GOLD Magazine Issue 49 by INBusiness

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the international investment, finance & professional services magazine of cyprus

AUDIT, ACCOUNTING

& TAX ADVISORY FIRMS

IN CYPRUS ENTREPRENEURSHIP Chrysalis LEAP promotes the ClimateLaunchpad

INTERVIEWS Loucas Marangos Marios Panayides Maria Zavrou

MARIOS DEMETRIADES ‘Time to Act’ says the Minister of Transport, Communications & Works

Plus:

MONEY / BUSINESS ECONOMY TAX & LEGAL LIFESTYLE / OPINION

A world leader of the accountancy and finance profession

STEP CYPRUS CONFERENCE 11-12 JUNE 2015 FOUR SEASONS HOTEL, LIMASSOL www.step.org/cyprus2015

STEP CYPRUS CONFERENCE 2015 TAX & TRUSTS: THE EVOLUTION OF AN INDUSTRY Programme focus

OUR SPEAKERS:

•

The recovery and the current state of the Cyprus economy

Harris Georgiades

•

Strategic planning for Cyprus as a ﬁnancial centre

Farrer & Co

•

Recent developments in the trust world

Angelos Gregoriades

•

The OECD’s BEPS project

KPMG

•

The Russian De-offshorisation – six months after implementation

•

Fending off Creditors: The Trust Fortress

•

Structuring real estate acquisitions in the UK

Philip Marcovici TEP

•

The legitimacy of tax planning in today’s world

Ofﬁces of Philip Marcovici

•

The International Trusts (Amendment) Law 2012

David Russell QC TEP

•

Comparative perspective of funds (Luxembourg-Ireland-Malta-Cyprus)

Alexei Ryabov

•

Increasing Regulation – FATCA, CRS & AML

Geoffrey Shindler OBE TEP

•

Challenging the global baking status quo

Old Trafford Consulting

•

Welcome to the New World – Global tax transparency

Emily Yiolitis TEP

STEP Members (Local) Non Members (Local)

Euro 540 645

Minister of Finance, Republic of Cyprus

Toby Graham TEP

George Hodgson STEP Worldwide

Nicholas Jacob TEP Wragge Lawrence Graham & Co LLP

The Outer Temple Ernst & Young

Harneys

DELEGATE FEE GBP 395 STEP Members (International) 485 Non Members (International)

Euro 1010 1145

GBP 750 850

Accredited for 10 hours CPD

Sponsors include

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ADVOCATES & LEGAL CONSULTANTS

Issue 49 April 14-May 13, 2015

6 EDITORIAL 8 UP FRONT 12 FIVE MINUTES WITH...

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An updated list for 2015, plus interviews with the heads of PwC Cyprus, KPMG, Deloitte and EY Cyprus on the state of the economy and its prospects.

AUDIT, ACCOUNTING

& TAX

IN CYPRUS Restructuring the many departments within the Ministry of Communications & Works for greater efficiency now and in the future is just one of Marios Demetriades’ priorities. The Minister speaks about this and the many challenges facing the present Government.

20 | THE 11TH CFO MANAGEMENT FORUM Preview of the June conference.

How Carrefour Cyprus has embraced new ways of keeping in touch with its customers.

TO ACT

ichalis Panayides, Commercial Director of Carrefour Cyprus, on how the supermarket chain has gained over 21,000 Facebook Friends in the space of a year and the importance of Social Media to its customer relations and advertising strategies.

Gold: Given that Social Media is more associated with a younger age group, are you using Facebook, etc., to attract this specific audience to different products from those you advertise via printed media, radio and TV? Michalis Panayides: It is a fact that, compared to traditional media, Social Media has managed to establish a two-way channel of communication between companies and consumers. Figures show that, although Social Media is considered primarily as a “21st century generation’’ means of communication, we are discovering that more and more Social Media users are over the age of 35. In fact in Cyprus, 36% of Facebook users are 35 or older. In addition, at 69%, Cyprus has the biggest proportion of Facebook users in terms of its population. Observing these general trends, Car-

