GOLD Magazine Full Issue 63 by INBusiness

ISSUE 63 JUNE 19, 2016 PRICE €3.00

Gold ISSUE 63 | JUNE 19, 2016 | ALL MY OWN WORK

presents CIPA International Investment Awards June 2016 | Presidential Palace, Nicosia

INVESTMENT Naguib Sawiris “I’m an investor with a heart”

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BANKING

Interview with CBC Governor Chrystalla Georghadji

PEOPLE

Elena Donets William Janssen Martin Manuzi

PLUS

Business Briefing, What’s On, Books, Opinion & More

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62 | GOLD | The Business Magazine of Cyprus

ISSUE 63 JUNE 19, 2016

T H E

B U S I N E S S

M A G A Z I N E

O F

C Y P R U S

| COVER STORY |

Eight Self-Made Cypriot Businessmen By John Vickers & Artemis Constantinidou | Photos by Andreas Loucaides

became a household househ name in the UK through the TV programme Dragons’ Dragons Den. Or Loucas Haji-Ioannou, the eldest of 12 children, who w left school at 17 and worked as salesman. Some 45 years later, lat in 1990, he was the world’s largest independent shipowner. shipown On any list of the t most successful and wealthy Cypriots, Loucas Haji-Ioannou’s billionaire son Stelios is near the top. Haji-Ioan But does the founder foun of easyJet deserve to be described as a self-made businessman? We think not because, despite his busines undoubted acumen, acum vision and ability, he was given considerable help by his father – most reports cite the amount of £30 million – to start his own enterprise. All eight of the entrepreneurs that you y will meet on the following pages would love to have received recei a fraction of that sum when they were trying to get their companies off the ground. we chose to speak to people who are For our cover story, s hat’s the connection between Bill Gates, Mark Zuckerberg still very much involved with the comand Jeff Bezos, apart from the fact that they panies that they set up on their own are among the world’s richest businessThe World’s initiative and they cover a wide men? One answer is that all three are Wealthiest Self-Ma Self-Made range of sectors from real estate to self-made entrepreneurs – men who technology, from recycling to travel Entrepreneurs started their professional career with & tourism, from toys to professional little more than an idea, some savings services. As you will see from their 1. and a great deal of self-belief and deinterviews, they are all from what BILL 2. termination. They were once unknowns Symeon Kassianides (Chairman and GATES AMANCIO and yet, if it were not for them, we would ($75 BILLION) CEO, Hyperion Group) describes ORTEGA never have heard of Microsoft, Facebook ($67 BILLION) as the “Never Give Up” school, and Amazon. And without others like them, although several of them admit that 3. there would be no Google or Apple, no Zara WARREN they came close. Their collective ador Nike, no Oracle, no Virgin Atlantic, no IKEA, BUFFETT vice to anyone wishing to emulate them no McDonald’s...The list is endless. All these (($60.8 BILLION) would seem to be that they need to dedicate global brands were conceived and built by themselves 100% to their idea and vision. people with no or little money (Sir Richard 4. As Miltos Kambourides (Managing CARLOS Branson famously started Virgin with a 5. SLIM HELU Partner & co-founder, Dolphin Capital JEFF start-up capital of £300) but whereas it ($50 BILLION) BEZOS Partners) puts it, “There are no successful might be the first thing that some of us ($45.2 B BILLION) part-time start-up entrepreneurs”. would think about, the lack of funds did On the following pages, you can not stop them. 6. read about how Panikos Akritas Much of today’s talk is about start-ups MARK 7. but there is nothing new about creating (NetU Group), Nicos Apostolides G ZUCKERBERG LARRY ($44.6 BILLION) a business from scratch. Indeed, virtually (Datatech I.T. Solutions Ltd), MilELLISON every great invention throughout history has ($43.6 BILLION) tos Kambourides (Dolphin Capital originated in one person’s visionary idea. Partners), Symeon Kassianides Business success ultimately brings wealth of (Hyperion Group), Marios 8. varying degrees but it is the creation of wealth from 9. Klitou (Baker Tilly), Antonis MICHAEL LARRY nothing that inspires us all. The picture of the enBLOOMBERG Orthodoxou (Orthodoxou PAGE ($40 BILLION) trepreneur or inventor spending every working moGroup), Costas Sisamos (En($35.2 BILLION) ment on realising that vision is the stuff of dreams gino) and Andreas Tsouloftas and movies but, in many cases, it is a very real one. ( Tsouloftas Group) began 10. Where do the Cypriots fit into this exciting world? with a vision, worked on it, realSERGEY In most instances, those who have made their fortune have BRIN ised it and earned a reputation for ($34.4 BILLION) done it beyond the island’s shores: people like multi-millionexcellence way beyond the borders of aire Theo Paphitis, for example, who owns the stationery Cyprus. chain Ryman and the lingerie retailer Boux Avenue and

COVER

STORY

22 | GOLD | The Business Magazine of Cyprus

23 | All My Own Work

Source: Forbes

www.goldnews.com.cy | GOLD | 23

CONTENTS 6 | EDITORIAL 8 | BUSINESS BRIEFING

Economic & Business Highlights of the past month.

12 | MY WAY

Andri Georgiou’s management style.

14 | FIVE MINUTES WITH… Helena Naaman

Interviews with eight self-made Cypriot businessmen about the challenges they faced at the start of their careers, their inspiration, their advice to young entrepreneurs and more.

16 | THEY SAID WHAT?

A selection of notable utterances by Cypriots in the public eye.

OPINION 40 | NOT THE END OF THE ROAD By George Theocharides

FEATURES 18 | CREDIT WHERE IT’S DUE

Interview with Chrystalla Georghadji, Governor of the Central Bank of Cyprus.

42 | DREAMERS, CRAZY, CREATIVE AND DARING! Elena Donets, CEO of the Tel Aviv University Entrepreneurship Centre (StarTAU) on how students are going to change the world with technology.

46 | INVESTOR WITH A HEART

Egyptian Billionaire Naguib Sawiris reveals how his investment decisions are as emotional as much as they are businessbased.

76 | NICOSIA ECONOMIC CONGRESS Photos from the event.

78 | JUST ADD SUN

William Janssen, CEO of the awardwinnin winning start-up Desolenator, on how his ide idea can help combat the global water shortage.

SPECIAL ADVERTISING SUPPLEMENT 49 | Accounting, Audit & Tax Advisory Firms in Cyprus

Eleven companies present their products and services, while a senior representative answers the question What can Cyprus do to ensure that it remains a competitive jurisdiction and continues to attract foreign companies and investors to the island?

100

80 | HOW TO BE AN EFFECTIVE MCLO By Gregory Dellas.

82 | BREXIT: THE GHOST OF TWO SUMMERS FUTURE By Dr. Savvas Savouri.

84 | BREXIT: THE TIMES THEY

ARE A-CHANGIN’ How the ICAEW is dealing with the UK referendum issues. Interview with Martin Manuzi, Regional Director for Europe. 4 | GOLD | The Business Magazine of Cyprus

87 | SHIPPING

INDUSTRY CONFERENCE GALA Photos from the event.

92| CELEBRATING 20

YEARS OF SUCCESS Interview with Costas Christoforou, CEO of CPM, a leading provider VM ÄK\JPHY` HUK JVYWVYH[L administration services.

96 | IN GOOD COMPANY How PwC Cyprus achieves success through people.

99 | BOOKSHELF

Five of the best new business titles.

100 | LUNCH WITH GOLD Thomas Kazakos, DirectorGeneral of the Cyprus Shipping Chamber.

106 104 | WHAT’S ON Gold’s guide to the best cultural events of the coming month. 106 | A DAY IN THE LIFE Elena Constantinou

THIS IS

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| EDITORIAL |

In Praise of the Entrepreneur

GOLD ISSUE 63 JUNE 19, 2016 PRICE €3.00

T H E

B U S I N E S S

INVESTMENT Naguib Sawiris “I’m an investor with a heart”

M A G A Z I N E

BANKING

Interview with CBC Governor Chrystalla Georghadji

O F

C Y P R U S

PEOPLE

Elena Donets William Janssen Martin Manuzi

PLUS )\ZPULZZ )YPLÄUN >OH[»Z 6U )VVRZ Opinion & More

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5 291295 000577

PUBLISHED BY IMH ISSN 1986 - 3543

MANAGING DIRECTOR

George Michail

GENERAL MANAGER

Daphne Roditou Tang MEDIA MANAGER

ne of the most famous remarks attributed to former US President George W. Bush’s is the one that he supposedly made to the then British Prime Minister, Tony Blair: “The trouble with the French is that they don’t have a word for entrepreneur.” While making a fool of himself over his linguistic failings, Mr. Bush was presumably expressing the view that France was not a country that one immediately associated with entrepreneurship. He certainly could not have said that about the Greek Cypriots, who have shown, following two major crises in the past 40 years, that when the going gets tough, they know how to buckle down to some creative hard work (and they have a word for it). On the other hand, it is a fact that Cyprus, too, is not a country that one immediately associates with entrepreneurship but this may not be a fair reflection of the island’s business scene. When we decided to focus on a number of self-made businessmen for this month’s cover story, we had far more examples than we could possibly present, from as far back as the 1950s to today’s era of start-ups, from those who made their names and fortunes in other countries to those who took the decision to remain in their homeland. In the end, we narrowed a very long list down to eight entrepreneurs operating in a broad range of sectors, all of whom are still active today and deserve recognition for their achievements. Still on the entrepreneurship, you will find several more impressive examples of it elsewhere in this issue. We have an exclusive interview with one of the world’s richest men, Egyptian billionaire Naguib Sawiris, who is behind a huge investment in the planned Makronisos Marina & Resort at Ayia Napa and who reveals how he refused to join his father’s company until he had made it on his own (page 46). You can also read about William Janssen’s invention, the Desolenator, a portable device that desalinates water for drinking purposes, which won a UK start-up award (page 78), and see what Elena Donets, CEO of the Tel Aviv University Entrepreneurship Centre (StarTAU) and a leading figure on the Israeli entrepreneurship scene, has to say about how she sees the future, thanks to tech-savvy student communities around the world (page 42). In addition to this, we have interviews with Central Bank Governor Chrystalla Georghadji (page 18) and ICAEW Regional Director for Europe Martin Manuzi (page 84), who clarifies the Institute’s official stance on this month’s John Vickers, British referendum on EU membership, while economist Savvas Savouri explains why he is for Brexit. I think you’ll agree that these Chief Editor and all our usual features make for another varied read. Enjoy! john@imhbusiness.com

6 | GOLD | The Business Magazine of Cyprus

Elena Leontiou

EDITOR-IN-CHIEF

John Vickers

JOURNALISTS

Artemis Constantinidou, Voula Loizou CONTRIBUTORS TO THIS ISSUE

Gregory Dellas, Savvas Savouri, George Theocharides PHOTOGRAPHY

Emma Louise Charalambous, Jo Michaelides, Andreas Loucaides ART DIRECTION

Anna Theodosiou

SENIOR DESIGNER

Alexia Petrou

ASSISTANT DESIGNER

Stephanie Andreou PHOTOGRAPHY

Jo Michaelides, Harris Kyprianou MARKETING EXECUTIVE

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62 | GOLD | The Business Magazine of Cyprus

BUSINESS BRIEFING

M&A ASCENDIS HEALTH ACQUIRES REMEDICA

18th Cyprus Amateur Golf Classic Tournament SPORT

The Cyprus Tourism Organisation welcomed 70 golfers who participated in the 18th Cyprus Amateur Golf Classic Tournament 2016, organised by Exclusive Golf Tours from the UK. The tournament took place at the Minthis Hills, Secret Valley and Aphrodite Hills Golf Courses. The 18th Cyprus Golf Classic 2016 was honoured by the presence of the distinguished sports and TV personality, Olympic Gold Medallist Kriss Akabusi MBE, who participated in the tournament and expressed positive comments YLNHYKPUN NVSM PU *`WY\Z! ¸*`WY\Z PZ HU H[[YHJ[P]L KLZ[PUH[PVU MVY .VSM /VSPKH`Z PU HU PKLHS JSPTH[L VɈLYPUN H \UPX\L NVSM L_WLYPLUJL ^P[O H ]HYPL[` VM KPɈLYLU[ NVSM JV\YZLZ [HZ[` MVVK NYLH[ ^PUL HUK H\[OLU[PJ hospitality”. The Awards Ceremony and gala dinner took place at the Almyra Hotel in Paphos.

OPERA IN PAPHOS

ARTS

IN THE NEWS

Elections

Elections for a new House of Representatives were held on May 22, resulting in an 8-party parliament for the first time as four smaller groupings won enough votes to secure a place in the 56-seat legislature. The big winner was Voter Apathy as a record 33.26% of the electorate did not bother to go to the polling station. Later, Demetris Syllouris, formerly leader of the European Party (EVROKO) who stood for Solidarity, was elected Speaker of the House. The final allocation of seats was as follows: Democratic Rally (DISY) 18; Communist Party (AKEL) 16; Democratic Party (DIKO) 9; Socialist Party (EDEK) 3; Solidarity 3; Citizens’ Alliance 3; Greens 2; National Popular Front (ELAM) 2

Opera lovers will be delighted to know that the rumours about the end of the annual Paphos Aphrodite Festival have proved to be unfounded. Don Giovanni by W.A. Mozart will be performed by the Centro Formazione Alta Cultura of Parma, Italy on September 2, 3 & 4 at Paphos Harbour with the Mediaeval Castle as a backdrop. The Cyprus Symphony Orchestra will provide the accompaniment. Don Giovanni is considered to be one of the greatest works of the operatic repertoire and one of the leading lyric masterpieces of all time. As always, there will be Greek and English surtitles.

8 | GOLD | The Business Magazine of Cyprus

Cypriot pharmaceutical manufacturer Remedica has announced its takeover by South African Ascendis Health, which acquired 100% of the company. The price of the acquisition was the equivalent of €260m. Remedica CEO Charalambos Pattihis said, “Our goal was, is and remains the sustainable development of Remedica. Under the new umbrella we will thrive and achieve even more impressive results”. Pattihis and his team of Remedica executives will retain their positions. Remedica supplies over 300 generic pharmaceutical products for the treatment of diseases such as malaria, or antibiotics, to some 100 countries, primarily in emerging markets including the Middle East, Asia, Africa and South America, and to the World Health Organisation, Médecins Sans Frontières rontières and the Red Cross.

TUNISIE E TELECOM ACQUIRES GO PLC

GO plc, which owns a 51% stake in Cablenet, has been acquires by Tunisie Telecom. Nizar Bouguila, Chairman and Chief Execu[P]L 6ɉJLY VM ;\UPZPL ;LSLJVT ZHPK ¸>L HYL committed to becoming a long-term partner for GO, supporting continued investments in the Maltese ICT sector as well as in Cyprus through Cablenet. GO is the leading provider of telecommunications services in Malta with H ZVSPK VWLYH[PVUHS HUK ÄUHUJPHS WLYMVYTHUJL [YHJR YLJVYK >L ÄYTS` ILSPL]L PU [OL Z[YVUN Z[YH[LNPJ Ä[ IL[^LLU V\Y [^V JVTWHUPLZ 0[ will provide each of Tunisie Telecom and GO ^P[O [OL VWWVY[\UP[` [V HJJLSLYH[L V\Y ÄILY and 4G network developments as well as to expand our data center and cloud services VɈLYPUNZ¹

NUKKLEUS ACQUIRES 9.9% OF IRONFX GLOBAL. 5\RRSL\Z VɉJPHSS` OHZ HUUV\UJLK [OH[ P[ has acquired select assets in technology provider Forexware and a 9.9% shareholder stake in IronFX Global. Both brands under Nukkleus will keep their own separate identities and operational autonomy. The CEO of IronFX, Markos A. Kashiouris, said, “Our core strategy always involved the introduction of an industry leading consolidation platform, driven by outstanding localized service and product development, as well as, cutting edge technological backbone and multi- locational regulatory coverage. By building strong on the existing operations of Nukkleus, as well as the future contemplated transactions, we create unparalleled and long overdue global synergies that place us at the forefront of value creation within the sector”.

PEOPLE

MATTHEW KIDD

Matthew Kidd is to return to the post of British High Commissioner in Cyprus, after the departure of Ric Todd from the position for personal reasons. The process has begun to appoint a new High Commissioner but, in the meantime Toddâ&#x20AC;&#x2122;s predecessor, Matthew Kidd who was High Commissioner from May 2010 to August 2014, will undertake the duties.

ALEXIS TSIELEPIS

Leading Cypriot VAT expert, Alexis Tsielepis, has authored the Cyprus chapter of the European VAT Handbook 2016, one of Europeâ&#x20AC;&#x2122;s most credible and comprehensive guides on Value Added Tax. Tsielepis, Managing Director of Chelco VAT Ltd, the only VAT-dedicated Ă&#x201E;YT PU *`WY\Z ZHPK P[ was a privilege to work with such high-calibre VAT professionals on the Handbook.

GEORGE PAMBORIDIS

Cyprus Health Minister George Pamboridis is the new Commonwealth Health Ministers President for the next 12 months, following a decision taken in Geneva last month. PamboridIs met with Commonwealth SecretaryGeneral Patricia Scotland, to discuss current health challenges and Commonwealth support towards future Presidency initiatives. He also addressed the 69th General Assembly of the WHO in Geneva, on May 24

APPLICATIONS NOW OPEN FOR STELIOS AWARDS 2016

BICOM he Stelios Philanthropic Foundation has announced M BUSINEUNAL that, for the eighth consecutive year, Sir Stelios HaSS ji-Ioannou will be rewarding cooperation between Greek and Turkish Cypriots and applications can be made via Facebook. ;OPZ `LHY :PY :[LSPVZ ^PSS IL VÉ&#x2C6;LYPUN Ă [V H [V[HS VM teams that can win â&#x201A;Ź10,000 each. It will bring the total amount granted since 2009 to of â&#x201A;Ź2 million. All forms of cooperation between Greek Cypriots and Turkish Cypriots are eligible to apply, including business, sciences, arts, sport, NGO work and... life! The winners will be announced at an Awards Ceremony in October 2016 in Nicosia. The deadline for application submission through Facebook is 15 July, 2016. In order to promote more regular contact and cooperation between the two communities, with the ultimate objective of promoting lasting peace on the island, applications will only be accepted via the â&#x20AC;&#x153;Stelios Philanthropic Foundationâ&#x20AC;? Facebook page. All applicants are expected to like the page Stelios Philanthropic Foundation, join the group Stelios Cyprus Bi-Communal Awards 2016 which now counts over 1,000 members and make â&#x20AC;&#x153;Facebook friendsâ&#x20AC;? with members of the other community on the island. Past winners are always welcome to reapply. Multiple applications of each team member are also ^LSJVTL ^P[O KPÉ&#x2C6;LYLU[ TLTILYZ VM [OL V[OLY JVTT\UP[` -VY TVYL KL[HPSZ L THPS HWWSPJH[PVUZ'Z[LSPVZ JVT JHSS K\YPUN VÉ&#x2030;JL OV\YZ VY ]PZP[ www.stelios.org.

AL POSTICES SERV

â&#x201A;Ź2.2 MILLION HELP TO CYPRUS POST

he Cyprus Post is to receive an estimated â&#x201A;Ź2.2 million in order to automate its services. Automated systems will be installed in all post offices throughout the island in an effort to alleviate ongoing problems, improve the quality of the work environment and to make the Post competitive. The central post offices in all towns are also due to start providing non-postal services that, until now, have been provided through the successful Citizens Service Centres.

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BUSINESS BRIEFING ECONOMY

NEW TO CYPRUS EBRD: CYPRUS GDP TO REACH 2.5% IN 2017 yprus can expect GDP growth of 2.5% next year, according to the European Bank for Reconstruction and Development (EBRD), which said that, after five years of continuous contraction, it expects moderate growth ranging from 1.4% in 2016 to 2.5% in 2017. Referring to the EBRD report, DISY Chairman Averof Neophytou said that he expects the Cypriot economy to surpass the EBRD’s projections and for the unemployment rate to fall to single digits.

Cyprus Pils Beer

Emirates Boeing 777 Service

Artisan beer company Prime Microbrewery has released a new beer to pubs and other locations throughout the island. Cyprus Pils has already been awarded a silver medal at this year’s Meiningers International Craft Beer Awards in Germany. The beer will also be exported to Greece and France, thanks to increased demand.

Emirates, which operates KHPS` ÅPNO[Z IL[^LLU +\IHP and Cyprus, has boosted capacity on its twice-weekly service to Larnaca and onward to Malta with the introduction of a Boeing 777-300ER aircraft on June 1. Travellers from Cyprus on this route have the option of either going to Dubai or to Malta.

A.H.S. Playplanet

A.H.S. Playplanet, located in the basement of My Mall in Limassol, is a unique space [OH[ VɈLYZ JOPSKYLU H ]HYPL[` of activities and it is specially designed to create a friendly and comfortable environment for its young visitors. Children’s birthday parties are held in the Kid’s Land or Alien Bowling areas.

IMMOVABLE PROPERTY TAX REDUCED BY 50%

REAL ESTATE

n June 1, the Council of Ministers approved the reduction of the immovable property tax rate by 50% and abolished the immovable property tax collected by municipalities and communities. “Today we made another important step towards tax reform and reducing the tax burden for households and corporations,” Finance Minister Harris Georgiades said following the meeting. He said the Government had approved a reduction of the immovable property tax by 50%, offsetting the EU obligation to charge 19% VAT on transactions of property in the context of commercial transactions of buildable land. The move will reduce immovable tax revenue from €103 million to €45 million. Georgiades added that the Government had decided to maintain the 20% discount to those who pay their immovable tax bill online or via a bank and the 17.5% discount for those paying their tax on time at Tax Department counters. The Government has also reduced transfer fees on all immovable property sales by 50%.

ARISTO DEVELOPERS IN BEIRUT REAL ESTATE EXPO

risto Developers continued to make its presence felt on the international property stage through its recent participation in the Beirut International Property Fair in Lebanon. As a leading and prominent developer in Cyprus, Aristo Developers was once again able to present its dynamic property portfolio to a plethora of international investors who attended the exhibition. Representatives of Aristo Developers had the opportunity to showcase 50 new islandwide developments currently in the market and to present Cyprus’ competitive advantages as a property destination, its favourable incentives and unique investment programmes. Aristo Developers’ flagship development, Venus Rock Golf Resort – the largest beachfront golf-integrated resort in the south-eastern Mediterranean – was one of the highlights at the event, including Bellevue Residences and Mersinia Hills Sea View Villas, all located in prime, sought-after locations across Cyprus. Visitors and potential buyers who attended the fair, expressed a keen interest in Cyprus’ simple and efficient EU Citizenship and Permanent Residency programmes available through property investment.

