the city? Could we imagine a city meeting all the demands of its residents? A city that could include all the segments that make up mass of the city. The youth, the adults, the elders, the foreigners, the disabled, and

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the excluded. Studies which I have encountered have shown that traffic and mobility hold a crucial role in the way citizens evaluate the quality of their lives. Especially when it comes to the time they need to commute for work. Limassol is obviously lacking a sustainable mobility plan. The traffic problem is continuously increasing throughout the years, making our everyday lives more complicated, less time-efficient, but most importantly, reducing the quality time we could spend in the city. My personal experience as a citizen living and working in the centre, provides further evidence to that. The concept being promoted abroad is that of the “15-minute city”. This idea includes an expanded network of pedestrian zones and cycle paths that will connect neighbourhoods, schools, local shopping spots with the city centre and the beach. In addition, Limassol needs an integrated public transport network and an increase in alternative means of transport, so that the use of conventional cars will be reduced. Another idea I am frequently thinking of is the development of a tramway in Limassol. Quality time on the other hand, is strongly dependent on the infrastructure of the city. Having travelled in other European cities I wonder how Limassol could be compared to other European cities in terms of public space quality, public space accessibility, and public space connectivity. I believe that things could be much better. Spaces that would enhance the identity of our city, enable social participation and citizens’ interaction with the city through diverse uses leading to an increased urban vitality and satisfy the needs of special social groups, are not that common in our

city nowadays. Furthermore, the quality of public spaces could be enhanced by converting Limassol into a Green City, a city with unified large urban parks through “green routes” across the city, along with the enhancement of urban green areas in streets and squares. Personally, I am greatly concerned by the absence of a Metropolitan Park in Limassol. Apart from the impact on the quality of life, investing in green areas,

why Limassol should become a Tech City and create a technology park, which will be an attractive space where enterprises active in the high-tech industry shall be located. This demands

social cohesion and action plans to support vulnerable groups, as also the lack of social housing policies which is a must due to the high housing cost in Limassol we experience in recent

would also contribute to dealing with the environmental challenges the planet faces, and lead to a more sustainable way of living. But apart from the infrastructure, facilities, and activities Limassol can offer, a crucial element and determinant of every city’s development, is the business sector, and especially the enterprises operating within the areas of innovation and research and development. This is

proper planning to attract international companies, research excellence, talent, and also prevent the “brain-drain” effect, making Limassol an important business centre of the Mediterranean. As a result, high-quality jobs for citizens and an enhanced social policy will be created so that poverty and social exclusion will be addressed. Mentioning the social aspects of the city, I am always aware of the lack of

years. Every modern city should necessarily be a social city. As an active citizen of Limassol, and as an architect that due to the nature of my occupation which enables me to observe the needs and the opportunities arising to improve our lives in the city, I consider the aspects I have presented above as the most important ones for turning Limassol into a Coastal

Could we imagine of a city meeting all the demands of its residents?

Metropolis. J MAY 2021

cyprus

International business

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This magazine was initially due to be published in December 2020 but was delayed as a result of the coronavirus pandemic. We thank all those who contributed in any way and especially the companies which supported this effort. We hope that our next edition, scheduled for the first half of 2022, will be published under better circumstances. Comments and suggestions are most welcome. On behalf of the publishing team Αnnie Charalambous

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