THE CORRECT COMBINATION OF ONLINE AND OFFLINE COMMUNICATION DELIVERS THE BEST RESULTS

OF SOCIAL

MEDIA By John Vickers

Gold: What are the advantages of using Social Media to a company like Carrefour? M.P.: It is obviously expected that the lead-

relationship of interaction and reliability with our Facebook Friends. At the same time, we give them all the necessary information on our supermarket offers as well as useful information about our stores. Advertisements, videos and interesting post contests complement our Facebook page material, giving our clients the opportunity to play and win. Finally, a dedicated team is always there to address and reply to any question or request of our fan page followers.

er in the retail sector will successfully keep ahead of developments, making the best of all available communication channels. We are confident that the correct combination of online and offline communication delivers the best results and reinforces the relationship of credibility and confidence that we are building with our clients on a long-term basis. Undoubtedly, Social Media has the ability to multiply our messages, our presence and the capability to directly reach a wide audience.

Gold: How long have you been using Social Media as a marketing tool for Carrefour and what have the results been so far? M.P.: Even though we have only a Social Media presence since last year, we managed to gain more than 21,000 friends! We are very proud of this because, by offering an interesting and pleasant profile, Carrefour Cyprus’ Facebook page is among the Top 5 Facebook pages in Cyprus in terms of engagement.

Gold: Have you increased your marketing/advertising budget to include Social Media or have you cut spending on other media such as print, radio and TV? M.P.: The introduction of Social Media to Carrefour’s communication policy constituted a strategic decision for the company. A significant investment has therefore been made to this end. However, television remains the “king” of the media and that is why it continues to enjoy the “lion’s share”!

Gold: So presumably Facebook is the main social media site you use. Are there any others? M.P.: Our main presence in Social Media

Gold: Although there is no significant cost involved in marketing your products to a large number of people through Social Media, any campaign obviously needs a great deal of planning. How far

68 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

40 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold: What has been the Marinopoulos Group’s experience of Social Media marketing/advertising in other countries? M.P.: The Social Media presence of Marinopoulos S.A. constitutes an integral part of our communication plan in Greece, Cyprus and the Balkans. Maintaining Social Media accounts in all the countries where the company operates, Marinopoulos is constantly building a direct and effective communication channel with consumers. Besides Cyprus and Greece, the company maintains Facebook Fan Pages in Bulgaria, Albania and FYROM. Every page uses the official language of the country while keeping the local element as a point of reference, thus constituting a substantial channel of communication with the consumers. The successful Social Media presence of Marinopoulos S.A. in Greece is reflected in the constant increase in visitor numbers to all its official accounts (Facebook, Instagram, YouTube, Twitter). The company has implemented a digital and online strategy, based on its expertise, since May 2012, with the creation of its official Greek page on Facebook. With a style and content suitably adapted to each platform, Marinopoulos S.A. communicates on a daily basis with hundreds of thousands of consumers. It informs the public about current offers and campaigns, actions and events, organises competitions and creates seasonal, interactive games, while at the same time gives useful, everyday advice. For Marinopoulos S.A., constantly reinforcing a daily “live” two-way relationship with the company’s customers was and will always be a top priority and a determining factor of its communication strategy.

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 69

How Carrefour Cyprus has embraced new ways of keeping in touch with its customers.

THE 11TH CFO MANAGEMENT

FORUM

4 JUNE 2015 | HILTON PARK HOTEL, NICOSIA, CYPRUS

“I must say that I was surprised,” he admits, “because I only learnt about it two or three hours before it was announced. I felt that it was a great honour and I was happy to be taking over a technocratic ministry. As a technocrat myself, I believed that it suited me fine.” Given that, like most government ministries in Cyprus, the Ministry of Communications & Works covers a vast number of sectors, such an appointment would probably have seemed a daunting prospect to most people but to Demetriades that was not the case. “No, it wasn’t daunting but it was certainly very challenging,” he recalls. “The problem is not so much the number of areas we cover but the way we operate in the sense that there haven’t really been any changes to the ministries and in the way we run the Government since 1960.”

THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

4 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

INTERCONNECTION By Dr. George Mountis

Gold 41

On the following pages, nine VM [OL ÄYTZ PU [OL ;VW SPZ[ WYLZLU[ [OLPY JVYWVYH[L WYVÄSL HUK ZLY]PJLZ PU NYLH[LY KL[HPS WYLJLKLK I` PUMVYTH[PVU MYVT [OL 0UZ[P[\[L VM *OHY[LYLK (JJV\U[HU[Z PU ,UNSHUK and Wales (ICAEW).

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49 | The Leading Audit, Accounting & Tax Advisory Firms in Cyprus

CONFERENCE

MY ONLY AMBITION AT THIS MOMENT IS TO DO MY BEST HERE. I HAVE NO POLITICAL AMBITIONS

By John Vickers, Photograph by Jo Michaelides

ahead do you prepare such campaigns? M.P.: Even though Social Media is characterised by its immediacy and high speed, proper planning based on strategy is essential. We have a comprehensive annual action plan, which is evaluated and updated with any adjustments needed every six months. At the same time, we ensure that our analytical diary of posts is planned carefully on a monthly basis, so that we are always up-to-date, thus meeting and satisfying the daily communication needs of page visitors.

28 | MAKING USE OF SOCIAL MEDIA

RESTRUCTURING THE MANY DEPARTMENTS WITHIN THE MINISTRY OF COMMUNICATIONS & WORKS FOR GREATER EFFICIENCY NOW AND IN THE FUTURE IS JUST ONE OF MARIOS DEMETRIADES’ PRIORITIES. THE MINISTER SPEAKS TO GOLD ABOUT THIS AND THE MANY CHALLENGES FACING THE PRESENT GOVERNMENT.

arios Demetriades is one of four current ‘younger generation’ government ministers appointed by President Nicos Anastasiades. Born in 1971 and with a background in banking and studies in business, finance and economics, his only involvement in party politics involved being a member of the Finance Committee of the Democratic Party (DIKO) and, until his appointment as Minister of Communications and Works in March 2014, he had never held a public position. So how did he feel just over a year ago when the call came from the Presidential Palace?

CLEANING THE CLOSET... By Pavlos Loizou

THE LEADING AUDIT, ACCOUNTING & TAX ADVISORY FIRMS IN CYPRUS

is on Facebook. Studies have shown that it is one of the country’s most popular social networks. We also have a presence on YouTube, promoting all the company’s ads. Finally, our clients’ response to Carrefour Cyprus’ mobile app, which allows them to browse all our offers and leaflets and to prepare their shopping list, has been impressive. So far, 10,000 customers have downloaded and used the app.

XXXX

TIME

DEALING WITH THE BANKS’ PROBLEMS By Dr. George Theocharides 24

special promotional feature

refour Cyprus recognised that Social Media offers a unique opportunity not only to inform our clients and consumers on a daily basis, but also to develop a two-way relationship of dialogue and trust. Gold: How is your Social Media advertising different from that in other media? M.P.: The competitive advantage of Social Media is that it constitutes a very powerful communication tool which allows you to come even closer to your audience by ‘speaking their language’. Through daily stories, optimistic and cheerful messages, clever recipe ideas, we have developed a

ICAEW PRESENTS

SPECIAL PROMOTIONAL FEATURE

MAKING USE

14| TIME TO ACT

PEEK AROUND THE CORNER! IT’S COMING! By Kyriakos Iordanou

ADVISORY FIRMS

FEATURES

+ OPINION

he 11th CFO Management Forum, which takes place on 4 June 2015 at the Hilton Park Hotel in Nicosia, will offer expert insights from key speakers from Cyprus and abroad who will discuss the latest trends affecting CFOs. CFOs are constantly being challenged these days to reduce costs, increase productivity, manage cash flow, and stay on top of increasing regulations. In addition to this, their role as strategic partners with the company CEO is gaining greater importance. The Forum, therefore, aims to equip CFOs with the knowledge necessary for them to handle these increased demands and developments. The Forum is divided into five sessions: The first (Leadership and Strategy) will discuss, among other things, the role of the CFO as a strategic leader. The second session (Cash flow management) will look at maximizing cash flow from receivables and working capital management. Session Three (Finance/Debt management and restructuring/ Mergers and Acquisitions) will deal with a number of important issues, including operational