10 | GOLD | The Business Magazine of Cyprus

THE MARSHALL ISLANDS

BANKING

VISITORS

BANK DEPOSITS RISE BY €145M

eposits in the Cyprus banking system rose by €144.9 million in April, while loans fell by €86.7 million, continuing the deleveraging process for the fourth consec\[P]L TVU[O (JJVYKPUN [V ÄN\YLZ released by the Central Bank of Cyprus, total deposits in April amounted to €45.9 billion in April, whereas total loans declined to €57.0 billion. On an annual basis deposits rose by 2.4% in April compared with a 2.0% in March.

BOC NET PROFIT OF €50M IN Q1

ank of Cyprus recorded a net WYVÄ[ VM Á TPSSPVU PU [OL ÄYZ[ quarter of 2016, thanks in part to the momentum in non-performing loan restructuring which exceeded €1 billion in the quarter than ended on March 31 2016. The bank said it had provided new lending amounting to €223 million. Total loans on March 31 2016 amounted to €21.85 billion compared with €22.59 billion on December 31 2015.

FOREIGN AFFAIRS

Congressional Delegation

US Congressional Delegation, comprising Ileana Ros-Lehtinen (Republican, Florida), Carolyn Maloney (Democrat, New York), Gus Bilirakis (Republican, Florida) and Randy Weber (Republican, Texas), visited Cyprus on May 28-29. President Nicos Anastasiades received the delegation on the first day of their two-day visit. During the meeting, the President and the members of the US Congress discussed the latest developments in Cyprus, bilateral and economic relations between Cyprus and the United States, notably issues related to the Double Tax Treaty, the arms embargo, energy issues and wider developments in the region. The delegation, accompanied by US Ambassador to Cyprus Kathleen A. Doherty, also met with Foreign Minister Ioannis Kasoulides.

CYPRUS-UAE TALKS IN NICOSIA

Corporate Registry

OL ÄYZ[ YV\UK VM WVSP[PJHS [HSRZ IL[^LLU *`WY\Z and the United Arab Emirates took place in Nicosia last month. It was a follow-up to the visit of President Nicos Anastasiades to the UAE in April 2014. The Permanent Secretary of the 4PUPZ[Y` VM -VYLPNU (ɈHPYZ VM *`WY\Z (TIHZZHKVY (SL_andros N. Zenon, and the Assistant Minister for Political (ɈHPYZ VM [OL <(, (TIHZZHKVY (OTHK (ILK (S 9HOman Al Jarman, discussed bilateral relations and ways in which these can be enhanced. The two men also discussed,” the announcement said matters relating to energy, multilateral; cooperation, counter-terrorism and the latest developments in the Middle East region. The prospects for investments in Cyprus and trade and business opportunities in the UAE were also discussed.

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tel: +30 210 4294 404 piraeus@register-iri.com www.goldnews.com.cy | GOLD | 11

www.register-iri.com

MY WAY

ANDRI GEORGIOU

Managing and Creative Director of Dessange Paris, Quick Spa and Hamam Omerye

SHE HAS ALWAYS IDENTIFIED WITH AESTHETICS, BEAUTY AND UNIQUE PROFESSIONAL SPACES AND IS PROUD OF BRINGING THE QUICK SPA CONCEPT TO CYPRUS. SHE BELIEVES IN LEADING BY EXAMPLE BUT RECOGNISES THE VALUE OF TEAMWORK AND SHARED VALUES. WHILE EMBRACING THE ADVANTAGES OF TODAY’S TECHNOLOGY, SHE IS VERY AWARE OF THE IMPORTANCE OF PERSONAL CONTACT IN SUCH A BUSINESS.

“W

ithout identifying anything specific, I would say that my leadership style has been influenced by the many small experiences that have developed me into who I am today. I’ve always paid attention to detail in everything I do and I never accept failure.”

“M “I

y greatest professional achievement? Having regular clients for the last 34 years is something that makes me very proud. Also, through the conception and creation of Quick Spa, which offers high quality, time-saving and value-for-money services, I am happy to have brought a unique addition to the Cypriot market.”

would describe my management style as leading by example. I always respect and support my employees and help them through their training, which I consider very important for their future development.”

“I

have been helped most by my own hard work and by the people who believed in my vision. My colne person leagues have helped me the I came to most because teamwork is a admire, he biggest mistake that key element in our business. who was a Cypriot as managers make is not It is essential for colopposed to someone from listening enough to their leagues and collaboraoverseas, was the late clients and employees, regarding suggestors to enjoy and Andy Hadjicostis for his tions or complaints. Technology helps a talent and for achieving great deal with statistics and figures now- have a passion so many things. He was about what adays but it keeps us away from clients. a dear friend of mine, they do as and Face-to-face contact is still an important as well as a client and to share the part of our job.” business associate who same profesbelieved in my vision. have been helped throughout sional culHe was a sharing person ture and my career by coming up and a great listener, a philosowith new ideas and taking an wonderful role model for entrepreneurial approach.” phy.” many people.” Andri Georgiou started as a hairrelax in various ways, from enjoying a glass of cognac and listening dresser in the village of to music in the evenings, to spending quality time with my son, Kakopetria. Today, she having interesting conversations with friends and occasionally enis the Managing and joying spa treatments! In my free time I love swimming and I am 'VIEXMZI (MVIGXSV SJ ÁZI a fan of adventure sports.” of the most popular spa centres in Cyprus, inchieving a healthy balance between life and home requires a cluding Dessange Paris, lot of effort. I try not to take work problems home in order to Quick Spa and the restored Hamam balance these two parts of my life.” Omerye in Nicosia.

“O

“I

“T “I

“A

12 | GOLD | The Business Magazine of Cyprus

FIVE

MINUTES

edinvest Enterprises Ltd was established almost eight years ago. What was the main idea behind it? The main idea behind it was to provide exposure to service branches such as doctors, lawyers and accountants which faced difficulties in promoting their services, especially in printed form, due to local regulations. Internet marketing and listings of these professions on online portals were clearly exempt from those regulatory restrictions. Our broader mission was to promote Cyprus internationally as a business centre and so attracting visitors from all over the world became our main goal. Was it an immediate success or have you been refining and changing your business model over the years? Our success was immediate; the legal and accounting sectors, in particular, embraced the idea from the very first moment. Doctors, on the other hand, were and still are more cautious, as the majority focus on providing their services locally and believe more in promotion by word of mouth. When we began in 2007, conditions were

14 | GOLD | The Business Magazine of Cyprus

WITH HELENA NAAMAN

very promising. International interest in Cyprus was strong, due to the beneficial tax system, the stable economic situation and, of course, the strategic location of the island and its EU membership, so it became an even more important gateway for many investors. Of course, a company always needs to refine its business model to stay in line with the increasing demands of its clients and keep one step ahead, particularly with developments in the IT world.

General Manager, Sedinvest Enterprises Ltd

What kind of people make up the main visitors to your three Cyprus-based portals? Do they tend to based here or is the interest in lawyers, accountants and doctors in Cyprus coming from abroad? Our visitors are, especially, from Russia, Ukraine, the UK and from the Arab coun-

tries, with different legal or accounting enquiries. We have also noted that, more recently, many more Cypriots have begun to search online and communicate with lawyers and accountants for answers to their enquiries. Also, many foreigners based in Cyprus, such as people from the UK, India and other jurisdictions, choose to search online, and lately we have also seen great interest in a variety of business services from Canad Canada and the USA. Our subscribers have sshown great confidence in our service services over the years. The visibility they get from our targeted markets, the enquiries they receive directly to ttheir e-mail from people all over the world, the ability to use our sites to present their services, announce news updates and publish business-related articles, and coming up first for almost a decade now among significant legal and accounting keywords on the major search engines, have led to the majority of our subscribers renewing year after year. sc Does the recent setting up of a Maltese le legal portal indicate plans to exd to other jurisdictions? pand We have always had plans to expand and develop our services. However, such steps need to be taken only after careful research and when the time is right. For the time being, our main goal is to develop, update and grow our Cyprus portals and, of course, our newly launched LawyersInMalta. Being partly Cypriot, I would love to see our small contribution lead to the gradual transformation of Cyprus into one of the most important business centres in the region.

" " " " " " !

Eurofast; Iran at a Glance No market in the world has the same level of Untapped Potential

Eurofast, announced the launch of its Iran operations in March 2016. With more than 200 employees and offices in 21 cities across Eastern Europe, Middle East, and, Iran is one of the latest additions to the Groupâ&#x20AC;&#x2122;s network of local offices. Why Iran; No market in the world has the same level of Untapped Potential Â&#x192; Â&#x192; Â&#x192; Â&#x192; Â&#x192;

Consumable market; Population of 80m Oil, gas and minerals reserves The diversified economy Skilled labour force Need for investment; economy is in major need of new capital

Eurofast has recruited local advisors in Iran and have established a network of advisors with different specialties in the Iranian market to ensure we can assist our clients in all industries. We can assist: 1. 2.

M&A and Transactional Advisory Market Entry Services Â&#x192; Market Research & analysis Â&#x192; Partner search Â&#x192; Contract preparation and negotiations Â&#x192; Business and marketing plan Company registration and compliance

For more information on Eurofast activities in Iran, or to meet a local advisors please contact Ali Najm, Executive manager ali.najm@eurofast.eu T: 00982122261183, 00982122261182 Address: Unit 1, No. 15, Atlasi St., Mirdamad Ave., Tehran, Iran

For more information on Eurofast and its service portfolio, please visit www.eurofast.eu. more information 62 | GOLD | The For Business Magazine of Cyprus on Eurofast and its service portfolio, please visit www.eurofast.eu.

QUOTES OF THE MONTH

They Said What? A selection of notable utterances from Cypriots in the public eye over the past month.

ELENI THEOCHAROUS

“THE VOTERS WILL KNOW MY DECISIONS BEFORE THE ELECTIONS. WE WILL NOT DECEIVE THEM.” Eleni Theocharous, before the parliamentary elections.

“EVERYBODY KNEW, AND I HAD SAID SO ON AT LEAST 25 OCCASIONS ON RADIO AND TV, THAT IT WAS MY INTENTION TO KEEP MY SEAT IN THE EUROPEAN PARLIAMENT.” Eleni Theocharous, after the ely, parliamentary elections. Strangely, ce there is no radio or TV evidence that she ever told people that,, ad even if they voted for her, she had P. no intention of becoming an MP.

“HAVE A NICE DINNER. R. I’M NOT COMING”

President Nicos Anastasiades, VU [OL WOVUL [V H <5 VɉJPHS ^OV had just informed him that Turkish Cypriot leader Mustafa Akinci had also been invited to the Heads of State banquet in Istanbul.

PRESIDENT NICOS ANASTASIADES

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“IT IS THE ULTIMATE RESPONSIBILITY OF THE CYPRUS MEDICAL ASSOCIATION TO INVESTIGATE CASES INVOLVING ITS MEMBERS AND TO TAKE DECISIONS. IT’S BEEN A WHILE SINCE I HEARD OF ANY PENALTIES BEING IMPOSED BY THEM ON THEIR MEMBERS.” Health Minister George Pamporidis responds to the CMA’s complaint that he should have bribe reported the bribery sscandal candal to them rather rat than the police.

GEORGE GEORG PAMBORIDIS PAMBOR

“I DIDN’T THINK THEY WOULD GET IN BUT I CAN SAY I’M SATISFIED. OTHER VOICES WILL BE HEARD NOW. MANY TIMES YOU NEED EXTREMISTS SO THE OTHERS ARE MORE CAREFUL.” Archbishop Chrysostomos II, one of the few people in Cyprus to think that the success of the farright party ELAM in gaining two seats in parliament is nothing to worry about.

“WE CONSIDER IT UNACCEPTABLE THAT TEACHERS WORK FEWER HOURS DEPENDING ON HOW LONG THEY HAVE BEEN EMPLOYED IN SCHOOLS. THIS DOES NOT HAPPEN IN OTHER MORE DEMANDING PUBLIC SERVICES AND CERTAINLY NOT IN THE PRIVATE EDUCATION SECTOR. THIS REDUCTION IN TEACHING PERIODS PLACES A HUGE FINANCIAL BURDEN ON THE STATE.” Auditor-General Odysseas Michaelides informs the Minister of Education that reducing the workload of teachers due to their advancing age is no longer acceptable.

ODYSSEAS MICHAELIDES

“THE PRESENCE OF PRESIDENT ANASTASIADES IN COURT AS A DEFENCE WITNESS FOR THE FORMER DEPUTY ATTORNEY-GENERAL DEBASES THE INSTITUTION OF PRESIDENT OF THE REPUBLIC. UNFORTUNATELY, PRESIDENT ANASTASIADES HAS SACRIFICED THE STATUS OF THE PRESIDENCY IN RETURN FOR ELECTION COLLABORATIONS AND ALLIANCES.” Democratic Party spokeswoman Christiana Erotokritou shows that she knows how to copy her boss Nicholas Papadopoulos when it comes to linking everything to the parliamentary elections.

| ARCHITECTURE BANKING | |

CREDIT WHERE ITâ&#x20AC;&#x2122;S DUE BANKING SECTOR CHALLENGES WILL BE MET THROUGH VIABLE LOAN RESTRUCTURING AND STRICT REGULATION.

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C hrystalla Georghadji, Governor of the Central Bank of Cyprus (CBC), tells Gold that the banking sector is beginning to see better times, partly due to its implementation of CBC directives. She also remains upbeat about the island’s professional services sector. By John Vickers Photo by Jo Michaelides Gold: What are the main short-term and medium-term priorities of the Central Bank of Cyprus as regards the local banking sector? Chrystalla Georghadji: As you know, the major challenge faced by the Cyprus banking sector today is the very high level of Non-Performing Loans (NPLs). Inevitably, the main focus of the Central Bank of Cyprus (CBC) is on the efforts of the banks to manage and reduce the level of their NPLs while, at the same time, maintaining an adequate capital position and safeguarding financial stability. This, in turn, will enable

the banks to gradually increase the financing of the economy, with positive results for the banking sector and economic growth. Gold: How can the NPLs problem be effectively addressed? Given that there is no ‘quick fix’ available, what kind of progress will the Central Bank be looking to see? What are the indicators that you will consider satisfactory? (e.g. percentage of NPLs to total loans and over what time period?). C.G.: The CBC considers that the best route to reducing NPLs is that of the viable restructuring of loans, which would enable borrowers to meet their obligations and repay those loans. In this context, the CBC has already issued the Arrears Management Directive, which aims to guide banks on how to manage their NPLs. We have also issued a Directive on Impairments, the aim of

more, supervisory reporting on NPLs and restructuring progress has been enhanced, while restructuring targets have been introduced in order to incentivize banks to engage in more restructurings and address the early arrears, thus preventing them from developing into NPLs. Given that banks are still in the process of reviewing a huge number of NPLs to assess whether a viable restructuring solution can be offered to the borrower, it is too early to forecast when the percentage of NPLs to total loans will fall to the European average. Gold: Some observers believe that there are too many banks serving the small market of Cyprus. Do you agree that it is overcrowded? Do you foresee mergers/acquisitions and market consolidation in the sector over the coming years? C.G.: The European Regulatory and

THE LIKELIHOOD OF A STRONG/FLAGSHIP FOREIGN INTERNATIONAL BANK ESTABLISHING OPERATIONS IN THE CURRENT ECONOMIC CLIMATE IS LOW which is to guide banks in prudently applying International Financial Reporting Standards (IFRS) when calculating the provisions for bad debts. Further-

Supervisory environment imposes high demands on the banks in terms of capital, liquidity and internal governance, while the current low interest rate enviwww.goldnews.com.cy | GOLD | 19

| BANKING |

ronment and adverse macroeconomic conditions are having a negative impact on banksâ&#x20AC;&#x2122; profitability. This inevitably creates pressure for leaner and more efficient banks and, thus, some market consolidation seems unavoidable in the coming years. Gold: On the other hand, others argue that Cyprus needs a strong/ flagship foreign international bank to come and set up base in Cyprus. Is this possible/achievable? If so, do you believe that such a development would enhance the reputation of Cyprus as an international business centre? C.G.: In the aftermath of the global financial crisis, which erupted in 2008, many of the large international cross-border banks have been retreating to their home countries and exiting many of the foreign markets that they had ventured into prior to the crisis. A recent example is the decision of Barclays to close its only branch in Cyprus and in a number of other jurisdictions. Thus, the likelihood of a strong/ flagship foreign international bank establishing operations in the current economic climate is low. That should not, however, hinder the efforts of Cyprus to enhance its reputation as an international business centre. Following the events of 2013, there were serious concerns that there would be a large exodus of international companies from the island but this did not materialize. International companies can still set up business in Cyprus and take advantage of the tax incentives that are still in place and conduct their banking transactions with any bank, either domestic or international.

20 | GOLD | The Business Magazine of Cyprus

SOME MARKET CONSOLIDATION SEEMS UNAVOIDABLE IN THE COMING YEARS Gold: When will the next stress test take place? Do you predict a need by some banks for further injections of capital or is it your view that the local banks are adequately capitalized? C.G.: The EU-wide stress test is currently in progress and is being coordinated by the European Banking Authority (EBA), which has decided to limit the sample of banks subject to this exercise to those with total assets of over â&#x201A;Ź30 billion, which still covers a very high percentage of the total assets of the EU banking system. This means, however, that none of the Cypriot banks is in the EBA sample. However, all the significant institutions that are directly supervised by the European Central Bank (ECB) under the Single Supervisory Mechanism (SSM), which are not in the EBA sample, are undergoing similar stress tests, under the coordination of the ECB, using the same methodology and scenarios as for the banks in the EBA sample. For Cyprus, this covers the four significant institutions â&#x20AC;&#x201C; namely Bank of Cyprus, the Co-Operative Sector, Hellenic Bank and RCB Bank. The EBA and the ECB have decided that the results of the current stress tests will be used as input regarding their decisions on the capital adequacy of each bank within the annual Supervisory Review and Evaluation Process that is also in progress for 2016. The Cypriot banks

were recapitalized in 2014 and 2015, while in 2015 they also managed to increase their provisions significantly without a significant impact on their capital position. The average Common Equity Tier 1 ratio for the Cyprus banking system was 15.44% at the end of 2015. NPLs have peaked and some signs of a decreasing trend have been observed, while the economy is in a better shape than last year. However, it would not be proper for me to prejudge the outcome of the ECB assessment of the 2016 capital adequacy. Gold: Do you believe that the local banks have now found the right balance between a prudent, risk-based approach to lending and investing and the need to offer loans to companies and individuals in the private sector? Can they do more? C.G.: In December 2013, the CBC issued a Directive to banks on their loan origination processes, specifying repayment ability as the main and foremost criterion for the approval of an application for loan facilities. The Directive also listed the documentation that banks need to collect from an applicant in order to check that the income declared is, indeed, available to service the loan, as well as the requirements for the monitoring of the loan performance after its granting. This Directive has recently

been amended, simplifying the loan approval process and, at the same time, making it more specific on the assessment of repayment ability. In particular, for loans to households, the loan instalment cannot exceed 80% of the net income available to service the loan and in the case of foreign currency loans, this limit is lowered to 65%. Moreover, one of the identified weaknesses of the past, which contributed to the high leverage of the private sector, was the lack of a national credit register to provide banks with information on the loans of a person (legal or natural) with other banks. This was resolved in October 2014 when, following a CBC Directive, a national credit register started operating. Since then, banks have been able to access information on the loans of each person (legal or natural) that applies for a loan, thus having a useful tool in the assessment of loan applications. Gold: We often hear banks and other financial institutions complaining that energy, resources and money are being devoted to compliance and regulatory issues. This is not limited to Cyprus, of course. Do you think that there is too much regulation and too much emphasis on compliance or are you in favour of even more? C.G.: As I mentioned before, the global financial crisis revealed that the global rules governing the operation of banks had to be overhauled. Global regulators are now approaching the end of this road. In my view, given the very nature of their business, strict rules are needed to regulate banks and avoid the buildup of excessive and underpriced risk in good times, which can prove catastrophic in bad times. I agree that banks have had to dedicate a lot of effort, resources and

money to comply with the new rules. However, this relates to the one-off costs of changing their policies and procedures to comply with the new rules. Gold: Accounting, legal and fiduciary firms, corporate service providers and fund managers have been offering services to international companies for many years and the sector makes a significant contribution to the country’s GDP. How important is this sector in your opinion and do you have suggestions on ways it which it can be improved? C.G.: Indeed, the professional services sector is very important to the Cyprus economy, contributing about 9% of GDP. The success of the sector is attributable to a series of policy choices and decisions, which have allowed for a stable

telecommunications infrastructure and the availability of highly-skilled and educated personnel. Across euro area countries, Cyprus has been the one improving the most in terms of doing business. According to the World Bank Report on Doing Business 2016, which compares business regulation for domestic firms in 189 economies, between 2014 and 2015, Cyprus’s ranking moved up from 60th to 47th place. This improvement partly reflects a number of policy changes adopted in the context of the EU/IMF economic adjustment programme. However, more needs to be done in terms of achieving a friendlier business environment, including simplifying setup and operation procedures as well as reducing red tape. Looking ahead, a number of policy ini-

NPLS HAVE PEAKED AND SOME SIGNS OF A DECREASING TREND HAVE BEEN OBSERVED tax incentive regime and, more generally, a relatively business-friendly economic and administrative environment. This environment offers certain advantages, including a robust and transparent legal system based on Anglo-Saxon law. The relatively low corporate tax rate as well as a number of other benefits related to an efficient tax system (corporate income tax exemption for capital gains and dividends, and no withholding tax on interest payments and dividends) should also be noted. One can also add the country’s

tiatives are under way, including the review of the existing tax/legal framework for businesses and of the public procurement processes, the establishment of a fast-track mechanism for strategic investments, the development of strategies for attracting foreign direct investment from non-EU countries – mainly in the banking and financial services, energy, tourism and real estate sectors – as well as schemes providing for the creation of business clusters and the setting up of a Science & Technology Park. www.goldnews.com.cy | GOLD | 21

| COVER STORY |

Eight Self-Made Cypriot Businessmen By John Vickers & Artemis Constantinidou | Photos by Andreas Loucaides