efficiency and corporate turnaround, strategies for successful Mergers and Acquisitions and company valuations. Case studies of debt restructuring in corporations will also be presented as part of this session. A key presentation on ‘Financing business expansion and creating shareholders value via private equity investments’ will be given by Alexander Shkuratov, Managing Director of Pride Capital, a firm that specializes in equity investments in private, fast-growing companies. Pride Capital aims to acquire a controlling or significant minority interest in the equity of fast-growing companies. Working in partnership with owner-entrepreneurs who want to bring their businesses to the next level, management and other stakeholders, we look to implement projects to improve shareholder value through two main directions: private equity investments and creation of shareholder value as a partner. Internal Audit Strategies and Practices are the focus of Session Four while the fifth and final session focuses on technology. Among the topics to be covered are ‘The CFO as a technologist’, ‘Big data, cloud, new analytic tools: Where do CFO & CIO meet?’ and ‘Cyber Security and the CFO: An Inside Look at the Financial and Business Challenges Caused by Next Generation Cyber Attacks’.

KEY SPEAKERS FROM CYPRUS AND ABROAD WHO WILL DISCUSS THE LATEST TRENDS AFFECTING CFOS Given that top finance professionals are continually looking for ways to maximize their cost savings and reallocate investments that generate cash flow and revenue growth, the final session explores in ‘Capturing ROI from your IT investment portfolio’ how CFOs can partner with their IT leadership to fund vital new initiatives that can unlock increased value for their business and reduce risk at a substantially lower cost.

Organizer: IMH Sponsors: Bank of Cyprus, EY, Logicom Solutions, TFI Markets Supporter: General Insurance of Cyprus Communication Sponsors: IN Business Magazine and InBusinessNews.com For further information contact IMH: Tel: 22505555, Fax: 22679820 website: wwwimhbusiness.com email: events@imhbusiness.com

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EDITORIAL

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THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

AUDIT, ACCOUNTING

& TAX ADVISORY FIRMS

IN CYPRUS ENTREPRENEURSHIP Chrysalis LEAP promotes the ClimateLaunchpad

INTERVIEWS Loucas Marangos Marios Panayides Maria Zavrou

MARIOS DEMETRIADES ‘Time to Act’ says the Minister of Transport, Communications & Works

PLUS: MONEY / BUSINESS ECONOMY TAX & LEGAL LIFESTYLE / OPINION

A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION

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Effy Pafitis, Kyriakos Demetriou CONTRIBUTORS TO THIS ISSUE

Mariana Antonescu, Rakis Christoforou, Kyriakos Iordanou, Andrew Lumley-Holmes, Pavlos Loizou, George Mountis, Dr. George Theocharides ART DIRECTION

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our years ago this month, a new publication appeared on the newsstands across Cyprus. The very first issue of Gold, which described itself as ‘The International Investment, Business & Finance Magazine’, included a cover story entitled ‘The Art of Wealth Preservation’, an interview with the then Minister of Finance, Charilaos Stavrakis, among its many articles and features. Twelve months later, with Issue 13, we adjusted our strapline to ‘The International Investment, Finance & Professional Services Magazine of Cyprus’, partly in acknowledgment of the fact that we placed great emphasis on the professional services sector, which we believed to be the one that would thrive and withstand the pressures of the global financial crisis. We also wished to clarify that this was and is a Cypriot magazine. Some 36 issues later (you are reading No. 49), our focus continues to be on professional services but, from next month as we reach the milestone of 50 issues of Gold,we shall be expanding our coverage to take in other sectors of the economy. More about the new-look magazine in May. For now, we celebrate our fourth birthday with a cover story that first appeared in 2013. Gold’s listings have always been a popular feature and we decided that it was time to update the one in which we rank the Top 50 audit, accounting & tax advisory firms on the island. At the same time, two years after the Government signed the Memorandum of Understanding with the Troika of international lenders on a €10 million bailout package, and with lots of positive developments as far as the current performance of the economy is concerned, this issue of the magazine presented the perfect opportunity to give a platform to the heads of the Cyprus offices of the so-called Big Four accounting firms. We therefore asked them for their expert views on the economy and the professional services sector as it stands today and on how they expect it to be in 2016. You can read what they have to say in the four interviews that are interspersed within the listing that starts on page 31. Last month’s cover story was an exclusive interview with the Minister of Finance, Harris Georgiades. This month we speak to his colleague Marios Demetriades, who is responsible for the about-to-be-renamed Ministry of Transport, Communications & Works. In a wide-ranging discussion that befits such a ministry, the Minister offers his views on shipping, aviation, postal services, privatisation and more, as well as providing an insight to his personal ideas and ambitions (page 14). We also talk to Maria Zavrou, President of the recently-founded Cyprus-South Africa Business Association (page 12), to Marios Panayides, Commercial Director of Carrefour Cyprus(page 28), and to Alexandros Charalambides, co-founder of Chrysalis LEAP (page 74), as well as gaining a more personal picture of LoucasMarangos, CEO of TFI Markets in the popular and revealing feature ‘A Day in the Life’ (page 90). Finally, one more piece of advance information about the forthcoming 50th issue of Gold is that we shall not be shying away from politics. English-speaking residents of Cyprus are often bewildered by the statements of the country’s party leaders and the members of the House of Representatives, not to mention the often incomprehensible behaviour of those in senior government positions, trade union leaders and local authority officials. I have frequently used this page to criticise them but, as more and more scandals are revealed, as conflicts of interests are uncovered and as we appear to be moving towards a possible settlement of the longstanding Cyprus Problem, we shall endeavour to shed more light on certain situations that we previously considered outside our sphere of interest. No-one can afford the luxury of not knowing what the politicians are doing anymore, including Gold. Thank you for your support and encouragement over the last four years. I am sure that you will enjoy and approve of the new, improved version of your favourite publication on 14 May.

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THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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Bank of Cyprus launches Premier Club

Michael Dobbs Tim Potier Colin Wright

Record-breaking sales for alternative assets

6 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

PLUS: MONEY / BUSINESS ECONOMY TAX & LEGAL LIFESTYLE / OPINION

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UP FRONT

CYPRIOT CANDIDATE FOR TOP IMO JOB VISITS ARGENTINA

ast month, Andreas Chrysostomou, one of four declared candidates vying to become Secretary-General of the International Maritime Organization (IMO) this year, visited Argentina, one of 40 countries he is touring to garner support for his bid. Speaking at the Argentine Navy’s Nautical School, Chrysostomou, Acting Director of the Department of Merchant Shipping in Cyprus, said that, if he wins July’s elections, he will work for the London-based IMO to continue being the central and only global regulator for the shipping sector. “We don’t need unilateral or

regional action. We need one global organisation to regulate what is probably the most globalized industry in the world,” he said. Asked whether he would follow the same line of outgoing Secretary-General Koji Sekimizu, who has urged European countries to continue sending their navies to protect ships from pirates, especially in the vicinity of Somalia, Chrysostomou YLJHSSLK [OH[ PU H ZOPW Å`PUN [OL *`WYPV[ ÅHN ^HZ [OL ÄYZ[ [V Z\ɈLY H WPYH[L H[[HJR MVY YHUZVT “This is 2015 and the situation is the same, as piracy proliferates in the area,” he said. “I think the only solution is to provide the ships with guards.”

CO-OP CENTRAL BANK’S €41.2 MILLION PROFIT

he Co-op Central Bank YLNPZ[LYLK H UL[ WYVÄ[ MVY 2014 of €41.2 million, despite a rise in provisions for bad debts, which reached €2.97 billion. Loans that have not been serviced for over 90 days reached €6.7 billion, or 51.1% of the of the loan portfolio. Net revenue for the Co-op banks rose to €392.3 million compared with €377.8 million in 2013. Deposits, however, fell to €12.4 billion compared with €13.5 billion PU ^OPSL HWWYV_PTH[LS` Á TPSSPVU ÅV^LK PU[V [OL JV VWZ following their success in the European Central Bank’s stress tests in October. CCB Chairman Nicholas Hadjiyiannis described 2014 HZ HU PTWVY[HU[ `LHY MVY [OL JV VWZ ^OPJO LUKLK ¸^P[O ZPNUPÄJHU[ WYVÄ[HIPSP[` Z\WWVY[LK I` H YVI\Z[ IHSHUJL ZOLL[ ^P[O HKLX\H[L WYV]PZPVUZ H Z[YVUN JHWP[HS IHZL HUK HTWSL SPX\PKP[`¹ 8 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