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household name in the UK through the TV probecame a househ Dragons’ Den. Or Loucas Haji-Ioannou, the eldest gramme Dragons who left school at 17 and worked as salesman. of 12 children, w later, in 1990, he was the world’s largest indeSome 45 years lat shipowner. pendent shipown On any list of tthe most successful and wealthy Cypriots, Haji-Ioannou’s billionaire son Stelios is near the top. Loucas Haji-Ioan founder of easyJet deserve to be described as a But does the foun businessman? We think not because, despite his self-made busines acumen, vision and ability, he was given considundoubted acum erable help by his father – most reports cite the amount of £30 million – to start his own enterprise. All eight of the entrepreneurs that yyou will meet on the following pages would received a fraction of that sum when they were love to have recei trying to get their companies off the ground. For our cover sstory, we chose to speak to people who are hat’s the connection between Bill Gates, Mark Zuckerberg still very much involved with the comand Jeff Bezos, apart from the fact that they panies that they set up on their own are among the world’s richest businessThe World’s initiative and they cover a wide men? One answer is that all three are Wealthiest Self-Ma Self-Made range of sectors from real estate to self-made entrepreneurs – men who technology, from recycling to travel Entrepreneurs started their professional career with & tourism, from toys to professional little more than an idea, some savings services. As you will see from their 1. and a great deal of self-belief and deinterviews, they are all from what BILL 2. termination. They were once unknowns Symeon Kassianides (Chairman and GATES AMANCIO and yet, if it were not for them, we would ($75 BILLION) CEO, Hyperion Group) describes ORTEGA never have heard of Microsoft, Facebook ($67 BILLION) as the “Never Give Up” school, and Amazon. And without others like them, although several of them admit that 3. there would be no Google or Apple, no Zara WARREN they came close. Their collective ador Nike, no Oracle, no Virgin Atlantic, no IKEA, BUFFETT vice to anyone wishing to emulate them no McDonald’s...The list is endless. All these (($60.8 BILLION) would seem to be that they need to dedicate global brands were conceived and built by themselves 100% to their idea and vision. people with no or little money (Sir Richard 4. As Miltos Kambourides (Managing CARLOS Branson famously started Virgin with a 5. SLIM HELU Partner & co-founder, Dolphin Capital JEFF start-up capital of £300) but whereas it ($50 BILLION) BEZOS Partners) puts it, “There are no successful might be the first thing that some of us (($45.2 ($4 5.2 B BILLION) part-time start-up entrepreneurs”. would think about, the lack of funds did On the following pages, you can not stop them. 6. read about how Panikos Akritas Much of today’s talk is about start-ups MARK 7. but there is nothing new about creating (NetU Group), Nicos Apostolides ZUCKERBERG G LARRY ($44.6 BILLION) a business from scratch. Indeed, virtually (Datatech I.T. Solutions Ltd), MilELLISON every great invention throughout history has ($43.6 BILLION) tos Kambourides (Dolphin Capital originated in one person’s visionary idea. Partners), Symeon Kassianides P Business success ultimately brings wealth of (Hyperion Group), Marios 8. varying degrees but it is the creation of wealth from 9. Klitou (Baker Tilly), Antonis MICHAEL LARRY nothing that inspires us all. The picture of the enBLOOMBERG Orthodoxou (Orthodoxou PAGE ($40 BILLION) trepreneur or inventor spending every working moGroup), Costas Sisamos (En($35.2 BILLION) ment on realising that vision is the stuff of dreams gino) and Andreas Tsouloftas and movies but, in many cases, it is a very real one. ( Tsouloftas Group) began 10. Where do the Cypriots fit into this exciting world? with a vision, worked on it, realSERGEY In most instances, those who have made their fortune have BRIN ised it and earned a reputation for ($34.4 BILLION) done it beyond the island’s shores: people like multi-millionexcellence way beyond the borders of aire Theo Paphitis, for example, who owns the stationery Cyprus. chain Ryman and the lingerie retailer Boux Avenue and Source: Forbes

www.goldnews.com.cy | GOLD | 23

| COVER STORY |

RESPECTED,

RELIABLE, RESILIENT PANIKOS KOS AKRITAS, MANAGING AGING DIRECTOR, NETU GROUP

NetU Group

NetU is a leading IT solutions and services VYNHUPZH[PVU ^P[O VɉJes in Cyprus, Greece and Serbia. Since 1991, NetU has been consistently selected by medium-size and large organisations to be their IT business partner, helping them achieve their corporate objectives and obtain a competitive advantage. By identifying ways of seamlessly integrating business processes and technology, NetU empowers its customLYZ [V YLHW [OL ILULÄ[Z of IT. Today, NetU is recognised as a major integrator in the region and it has developed strong local and international activity.

24 | GOLD | The Business Magazine of Cyprus

SELF-MADE businessmen

What made you want to start your own company? My first job, after receiving my university degree, was with an American multinational IT corporation with its headquarters located in Cyprus, responsible for 43 countries. In my 8 years of service there, I had the opportunity, through various positions, to develop my skills, discover my talents and work with technologies that, later on, became very popular. We therefore became popular with customers of these software technologies. Starting our own companies was something that was frequently discussed among colleagues but it was when I saw the work I was doing as part of my job for various consultants being delivered straight to customers without any changes, additions or deletions – I mean, simply by erasing the letterhead logo – that I thought to myself, “You’re doing it anyway, so you might as well be doing it for yourself”.

STARTIN STARTING A BUSINESS BUSINE IS ONE THING BU BUT MAINTAINING MAINTAIN A SUCCESSFUL SUCCESS BUSINES BUSINESS MEANS MUCH E MU MORE R

Were you inspired by a particular role model that you wanted to copy or emulate? Not by anybody in particular but I was always interested in the philosophy and modus operandi of the major players in our industry such as Jobs, Gates, Ellison and others, so I read just about anything I could come across about their thinking, ideas, actions and how they created their companies and turned them into the most prominent global players of our industry. What were the most serious obstacles you faced? The beginning was not that hard. As I said, we were popular and well-known for products and services that were in great demand. We also got a couple of major opportunities that turned into long-term projects and helped the company grow fast. We went from three people to 20 within 18 months. We did face some challenges later on – during the stock market bubble – and had to roll back on a few of our investment and expansion decisions. It’s good that we never went public! We were fortunate that we saw it early and took some steps fast, maybe not fast enough but enough to turn things around and put us back on course.

Were you ever tempted to give up? No, never! Was the there a turning point when you realized that you had reached a certain level of success? As a company that deals with both the private and public sectors, you always remember your first major win in each sector and consider them as turning points. I believe, however, that success is how you capitalize on these wins and end up with new customers, returning customers, more requests for partner cooperation, keep up with the latest changes in technology (and in our industry they are very fast) and, of course, stay ahead of the competition. What would your advice be to young entrepreneurs wanting to start a business? There are three things you need to start a new business: a good idea, a bit of confidence and a small push. Spend time working on your idea to bring it to a good point but not too long. Then you have to get out there and make the best of it. Make sure you have the necessary skills and talent to make it happen. If you do not have them yourself, find people that have them to work with you. And remember: nothing happens until somebody sells something! Do you think they will find it easier or harder than it was for you? There have been a lot of changes in our industry since we started and a lot of new technologies and concepts introduced. Today, there are much more things to work with such as the Internet, Social Media, Mobile Computing, the Cloud, etc., so the ideas and opportunities are much more. But so is the competition, so I believe that the balance remains. Starting a business is one thing but maintaining a successful business means much more. You need talent, skills, vision and a bit of luck, defined as “where preparation meets opportunity”. When you retire, how would you like to be described? It is not about me but about the business. I want the business to be here forever and last for centuries: respected, reliable and resilient. We have been working on that for years and will continue to take all the necessary steps to ensure that it remains so.

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| COVER STORY |

MOBILE

TECH PIONEER NICOS APOSTOLIDES, GENERAL MANAGER, DATATECH I.T. SOLUTIONS LTD

Datatech I.T. Solutions Ltd

Datatech I.T. Solutions Ltd is a leading provider of Enterprise Content Management, Supply Chain Management and Mobile Technology solutions. The company’s hardware, software and implementation experts have been implementing innovative automation solutions since 1992. +H[H[LJO VɈLYZ X\HSP[` software and services that help organisations manage their business processes and all the data generated from them, in user-friendly environments. This improves the way that people access and utilize information, freeing them from the need to IL PU HU VɉJL VY ULHY a telephone line. 26 | GOLD | The Business Magazine of Cyprus

SELF-MADE businessmen

What made you want to start your own company? I graduated from university and returned to Cyprus in the early ‘90s. It was the time when computers were becoming available to everyone. Fascinated by the world of computers, I decided to start a company and get involved in the field. I partnered with two good friends to set up a company and ride the IT wave. Like most beginnings, ours was also difficult. After some time, my partners and I parted and went our own ways. I started DataTech with a capital of £800. Realising that, in order to stay in business, I needed to differentiate, I moved in the mobility sector (handheld computers, printers, barcode scanners). It was an untapped market in Cyprus while, internationally, there were only a couple of players. The big break came when one of the big breweries decided to automate its sales force. I won a project that aspired to equip every single salesperson with a mobile device and printer to issue invoices and receipts from their vans at the customers’ premises. It worked wonders for the company’s cash flow.

ONE SHOULD NEVER GIVE UP EVEN IF ONE MAKES MISTAKES

Were you inspired by a particular role model that you wanted to copy or emulate? A person I admire is Richard Branson, a selfmade businessperson who had a vision that led him to create the Virgin Group (Virgin Records, Virgin Megastores, Virgin Atlantic, etc). What I admire about him is his philosophy, which he managed to distil in this quotation: “To me, business isn’t about wearing suits or pleasing stockholders. It’s about being true to yourself, your ideas and focusing on the essentials.”

What were the most serious obstacles you faced? In the effort to expand into new areas, I joined forces with a Greek company involved in the same field of technology as mine. Unfortunately, the Greek company ran into financial difficulties and, in 2003, ceased its operations. At that time, we were involved, in a big government project. I could not cope alone so I partnered with two excellent professionals and dear friends, Christos Chorattides and Elias Petrides, and we carried on to complete the project. They, of course, helped me develop the

company into its present form, dealing in two niche and distinct sectors: Supply Chain Management, and Enterprise Content Management. Were you ever tempted to give up? I never thought of giving up. I believe in the prospects of the sector we are involved in. To quote Branson again, “Business opportunities are like buses. There’s always another one coming”. Was there a turning point when you realized that you had reached a certain level of success? There is a point when you start feeling confident that you are going in the right direction. For me, that point was when I realised that we were servicing the biggest distribution and manufacturing companies with a sizeable sales force, such as breweries, soft drink manufacturers, dairy producers, snack and biscuit manufacturers, coffee grinders, tobacco importers, alcohol and beverage distributors, etc., as well as sizeable companies in the banking and financial, government and semi-government sectors. It was not only that we were the choice of these companies but also the fact that we were the choice of companies that were competing with one another. This, to me, was a testament to our integrity and professionalism. What would your advice be to young entrepreneurs wanting to start a business? Do you think they will find it easier or harder than it was for you? The environment today, especially in the technology sector, is much harder than it was for me. Access to information is available to everyone interested. The development of technology is rapid, which makes it easier to be left behind and difficult to stay on top of things. Nevertheless, one should never give up even if one makes mistakes. The competition will make mistakes as well. My humble advice would be to be a credible partner for your customers and associates, to differentiate, and remain relevant to their needs. When you retire, how would you like to be remembered? As a pioneer of mobile technology in Cyprus and as a person who takes his bbq spare ribs seriously!

www.goldnews.com.cy | GOLD | 27

| COVER STORY |

DOLPHIN

TALE MILTOS KAMBOURIDES, MANAGING ING PARTNER & CO-FOUNDER, -FOUNDER, T PARTNERS DOLPHIN CAPITAL

DOLPHIN CAPITAL INVESTORS

Dolphin Capital Investors (DCI) is the main investment vehicle of Dolphin Capital Partners (DCP), a pri]H[L LX\P[` I\ZPULZZ founded in 2004 specialising in real estate investments. DCI is the largest real estate company by net assets listed on the AIM (Alternative Investment Market) of the London Stock Exchange. Since its inception in 2005, DCI has raised almost Ă IPSSPVU VM LX\P[` funds and has become a leading global real estate investor. It owns 50% of the leading Cyprus Developer, Aristo Developers. 28 | GOLD | The Business Magazine of Cyprus

SELF-MADE businessmen

What made you want to start your own company? Entrepreneurship had always been part of my nature and the obvious way to fulfil my ambitions was to start my own company. The right time came in 2004 when the market was supportive of new ventures and I felt that I had enough credibility to seek funding from investors.

THERE R ARE R NO SUCCE SUCCESSFUL PART-TIME STA START-UP ENTREPRENEURS ENTRE R PRE R NE

Were you inspired by a particular role model that you wanted to copy or emulate? I was inspired by the successful international real estate private equity fund managers. One of them was Fortress which provided part of the seed capital for our first Fund.

What were the most serious obstacles you faced? My young age â&#x20AC;&#x201C; I was 32 at the time â&#x20AC;&#x201C; and, consequently, the absence of a long career record, together with the lack of anything comparable in the sector I wanted to be in, were the items that raised the most concerns in my effort to raise funds. Were you ever tempted to give up? Never! There were times, though, when the odds of success were looking very bad. Was there a turning point when you realized that you had reached a certain level of success? When we had raised $1 billion of equity and the market cap of our listed vehicle DCI reached $2.2 billion in 2007, in less than two years of inception, I felt on top of the world! Little did I know that the market crisis was about to come in 2008... What would your advice be to young entrepreneurs wanting to start a business? When it comes to starting your first business, you should focus on only one business plan at a time, have full conviction and dedicate 100% of your time and energy to it. There are no successful part-time start-up entrepreneurs. And you should test your idea with people with experience and refine it as much as you can before you go to the market because you will typically get one chance only with investors. Do you think they will find it easier or harder than it was for you? I started in 2004, at a time when there was an abundance of capital available for new investment funds. Now things are harder. When you retire, how would you like to be described? I will never retire. I would be pleased, though, if at any given time, people describe me as a creative and forward looking person.

www.goldnews.com.cy | GOLD | 29

| COVER R STORY |

ENGINEERING

WITHOUT COMPROMISE SYMEON KASSIANIDES, CHAIRMAN & CEO, HYPERION GROUP

HYPERION GROUP

Hyperion Systems Engineering Group is a globally operating, independent provider of consulting & advisory services, systems engineering solutions and professional implementation services and support to process manufacturers in the hydrocarbons & chemicals and the power generation industries. With over 20 years of experience in the Upstream Oil & Gas, 7L[YVSL\T 9LÄUPUN Petrochemicals, Chemical, Power and Water industries, Hyperion helps P[Z J\Z[VTLYZ LɈLJ[P]LS` deploy capital resources, reduce operating and supply chain costs, improve safety and increase their overall WYVÄ[HIPSP[` HS^H`Z JVNnisant of environmental impact.

30 | GOLD | The Business Magazine of Cyprus

SELF-MADE businessmen

What made you want to start your own company? I always had the aspiration to start my own business. Maybe it was the thought that it would allow me to express and implement my ideas in a better way. I think I wanted to make a difference.

I BELO BELONG TO TH THE ‘NEVER ‘NEVE GIVE I UP’ U SCHOOL! SCHOO E EVE EVERY R CHA CHALLENGE HALLE MAKE MAKES K YOU STRONG STRONGER

Were you inspired by a particular role model that you wanted to copy or emulate? I was inspired by many people. The list is endless and continues to grow. I think that one great influence was my undergraduate advisor at MIT. He had turned a scientific breakthrough into a prominent and successful multinational corporation. Later, when I was completing my PhD at Imperial College, I went to discuss my thoughts about commercialization with him. He was clearly influential and inspirational regarding my decision to proceed with and start up Hyperion Systems Engineering. In practice, moreover, through his company, he also provided some seed funding. What were the most serious obstacles you faced? The most serious obstacle was having to convince financiers of the potential of an idea which, at the time, was unheard of in Cyprus: to provide equity funding on the strength of the idea and not because it was backed by immovable assets. Through our 23 years of operation, we have faced many challenges. From a personal point of view, one challenge has been finding the balance between work and family. On the business front, the challenge has always been – and remains – securing the necessary funding that is required to grow, survive, restructure, expand or diversify. Were you ever tempted to give up? To say, “Yes, every day” would be an exaggeration but it happened often enough… Nevertheless, I belong to the “Never Give Up” school! Every challenge makes you stronger. A lot has been achieved and a lot still remains to be achieved.

Was there a turning point when you realized that you had reached a certain level of success? In 2005 we carried out a dramatic shift in our business practices and approached global customers on the strength of only what we had as Hyperion, not leveraging the strength of our partners. The feedback from the market about the good, solid reputation of the company and its people (many times referred to by first names) brought about the realization that we had found our place. Today, we maintain offices in several countries and serve the hydrocarbons, chemicals and power generation industries from the Americas to Europe, the Middle East and Russia/CIS. What would your advice be to young entrepreneurs wanting to start a business? Follow your dreams, do not compromise on your beliefs but be flexible and able to adopt and adapt to change. Being an entrepreneur, you will need patience, persistence and perseverance. One of my favourite quotations (an anonymous one) is this: “Entrepreneurship is living a few years of your life like most people won’t, so that you can spend the rest of your life like most people can’t.” Do you think they will find it easier or harder than it was for you? Some will find it easier, some harder. There is no measure. However, today there is an ecosystem for entrepreneurship. People have a wealth of resources that can be leveraged, many of them at zero or near-zero cost, so the early stages of learning, planning, setting up and developing ideas has better support now. I believe that the process of proper fundraising, sales and delivering a successful product to market, in order to build and develop a sustainable business, was and remains as challenging as ever. When you retire, how would you like to be described? I would like to be remembered as someone who took an outrageous concept and was able to implement it and grow it to an international level; as someone who made a contribution to my community, my country, and young entrepreneurs, by helping them achieve their dreams.

www.goldnews.com.cy | GOLD | 31

| COVER STORY |

IMPLEMENTING

A VISION MARIOS KLITOU,

CEO, BAKER TILLY IN CYPRUS, GREECE, ROMANIA, BULGARIA & MOLDOVA

BAKER TILLY

Baker Tilly is a leading Ã&#x201E;YT VM H\KP[VYZ HJcountants and business advisors in Cyprus and the Balkans. Its 20 directors and almost 300 WLVWSL VÉ&#x2C6;LY ZLY]PJLZ VM the highest standards to more than 6,000 businesses operating both nationally and internationally. Baker Tilly operates through VÉ&#x2030;JLZ PU *`WY\Z 5PJosia, Limassol and LarUHJH )\SNHYPH :VÃ&#x201E;H Romania (Bucharest), Moldova (Chisinau) and Greece (Athens). These Ã&#x201E;YTZ PU HSS Ã&#x201E;]L JV\U[YPLZ are independent memILY Ã&#x201E;YTZ VM )HRLY ;PSS` International, the 8th largest accounting network in the world by fee income.

32 | GOLD | The Business Magazine of Cyprus

SELF-MADE businessmen What made you want to start your own company? Following my studies and my qualification in the United Kingdom and seven years’ work with a local firm in Cyprus, I decided that the time had matured to start my own firm in order to implement my ideas, my vision and my way of thinking. It was 1996 and it was becoming more and more obvious that Cyprus could become a business centre with huge potential in the line of services associated with my professional qualification. Were you inspired by a particular role model that you wanted to copy or emulate? My decision to become a Chartered Accountant was influenced by my late uncle who had left Cyprus in the late ‘60s for the United Kingdom to become a Chartered Accountant. This was part one. Part two was the actual decision to set up my own practice. I think this is related to the environment I grew up in. Both my parents had their own business – my father as barber and my mother as the owner of small boutique in Nicosia. This background, I think, had a significant influence on the decision to set up my own practice and the hope that I would do better than if working for somebody else. I believe that in life we all have to try to achieve our own dreams without compromising over the “backbone of a secure job”.

IN LIFE WE ALL HAVE H HA AVE TO TRY TO ACH ACHIEVE OUR OWN W DREAMS W WIT WITHOUT COMPROMISING COMPR

What were the most serious obstacles you faced? In our first years of operation, being a small and unknown firm without real contacts in the market, the most important obstacle/ difficulty we faced was the inability of the civil service in Cyprus to handle international clients in the proper way. I believe that, if the Government services had been in a position to deal with the requests of foreign investors in a timely and professional manner, we would have been able to achieve much more, both as a firm and as a country. In Cyprus, we still find it difficult to understand that we are competing with the other business centres

and, even worse, to recognize that some of those which started after us have managed to progress and prosper better than we have, thanks to their innovativeness and forward thinking. I hope that the recent Government announcements regarding this issue will be a starting point in efforts to give Cyprus an edge over other competing business centres. Were you ever tempted to give up? Giving up is not my part of my way of thinking and behaving. I never take no for an answer! This may sound as a bit arrogant but, in my own eyes, it shows total commitment to achieving the targets that have been set. Was the there a turning point when you realized that you had reached a certain level of success? Everything is relevant in life. The biggest success for me was to get through the firm’s first two years of working without any real income and for innumerable hours. Once those first two years were over, the firm began to find its way and slowly to become established as a good professional firm in Cyprus. That was the real success for me. Everything else has been a result of this. Certainly, certain events in my professional life, such as the representation of Baker Tilly in five countries, can be considered as accomplishments. For me this was my biggest challenge and it marked the beginning of a new era. What would your advice be to young entrepreneurs wanting to start a business? I would tell them that they need three things: vision, commitment and hard work. If all three elements are in place, then success is just around the corner. Do you think they will find it easier or harder than it was for you? I believe that today’s young entrepreneurs are better equipped than we were, better-trained and certainly more competent with technology. Now that everything is based on technology, if they are able to achieve the threefold of vision, commitment and hard work, I can assure them that they will be successful in life. When you retire, how would you like to be described? As a hard worker and a committed professional.

www.goldnews.com.cy | GOLD | 33

| COVER STORY |

FLYING

HIGH ANTONIS ORTHODOXOU, MANAGING DIRECTOR, ORTHODOXOU GROUP OF COMPANIES

ORTHODOXOU GROUP OF COMPANIES

Since 1995, when the ]LY` ÄYZ[ JVTWHU` VM the Group was founded, it has developed in a variety of business sectors from travel and aviation to recruitment services, insurance and hotel management. Today, the Group’s seven companies (four in Cyprus and three abroad) employ more than 200 people under the umbrella of the mother company. The global nature of the Group, coupled with its close relationships with P[Z HɉSPH[LZ JVTWHUPLZ and associates, ensures [OH[ P[ VɈLYZ J\Z[VTLYZ the highest level of personal service. 34 | GOLD | The Business Magazine of Cyprus

SELF-MADE businessmen

What made you want to start your own company? In a word, the challenge. The motivation to start my own business was a love of new experiences and challenges. Starting your own business ensures you that you will always be facing new challenges and experiencing something new. You never feel bored and you never stop learning. When you build something successful, it’s a great feeling. You had a vision, you were able to fulfil it and be able to say, “I did it.”