EBRD to Invest €200 million in Cyprus

he European Bank for Reconstruction and Development (EBRD), the EU’s development bank, plans to pump about €200 million into the Cyprus financial and energy sectors in 2015, as part of its €600 million programme until the end of the decade. EBRD Vice President Phil Bennett, in Cyprus on an official visit, said that a review of private sector projects is at its final stage with a focus on investments in the financial sector, energy, privatisations and the provision of finance

to projects by individual companies. President Anastasiades described the EBRD’s role as “crucial” as its investments will help reinstate confidence in the Cyprus economy, sending out positive signals to the international markets and foreign investors. “The EBRD’s experience and know-how in areas where there is a vacuum in financing, such as the restructuring of banks and the support to small to medium sized enterprises (SMEs), significantly contributes to the recovery of economies where the bank is present and active,” he said.

NICOSIA GETS SCIENCE CAFÉ

OL ÄYZ[ 5PJVZPH :JPLUJL *HMt PZ UV^ VWLU I\[ P[ PZ UV VYKPUHY` JHMt ;OPZ PZ a location where people can meet and inform themselves on European Union programmes and developments in the ÄLSK VM ZJPLUJL OLUJL [OL Z\WWVY[ VM the Ministry of Education, the Ministry of Communications and Works and Nicosia Municipality. ;OL JHMt PZ SVJH[LK VU 2PU`YHZ :[YLL[ behind the House of Representatives. Its main purpose is to improve communication among students, schools, research institutes, industry and civil society on issues of science and technology. It will provide information on research and studies being undertaken on the environment, health and security.

THE MARSHALL ISLANDS Corporate Registry

AEGEAN AND

GERMANIA

LAUNCH

NEW ROUTES

egean Airlines launched a new daily Larnaca-London Heathrow flight on 29 March, filling the gap created by the closure of Cyprus Airways. Two days later, the Berlin-based airline Germania began weekly flights from Larnaca to Munich and on 1 April the first of five flights to Berlin, Hamburg, Dusseldorf and Erfurt left Paphos International Airport.

DHL CYPRUS LOGISTICS CENTRE FOR OLD LARNACA AIRPORT

HL Cyprus has announced the establishment of a modern logistics centre at the old Larnaca Airport, enabling the company to better manage imports and exports for its local clients and international associates. The facilities comprise an HYLH VM ZX\HYL TL[YLZ SHPK V\[ LZWLJPHSS` for the management and distribution of shipTLU[Z ^P[O [OL UL^ +/3 ÅLL[ VM ]LOPJSLZ ;OL UL^ MHJPSP[PLZ ^PSS PUJS\KL VɉJLZ ZWHJL MVY [OL service of associates and customers, and a training centre. According to Dinos Ioannides, DHL Express Cyprus Country Manager, “This strategic move is based on our belief that through investment in development and the continuous improvement of our services, we are contributing to the competitiveness of our customers. With the provision of safe, timely and reliable services we are strengthening our position in the market.”

EMIRATES Enhances In-Flight

Wi-Fi Offering mirates has enhanced its in-flight Internet connection offering, now offering free Wi-Fi on 106 of its aircraft, with two to three more aircraft being installed with Wi-Fi connectivity every month. After updating the service in early February 2015 with a simpler sign-on process on top of other software updates, Emirates has seen a further 25% increase in uptake. The airline continues to invest over US$20 million annually on installing and operating in-flight connectivity systems, a company statement reports, which enable onboard Wi-Fi services. Currently, Wi-Fi service is available on all of Emirates’ 59 Airbus A380 aircraft and 47 of its Boeing 777 aircraft. On over 60% of the installed fleet, the first 10MB data is free – sufficient for an update on social media accounts or texting via instant messaging apps. Thereafter, and for the rest of the fleet, users can obtain 500MB of data for a token $US 1 charge. Passengers on board Emirates also can stay connected with mobile phones services offered on over 75% of the fleet, and in-seat email, telephone and SMS services on every aircraft. All of Emirates’ 37 dedicated airport lounges around its global network, offer complimentary Wi-Fi connectivity. Emirates operates a daily scheduled flight between Dubai and Cyprus and onwards to Malta.

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UP FRONT

the ten RICHEST PEOPLE IN THE WORLD

Last month, Forbes magazine published its annual list of the richest people in the world, which once again is topped by Bill Gates, who has held the title for 16 of the past 21 years. His fortune has grown by $3.2 billion since last year to $79.2 billion. Carlos Slim Helu of Mexico comes in again at No. 2 while revered American investor Warren Buffet takes back the No. 3 spot from Spain’s Amancio Ortega (now No. 4). Buffett was the list’s biggest gainer, up $14.5 billion to $72.7 billion, thanks to Berkshire Hathaway’s rising share price. Here are the Top Ten:

1. BILL GATES (AGE 59) Cofounder, Bill & Melinda Gates Foundation Net worth: $79.2 billion

Gates, who has been steadily selling his shares in Microsoft for at least 15 years, unloaded one third of his remaining stake over the 12 months to February 2015. It included a gift of shares worth $1.5 billion to The Bill & Melinda Gates Foundation in November 2014.

3. WARREN BUFFETT (AGE 84)

4. AMANCIO ORTEGA (AGE 78)

CEO, Berkshire Hathaway Net Worth: $72.7 billion

Founder of Zara Net Worth: $64.5 billion

Warren Buffett’s diversified holding company, Berkshire Hathaway, bought battery maker Duracell from Procter & Gamble in November 2014 for $4.7 billion. In February, Berkshire Hathaway was the fourth most valuable public company in the US.

Spaniard Amancio Ortega is the world’s richest retailer. During the Spanish financial crisis, he gained $45 billion as his shares of Inditex defied the rest of the Spanish stock market. In the last decade, he has taken billions in Inditex dividends.

7. DAVID KOCH (AGE 74) Executive Vice President, Koch Industries Net Worth: $42.9 billion

New York City’s richest resident David Koch shares control of Koch Industries with his older brother Charles. The Metropolitan Museum of Art in New York dedicated the David H. Koch Plaza in September 2014.

8. CHRISTY WALTON (AGE 60) Co-Chair, Children’s Scholarship Fund Net Worth: $41.7 billion

The richest woman the world, inherited her wealth when her husband John Walton died in a plane crash in 2005. The bulk of her holdings are in WalMart, the huge retailer founded by her father-in-law and his brother in 1962.

10 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

2. CARLOS SLIM HELU (AGE 75) Honorary Chairman, América Movil Net Worth: $77.1 billion

In June 2014, Slim spent $5.6 billion to buy out AT&T’s 8.3% stake in pan-Latin American wireless carrier America Movil -- by far his most valuable asset. This year, he became the largest shareholder of The New York Times.

5. LARRY ELLISON (AGE 70) CEO and Founder, Oracle Net Worth: $54.3 billion

6. CHARLES KOCH (AGE 79) CEO, Koch Industries Net Worth: $42.9 billion

Ellison founded database software firm Oracle in 1977 and has overseen its tremendous growth -- revenues in 2014 grew to $38.3 billion. He owns every hotel room on the Hawaiian island of Lanai, which he bought in 2012.

Charles and David Koch continue to add to their empire, spending more than $5 billion on acquisitions in 2014. Charles has been chair of Koch Industries, now the second-biggest private company in America.

9. JIM WALTON (AGE 67)

10. LILIANE BETTENCOURT (AGE 92)

Chairman and CEO, Arvest Bank Group, Inc. Net Worth: $40.6 billion

Main shareholder in L’Oreal Net Worth: $40.1 billion

Jim Walton, a board member of WalMart, is the youngest child of the superstore’s founder. The company generated $473 billion in 2014. Arvest Bank posted net profits of nearly $130 million in 2013.