T THE MOST IM IMPORTANT TURNING POINT FOR P M ME WAS MY D DECISIONTO E ENTER THE A AVIATION IINDUSTRY

Were you inspired by a particular role model that you wanted to copy or emulate? Role models are important. They help us become the person we want to be and inspire us to make a difference. To be honest, I don’t think any one person inspired me. My parents, of course, helped me want to make something of myself and, more recently, my family inspires me to want to be as good a role model for them as I can possibly be. At the moment, they are a major source of inspiration but overall I am inspired by a desire to be the best I can be, not to emulate someone else. What were the most serious obstacles you faced? Starting a business is like jumping out of an aeroplane without a parachute and, in midair, you begin making a parachute and hope that it will open before you hit the ground! The most serious obstacle I faced in my career was the financial crisis in 2012 when I had to take crucial decisions to ensure the company’s survival by cutting employees and costs. A good businessman must have a nose for business so as to sniff out business opportunities everywhere. After the closure of Cyprus Airways, for example, we had the opportunity to bring Blue Air flights here. Our main obstacle was to convince Cypriot passengers that Blue Air is not a low-cost carrier but a smart, fully IATA certified airline. Were you ever tempted to give up? As I look back on the 21 years of my career, I realize that I have never seriously thought about giving up because I honestly love what

I do. No matter how hard the battle gets or how many people don’t believe in my targets, I never give up! Sometimes, due to stress and tiredness, I’ve wondered if it is worth doing what I do, but this only lasts a moment. I stop focusing on how stressed I am and I remember how blessed I am. Things could be so much worse. A successful businessman has to keep moving. He will make mistakes but he should never quit. I never stop learning because life never stops teaching me things. Was there a turning point when you realized that you had reached a certain level of success? Business activity is a continuous process and businessmen always try to become better, develop further and achieve the maximum. There are many turning points in one’s business career, mainly, in my case, connected to achieving my business objectives. The most important turning point for me was my initial decision to enter the aviation industry and explore new opportunities. What would your advice be to young entrepreneurs wanting to start a business? First of all, they must be determined, dedicated, patient and prepared to work hard. They must set themselves small targets at first and, when they have been achieved, proceed to the next – higher – one. Young business people must not be occupied only with the present but consider the past and try to determine future developments. They should try to grab future messages and opportunities by looking for the signs that others can’t see. Young entrepreneurs may fear the unknown or failure but they must understand that, while starting a business is not easy, at the same time it is not as complicated as many people think. What they need is passion, determination, hard work and vision. When you retire, how would you like to be described? Usually people remember you according to their own principles and values in life. Personally, I want to be remembered as a nice person and a good family man. Professionally, I want to be described as a hardworking, successful businessman with passion, determination and vision.

www.goldnews.com.cy | GOLD | 35

| COVER STORY |

TOY STORY COSTAS SISAMOS, OWNER, ENGINO

ENGINO

The Engino Toy system was invented by Costas Sisamos, a former teacher and engineer, for the purpose of helping pupils build technological models creatively and easily so that they can experiment and learn about science and technology in a playful way. Research grants from local and EU funds helped transform three years of research into an innovative product, launched internationally in 2007. The major advantage of the Engino system is that it enables children to build simple or complex models using a very small number of components. 36 | GOLD | The Business Magazine of Cyprus

SELF-MADE businessmen What made you want to start your own company? During the period I was a schoolteacher, back in 2004, I came up with the idea to design a new system so that students could build their models in the Design and Technology classroom more easily. So, I started a three-year research and development project that eventually led to the invention of the Engino Toy System. The next step was to commercialize the idea and try to make it a successful product that would, hopefully, inspire children to become more creative and inventive while learning about technology at the same time.

I RE REALIZED R EA THAT TH I H HAD TO BE PATIENT AND PATIE PERSISTENT PERSI UNTIL I GOT RESULTS THE RE R WANTED I WA W

Were you inspired by a particular role model that you wanted to copy or emulate? I have always been fascinated by great inventors and philosophers such as Archimedes and Leonardo Da Vinci!

What were the most serious obstacles you faced? Being based in Cyprus was the major obstacle for us, mainly because there was no active Venture Capital industry that could take a risk on new inventions. Because of that, we needed to gradually self-finance the research and development, with a combination of loans, R&D funding and sales. In addition, Cyprus is a very small local market, meaning that we have to sell through distributors, adding middle men to the selling process and increasing the product price. Also, the lack of a local supporting industry and the need to outsource abroad has been quite an issue. However, we eventually managed to turn that to our advantage by moving all production to the island 3 years ago, making a mark in the global toy industry where Asia is no longer the exclusive place for manufacturing. Furthermore, having a European image improved our exports, not only to Europe and North America but also to Asia, where consumers are thirsty for branded products. Were you ever tempted to give up? Yes I was, indeed, tempted to give up, especially at the beginning. The lack of financing, while having a family to support, was quite frustrating. Repeated failures in de-

signs that led to a cycle of redesign and development was disappointing. It was during such a period that a stumbled upon a saying by Thomas Edison: “I didn’t fail 1,000 times. The light bulb was an invention with 1,000 steps.” ! I realized then that this is the process of innovation and that I had to be patient and persistent until I got the results I wanted. Was the there a turning point when you realized that you had reached a certain level of success? I am still looking for that turning point, to be honest! The more success you have, the higher the bar goes and you look up to the next level of achievement. Over the last three years, however, we have had steady growth and I do feel that, since then, our brand has started to be recognized as a worthwhile alternative to established competitor products. What would your advice be to young entrepreneurs wanting to start a business? I would advise them to know their subject, to have real passion for what they do and to be willing to work with the intensity of having two or three jobs simultaneously for many years to come! Do you think they will find it easier or harder than it was for you? This depends on the particular field. Software development is easier as the investment is more in human resources and licences whereas, in our case, we had to invest in tools and machinery. When we started it was easier to get R&D capital, while now it is easier to get Angel investors and crowdfunding. So, it depends on many factors but I think that commercializing an innovation has always been – and will always be – quite hard. When you retire, how would you like to be described? I will feel accomplished if some inventors in the near future say that they became smarter and more creative because when they were kids they were playing with Engino. My personal philosophy is that it is not the making of money that makes someone a success; rather, it is the type of person you manage to become. This is a path that does not come to an end when you retire. Indeed, it is perhaps a path that begins with retirement!

www.goldnews.com.cy | GOLD | 37

| COVER STORY |

QUALITY &

STANDARDS ANDREAS TSOULOFTAS,

MANAGING DIRECTOR, TSOULOFTAS GROUP OF COMPANIES

TSOULOFTAS GROUP OF COMPANIES

The Tsouloftas Group of Companies comprises A. Tsouloftas & Sons Ltd and Tsouloftas Constructions Ltd. A. Tsouloftas & Sons Ltd is a family company incorporated in 1993. Andreas Tsouloftas is the founder, main shareholder and Managing Director of the company and he is also the main shareholder and director of Vothrotex Ltd, the only company in Limassol dealing exclusively with sewage collection and disposal. The Group employs around 60 employees while A. Tsouloftas & Sons Ltd. is the biggest company in Cyprus in Recycling & Conservancy Services.

38 | GOLD | The Business Magazine of Cyprus

SELF-MADE businessmen

What made you want to start your own company? I came back to Cyprus from my studies at Manchester University in 1979 at the age of 23. I was very energetic and enthusiastic about setting up making my own business. Shortly after my return, I opened my own civil engineering office which was involved in construction works, development and other specialist works. Were you inspired by a particular role model that you wanted to copy or emulate? No, I was not inspired by any particular model and I never wanted to copy or emulate anyone. I was working hard for very long hours, seven days a week. My objectives were always to work in a spirit of fairness, professionalism and value for money. My challenges were the difficult projects with high engineering requirements and the use of high technology equipment and machinery.

THE B BIGGEST OBSTACLE TO OBSTA ANY BU BUSINESS IN NC CYPRUS YP IS BURE BUREAUCRACY REA IN THE PUBLIC SECTOR SEC

What were the most serious obstacles you faced? One important issue in my business career was the delivery of a high standard of services. The employment of the appropriate personnel with the knowledge and experience to fit key positions was of major importance during the expansion of the business. The biggest obstacle to any business in Cyprus is bureaucracy in the public sector and long delays in most Government departments. Public services must be restructured and become more efficient and friendly towards the businesses world. Were you ever tempted to give up? No, I was never tempted to give up. On the contrary, I have plans for further expansion of the business. As my children have joined the Group, I have even more reasons not to give up since there are successors to continue the business. I cannot imagine myself ever giving up work completely.

Was there a turning point when you realized that you had reached a certain level of success? A noteworthy step in my career was my participation in the Limassol Marina project, the biggest and most prestigious project ever carried out in Cyprus, which has become the main landmark for Limassol. What would your advice be to young entrepreneurs wanting to start a business? I would advise any young entrepreneur who is planning to start a business in Cyprus to choose a sector that they have a good knowledge of and that they enjoy working in. My advice to them is to have innovation as their motive and to look at providing new technology and services to the Cyprus market. Innovation combined with a good study of the market and good planning will give you a higher rate of success. Do you think they will find it easier or harder than it was for you? Today it is more difficult to start a new business because of the problems with obtaining bank financing. Another important factor is the present high rate of unemployment, which creates greater competition in a low-demand market. However, although there are more graduates looking to start up a business today, I still believe that there is room for new businesses, especially in the new technology and services sectors. When you retire, how would you like to be described? When I was younger, the thought came to my mind many times that I could retire when my two sons came back from their University studies and took over the business. Now that time has come and I have realised that this cannot happen! My presence in the Group, thanks to my experience and knowledge, is essential. My two sons are still learning the business and taking on more and more responsibilities. I hope to be able to slow down soon, to work normal hours and be able to take a few days off to go on holiday. But as I have already mentioned, I canâ&#x20AC;&#x2122;t imagine myself stopping work altogether.

www.goldnews.com.cy | GOLD | 39

Opinion

NOT THE END OF THE ROAD

CYPRUS MAY HAVE EXITED THE EU-IMF PROGRAMME BUT WORK STILL REMAINS By George Theocharides

n March 31, reforms have been completed, the banks Cyprus officially have been recapitalized and liquidity exited the Memoolevels have improved, this has not been randum of Underertransferred to the real economy. Why? standing (MoU) (a) because companies and households signed with the are over-leveraged (Cyprus has one of the us Troika. Over a three-year period, Cyprus highest private debt levels in the EU); (b) received around €7.2 billion (of a totall because there are simply not enough viable of €10 billion available) at a very low business opportunities to lend to,; and interest rate of about 1%. The Troi(c) because regulatory requirements have ka’s evaluations will continue every six become so strict that it is very difficult months until 75% of the loan received is for households and companies to comply ed w repaid. Government officials have argued with lending criteria. The biggest problem ic strongly that our exit from the economic is the huge level of non-performing loans adjustment programme is proof that (NPLs) – a staggering amount of around it was successful and met its objectives €27 billion, which translates into around while the opposition argues that it failed d 50% of the total banks’ loan portfolio, or and brought more pain and misery to more than 150% of the country’s GDP. the people of Cyprus. In my humble Magical solutions do not exist, unfortuopinion, the truth lies somewhere in nately, and it will be a slow and demandbetween, though closer to a successful ing process to resolve this problem. Info: Dr. George Theocharides is an programme, given the poor state of the economy Structural Reforms Associate Professor of Finance at in April 2013. The programme rested on three This is where, unfortunately, we have not seen Cyprus International Institute of Management (CIIM) and the Director pillars: fiscal consolidation, banking and financial much progress. The only major privatisation has of the MSc in Financial Services. sector reforms, and structural reforms. been that of the Limassol Ports Authority, while Fiscal Consolidation for Cyta and the EAC, it has been postponed This was achieved through cuts in wages, pensions, social and until the end of 2017. Civil service reform has not yet been discretionary spending, as well as increases in tax rates – VAT, completed and bureaucracy still reigns in the public sector. The immovable property tax, corporate tax, etc. Growth has returned same applies to reform of the health sector (and the implemento positive territory after years of recession, while unemployment is tation of the NHS), labour (the trade unions have substantially on a slow but downward path. Furthermore, public debt has been increased their demands recently) and the legal system. kept on a sustainable trajectory, expected to decrease to 100% of Furthermore, populism has been growing (especially ahead of GDP by the end of this year. Credit ratings have improved (allast month’s parliamentary elections), corruption is still present though still junk status) and the government has regained access to everywhere, while competitiveness, transparency and corporate the international financial markets (albeit with a yield of more than governance have not really improved. 4%, one of the highest in the EU area, reflecting significant risks The fact that we have exited from the MoU implies that subthat remain in the economy). Anothstantial progress has been made and er issue (for the eurozone overall) is this is why we have regained the continuing deflation, which restricts trust of foreign investors and marTHE FACT THAT WE consumption/investment and hinders kets. However, much more work HAVE EXITED FROM growth. needed before we have finally THE MOU IMPLIES THAT isrestored/corrected Banking and Financial Sector Reall the major SUBSTANTIAL PROGRESS problems that the economy previforms HAS BEEN MADE Although a number of banking ously faced.

40 | GOLD | The Business Magazine of Cyprus

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SIMPLIFY YOUR KYC PROCESSES:

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| ENTREPRENEURSHIP |

Dreamers, Crazy, Creative and DaringI HOW STUDENTS ARE GOING TO USE TECHNOLOGY TO CREATE A BETTER WORLD

Elena Donets, CEO of the Tel Aviv University Entrepreneurship Centre (StarTAU) and a leading figure on the Israeli entrepreneurship scene, was in Cyprus last month to host a Digital Entrepreneurship Workshop entitled ‘Building your Venture in 10 Steps’. In an exclusive interview with Gold, she speaks about her belief in the power of technology to change the world for the better, the growing role of women entrepreneurs and, in particular, how today’s students are soon going to be using technology in ways that few of us can imagine By John Vickers 42 | GOLD | The Business Magazine of Cyprus

ome people seem destined to be doing a particular job and, if there is one person whose experiences have made her the perfect mentor for those wishing to become involved in start-ups and technology-based enterprises, it is Elena Donets. She went to university to study aeronautical engineering (her father’s profession) where, in her own words, she “failed completely”. Embarking on a quest to discover what might be the right thing for her, she tried subjects as diverse as graphic design (“I found it too boring”) and mechanical engineering, which she eventually graduated in, though she has never worked as an engineer. In 2009, in one of those unexpected, yet ultimately life-changing moments, she spotted a notice posted by Oren Simanian, an Economics student at Tel Aviv University, where she was wrestling with her second engineering course. “He had set up the Entrepreneurship Centre at the university and he said he was looking for a secretary,” she recalls. “That was how my links with entrepreneurship started.” At first, the two were working – unpaid – for up to 14 hours a day: “It was not a university initiative but a student one!” she explains, “But we managed to create quite a buzz around it and, eventually, we were able to convince the university that it needed such a centre. Today it’s a non-profit organisation belonging to the university.” So when she is travelling the world, telling young would-be entrepreneurs that they need to be able to deal with failure and start again, this is a woman who knows what she is talking about.

“The main challenge for someone creating a start-up is to be able to deal with failure” she says.” You need patience and passion for what you are doing in order to start over again and again until you get it right. We all see the success stories about people making millions of dollars but we need to ask how long it took and with how much effort and how many sacrifices. Nothing is easy.” StarTAU is now the largest and most active entrepreneurship centre in Israel and Elena Donets has a full-time team of seven people working for her. Its goal, she says, is to promote entrepreneurs and to help them promote their ventures. “At present, we run about 20 acceleration programmes for entrepreneurs and we are building them elsewhere too. They are usually divided into two stages: coming up with and developing the initial idea and then creating a product and taking it to the global market.” That word ‘global’ is significant. A major challenge for Israel, says Donets, is the country’s small domestic market, which means that for many startups the first destination tends to be the US. “On the one hand it forces them to think big but, at the same time, it is very competitive there so we are now building connections with different markets in Europe, Latin America and Asia.” It seems that universities are now becoming the place where students are taking their first steps into the business world, whereas the two used to be quite separate. This is a new development, Elena Donets explains, which actually started at Stanford University in the US. “It was the first of the so-called ‘entrepreneurial universities’ where, in

The main challenge for someone creating a start-up is to be able to deal with failure

| ENTREPRENEURSHIP |

addition to academic courses of study, there are business incubators and a lot of practical courses and workshops to help students start building their business ventures during their studies”. She notes that, in her view, the role of academia is “to deal with real innovation,” which, she insists, is a different thing from entrepreneurship. “That will come from the students and their talent but universities need to understand that they should invest equally in both in order to be successful. Universities are a main source of new talent and it makes perfect sense to make the best use of it”. In the traditionally male-dominated areas of technology and entrepreneurship, Elena Donets is clearly an exception to the rule. Are more women becoming involved in these sectors in Israel and internationally? “There is no doubt about this,” she replies.”I started promoting women’s entrepreneurship in Israel in 2010 and the picture has changed totally in these six years. And we can see that this is a global trend. Investors are becoming increasingly interested in backing enterprises founded by women and a growing number of women are reaching the highest levels in both the public and private sectors. And, coming back to the universities, in Israel there are Girls in Tech communities everywhere, which are growing enormously”. Donets is in Cyprus to host a workshop entitled “Building Your Venture in 10 Steps”. I suggest that she is making it sound far too easy. “The principles are easy to understand,” she explains. “Implementation is the difficult part. But it doesn’t really matter what kind of venture we are talking about; the process is structured and it’s the same for every kind of business. You have to define (a) what you are doing, (b) why you’re doing it and (c) how you’re going to make it work. Once you can give clear answers to these three questions, it will be much easier to understand where you’re going”. That does, indeed, sound like a fairly straightforward process but, says Donets, in reality it is not. “The main mistake that new entrepreneurs make is that they don’t invest enough time into indentifying exactly what it is that they are doing,” she continues. “So, 44 | GOLD | The Business Magazine of Cyprus

In ten years’ time the world is going to look completely different

for example, someone who decides to open a new coffee shop in the neighbourhood starts thinking about what to put in it, how much to ask the bank for and so on but these considerations are all about the question ‘how’ and not ‘what’. Getting the right answers in the right order is something that applies to every new company or venture, no matter the size”. Noting that her Cyprus workshop would be taking place at the Microsoft Innovation Centre (MIC) in Nicosia, which, interestingly, is the only MIC in the world to be housed on university premises, I ask how important such centres are to future business development. “They are very important,” replies Donets. “Times are changing. Technology has become an integral part of our daily lives, like the Internet and the global access it gives us. So today’s students are not the same as they were when I started university. Partnerships like the one in Cyprus between Microsoft and European University Cyprus are very significant in bringing about the changes that are needed. This is a model from which others can learn.” Elena Donets has seen for herself that real change can come from universities and, in particular, from the students themselves. “They are young, they are dreamers, crazy, creative and daring!” she says enthusiastically. “And they are an enormous resource that should be used in the best possible way. The new generation wants to do more than study and the universities need to understand this. In many countries, unfortunately, faculty members are out of touch with what their students want.” Technology will be one of the keys, she believes, to improving not only university education but that of even the very young. “Children aged two are using iPads!” she exclaims, before adding, “My nephew taught himself Russian online at the age of eight! It’s another world.”

How does she respond to those who argue that the growing domination of technology in everyday life is leading to children and young people losing their social skills and moral values? “Kids of every generation have been hearing the same thing from their parents,” she says. “They heard it when television looked as if it was going to destroy an older way of life and then again when video games became popular. We still need to make sure that we teach our children certain universal values, make them appreciate nature and so on. This hasn’t changed. What has changed is the way in which we teach them.” An example of this, she proposes, is using virtual reality to teach young people things that have traditionally been taught in textbooks. “We learnt things from reading books. Today’s youngsters can learn more from visual experiences so education ministries need to employ the technologies that children use and understand to give them the knowledge and values they need.” Working with students has resulted in them creating a very positive image with Elena Donets. “I believe in the young generation,” she states with a passion, “and I believe that they are going to bring us things that we can’t even imagine. The Internet has made them understand the world and they want to live in a better one. They want to have an impact on society and they will do it through technology. A huge change is coming and in ten years’ time the world is going to look completely different. Hopefully tomorrow’s world will be a better one.” Elena Donets

62 | GOLD | The Business Magazine of Cyprus

| ARCHITECTURE PROFILE | |

INVESTOR NAGUIB SAWIRIS:

WITH A HEART

he Egyptian businessman Naguib Sawiris, listed in Forbes magazine as the 577th richest person in the world, with a personal wealth of $3.1 billion, made headlines around the world last year when he proposed buying a Greek island and to settle refugees fleeing the war in Syria there. In Cyprus, he is best known as the main strategic investor in the â&#x201A;Ź220 million Makronisos Marina & Resort at Ayia Napa, through Gemini Real Estate, a subsidiary of the Sawiris familyâ&#x20AC;&#x2122;s asset management firm Gemini. In an exclusive interview with Gold, conducted at his office in Cairo, he speaks about his business empire, his involvement in Egyptian politics and reveals why he decided to invest specifically in Ayia Napa. By Voula Loizou

46 | GOLD | The Business Magazine of Cyprus

Gold: You made headlines around the world last year when you proposed buying a Greek island and to settle refugees fleeing the war in Syria. Were you serious about it? What happened? Naguib Sawiris: You’re not the first person to ask me this but we’re talking about people’s lives here. People were dying in the ocean and I made a very serious offer. I’m a very serious person and when I say I’m going to do something, I always mean it. Unfortunately I didn’t get the response I was hoping for. I met the Greek Prime Minister and offered to buy one of 22 islands – I showed him the list of the available ones whose owners I had spoken to and who were willing to sell. I asked him for three things: to tell me which one he preferred from a security point of view, to give his approval to take the refugees there and to provide assistance with the police and customs aspects of the operation. In the end, I received no help. My only motive was humanitarian. I was seeing people dying in the sea every day on TV. I could have changed the channel and ignored it but, to me, that is not a human response. We should all be asking ourselves what we can do to help. That’s what I did. Being in a position of having made money, I want to give something back. It’s as simple as that. And if Cyprus wants to do something about it and it gives me a piece of land, I am willing to build a place to house some of these unfortunate people.