The richest woman in Europe grew even richer in 2014 thanks to a deal in which she purchased an additional 8% stake in the cosmetics empire from Nestle, raising her and her family’s stock to 33%.

GAS CONTRACT EXTENSIONS

rench energy giant Total has agreed to continue its exploration of Cyprusâ&#x20AC;&#x2122; Exclusive Economic Zone (EEZ), following the signing last month of a new contract with the Government. In January, Total had stated its intention to terminate its operations on the island, due to its inability to locate drilling target areas in blocks 10 and 11 of the islandâ&#x20AC;&#x2122;s Exclusive Economic Zone (EEZ) after signing two production sharing contracts with the Ministry in 2013. The new agreement

will see Total continue to explore the islandâ&#x20AC;&#x2122;s hydrocarbon reserves in order to further assess the prospect of commercial exploitation of Block 11. Meanwhile the Government and the President himself have played down the significance of the results of drilling by the Eni/OGAS consortium in Block 9 of Cyprusâ&#x20AC;&#x2122; EEZ. President Anastasiades said that he was not disappointed by the fact that two wells have failed to reveal the presence of commercially viable amounts of natural gas, noting similar cases in Norway where

â&#x20AC;&#x153;three drillings were unsuccessful but the fourth one revealed the richest fieldâ&#x20AC;?. Eni/KOGAS was contractually obligated to drill at least four wells but following a second miss, the consortium has submitted a request to proceed with the re-evaluation of its geological model, the results of which it believes will be very helpful for the continuation of the research programme. Due to the falling oil prices, the company has already made cutbacks and, with nothing to show its shareholders after spending $300m here, observers believe that it will want to move on to more promising prospects elsewhere. It is likely that the Government will grant an extension to the contract, as happened with Total. Cyprusâ&#x20AC;&#x2122; proven gas reserves so far amount to 4.5 trillion cubic feet discovered in Block 12 by Texas-based Noble Energy, which is due to submit its development strategy for the gas field shortly.

SPORTS TOURISM REVENUE EXCEEDS

â&#x201A;Ź30 MILLION IN 2013

ccording to a CTO study, revenue from foreign visitors who participate in, train or view sporting events amounted to â&#x201A;Ź30.5 million in 2013. The study found that 20,803 foreigners visited Cyprus in 2013 for sports tourism, with the sports surveyed including football, cycling, swimming, KP]PUN [YHJR HUK Ă&#x201E;LSK The majority (34%) visited Cyprus for football, followed by diving (21%), cycling (17%), and swimming (15%). They stayed in Cyprus on average for 11.2 nights, and originated mainly from Russia, the UK, Germany, Sweden, France, and Finland. The main destinations for football teams were Agia Napa and Larnaca, while Paphos was the main

destination for swimming teams. Cyclists preferred Larnaca and Limassol, while divers were primarily visiting Larnaca. The CTO pays particular attention to sports tourism, recognizing that between February-April each year thousands of people visit Cyprus for this reason, which helps alleviate the problem of seasonability in the tourism industry. Meanwhile, tourist arrivals were up 7.7% in January and February 2015 compared to the same period last year. :WLJPĂ&#x201E;JHSS` ]PZP[VYZ HYYP]LK PU [OL Ă&#x201E;YZ[ [^V months of the year compared with 85,903 in the

same period in 2014. The Chairman of the Cyprus Tourism Organisation, Angelos Loizou, said that the increase was due to greater numbers of visitors from the UK, Germany, France, Holland, Belgium and Scandinavia. All these markets had been in decline over the past decade as Russia replaced Germany as the islandâ&#x20AC;&#x2122;s second biggest market after the UK. The fall in the value of the rouble has left the Russian market uncertain this year, forcing the islandâ&#x20AC;&#x2122;s tourism authorities to go back to the traditional markets to make up an expected 25% loss from Russia, from where arrivals totalled 640,000 last year compared to around 800,000 Britons. In 2000, some 1.5 million tourists to Cyprus were from the UK.

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