I WON’T INVEST

IN PLACES I DON’T LIKE JUST BECAUSE I’M

GOING TO MAKE A LOT OF MONEY www.goldnews.com.cy | GOLD | 47

| PROFILE |

Gold: Your country has been through very difficult times, especially in the past 5 years. You have had a greater involvement in Egyptian politics since 2011. How would you describe the experience? N.S.: I’m very proud of my involvement. People think I opposed the Muslim Brotherhood because I am a Christian but it had nothing to do with religion. I opposed them because they were fascists; they used religion to gain power, they used democracy to become elected and then they abolished that democracy. Of course, I was also worried about the Christian community because with their approval, our churches were being attacked and burnt down. Gold: Do you believe that the country is now returning to stability? N.S.: It’s not returning to stability; it has already become a stable country once more. Gold: When you were younger, was it always understood that you and your brothers would join the family business? N.S.: No. I started on my own and I only joined my father later when I was successful and had my own money. He had always told me that I could go out and prove myself but he eventually said that he hoped I would join him and my brothers. In the end I agreed to work with him, on condition that I did my own thing. So I started my own department and it just grew from there. I started the railways division and became one of the biggest partners in Egyptian railways. That grew into a huge business but then I diversified into IT, representing all the

THE BEST INVESTMENT MY FATHER EVER MADE

WAS IN HIS SONS’

EDUCATION major companies such as HP, Oracle, Microsoft and AT&T and, after that, into telecoms and mobile communications, which took the firm to a different level altogether. Gold: Your father must have been very proud of you. N.S.: The truth is that the best investment my father ever made was in his sons’ education. Each of us has been very successful – one of my brothers has one of the country’s biggest construction companies and the other set up a tourism development company. My project in Cyprus is more or less in his domain and I may connect it to his company one day! Gold: How did you come to take an interest in Cyprus and the Ayia Napa Marina project? N.S.: We Egyptians like to go to places that are not far away geographically and not far from our own heritage and culture either. Cyprus is very near and I find the environment and the culture is very similar to that of Egypt. The people are very welcoming and it’s a quiet, peaceful island. One of the things that strikes visitors to Cyprus is the tranquility. In addition, I have very nice memories of spending a whole month in Ayia Napa when I graduated – I was about 22 at the time. It was still quite new then but the beaches were amazing and there was an ‘invasion’ of Swedish, Norwegian and

48 | GOLD | The Business Magazine of Cyprus

Finnish visitors. I had a very nice time! So, at a time when I was not very happy with what was happening in Egypt, I thought that Cyprus would be a good place to invest and my happy memories gave me the idea of investing specifically in Ayia Napa. Gold: So it was an emotional decision as much as a business one? N.S.: I like to call myself an investor with a heart, by which I mean that I won’t invest in places I don’t like just because I’m going to make a lot of money. I want to invest in a country where I’m happy and every time I land in Cyprus I feel happy. Of course, I understand that I decided to invest in Cyprus at a difficult time for the country, when the financial crisis was at its peak, and I also know as an investor that it’s always best to invest when things are bad and there’s not much competition because everybody’s scared, and the government is very willing to help you because the country needs the investment. It’s in my nature to go to places when others don’t but I’m very happy that I chose Cyprus. It was the best time for both sides. Gold: Are you planning further investments in Cyprus? N.S.: Right now, the answer is no although we are willing to expand the project and to look at other things we can do that can be connected to it. So there will be a marina, which needs management and sales staff, we are considering building a small hotel, so in a way the answer to your question is yes but, at this moment, any further investment for now will be related to the marina project.

Gold: Today, your Orascom Group is the biggest private sector employer in Egypt. Do you intend to keep growing or have you reached a point where you feel that the company is large enough for you to maintain control of it? N.G.: If you’re ambitious, you never want to stop growing. We are an international group and people welcome us everywhere. I am the largest single investor in Italy, for example, with around €1 billion invested there. If the Ayia Napa Marina project in Cyprus is successful, we may move into other areas too. For example, if Cyprus is serious about the privatisation of Cyta, we would be very interested in becoming active in this sector in Cyprus. People often don’t like to shake up public companies but, personally, I am against public sector or government ownership of businesses. Gold: As one of the world’s wealthiest men, you could live anywhere you choose. Have you never been tempted to move from Cairo to somewhere more peaceful or, alternatively, more exciting? N.S.: You know, some people are all mind and no heart but I’m a very emotional person. I grew up here, all my friends are here, I speak the language and I love my people. Egyptians are kind and easy-going. And then the weather is so beautiful here, the country has a river running right through it, lending an air of tranquility, we have two seas – the Mediterranean and the Red Sea – and we have Luxor, Aswan, Sharm el Sheikh… I believe there is nowhere like Egypt, so why would I want to live somewhere else? I love it here. And Cyprus is only 40 minutes away so if I need a change I can always go there for the weekend!

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FIRMS IN CYPRUS contents 52 ICAEW 54 AUDITCHART LIMITED 56 BAKER TILLY IN SOUTH EAST EUROPE 58 BDO LTD 60 DELOITTE 62 EUROFAST 64 FCI SERVICES LTD 66 HORWATH DSP LIMITED 68 JOANNIDES + CO. 70 KPMG LIMITED 72 MAZARS LIMITED 74 P. KALOPETRIDES & CO

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ACCOUNTING,

AUDIT & TAX ADVISORY

FIRMS IN CYPRUS

CYPRUS AND THE ACCOUNTING PROFESSION WE TEND TO THINK OF THE ACCOUNTING PROFESSION AS A FAIRLY MODERN ONE AND THERE ARE PLENTY OF GLEAMING NEW OFFICE BLOCKS ALL OVER CYPRUS TO SOLIDIFY THIS IMPRESSION BUT ACCOUNTANCY IS ACTUALLY HUNDREDS OF YEARS OLD – LUCA PACIOLI (1447-1517), KNOWN AS “THE FATHER OF ACCOUNTING AND BOOKKEEPING”, WAS THE FIRST PERSON TO PUBLISH A WORK ON THE DOUBLE ENTRY SYSTEM. THE WORDS CREDIT AND DEBIT ARE LATIN FOR “HE TRUSTS” AND “HE OWES” RESPECTIVELY.

50 | GOLD | The Business Magazine of Cyprus

X [EW SRP] MR XLI WIGSRH LEPJ SJ XLI th century that professional accountants became recognised. The Institute of Chartered Accountants in England and Wales (ICAEW) [EW KVERXIH E 6S]EP 'LEVXIV F] 5YIIR :MGXSVME MR ĆĆ KMZing its members the right to use the designation ‘chartered accountant’. Today, ICAEW is a professional membership SVKERMWEXMSR XLEX TVSQSXIW HIZIPSTW ERH WYTTSVXW SZIV GLEVXIVIH EGGSYRXERXW MR Ą GSYRXVMIW -X TVSZMHIW UYEPMÁGEXMSRW ERH TVSJIWWMSREP HIZIPSTQIRX WLEVIW ORS[PIHKI MRWMKLX and technical expertise, and protects the quality and integrity of the acGSYRXERG] ERH ÁRERGI TVSJIWWMSR -R ']TVYW XLI -RWXMXYXI SJ 'IVXMÁIH 4YFPMG %GGSYRXERXW SJ ']TVYW

-'4%' [EW WIX YT MR Ą ERH SZIV XLI TEWX ăă ]IEVW MX LEW WIIR MXW QIQFIVWLMT KVS[ JVSQ MXW SVMKMREP JSYRHIVW XS EVSYRH ā ă TPYW ERSXLIV ā WXYHIRXW 8LI TVSJIWWMSR MW GPIEVP] ÂSYVMWLMRK [MXL EPP XLI QENSV KPSFEP ÁVQW VITVIWIRXIH SR XLI MWPERH MR EHHMXMSR XS LMKLP] successful local ones. The accounting profession has always been seen EW SRI XLEX TVSZMHIW KVIEXIV TVSWTIGXW XLER TIVLETW ER] SXLIV ERH XLMW is arguably still the case but what we refer to as “the accounting profesWMSR¶ MW RSX VIWXVMGXIH XS EGGSYRXMRK ERH EYHMX ÁVQW 8LIVI MW RS QENSV GSQTER] EGXMZI MR ER] WIGXSV XLEX HSIW RSX LEZI E '*3 ERH E WYTTSVXing team of accountants. And, of course, much of Cyprus’ success as a VIKMSREP FYWMRIWW GIRXVI MW JSYRHIH SR XLI TVSJIWWMSREP WIVZMGIW ³ MRGPYHMRK EGGSYRXMRK EYHMX ERH XE\ EHZMWSV] ³ TVSZMHIH XS MRXIVREXMSREP GSQTERMIW ERH MRHMZMHYEPW Readers of Gold are familiar with the reasons that foreign entrepreRIYVW ERH FYWMRIWW TISTPI GMXI [LIR EWOIH [L] XLI] LEZI GLSWIR ']TVYW EW XLIMV FEWI SJ STIVEXMSRW ³ E KSSH PIKEP W]WXIQ E GSQTIXMXMZI XE\ VEXI E KSSH FEWI SJ WOMPPIH TISTPI E PEVKI )RKPMWL WTIEOMRK TSTYPEXMSR TVS\MQMX] XS QEVOIXW MR XLI )EWXIVR 1IHMXIVVERIER ERH XLI 1MHHPI )EWX and, of course, the country’s EU membership. But is this enough? 3R XLI JSPPS[MRK TEKIW ]SY [MPP ÁRH TVSQSXMSREP QEXIVMEP JVSQ PIEHMRK ']TVYW FEWIH EGGSYRXMRK EYHMX ERH XE\ EHZMWSV] ÁVQW -R EHHMXMSR XS TVSZMHMRK HIXEMPW SJ XLIMV TVSHYGXW ERH WIVZMGIW XLI] LEZI KMZen their response to our question: “What can Cyprus do to ensure that is remains a competitive jurisdiction and continues to attract foreign companies and investors to the island?” +MZIR XLI WYFWXERXMEP GSRXVMFYXMSR SJ XLI TVSJIWWMSR XS XLI IGSRSQ] ERH XLI JEGX XLEX [MXL JI[ I\GITXMSRW ÁRERGMEP SFWIVZIVW EVI EKVIIH XLEX XLI OI] XS IGSRSQMG KVS[XL MW *SVIMKR (MVIGX -RZIWXQIRX XLI +SZernment would do well to listen to the concerns of those who are on XLI JVSRX PMRI SJ XLI TVSJIWWMSREP WIVZMGIW WIGXSV MJ XLI GSYRXV] MW XS WII QSVI MRZIWXQIRX F] JSVIMKR GSQTERMIW ERH MRHMZMHYEPW

DEVELOPING FINANCE LEADERS OF THE FUTURE www.goldnews.com.cy | GOLD | 51

Developing ﬁnance leaders

Ensuring that you have professionals with the ability to think strategically, problem solve and add value right across your organisation is vital for long-term success. With the recruitment of graduates becoming increasingly competitive, having the right qualification on offer is key and can help you to attract the right candidates to your organisation. ICAEW Chartered Accountants are recognised around the world as leaders in accountancy, finance and business. Their qualification, the ACA, can help you to attract and retain talented individuals who will enhance the performance of your organisation. Thousands of organisations around the world are already benefitting from training ICAEW Chartered Accountants, as do many in Cyprus. It is easy to become an ICAEW Authorised Training Employer and it involves no cost. The ACA qualification has been available in Cyprus for over 20 years. The value ICAEW Chartered Accountants offer to the accountancy profession, financial services, and across the business sector, is recognised throughout the country. The quality, reputation and flexible training model of the ACA qualification enables organisations to attract talent and train ICAEW Chartered Accountants in different types of organisations. 52 | GOLD | The Business Magazine of Cyprus

Attract and develop talent Being amongst the first firms to be approved to provide ACA training in Cyprus, we have been very pleased with the calibre of our people holding and training towards the ACA qualification and the excellent relationship we have formed with the ICAEW over the years. We consistently find that ICAEW Chartered Accountants, due to the multi-faceted, dynamic nature of the qualification, deliver the quality service levels required by both our global and local clients. By speaking the right language, with the right levels of personal and soft skills intertwined, our professionals are globally mobile, with the ability to help us to achieve our aspiration to be the undisputed leaders in service provision. Janet Ioannou Director, Audit Services, Deloitte Ltd, Cyprus

Our reputation for leading the way in the development and delivery of professional qualiﬁcations will attract talented and ambitious individuals to your organisation. Talented graduates are highly sought after; they bring fresh ideas and enthusiasm and the ACA qualiﬁcation will enable you to harness their potential by providing a framework that teaches them to: ; think strategically; ; problem solve; ; identify and manage risks; ; communicate clearly; ; apply the highest ethical standards; and ; develop technical expertise. By training ICAEW Chartered Accountants they will make a proven and positive impact on your business, right from the very start.

of the future Flexibility to suit your business needs Growing up, my father was my motivation. He’s an ACA and a member of ICAEW’s Corporate Finance Faculty. Seeing my brother qualify as a chartered accountant also inspired me to follow the family profession. Becoming president of the Cyprus Chartered Accountants’ Student Society has helped improve my communication, presentation and social skills and involves a lot of teamwork. Several activities involve presentations concerning the profession or wider business issues to help enhance our commercial awareness and career advancement.

Katerina KPMG, Cyprus

Globally recognised expertise As a world leader of the accountancy and finance profession, we support over 145,000 chartered accountants in more than 155 countries around the world. Our chartered accountancy qualification is globally recognised, rigorous and carefully structured. It is one of the most advanced qualifications available. Our authorised employer model ensures that the ACA qualification is completely portable. This means that ACA training is the same in Cyprus, as it is in China. Organisations do need to be authorised to offer the ACA but it’s straightforward and free, and once you’re set up, it’s not admin-heavy. We are on hand to provide support throughout this process. When you’re authorised, you will be assigned to a client relationship manager, which means you can contact them to answer any queries you or your students may have.

The modular structure of the ACA and flexible tuition options (full-time and evening/weekend classroom, online and one-to-one) allow you to tailor your students’ training around your business needs. You can ensure students are not out of the office at busy times. Modules can be studied in any order to match what your students are learning to their area of work. Frequent exam sittings also enable ultimate flexibility for timing exams. The flexibility of the ACA qualification also means you can easily offer it alongside qualifications already available to your staff or integrated with your own development programmes.

Develop accountancy, finance and business professionals The ACA qualification provides the right mix of knowledge, skills and on-the-job experience, which means that your staff will quickly develop rigorous technical knowledge, professional skills and an in-depth understanding across all areas of accounting, finance and business. This approach results in consistently high first-time pass rates and equips individuals training for the ACA with the skills they need to perform at the highest level.

Recruit the best We are also here to support you in recruiting top talent for your organisation. We can help you to meet potential recruits and promote your organisation at local universities and schools. We can also help to promote your work experience, internship/placements, school leaver and graduate ACA training opportunities to our pipeline of interested students using bespoke emails, social media

and ICAEW Training Vacancies – our online jobs portal. Free of charge to all our authorised training employers, it’s quick and easy to upload your vacancies and a great way for you to extend your reach to students of all backgrounds studying in Cyprus or abroad.

What makes the ACA different? ; The ACA qualification provides a highly-structured yet flexible qualityassured approach to developing the accountancy, finance and business skills that are vital for creating a strong in-house finance function and building your finance talent. ; All components of ACA training are compulsory which ensures a consistent benchmark of knowledge, skills and experience for your staff regardless of location, sector or area of expertise. ; Exam questions are not just academic, but reflect practical, work-based situations which means that students can put theoretical learning into practice. ; The learning materials for the ACA exams are written by ICAEW examiners. Students are only examined on what appears in the learning materials. ; Ethics and professional scepticism is integrated throughout ACA training and examined as part of all 15 ACA modules.

For more information on how your organisation can beneﬁt from training ICAEW Chartered Accountants, contact us: T +44 (0)1489 878 499 or +357 99723275 E kate.holroyd-smith@icaew.com or christiana.diola@icaew.com

Find out more at icaew.com/trainACA www.goldnews.com.cy | GOLD | 53

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AUDITCHART LIMITED

uditchart Limited is a dynamic firm of Certified Public Accountants and Registered Auditors based in Limassol. The firm was founded in 1996 by George Themistocleous and, following eight years of substantial growth, it evolved into a limited liability company in 2004, under its current corporate name. For 20 consecutive years, we have been servicing our local and international clients, focusing on their individual requirements and building strong business and interpersonal relations. The cornerstone of our company is incorporated fully in our motto â&#x20AC;&#x153;Servicing with Quality and Trustâ&#x20AC;?, which is a guiding principle and our source of strength, reflected in a loyal and growing clientele. OUR SERVICES At Auditchart, we offer all our clients a broad range of professional services, which are significant tools for better decision-making. These include: â&#x20AC;˘ Audit and assurance in accordance with the ISA and reporting under IFRS and IAS â&#x20AC;˘ Tax services in both direct and indirect taxation. These in-

What can Cyprus do to ensure that it remains a competitive jurisdiction and continues to attract foreign companies and investors to the island? â&#x20AC;&#x153;Over the years, Cyprus has developed H Z\JJLZZM\S Ă&#x201E;UHUJPHS PUK\Z[Y` IHZLK VU [OL WYVMLZZPVUHSPZT HUK PU[LNYP[` VM [OL ZLY]PJL WYV]PKLYZ P L HJJV\U[HU[Z [H_ HK]PZVYZ SH^`LYZ HUK IHURLYZ <UKV\I[LKS` [OL H[[YHJ[P]L [H_ LU]PYVUTLU[ HUK Z[YHPNO[MVY^HYK Z`Z[LT HYL ZPNUPMPJHU[ HUK PTWVY[HU[ LSLTLU[Z ;VKH` 0 WLYZVUHSS` MLLS [OH[ [OLZL MHJ[VYZ HYL UV[ adequate; there PZ ZV T\JO TVYL [V IL KVUL ,_[LUKPUN V\Y +;; WHY[ULYZ HUK MVJ\ZPUN VU JV\U[YPLZ ^OPJO JHU IL VM H NYLH[ PTWVY[HUJL T\Z[ IL [VW SPZ[LK PU V\Y WYPVYP[PLZ )YHaPS (\Z[YHSPH 2HaHROZ[HU HYL ZVTL L_HTWSLZ 0 T\Z[ HKTP[ [OH[ [OL THU\MHJ[\YPUN PUK\Z[Y` PZ UV[ V\Y Z[YVUN JHYK I\[ [OPUNZ JV\SK IL H SV[ KPÉ&#x2C6;LYLU[ PM ^L PUUV]H[L HUK [Y\Z[ [OL *`WYPV[ LU[YLWYLUL\YZOPW HUK IYPSSPHU[ TPUKZ 4V[P]H[PVU PUJLU[P]LZ HUK ^PZL PU]LZ[TLU[Z HYL [OL RL`Z [V Z\JJLZZ -\Y[OLYTVYL [OL YL KL]LSVWTLU[ VM [OL YLHS LZ[H[L HUK JVUZ[Y\J[PVU PUK\Z[YPLZ JV\SK H[[YHJ[ ZLYPV\Z PU]LZ[VYZ HUK IVVZ[ [OL LJVUVT` 3HZ[ I\[ UV[ SLHZ[ ^L ULLK [V ILULĂ&#x201E;[ MYVT Z[YH[LNPJ SVJH[PVU HUK LTLYNL PU[V [OL ZHMLZ[ I\ZPULZZ HUK PU]LZ[TLU[ O\I PU [OL 4LKP[LYYHULHU *YLH[PUN MYLL [YHKL aVULZ HUK M\SS` \[PSPaPUN V\Y WVY[Z MVY [YHUZP[ PU ,\YVWL (ZPH (MYPJH HUK 4PKKSL ,HZ[ ^PSS HZZPZ[ \Z PU WSH`PUN H SLHKPUN YVSL PU PU[LYUH[PVUHS [YHKPUN HUK ZOPWWPUN PUK\Z[YPLZ Âš GEORGE THEMISTOCLEOUS, Managing Director

CONTACT INFORMATION: AUDITCHART LIMITED

clude local and international tax planning, as well as restructuring support â&#x20AC;˘ Risk assurance services and solutions. Risk management and compliance, digital risk, internal audit â&#x20AC;˘ Startups and Advisory services on mergers and acquisitions, due diligence, business strategic planning, feasibility studies, HR and funding consultation HOW DO WE DIFFERENTIATE? We serve our clients with enthusiasm, vision and creativity. Our exceptional attention to detail, high-calibre teams and associates, low staff turnover and broad knowledge are significant elements in our ability to secure personalized service and trust. Obtaining ICPACâ&#x20AC;&#x2122;s Quality Checked Award and being accredited as an ACCA Approved Employer (Platinum level) and AIA Training Office sends out a strong signal about our commitment to the provision of client-centred professional services. INTERNATIONAL MEMBERSHIP We are members of CPAAI, an association consisting of more than 150 independent accounting firms worldwide. Being a member of CPAAI allows us to provide high quality services on a global scale.

Address: .SHKZ[VUL :[ 2LYTPH *V\Y[ UK Ă&#x2026;VVY 3PTHZZVS c Postal address: 7 6 )V_ 3PTHZZVS c Tel: Fax: c e-mail: PUMV'H\KP[JOHY[ JVT c Website: ^^^ H\KP[JOHY[ JVT 54 | GOLD | The Business Magazine of Cyprus

Ser v icing with Quality and Trust Certified Public Accountants and Registered Auditors

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IN THE INVESTMENT FIRMS IN CYPRUS

FUNDS SECTOR

BAKER TILLY IN SOUTH EAST EUROPE STRONG INTERNATIONAL PRESENCE: CYPRUS, GREECE, ROMANIA, BULGARIA, MOLDOVA

aker Tilly in South East Europe is a leading regional network of auditors, accountants, tax advisors and business consultants, operating within the framework of the strong international network of Baker Tilly International, the 8th largest accounting network in the world, represented by 165 firms in 141 countries and 28.000 people. The firm was founded in 1996 in Cyprus, and gradually grew to surpass geographical boundaries to include under its umbrella firms in Greece, Romania, Bulgaria and Moldova. Today, Baker Tilly, with 7 offices and 20 partners employs more than 300 professionals, all having as a primary objective to offer comprehensive, practical and reliable professional services towards an excess of 6,000 customers both locally and internationally, making it the 5th largest firm in Cyprus and among the 10 most substantial firms within the countries it operates.

What can Cyprus do to ensure that it remains a competitive jurisdiction and continues to attract foreign companies and investors to the island? Â¸*`WY\Z PZ MHZ[ ILJVTPUN VUL VM [OL [VW LTLYNPUN PU[LYUH[PVUHS I\ZPULZZ O\IZ PU ,\YVWL K\L [V P[Z JVU[PU\V\Z LÉ&#x2C6;VY[Z [V \WNYHKL P[Z SLNPZSH[P]L HUK YLN\SH[VY` MYHTL^VYR HZ ^LSS HZ P[Z Z[YVUN UL[^VYR VM WYVMLZZPVUHS HUK Ã&#x201E;UHUJPHS ZLY]PJLZ ;OL .V]LYUTLU[ V]LY [OL WHZ[ JV\WSL VM `LHYZ OHZ THUHNLK [V W\ZO [OYV\NO H U\TILY VM PUP[PH[P]LZ Z\JO HZ PTWYV]PUN [OL [H_ LU]PYVUTLU[ HUK NYHU[PUN 9LZPKLUJ` 7LYTP[Z HUK 7HZZWVY[Z ^OPJO OHZ H[[YHJ[LK MVYLPNU JVTWHUPLZ HUK PU]LZ[VYZ [V [OL PZSHUK ;OL ZPNUPÃ&#x201E;JHU[ U\TILY VM T\S[PUH[PVUHS JVTWHUPLZ HUK PU[LYUH[PVUHS IHURPUN \UP[Z HSYLHK` VWLYH[PUN PU *`WY\Z PZ WYVVM VM [OPZ (KKP[PVUHSS` [OL YLJLU[ KPZJV]LY` VM O`KYVJHYIVUZ HUK [OL HK]HUJLTLU[ VM [OL WYPTL KL]LSVWTLU[ THYRL[ HYL HSZV JVUZPKLYLK [V OH]L H O\NL PTWHJ[ VU [OL *`WY\Z LJVUVT` YLZ\S[PUN [V [OL H[[YHJ[PVU VM PU[LYUH[PVUHS PU]LZ[VYZ 4HPU[HPUPUN ILZ[ WYHJ[PJLZ HUK PU]LZ[VY WYV[LJ[PVU WYVTV[PUN NYV^[O PU]LZ[PUN PU YLUL^HISL LULYN` LUOHUJPUN V\Y [V\YPZT WYVK\J[ HUK PTWYV]PUN V\Y PUMYHZ[Y\J[\YL ZOV\SK IL [OL JVYL ]HS\LZ VM IV[O I\ZPULZZ HUK .V]LYUTLU[ LÉ&#x2C6;VY[Z [V LUZ\YL [OH[ *`WY\Z YLTHPUZ H JVTWL[P[P]L Q\YPZKPJ[PVU HUK JVU[PU\LZ [V H[[YHJ[ MVYLPNU JVTWHUPLZ HUK PU]LZ[VYZ [V [OL PZSHUK Â¹ 4(906: Ê&#x203A; 230;6< CEO

OUR SERVICES â&#x20AC;¢ At Baker Tilly, we pride ourselves in offering a holistic, one-stop shop service of the highest standards to clients in all their geographical locations and areas of operation. â&#x20AC;¢ We provide a full spectrum of audit, accounting, tax and business advisory services to clients of all sizes across all industries, whilst devoting enough personal attention and partner involvement to meet and exceed our clientsâ&#x20AC;&#x2122; expectations. â&#x20AC;¢ Our membership with Baker Tilly International provides us with a range of resources, including access to the specialist knowledge, experience and intellectual property of thousands or recognised experts worldwide. â&#x20AC;¢ We maintain our quality services to the highest of standards as we undergo regular Quality Assurance and Peer review visits by our networkâ&#x20AC;&#x2122;s technical team and hold the â&#x20AC;&#x2DC;ICPAC Quality Checkedâ&#x20AC;&#x2122; certificate. As Baker Tilly we are proud for, as we evolve, our clients emerge amongst us.

CONTACT INFORMATION: BAKER TILLY IN SOUTH EAST EUROPE /LHK 6É&#x2030;JL! *VYULY * /H[aVWV\SV\ :[ .YP]HZ +PNOLUPZ (]LU\L 5PJVZPH c Ê¬LS! c e-mail: PUMV'IHRLY[PSS`RSP[V\ JVT Website: ^^^ IHRLY[PSS`RSP[V\ JVT 56 | GOLD | The Business Magazine of Cyprus

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ACCOUNTING,

AUDIT & TAX ADVISORY

FIRMS IN CYPRUS

BDO LTD

DO Ltd is amongst the largest ADMINISTRATIVE AGENT professional services firms in Cyprus, â&#x20AC;˘ Accounting for all transactions and movements employing over 100 professionals â&#x20AC;˘ Portfolio valuations providing audit, tax, accounting, global â&#x20AC;˘ Reconciling portfolios and accounting records with the compliance and advisory services, service providers involved predominantly to International clients â&#x20AC;˘ Checking investment restrictions in all areas of business activity. â&#x20AC;˘ Maintaining, storing and archiving accounting data We have been a member of BDO International Ltd since â&#x20AC;˘ Calculating taxes and levies 2006. BDOâ&#x20AC;&#x2122;s global network provides advisory services in â&#x20AC;˘ Calculating and publishing net asset values 154 countries, with over 64,300 people working â&#x20AC;˘ Liaising with external auditors out of more than 1,200 offices worldwide. We have â&#x20AC;˘ Preparing consolidated financial statements in demanding client service standards that all our firms accordance with the accounting standards required What can Cyprus must meet and we trust and empower our people to â&#x20AC;˘ Preparing and sending out financial and legal do to ensure that it remains a competiuse their skills and experience to deliver the excepreports tive jurisdiction and tional service that global clients expect. REGISTRAR AGENT continues to attract Our distinctive reputation for building close personal â&#x20AC;˘ Maintaining shareholder registers foreign companies and investors to the relationships with our clients is based on our comâ&#x20AC;˘ Registering and performing transactions (subisland? mitment to all our stakeholders that what matters scriptions, redemptions, conversions, transfers and to them matters to us. We work with our clients to distributions) Â¸7YVMLZZPVUHSPZT HUK X\HSP[` ZWLLK define what exceptional client service means to them â&#x20AC;˘ Settling and monitoring transactions LÉ&#x2030;JPLUJ` HUK LHZL VM and we aim always to bring insight and up-to-date â&#x20AC;˘ Convening shareholders to annual general meetings I\ZPULZZ HYL [OL M\Uthinking to help them meet their objectives. and issuing other communications KHTLU[HS WYLYLX\PZP[LZ [V H Z\JJLZZM\S PU[LYUHBDO network firms combine their in-depth techniâ&#x20AC;˘ Applying the anti-money laundering and count[PVUHS I\ZPULZZ JLU[YL cal knowledge and expertise of the local market with er-terrorism financing (AML) rules and control 6\Y NV]LYUTLU[ PUZ[Pthe specific expertise and technical resources of a procedures [\[PVUZ T\Z[ JVU[PU\L [OLPY LÉ&#x2C6;VY[Z [V YLK\JL worldwide network to provide effective and relevant â&#x20AC;˘ Identifying clients (KYC / risk management) I\YLH\JYHJ` HUK LTadvice to the highest standards. IYHJL [LJOUVSVN` [V DOMICILIATION AND CLIENT Our Fund services department specializes in proLUZ\YL [OL` JHU SP]L \W COMMUNICATIONS AGENT [V [OL PUJYLHZPUN WHJL viding fund advisory services, administration and â&#x20AC;˘ Registered offices HUK KLTHUKZ VM PU[LYsupport services enabling our clients to set up and UH[PVUHS I\ZPULZZ Âš â&#x20AC;˘ General secretariat and administrative management manage regulated funds anywhere in the EU. 2(936: â&#x20AC;˘ Correspondence management ZANGOULOS, â&#x20AC;˘ Organizing board and shareholder meetings Managing Partner INCORPORATION SERVICES â&#x20AC;˘ Managing notifications, notices, and legal anâ&#x20AC;˘ Establishment of regulated Alternative and UCITS nouncements funds anywhere in the EU â&#x20AC;˘ Managing invoices â&#x20AC;˘ Establishment of regulated fund management â&#x20AC;˘ Maintaining, storing and archiving documents companies and alternative investment fund management â&#x20AC;˘ Managing the secure access to confidential data companies and advising throughout the licensing procedure â&#x20AC;˘ Assisting you to identify corporate officers with the relevant â&#x20AC;˘ Assisting in the drafting of the necessary procedures manuexperience als to comply with the relevant laws and regulations BDO Fund Services Ltd, a Cyprus limited liability company, â&#x20AC;˘ Advising to ensure compliance with the applicable UCITS is a subsidiary of BDO Ltd and a member of BDO Intermanagement company and AIFM Laws national Limited, a UK company limited by guarantee, and â&#x20AC;˘ Coordination of Securities Services Providers and other forms part of the international BDO network of indepenoutsourcing solutions dent member firms. BDO is the brand name for the BDO â&#x20AC;˘ Drafting of the prospectus network and for each of the BD â&#x20AC;˘ Preparation of business plans CONTACT INFORMATION: BDO LTD

NICOSIA: Address: :[YV]VSVZ (]LU\L :[YV]VSVZ 5PJVZPH *`WY\Z c Postal Address: 7 6 )V_ 5PJVZPH *`WY\Z Tel: c Fax: c e-mail: UPJVZPH'IKV JVT J` c Website: ^^^ IKV JVT J` c Contact: 2HYSVZ AHUNV\SVZ LIMASSOL: Address: =PL^ 7VPU[ ;V^LY [O 6J[VILY :[YLL[ :LHMYVU[ 9VHK -SVVYZ HUK 76 )V_ *@ 3PTHZZVS Tel: c Fax: c Postal Address: 7 6 )V_ 3PTHZZVS *`WY\Z c Tel: c Fax: e-mail: SPTHZZVS'IKV JVT J` c Website: ^^^ IKV JVT J` c Contact: 9VPZ 7V[HTP[PZ 58 | GOLD | The Business Magazine of Cyprus

BDO Fund Services Total Fund Solutions that allow you to focus on what matters most-your fund’s performance. A # "! ! 897:)9:7/3- '3* /3)47547'9/43 A :3* *2/3/897'9/43 A +-/897'7 "7'38,+7 -+39 A 42/)/1/'9/43 A +(9 897:)9:7/3- '3* (43* /88:'3)+ )'5/9'1 897:)9:7+ 459/2/?'9/43 A !41:9/438 ,47 8+):7/9/+8 1+3*/3- (4774</3BDO Fund Services Ltd is a subsidiary of BDO Ltd, a Cyprus limited liability company. BDO Ltd is a member of BDO International Limited, a UK company limited by guarantee and forms part of the international BDO network of independent member firms. BDO Fund Services Ltd is registered in Cyprus under registration no HE327441. A list of directors and their professional qualifications can be obtained at our registered office.

Nicosia 236 Strovolos Avenue 2048 Strovolos, Nicosia P.O. Box 25277, 1308 Nicosia T + 357 22 495707 F + 357 22 495717 Karlos Zangoulos nicosia@bdo.com.cy

Limassol View Point Tower, 261 28th October Street (Seafront Road), Floors 6, 7 and 8 PO Box 51681, CY3507, Limassol T + 357 25 847400 F + 357 25 735455 Rois Potamitis www.goldnews.com.cy | GOLD | 59 limassol@bdo.com.cy

Deloitte Limited

Working together with our clients As One Always one Step Ahead The success of our firm is defined by the strength of the relationships we have with our clients. Helping their businesses succeed is at the core of everything we do.

eloitte, with more than 550 professionals operating out of offices in Nicosia, Limassol and Larnaca, is one of the largest professional services organisations in Cyprus, providing a full range of services to a diverse client portfolio. Our services include audit, tax, consulting, financial advisory, wealth advisory and an integrated services offering addressed primarily to the international business community, focusing on accounting and payroll, tax compliance and the formation and administration of companies, partnerships and trusts. As part of the Deloitte global network, with more than 225,000 people in over 150 countries, we have the advantage of a global sharing of knowledge with a local adaptation and personal approach, built on the solid foundations of more than 55 years of successful operation on the island. Our plans for the future are rooted in Deloitte’s global 2020 strategy and our global vision, to become the “Undisputed leader in professional services”, “the first choice of the most sought-after clients and talent”, famous for the calibre of our people and respected for the exceptional quality of our work. Our “As One” strategy, with focused and targeted market investment, will help us secure and widen our leadership position in our market.

Our core services Delivering outstanding service to all clients is our top priority. We, at Deloitte, offer our clients a broad range of fully integrated services in areas that include Audit, Tax, Consulting and Financial Advisory. Our client service teams, under the leadership of a Lead Client Service Partner, help create powerful business solutions for organisations

60 | GOLD | The Business Magazine of Cyprus

operating all over the world. This integrated approach combines insight and innovation with business knowledge and industry expertise to help our clients exceed their expectations. Our wide range of professional services includes: •Audit & ERS In today’s changing global economy, businesses need trusted advisors. Because our audit professionals take time to understand our clients’ business and needs, we help them identify major risks and opportunities over and above performing the traditional financial reporting function. We offer our clients a broad range of audit and enterprise risks services. Our audit services include statutory audits of financial statements, non-statutory audits and other attest opinions, International Financial Reporting Standards (IFRS) services and governance services. Our ERS services include internal audit, IT audit and control assurance. Deloitte Audit is the latest generation of Deloitte’s transformed audit platform, which is purposefully designed to address the complexities of modern businesses, incorporating new methodologies, content, and technologies to ensure relevant, high quality audits in a constantly changing environment. •Tax & Legal The provision of taxation services is core to Deloitte’s business both in Cyprus and in the international arena. Deloitte has one of the largest teams of taxation experts in Cyprus, providing a full range of business and personal taxation services. Our Tax & Legal services team keeps our

clients up to speed on the developments that may affect their business, help them interpret their significance and integrate tax considerations into their strategy, with special emphasis on business tax, personal tax, indirect tax (including VAT), global employer services (including solutions for high net wealth individuals) and cross-border tax. •Business Process Solutions Our Business Process Solutions team provides a broad range of professional services which are tailored to support both international and local clients with offices in Cyprus and also clients who elect to outsource specific accounting and administration processes. Our team of highly trained and suitably qualified accounting professionals, recognise the specific needs of our clients and offer an extensive range of accounting and administrative services, providing the necessary assistance and professional support to enable our clients to operate their business enterprises smoothly and efficiently. Our Business Process Solutions include accounting and payroll, contract administrative and other, tax compliance and formation & administration of companies, partnerships and trusts.

•Consulting Services Our consultants help our clients improve business performance and increase shareholder value. We combine expert business strategy and financial skills with the ability to deliver major business change programmes. Our consulting services include human capital services, strategy transformation schemes, technology specific solutions and actuarial & insurance solutions. •Wealth Advisory Services Our wealth advisory team has the resources and capabilities to deal with all aspects of the financial affairs of high net worth clients under one roof and to look after the client’s finances on a long term basis. Our team provides practical and imaginative wealth management solutions combining sound investment advice, with tax efficient structures and long term succession planning. In addition our team provides transaction advice, international advice as well as family office services. Our investment fund services team which includes investment, tax, wealth management, accounting, audit, corporate finance and consulting specialists provides tailor made multi-disciplinary solutions to investment funds. The team can assist with the formation of a fund, ongoing tax consulting and compliance, audit, investment compliance and the raising and introduction of capital. •Financial Advisory Services Our Financial Advisory Services professionals provide strategic and financial advisory services to clients throughout every phase of the economic cycle. By managing our service offerings, we can extract synergies, from our deep specialisation to provide added value to our clients. Our Financial Advisory Services team provides corporate finance, M&A transaction and valuation services, feasibility & reorganisation studies. The team also undertakes forensic and dispute resolution services and advice on grants & incentives. Industries Understanding the implications of the services we provide is one of the ways we insure success. Multifunctional industry groups representing each of our service areas create client specific solutions that add value across an organisation. Our main industry groups include: - Financial Services - Oil & Gas

Cyprus Tax Firm of the Year for 2016 Winning is a state of mind

eloitte received the ‘Cyprus Tax Firm of the Year’ award for 2016, at the 12th Annual International Tax Review (ITR) European Tax Awards held in London on 26 May 2016. This is the third time in the last four years that our firm has achieved this great accomplishment. ‘The continuous recognition on behalf of the ITR, reflects the consistency of the high quality tax services we offer to our clients. At Deloitte we aim to be “the standard of excellence” and we work hard to achieve this year on year’, said Pieris Markou, Tax & Legal Services Leader of Deloitte Cyprus. The provision of tax services is one of the core services provided by Deloitte both in Cyprus and abroad, with particular emphasis on corporate tax, personal tax, VAT and international tax planning. Deloitte’s CEO, Christis Christoforou, receives Cyprus Tax Firm of the Year 2016 Award during ITR’s European Tax Awards Ceremony.

- Energy & Resources - Shipping - Consumer Business - Travel, Hospitality and Leisure - Technology, Media & Telecommunications - Public Sector - Real Estate & Construction - International Business People and Talent The power of Deloitte is its people, and the future of the organisation lies on their continued delivery of exceptional service and innovation. Our aim at Deloitte is to be the first choice of the most sought after talent. To achieve this, we focus on three priorities: make explicit our employer value proposition, build a true coaching culture, and focus on our differentiators - flexibility, diversity, mobility and performance excellence. Our firm’s continuous investment in its people and the provision of quality of services is recognised by local and international bodies and organisations. The latest recognition came from the International Tax Review for naming our firm Cyprus Tax Firm of the Year for 2016. Corporate Social Responsibility At Deloitte, corporate responsibility is the heart of everything we do: our approach to quality, leadership, talent and our clients. Our business is built on the quality of our work, on

strong ethical principles and integrity, on an understanding of our impact on wider society and the trust placed in us by our clients. We understand that our business has wide and farreaching impacts and that being responsible in every aspect of the way we conduct our work is crucial to our own long-term success. We are already renowned for the quality of our clients, for our own business performance, for the influence we have and how we set the agenda on matters that transcend our business self-interest. We want to continue to build on our reputation and be regarded as the responsible business.

Contact Information Nicosia: 24 Spyrou Kyprianou Ave, CY 1075 Nicosia Tel.: 22 360300, Fax: 22 360400 E-mail: infonicosia@deloitte.com Limassol: Maximos Plaza, Tower 1, 3rd floor 213 Arch. Makarios III Avenue, CY 3030 Limassol Tel.: 25 868686, Fax: 25 868600 E-mail: infolimassol@deloitte.com Larnaca: Patroclos Tower, 4th floor 41 - 43 Spyrou Kyprianou, CY 6051 Larnaca Tel.: 24 819494, Fax: 24 661222 E-mail: infolarnaca@deloitte.com

www.deloitte.com/cy

www.goldnews.com.cy | GOLD | 61

info@eurofast.eu | www.eurofast.eu

Eurofast: Your Regional Business Advisory team Eurofast has over 25 years of experience providing advisory services. Our multicultural team of advisors with diverse backgrounds and experience including tax, legal, M&A, payroll, accounting, audit and consulting are always up-to date with the latest developments in the region in tax, accounting and legal and can add value to your expansion plans. Eurofast provides comprehensive tax advisory services in Cyprus. Our tax team offer a wide range of tax advisory services including international tax planning, indirect tax, transfer pricing and international trusts. We also advise on tax related issues for liquidations, joint ventures, mergers & acquisitions, re-organizations and real estate.

Our Network We are uniquely positioned as one stop shop for investors looking to enter South East Europe and Eastern Mediterranean and Africa. We have 21 fully fledged offices in Athens, Thessaloniki, Nicosia, Sofia, Bucharest, Belgrade, Podgorica, Tirana, Skopje, Zagreb, Pristina, Banja Luka, Sarajevo, Cairo, Alexandria, Tbilisi, Beirut, Erbil, Moscow, Kiev and Tehran. Eurofast is Taxand Cyprus. Taxand provides high quality, integrated tax advice worldwide. Our tax professionals, nearly 400 tax partners and over 2,000 tax advisors in nearly 50 countries—grasp both the fine points of tax and the broader strategic implications, helping you mitigate risk, manage your tax burden and drive the performance of your business. We're passionate about tax. We collaborate and share knowledge, capitalising on our collective expertise to provide you with high quality, tailored advice that helps relieve the pressures associated with making complex tax decisions.

quality or service. Our portfolio includes a number of high net worth individuals and clients engaged in every sector of the economy, which proves the range of our abilities. Our competitive advantage stems from our ability to serve our clients promptly, efficiently and effectively. Every Eurofast office consists of teams ranging from 15-60 professionals Eurofast is managed by a team of professionals capable of addressing all client needs in all the countries of operation in the Region in one single meeting, using one single language for all the countries involved. The fact that all local Eurofast offices are fully fledged subsidiaries of the Cyprus office enables us to implement and maintain a uniform region-wide management policy with the same client focused approach and partner led personal service.

Our credentials Our clients, global brands and leading institutions, operating in the manufacturing, retail, airlines and professional services sector, are the vivid evidence that Eurofast is your trusted business advisor in South East Europe and East Mediterranean. We have achieved worldwide market recognition for our exceptional advice, capabilities and innovation. We have been acknowledged as a leader in Tax in Cyprus for the past 8 years. We have been ranked top Tax Advisors and announced “Cyprus Tax firm of the Year” by International Tax Review which is a true recognition for the valued client work we deliver every day. For 2016 we were acknowledged by Acquisition International as ‘Corporate Adviser of the Year – South East Europe’ for our work done in the Region. In 2015, Eurofast has ranked Tier One Tax Planning Advisor by International Tax Review for the Seventh time in a row. In 2014, Eurofast was also recognized for its expertise in M&A.

Our competitive advantage We seek to delight our clients, by being proactive. Our aim is to create client enthusiasm by giving even more value to our clients, whether measured by price, performance,

Eurofast is Taxand Cyprus.

For more information on Eurofast, its offices and its service portfolio, please visit www.eurofast.eu. 62 | GOLD | The Business Magazine of Cyprus

info@eurofast.eu | www.eurofast.eu

Your Regional Business Advisory Organisation

Twenty one cities

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FCI Services Ltd: A dynamic presence to tackle all challenges in a time of need Mrs Andri Constantinides and Mr Andreas Evangelou, Directors of FCI Services Ltd are presenting the ways their company and its services can assist enterpreneurs to overcome the current economic GLIĂ&#x203A;FXOWLHV LQ WRGD\pV IUDJLOH HQYLURQPHQW

Mr. Evangelou, how can FCI Services Ltd assist Cyprus Businesses during these hard times?

:H DW )&, 6HUYLFHV /WG DSSO\ ZKDW ZH SUHDFK Therefore, apart from the traditional accounting Mr Evangelou what is your DQG Ă&#x203A;QDQFLDO VHUYLFHV WKDW DUH WKH FRUH RI RXU opinion of Cyprus economy business, we extended our services to specialised today? advisory services to local and international companies, with the scope to practically liquation, banking / The adversities of recent years OHQGLQJ SURGXFWLYLW\ RU RWKHU FKDOOHQJHV have raged and challenged, not only the economy of Cyprus, These advisory services include organization and EXW DOVR RI WKH HQWLUH ZRUOG 0RUH VXSHUYLVLRQ RI DFFRXQWV GHSDUWPHQWV DQG Ă&#x203A;QDQFLDO important it had negative impact management, business planning, feasibility studies on society (with unemployment) for start-ups or new ventures, due diligence, DQG WKH EXVLQHVV HQYLURQPHQW LQ JHQHUDO valuations, loan restructuring, internal control systems, ULVN PDQDJHPHQW JUDQWV DQG WKH OLNH Despite the progress made in the economy, the politico - economic conditions as they are Mrs Constantinides can you tell us of the developing locally and worldwide, especially main values of your company. in the Middle East, create a very fragile political and economic environment that bears risks that FCI Services Ltd, all through its 40 years of experience government and businessmen need to be able to cherishes these constant values: UHFRJQLVH DQG DGGUHVV Through wisdom we provide excellent work Mrs Constantinides, how do Through inspiration we provide innovative solutions you view Cyprus businesses? Through passion we provide excellent service Though integrity we provide trustful relationships I believe that Cyprus businesses Through professionalism we cherish company history need to re-adjust to the new trends and situations in order to overcome the restrains and Our philosophy is to provide valuable work to empower take advantage of recent and our Clients, however big or small, to exceed and XSFRPLQJ RSSRUWXQLWLHV 7KHVH DFKLHYH SURĂ&#x203A;WDELOLW\ KHQFH XOWLPDWHO\ WR LQFUHDVH may result to drastic changes WKHLU Ă&#x203A;QDQFLDO ZRUWK of internal procedures and may require hard decision making in terms of business strategy DQG RULHQWDWLRQ SURGXFWV VHUYLFHV DQG SHUVRQQHO Times call for a refresh attitude by both management DQG VWDII 7KH FRPSDQLHV WKDW ZLOO VXUYLYH DUH those that will adopt and continue to offer value DGGHG WR WKHLU FOLHQWV Business should bear in mind that apart from the local problems, they have to face strong competition by international/foreign companies that are opening XS RSHUDWLRQV LQ &\SUXV RQ SHUPDQHQW RU SURMHFW EDVLV 64 | GOLD | The Business Magazine of Cyprus

Which sections of the industry FCI serves, Mrs Constantinides, what actions may positively Mr Evangelou? affect the Cyprus economy? Our services are addressed to the whole spectrum RI HQWUHSUHQHXUVKLS :H ZRUN ZLWK ODUJH PHGLXP and small sized legal entities and physical persons ZLWK RSHUDWLRQV LQ &\SUXV DQG LQWHUQDWLRQDOO\

Undoubtedly the hotel and tourism and then the services sector are the foremost stable sectors that historically contributed positively to Cyprus HFRQRP\ LQ WLPHV RI FULVLV , EHOLHYH E\ WDNLQJ DGYDQWDJH RI WKH FRXQWU\pV DGYDQWDJHV PD\ UHVXOW Moreover we are promoting Cyprus as a business LQ IXUWKHU GHYHORSPHQW (QFRXUDJHPHQW PXVW EH and investment centre and provide comprehensive to areas like health, new types of construction, support to companies that choose to do business DOWHUQDWLYH HQHUJ\ OLJKW LQGXVWU\ DQG HGXFDWLRQ WKURXJK RU IURP &\SUXV We are convinced that unemployment and sluggish economy may recover by developing innovative We are serving the whole sphere of industry â&#x20AC;&#x201C; products and services through young scientists/ wholesale, retail, construction & development, SURIHVVLRQDOV manufacturing, services, travel â&#x20AC;&#x201C; tourism â&#x20AC;&#x201C; hotel, VKLSSLQJ QDYLJDWLRQ As a conclution, FCI Services Ltd declares its dynamic presence with professionalism, integrity, experience and NQRZ KRZ LQ WKHVH VLJQLÃ&#x203A;FDQW FKDOOHQJHV DQG SURVSHFWV HPHUJLQJ LQ &\SUXV Integrated, Innovative Accounting - Financial Services - Advisory Services, under the same roof

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ACCOUNTING

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HORWATH DSP LIMITED

stablished in 1987, Horwath DSP Limited is an accountancy firm with offices in Nicosia and Limassol, offering audit, tax, risk and advisory solutions to a diverse clientele in the local market and abroad. Horwath DSP Limited is a member of Crowe Horwath International, one of the top 10 global accounting networks. The Crowe Horwath network consists of more than 200 independent accounting and advisory services firms in over 120 countries around the world. THE TEAM With 6 partners, 90 professionals and over 2.500 clients, Horwath DSP is one of the leading accountancy firms in Cyprus. The firm employs some of the most highly trained, educated and experienced individuals in Cyprus who are able to provide the highest level of client service. All key members of the team

What can Cyprus do to ensure that it remains a competitive jurisdiction and continues to attract foreign companies and investors to the island? â&#x20AC;&#x153;Over the years, Cyprus has developed a successful Ã&#x201E;UHUJPHS PUK\Z[Y` IHZLK VU [OL WYVMLZZPVUHSPZT HUK PU[LNYP[` VM [OL ZLY]PJL WYV]PKLYZ P L HJJV\U[HU[Z [H_ HK]PZVYZ SH^`LYZ HUK IHURLYZ <UKV\I[LKS` [OL H[[YHJ[P]L [H_ LU]PYVUTLU[ HUK Z[YHPNO[MVY^HYK Z`Z[LT HYL ZPNUPÃ&#x201E;JHU[ HUK PTWVY[HU[ LSLTLU[Z ;VKH` 0 WLYZVUHSS` MLLS [OH[ [OLZL MHJ[VYZ HYL UV[ HKLX\H[L" [OLYL PZ ZV T\JO TVYL [V IL KVUL Z\JO HZ L_[LUKPUN V\Y +;; WHY[ULYZ HUK MVJ\ZPUN VU JV\U[YPLZ [OH[ JHU IL VM NYLH[ PTWVY[HUJL ;OPZ ZOV\SK IL H [VW WYPVYP[` )YHaPS (\Z[YHSPH HUK 2HaHROZ[HU HYL Q\Z[ ZVTL L_HTWSLZ :LJVUKS` [OL THU\MHJ[\YPUN PUK\Z[Y` PZ UV[ V\Y Z[YVUN JHYK I\[ [OPUNZ JV\SK IL H SV[ KPÉ&#x2C6;LYLU[ PM ^L PUUV]H[LK HUK [Y\Z[LK *`WYPV[ LU[YLWYLUL\YZOPW HUK ZVTL IYPSSPHU[ TPUKZ 4V[P]H[PVU PUJLU[P]LZ HUK ^PZL PU]LZ[TLU[Z HYL [OL RL`Z [V Z\JJLZZ -\Y[OLYTVYL [OL YL KL]LSVWTLU[ VM [OL YLHS LZ[H[L HUK JVUZ[Y\J[PVU PUK\Z[YPLZ JV\SK H[[YHJ[ ZLYPV\Z PU]LZ[VYZ HUK IVVZ[ [OL LJVUVT` 3HZ[ I\[ UV[ SLHZ[ ^L ULLK [V ILULÃ&#x201E;[ MYVT V\Y Z[YH[LNPJ SVJH[PVU HUK LTLYNL HZ [OL ZHMLZ[ I\ZPULZZ HUK PU]LZ[TLU[ O\I PU [OL 4LKP[LYYHULHU *YLH[PUN MYLL [YHKL aVULZ HUK M\SS` \[PSPaPUN V\Y WVY[Z MVY [YHUZP[ [V ,\YVWL (ZPH (MYPJH HUK [OL 4PKKSL ,HZ[ ^PSS HZZPZ[ \Z PU WSH`PUN H SLHKPUN YVSL PU [OL PU[LYUH[PVUHS [YHKPUN HUK ZOPWWPUN PUK\Z[YPLZ Â¹ IOANNIS DEMETRIADES, Managing Director

CONTACT INFORMATION: HORWATH DSP LIMITED

are either qualified ACA or ACCA who fully appreciate the need of adding value to the service offered to the client as well as the importance of delivering on time. MAIN SERVICES Horwath DSP takes pride in providing a timely, comprehensive service of the highest standard. The firm specialises in international tax planning and structuring and 85% of its clients are overseas clients. It offers its local and international clients the following services: â&#x20AC;¢ Audit and Assurance â&#x20AC;¢ International Tax Planning & Structuring â&#x20AC;¢ VAT Advice and Compliance â&#x20AC;¢ Corporate Consulting â&#x20AC;¢ Shipping Services â&#x20AC;¢ Provision of Business Services â&#x20AC;¢ Enterprise Risk Management â&#x20AC;¢ Set up and administration of funds

Address: :[HZZPUVZ (]LU\L Z[ -SVVY 7OV[PHKLZ )\ZPULZZ *LU[LY 5PJVZPH c Postal Address: 7 6 )V_ 5PJVZPH Tel: c Fax: c e-mail: `PHUUPZK'JYV^LOVY^H[O JVT J` c Website: ^^^ JYV^LOVY^H[O JVT J` 66 | GOLD | The Business Magazine of Cyprus

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ACCOUNTING

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IN THE INVESTMENT FIRMS IN CYPRUS

FUNDS SECTOR FU

JOANNIDES + CO.

oannides + Co. is a leading firm • Information Technology Services of accountants and management • Business Support Services consultants established in Cyprus • Alternative Investment Funds (AIFs) for over 30 years, providing audit, AUDIT AND ASSURANCE assurance, taxation, business Statutory audits support services and management The audit function is often perceived by business as consulting to international a cost which provides no value to their operations. companies and private clients. However, the audit managers at Joannides + Co., The firm has offices in adopt audit procedures which are designed Nicosia, Limassol and for the specific circumstances of their clients, Larnaca and offers its services with the utmost WE ALWAYS aim to meet the statutory requirements integrity, independence and objectivity so as ADOPT A and comply with auditing standards and, to add value to the business performance of PROACTIVE, at the same time, utilise the opportunity its clients. The professional staff of the firm PRACTICAL to identify improvements to their financial combine technical expertise and industry AND reporting systems and processes and assist in knowledge with an individualized, tailor-made FORWARDimplementing solutions which improve the service. We pride ourselves on constantly LOOKING business performance of their companies. adopting a practical and proactive approach APPROACH in offering services in a rapidly changing TO MEET THE Internal audits CHALLENGES regulatory and business environment. The internal auditors at Joannides + Co. OF A RAPIDLY Since 1996, the firm has been a member of the undertake assignments to review existing CHANGING Institute of Certified Public Accountants of INTERNATIONAL internal audit process and advise on their Cyprus and AGN International, a worldwide REGULATORY improvements, provide internal audit services association of separate and independent AND BUSINESS to entities for management and regulatory accounting and consulting firms operating in ENVIRONMENT purposes and carry out ad hoc investigations to 88 countries. detect fraud. Joannides + Co. is an approved training centre of the British professional accounting institutes TAXATION ICAEW and ACCA and, in 2010, was awarded The Tax advisors at Joannides + Co. assist the quality award certification from the Institute of international and local corporate entities and private Certified Public Accountants of Cyprus. individuals in identifying and developing tax strategies Our objective is to deliver services tailored to our which aim to minimise their tax liabilities and also clients’ needs and requirements that meet or exceed assist them in minimising their tax exposure to the those requirements. We always adopt a proactive, increased reporting obligations, tax investigation practical and forward-looking approach to meet policies and penalties imposed in recent years by the challenges of a rapidly changing international the tax authorities. Services provided by our Tax regulatory and business environment. department include: The firm provides services in the following fields: • International Tax planning • Audit and Assurance • Private individual tax planning • Taxation • VAT services • International Business Services • Management Consulting

68 | GOLD | The Business Magazine of Cyprus

INTERNATIONAL BUSINESS SERVICES Cyprus has developed into an ideal centre for the establishment of international companies. For over 34 years, our firm has been servicing the needs of international companies in Cyprus. Our specialist consultants are amongst the best on the Island, serving the varied and very often complicated requirements of international clients. Our services include: â&#x20AC;¢ Company administration services â&#x20AC;¢ Assisting in the application for residency and work permits for expatriate personnel â&#x20AC;¢ Assisting in finding suitable office accommodation â&#x20AC;¢ Assisting in finding suitable personnel â&#x20AC;¢ Performing company searches on behalf of clients MANAGEMENT CONSULTING Our consulting managers undertake to assist companies, particularly during periods of economic slowdown, in rethinking their strategies and formulating plans to address issues relating to existing or future business ventures. Other consulting services provided are: â&#x20AC;¢ Business due diligence, Business valuations â&#x20AC;¢ Mergers and acquisitions â&#x20AC;¢ Business process reviews â&#x20AC;¢ Corporate finance and loan restructuring â&#x20AC;¢ Product costing and budgeting â&#x20AC;¢ Human resource management â&#x20AC;¢ Corporate recovery services INFORMATION TECHNOLOGY SERVICES Our IT professionals are specialists with

extensive experience and provide practical assistance to clients with specific IT requirements. This includes: â&#x20AC;¢ IT strategy studies â&#x20AC;¢ Computerisation feasibility studies What can Cyprus do to ensure that is remains a competitive â&#x20AC;¢ Preparation of user requirement jurisdiction and continues to attract specifications foreign companies and investors to â&#x20AC;¢ Defining computer hardware and software the island? requirements Â¸(M[LY [OL ZL]LYL KYHÎHJR K\L [V [OL â&#x20AC;¢ Project management (system selection, Ã&#x201E;UHUJPHS HUK IHURPUN JYPZPZ *`WY\Z implementation, contractual advice, systems PZ UV^ V\[ VM [OL YLJLZZPVU OH]PUN [HRLU ZPNUPÃ&#x201E;JHU[ Z[LWZ ÔPJO OH]L integration) YLZ[VYLK [OL Z[HIPSP[` VM [OL IHURPUN â&#x20AC;¢ Undertaking ERP Implementations ZLJ[VY HUK W\[ W\ISPJ Ã&#x201E;UHUJLZ VU â&#x20AC;¢ Training H Z\Z[HPUHISL WH[O ([ [OL ZHTL [PTL [OL PU[LYUH[PVUHS I\ZPULZZ JVTT\UP[` JVU[PU\LZ [V JHZ[ H ]V[L VM JVUÃ&#x201E;KLUJL JVUZPKLYPUN *`WY\Z HZ H WYLMLYYLK O\I HUK PU[LYUH[PVUHS I\ZPULZZ JLU[YL ÔPJO JHU ILZ[ ZLY]PJL P[Z Z[YH[LNPJ WSHUUPUN ;OL YLHZVUZ Ô` NSVIHS PU]LZ[VYZ ^LYL H[[YHJ[LK [V *`WY\Z K\YPUN WHZ[ KLJHKLZ HYL Z[PSS ]HSPK I\[ [OL` ULLK [V IL JVU[PU\V\ZS` LUOHUJLK PU [OL MHJL VM NSVIHS KL]LSVWTLU[Z JYLH[PUN UL^ JOHSSLUNLZ HUK WYLZLU[PUN UL^ VWWVY[\UP[PLZ 0U[LYUH[PVUHS *VTWHUPLZ HUK PUKP]PK\HS PU]LZ[VYZ HYL MHJLK ^P[O UL^ JOHSSLUNLZ PU ]PL^ VM UL^ YLN\SH[VY` YLX\PYLTLU[Z IV[O H[ HU PU[LYUH[PVUHS HUK JV\U[Y` VM VYPNPU SL]LS 0U [OPZ JVU[L_[ *`WY\Z ULLKZ [V OH]L PU WSHJL HU LÉ&#x2030;JPLU[ [YHUZWHYLU[ HUK MVY^HYK SVVRPUN YLN\SH[VY` MYHTL^VYR ÔPJO ^PSS IL HTLUKLK YLN\SHYS` PU SPUL ^P[O [OL TVZ[ YLJLU[ PU[LYUH[PVUHS ILZ[ WYHJ[PJLZ ;OPZ NVHS JHU VUS` IL HJOPL]LK [OYV\NO JSVZL JVVWLYH[PVU IL[^LLU [OL Z\WLY]PZVY` H\[OVYP[PLZ [OL JVTWL[LU[ NV]LYUTLU[ TPUPZ[YPLZ HUK PUK\Z[Y` Z[HRLOVSKLYZ ,X\HSS` PTWVY[HU[ [V [OL SLNPZSH[P]L MYHTL^VYR PZ [V OH]L PU WSHJL HU PTWSLTLU[H[PVU HUK JVTWSPHUJL Z`Z[LT WYV]PKPUN JLY[HPU[` HUK MHPY [YLH[TLU[ [V I\ZPULZZ HUK PU]LZ[VYZ 0U [OPZ YLZWLJ[ [OL ULJLZZHY` [LJOUPJHS JVTWL[LUJL HUK L_WLY[PZL ZOV\SK JVU[PU\V\ZS` IL KL]LSVWLK I` [OL Z\WLY]PZVY` H\[OVYP[PLZ HUK [OL ZLY]PJL WYV]PKLYZ Â¹ KYPROS PROTOPAPAS, Board Member

BUSINESS SUPPORT SERVICES The business support team at Joannides + Co. has developed over the years sound skills which enable them to provide continuous support with the ultimate objective of improving the business performance of their clients, which is the cornerstone of the development of a long-term business relationship. Our services include: â&#x20AC;¢ Business start-ups and planning â&#x20AC;¢ Accounting services â&#x20AC;¢ Payroll services ALTERNATIVE INVESTMENT FUNDS (AIFS) â&#x20AC;¢ Assist in analysing fund promotersâ&#x20AC;&#x2122; objectives â&#x20AC;¢ Determine the most suitable and tax efficient form of AIF â&#x20AC;¢ Fund set-up and licensing â&#x20AC;¢ Ongoing administration and compliance process OUR CLIENTS The clientele of Joannides + Co. comprises successful organisations from all sectors of the economy, ranging from sole traders to large multinational organisations. Our large and diverse client portfolio includes well-known names in the industrial, commercial and financial world.

CONTACT INFORMATION: JOANNIDES + CO.

Address: (NPV\ 7YVRVWPV\ :[ ,UNVTP 5PJVZPH c Postal Address: 7 6 )V_ 5PJVZPH Tel: c Fax: c e-mail: J`'QVHUUPKLZ JVT J` c Website: ^^^ QVHUUPKLZ JVT J` www.goldnews.com.cy | GOLD | 69

KPMG LIMITED KPMG is part of an international network of professionals, which extends to 155 countries offering high quality services. With more than 770 employees in Cyprus, including 42 board members, KPMG examines the financial environment and develops the necessary tools and methodologies so that it responds immediately to the changing needs of businessmen and investors. KPMG is established as one of the most important organizations in Cyprus and is recognized as such by society. The Companyâ&#x20AC;&#x2122;s activities are divided in three main fields, namely audit, tax and advisory services. Each field concerns a wide range of specialized services and aims for the provision of the best possible service, adjusted to the special needs of each client. After the events in March 2013 we have proceeded to specific changes, both relating to the operation of the organization, as well as its strategy. We have enriched the range of services we offer, while we have reinforced the departments which could support the needs of our clients, the economy and society in general.

What can Cyprus do to ensure that it remains a competitive jurisdiction and continues to attract foreign companies and investors to the island? In a political and economic international environment that is constantly changing, the needs of clients, investors, businessmen and society in general are increasing and are becoming more complex. We need to evaluate these needs on a constant basis and we reform our strategy in order to continue to offer excellent quality services. In order to remain competitive as a financial centre Cyprus needs to adapt continuously to the needs of the investor and to respond quickly in the international economic changes. KPMG has played an important role in the enrichment of the financial instruments offered in Cyprus, pioneering in the promotion of the framework relating to collective investment undertakings in Cyprus. Where it is needed, we must implement changes to the tax and legal framework quickly and continue to monitor the changes implemented by other financial centres, as well as continue to develop new services and markets. We need to promote the benefits that Cyprus can offer as a business centre and continue to respond swiftly and effectively, supporting clients, wherever they are in the world, taking into consideration the increased need for objective information. It is noteworthy that we have undertaken important projects that concern the financial sector, prepared business plans and feasibility studies for large investments, supported the administrative and legal services sector, focused on the shipping and construction sectors, set up specialized teams that are working on the insolvency framework and on the management of companies administration, strengthened the department that deals with the legislation on exchange of information, granting of the Cypriot citizenship through investment and many more. Realizing the demands of the new era, we have set up new specialized departments and we have increased the variety of services we offer. It is a fact that beyond traditional markets, there are now prospects in other geographical areas. We have already set up collaborations within China, Africa, Middle East and countries of the Arab world. In 2016 we expect an increase in our activities in these markets. ANDREAS CHRISTOFIDES Managing Director

CONTACT INFORMATION KPMG LIMITED

Facing challenges in rapidly-changing markets? KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We have more than 174.000 outstanding professionals working together to deliver value in 155 countries worldwide. We have a clear vision of what we want to achieve as a network. We continuously take important steps to ensure that KPMG delivers market-leading, world-class professional services that are aligned with the changing needs of our clients and global markets. kpmg.com.cy

©2016 KPMG Limited, a Cyprus limited liability company and member of the KPMG network of independent member ﬁrms afﬁliated with KPMG International Cooperative (”KPMG International”), a Swiss entity. All rights reserved.

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MAZARS IN CYPRUS

azars is an international integrated independent organisation, specialising in audit, accountancy, tax and advisory services. Mazarsâ&#x20AC;&#x2122; presence in Cyprus dates from 2007 when Nacouzi & Co was set up and acted initially as its exclusive correspondent. As of 1 January 2016, Nacouzi & Co merged its activities to those of the international firm and became a fully integrated Mazars member, with a change of name and rebranding to Mazars. The firm is committed to growth and is currently composed of two partners and twenty professional staff. The team includes qualified accountants, auditors, tax consultants and financial analysts and takes particular pride in training its own ACCA or ACA trainees. AREAS OF PRACTICE AND SECTORIAL EXPERTISE Mazars in Cyprus provides services in all traditional lines of business of the international practice, including audit, accounting and outsourcing, taxation, advisory and a full range of insolvency and corporate restructuring services as well as corporate administration. It has particular sectorial expertise in financial services and banking, insurance and real estate, oil and gas, hotels and catering, shipping, media and entertainment and the

private education sector. The firmâ&#x20AC;&#x2122;s clients are both local and international, and range from the smallest private clients to public interest entities and government organisations. What can Cyprus do to ensure that it remains a competitive jurisdiction and continues to attract foreign companies and investors to the island? Â¸/H]PUN W\SSLK [OYV\NO HU LJVUVTPJ JYPZPZ *`WY\Z PZ WVPZLK [V KLTVUZ[YH[L LJVUVTPJ NYV^[O VM HYV\UK PU ^P[O WVZP[P]L RUVJR VU LÉ&#x2C6;LJ[Z [V P[Z JYLKPIPSP[` ^P[O PU[LYUH[PVUHS PU]LZ[VYZ ( U\TILY VM MHJ[VYZ OH]L JVU[YPI\[LK [V [OL [\YUHYV\UK [OL YLZPSPLUJL KLTVUZ[YH[LK I` [OL WYVMLZZPVUHS ZLY]PJLZ ZLJ[VY ILPUN VUL VM [OL THPU YLHZVUZ 0U H Ã&#x201E;YZ[ PUZ[HUJL MVY *`WY\Z [V YL[HPU P[Z JVTWL[P[P]LULZZ HZ HU PU[LYUH[PVUHS I\ZPULZZ Q\YPZKPJ[PVU P[ ULLKZ [V JHWP[HSPZL M\Y[OLY VU P[Z JVTWL[P[P]L HK]HU[HNLZ HUK PTWYV]L M\Y[OLY P[Z YLN\SH[VY` [H_ HUK SLNHS MYHTL^VYR LUZ\YPUN [OH[ KL]LSVWTLU[Z VU [H_ PUJLU[P]LZ HUK YLN\SH[PVU HYL HKLX\H[LS` W\ISPJPZLK :LJVUKS` ^L HYL Z[YVUN HK]VJH[LZ VM HWWS`PUN ZPTWSPÃ&#x201E;JH[PVU [V I\ZPULZZ ^OLYL]LY [OL ZJVWL L_PZ[Z *`WY\ZÂ» JVTWL[P[P]L HK]HU[HNLZ OH]L ILLU KPZJ\ZZLK L_[LUZP]LS` HUK PUJS\KL ,\YVWLHU <UPVU TLTILYZOPW P[Z NLVNYHWOPJHS SVJH[PVU H MH]V\YHISL HUK YVI\Z[ [H_ YLNPTL HU L_[LUZP]L ZL[ VM KV\ISL [H_ [YLH[PLZ NVVK JVTT\UPJH[PVUZ HUK [YHUZWVY[ UL[^VYRZ HUK H SHYNL U\TILY VM ZRPSSLK T\S[PSPUN\HS WYVMLZZPVUHS ZLY]PJLZ WYV]PKLYZ -\Y[OLYTVYL PU YLJLU[ `LHYZ [OL Z[H[L OHZ ZPNUPÃ&#x201E;JHU[S` PTWYV]LK P[Z [H_ SLNHS HUK YLN\SH[VY` Z`Z[LTZ HUK OHZ PU[YVK\JLK [H_ HUK TPNYH[PVU PUP[PH[P]LZ NLHYLK [V H[[YHJ[ PUKP]PK\HSZ HUK I\ZPULZZLZ [V [OL PZSHUK ;OL JOHSSLUNL VU [OL SLNPZSH[P]L ZPKL PZ [V JVU[PU\L [V HK]HUJL PU]LZ[VY MYPLUKS` WYHJ[PJLZ ^P[OPU [OL JVUZ[YHPU[Z VM UL^ PU[LYUH[PVUHS PUP[PH[P]LZ [OH[ MVJ\Z VU [YHUZWHYLUJ` KPZJSVZ\YL HUK SL]LSSPUN [OL [H_ WSH`PUN Ã&#x201E;LSK ([ [OL ZHTL [PTL HZ YLN\SH[PVUZ HYL ILPUN YLPUMVYJLK ZPTWSPÃ&#x201E;JH[PVU VM I\ZPULZZ ZOV\SK VJJ\Y -VY L_HTWSL JV\SK V\Y Z[H[LÂ»Z Z`Z[LTZ HUK WYVJLZZLZ IL PTWYV]LK ^P[O [OL \ZL VM [LJOUVSVN` VY V[OLY TLHUZ ^P[O V]LYHSS PU]LZ[VY ILULÃ&#x201E;[& >P[O [OL ULLK MVY PU[LYUH[PVUHS JVTWHUPLZ [V LZ[HISPZO Z\IZ[HUJL HUK [V NYV^ [OLPY WO`ZPJHS WYLZLUJL VU [OL PZSHUK [OL Q\YPZKPJ[PVUÂ»Z YLW\[H[PVU PZ VM WHYHTV\U[ PTWVY[HUJL 0[ ^V\SK IL ^PZL [V MVSSV^ V[OLY JV\U[YPLZÂ» Z\JJLZZ Z[VYPLZ HUK [OL YLHZVUZ ILOPUK [OLT HUK [V TVYL JSLHYS` KLÃ&#x201E;UL HUK MVJ\Z V\Y LÉ&#x2C6;VY[Z Â¹ PETROS NACOUZI Managing Partner

CONTACT INFORMATION: MAZARS LIMITED

LOCAL CLIENTS Local clients can primarily benefit from a practical hands-on professional approach by an experienced local team. Part of our success stems from the fact that we bring a personal approach to business while maintaining our professional standards and excellent service. INTERNATIONAL CLIENTS The needs of international clients are best served by the experience and specialisation of the firmâ&#x20AC;&#x2122;s partners and staff and their ability to work closely with their Mazars colleagues within the Mazars organisation internationally. Whatever their professional needs, as a global partnership present in 77 countries, Mazarsâ&#x20AC;&#x2122; unique integrated model ensures the sharing of experience, where teams and resources come together to address issues concerning clients and their affairs. Mazars is truly a ONE TEAM firm and this helps it stand out in todayâ&#x20AC;&#x2122;s everglobalised environment.

Address: ;SHPZ ;V^LY -PYZ[ -SVVY *VYULY VM (YJOIPZOVW 4HRHYPVZ 000 (]LU\L 9VTHUVZ :[YLL[ 5PJVZPH Tel: c Fax: c e-mail: PUMV'THaHYZ JVT J` c Website: ^^^ THaHYZ JVT J` 72 | GOLD | The Business Magazine of Cyprus

MORE THAN JUST FACTS & FIGURES

#Independence #TechnicalExcellence #Integrity #Responsibility #Stewardship @MazarsGroup www.mazars.com

77 COUNTRIES 17 000 PROFESSIONALS

ONE TEAM

AUDIT I ACCOUNTANCY I ADVISORY SERVICES I TAX I LAW

www.goldnews.com.cy | GOLD | 73

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P. Kalopetrides & Co. is a progressively growing firm of Auditors and Business Advisers founded in 1962 by Mr Petros Kalopetrides. We are dedicated to provide innovative business solutions in the areas of Accounting, Auditing, Taxation, Business - Finance - Tax - Investments consulting and advice.

evaluation of our clients systems of internal Consulting & Advice: Business – Finance control, type of business, accounting records - Management and other important information so that we form an opinion on the true and fair Our aim is not simply to produce restatus of our client’s financial statements ports but business solutions! Major business decisions require the collection under examination. We apply international auditing and and analysis of information and figures accounting techniques. Special reports and the success of any new venture (for and investigations are conducted with expansion, diversification or start-up), Our consideration is to assist Entrepreneurs special skill and meticulous care. normally depends on a well thought plan and Investors, in whichever market and well defined policy. Our specialised (local or international) or sector services to existing businesses, start-ups of the economy they operate, Cyprus Tax & International and relocations, include: tax advisory, We aspire to be far to achieve higher investment Tax cash flows, feasibility/viability studies, more than just auditors. worth through proper and Planning business development plans, project evaluation wise handling of their business We see ourselves as advisers & presentations, financing advice/management and problem solvers and tax affairs. The long experience of our and loans rescheduling, capital raising for for the benefit of our partners and staff in taxation investments and expansion, Participation clients.” Our highly experienced qualified matters and their good knowledge schemes and joint-ventures -mergers & Partners and personnel and our of tax law and tax environment acquisitions, setting up internal control extensive network of international assist us to provide fully tax-efficient systems. associates as members of Ars Legis, a solutions. Our taxation services cover Our advisory is tailored to the particular highly reputable international association corporate and personal taxation, personal requirements and can be an excellent way of lawyers, patent attorneys, auditors and finance and taxation planning. of making sure success of ventures revenue tax consultants in twenty two countries, Proper company tax treatment is the key milestones are achieved and costs are kept strenghen possbilities for professional to generating internal investment and under control and in line with expectations. guidance and advice and services to our long term growth. clients on all business and financial matters Mr Adonis Kalopetrides views of the economy of Cyprus globally. Undoubtedly the adversities of global, economy and politics have a strong impact in the economic environment of Cyprus. Our main objectives have always been to ensure a close relationship between our partners and every client, however big or small, assisting them to thrive in the increasingly complex and competitive business environment. During our practice we adhre to our values of responsibility, integrity, discretion, consistency and efficiency. OUR COMPREHENSIVE SERVICES Include Assurance & Auditing Our audit approach is enabling us to address promptly and with a high level of confidentiality and professionalism our individual client’s specific needs. Our Firm’s methodology involves a thorough 74 | GOLD | The Business Magazine of Cyprus

Cyprus is recovering from the crisis of 2013. Nevertheless, the economy still presents actual problems. The hotel-tourist and financial sectors are in great assistance to this process of recovery but the following tasks may assist to speed it up: (a) the effective restructuring of the public sector to reduce bureaucracy, which will assist the private activity for attracting new investments (b) the immediate commencement of approved projects for infrastructure (c) to provide financial and other incentives to SMEs, which are the backbone of the Cyprus economy (d) to make the most of European funds / grants by government, communal and the private sector (e) to be proactive and re-evaluate and re-identify the advantages of the country to further strengthen the benefits for enhancing foreign investment and international business (g) better use of renewable energy for reduction of operating costs for businesses (h) utilize to the country’s benefit the wobbly politico-economic conditions in the Middle East (i) further consolidation/restructuring of banks which will provide power to grant residential-business and investment loans at competitive borrowing cost. Adonis Kalopetrides, FCCA P. Kalopetrides & Co., Partner

www.goldnews.com.cy | GOLD | 75

| CONFERENCE |

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his year’s Congress, entitled “2016: A Breakthrough Year for the Economy? The State of the Cyprus Economy and Prospects for 20162018”, dealt with issues including the current state of the economy following the island’s exit from the Economic Adjustment Programme and ways of restoring growth, how the Cyprus economy is seen and evaluated by foreign investors, prospects for attracting FDI and how the local business arena is developing and changing. Among the speakers at the Congress were Finance Minister Harris Georgiades, Presidential Under-Secretary Constantinos Petrides and Central Bank Governor Chrystalla Georghadji. Entrepreneurs, CEOs and Managing Directors of companies operating in various sectors shared their personal experiences and knowledge, discussed the challenges facing them and their strategies, and made their forecasts for the future of the economy and the business arena. 76 | GOLD | The Business Magazine of Cyprus

Constantinos Petrides, Under-Secretary to the President

Demetris S. Vakis, President, ICPAC

Chrystalla Georghadji, Governor of the Central Bank of Cyprus

Harris Georgiades, Minister of Finance

Irene Rouvitha Panou & George Georgiou, Alpha Bank Cyprus Ltd

Elia Koliandri & Elena Mouzouri, KPMG

Panel of speakers (l-r) Kyriakos Kokkinos, IBM Europe, Dinos Lefkaritis, Petrolina Holdings, Dr. Andreas Pittas, Medochemie, George Georgiou, Alpha Bank Cyprus Ltd, (UKYLHZ 2 *OYPZ[VÄKLZ 274. *`WY\Z 2`YPHRVZ 0VYKHUV\ 0*7(*

Alessio Terzi, (ɉSPH[L -LSSV^ Bruegel, Belgium

Irena Georgiadou, Hellenic Bank & Michalis Papadopoulos, Cyta

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4PJOHSPZ *OYPZ[VÄ Elena Constantinou Riri, Alpha Bank Cyprus Ltd

Phivos Papadopoulos, Ioanna Andreou & Tasos Tzouvanis, MTN

Petros Koutsoftas, Ambrosia Oils Ltd, Fani Pedoulou & Andreas Neophytou, TFI Markets

Andreas K. COYPZ[VÄKLZ Managing Director KPMG Cyprus & Constantinos Kallis, KPMG Cyprus

Panayiotis Hadjipantelis, Hellenic Technical Enterprises &Kyriakos Iordanou, ICPAC

George Theocharides, CIIM & Stelios Colocassides, Demstar Business Solutions

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Michalis Pantazis, Alexis-Stephanie Christodoulou & Kyriakos Constantinou, G.A.P Vassilopoulos Group

Alexander Michaelides, Imperial College & Michael Kammas, Association of Cyprus Banks

&RRUGLQDWRU Marios Kapiris, IBM Cyprus & Michalis Ioannides, JCC Payment Systems

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www.goldnews.com.cy | GOLD | 77

JUST | START-UPS |

ADD

sun WITH A BACKGROUND IN MECHANICAL ENGINEERING AT TU DELFT, THE CEO OF THE AWARD WINNING UK START-UP DESOLENATOR, WILLIAM JANSSEN, HAS BEEN WORKING WITH A DEDICATED TEAM OF COMMITTED WATER PROFESSIONALS FOR THE PAST THREE YEARS ON AN INVENTION WHICH PROVIDES A LOW-COST SOLUTION TO SAFE DRINKING WATER AND MAY HELP ADDRESS WATER SHORTAGE PROBLEMS THE WORLD OVER. IN CYPRUS TO LAUNCH THE CLIMATE LAUNCHPAD FOR LOCAL ENTERPRENEURSHIP ORGANISATION CHRYSALIS LEAP, JANSSEN TELLS GOLD HOW HE CAME TO DEVELOP THIS ORIGINAL IDEA, EXPLAINING THE BENEFITS OF THIS NEW TYPE OF TECHNOLOGY AND WHAT NEEDS TO BE DONE IN ORDER TO COMBAT THE GLOBAL WATER CRISIS. BY ARTEMIS CONSTANTINIDES

78 | GOLD | The Business Magazine of Cyprus

n 2014, you won the Climate Launchpad award for your water purifying invention, Desolenator. What exactly is this new type of technology and how does it work? William Janssen: Desolenator is a relatively affordable device that desalinates water for drinking purposes, using a solar panel. This can be done in a very efficient way, particularly by people who live in places where access to city or municipal water is quite difficult. With this device, they can take water either from the sea, a river or any other source and create their own drinking water. Gold: What sparked the original idea of finding new technology to create safe drinking water? W.J.: In the late ‘90s, I travelled to Thailand where I noticed solar water heaters on rooftops for the first time. I was intrigued by the fact that people harvest energy from the sun and turn it into hot water. After some time, I came to the conclusion that this system is actually quite inefficient but I believed that there was scope to improve its efficiency. When I went to live in Dubai, which has as serious water shortage and it all comes from desalination plants, I realised that solar water heaters could also be used to desalinate water if a photovoltaic panel were placed inside it to create electricity, boil the water and then the steam would be condensed back to pure water. So, everything in my head clicked and I then started thinking about what too do with such an idea. My cousin, who is a patatent buyer, told me that I should check the he patent office websites to see if anyone elsee had come up with the idea. To my surprise, rise, it turned out to be original! So I decided to build a proof of concept in my garage where here I connected some tubes and managed to produce a little bit of water. That’s how it all started. Gold: How serious a problem is the need eed for water nowadays? W.J.: There are currently one billion people on the planet who don’t have enough drinking water and, by 2025, three to four billion people are expected to be short of water. This is mostly an issue in the developing world but there are also places in the developed world facing water scarcity, including Cyprus of course, as well as Malta, the Greek, Italian and Spanish islands and even California.

Gold: Do you think that it will be possible to combat the global water crisis with technology like this? W.J.: It can definitely help, as it is a sustainable solution to the water crisis. However, this particular device only provides enough water for drinking, cooking and washing purposes. Gold: Can it be developed to such an extent that it can do more? W.J.: It can be scaled up to a bigger device but there is, of course, a limit to it. The solution to the global water crisis lies in a change in people’s behaviour, in the re-use of water by municipalities and then creating fresh water from the sea by desalination through sustainable means. Gold: What is the target market for the Desolenator and who will benefit from it? W.J.: There are three specific target markets. The developed world and places like Cyprus would benefit from it, as would the developing world where people on low incomes are very conscious about the problem – in India, for example, where many people drink poor quality water. At the bottom of the pyramid, those who are extremely poor and have no access to clean water are also in need of such a device. Gold: How hard has it been for you to develop this idea? Did you meet any obstacles on the way? W.J.: Implementation is the long road that you progress along and it requires dedicaa

tion in order to make things happen, without feeling disappointed when they don’t always go as planned. There have been many obstacles on the way and for a startup, money is always an issue. There are also moments when you feel certain that things will go your own way but then they don’t! But, equally, there are also moments when you do not expect something to happen and it just comes out of nowhere. So, there is a constant mix of good and bad. Gold: If you were starting now, would you do some things differently? W.J.: Yes, absolutely! I would definitely find a co-founder and more help faster. I now know that investors are difficult to find so it is better to take a few steps first before trying to find one. For instance, you need to know what to do and what your next steps should be, which is very difficult. If you have the help of an accelerator like Chrysalis LEAP, that definitely makes things easier and increases your good possibility of being successful. Gold: Do you think things would have been easier if you had started in another country? W.J.: No, I don’t think so. I started in Dubai and we founded a start-up in the UK but I believe that there are starting opportunities in every European country. Cyprus would also be a good place to start and every entrepreneur who has a cleantech idea should visit the Chrysalis LEAP offices to discuss it with the team and turn it into success. a su Gold: What next for Desolenator? Gol W.J.: The next step is to finalise our prodW.J uct. It is ready in design but we need to go into manufacturing which means that we need to do moulding, tooling, and component machining, which are expensive. We should be ready to start soon and I believe shou will take about six months to complete. it wi

The solution to the global water crisis lies in a change in people’s behaviour

Gold: Having gone through this Gol process, what would your advice be to others if they have an idea which, they believe, has the potential to become a useful and wanted product? W.J.: My first piece of advice would be “Don’t do it alone” and, secondly, “Look at what other start-ups and incubators are doing. Don’t copy them but listen to them and then do it your own way.” www.goldnews.com.cy | GOLD | 79

| AML COMPLIANCE |

HOW TO BE AN EFFECTIVE MCLO SO YOUâ&#x20AC;&#x2122;VE JUST BECOME THE NEW MONEY LAUNDERING COMPLIANCE OFFICER? HERE ARE FIVE TIPS TO HELP YOU ON YOUR NEW CAREER PATH By Gregory Dellas

80 | GOLD | The Business Magazine of Cyprus

ongratulations! You’ve just become part of perhaps the fastest-growing and most current profession in the world. Money Laundering Compliance Officers (or MLCOs) are highly sought-after creatures and quite scarce for that matter. I am certain you are already overwhelmed with both the challenges and the prospects of your new position. The following five ideas aim to help you embark on a fruitful and exciting journey, during which you can learn a lot and, at the same time, become a valuable asset to your organisation.

MAKE TIME TO UNDERSTAND YOUR BUSINESS To be an effective MLCO, you must make time to really learn and understand the business you are trying to protect. Writing policies, reading suspicion reports, monitoring and training become pointless if you do not understand the environment you are in and the needs of your peers on the front line. Sit down with them, engage in their day-to-day routine and make enquiries as regards the challenges they face and the issues they need help with. Ask and be prepared to listen to what they have to say. That will help you really understand what they are doing and how you can become a valuable and necessary partner.

THERE IS NO SHAME IN TRAINING People sometimes think that once they have made it to their dream job, they can avoid further training, mainly because they have already proven that their knowledge is up to standard! Well, I’ve got news for you. This is not the case. Receiving training is no shame and should be continuous, even if you are repeating yourself. Try to find training opportunities in your area, in your town, in Cyprus and internationally. Choose carefully and try to find seminars or workshops that will practically help you in successfully discharging your duties. They can also provide you with ideas for conducting your own training of your colleagues. There are many opportunities in anti-money laundering and countering terrorist financing as well as more specialised ones on the role of the MLCO

It is vital to exchange ideas, share resources and experiences and seek help and writing MLCO reports. It is important to appreciate that the cost of such training is very small when compared to the benefits that you personally but, more importantly, your organisation will gain.

SEEK RESOURCES OUTSIDE YOUR IMMEDIATE ENVIRONMENT Don’t focus exclusively on local legislation and the relevant regulatory guidelines or directives. Obviously, they are important but not enough. It is equally, if not more, important to broaden your horizons. European AML Directives apply across the whole of Europe, so you will find that there is more guidance out there that will help you understand your duties and how to be more effective. There is also useful guidance from the US regulators, the Hong Kong Monetary Authority, Australia, New Zealand and more – just use Google! A number of professional bodies also offer free subscription newsletters on KYC and AML, as well as on general compliance and ethics matters. The MLCO role requires a lot of critical thinking and analysis and I would advise you to set up your own library of guidance notes, training material, presentations, articles and case studies. You can refer to them if you are uncertain about a situation or when you wish to confirm something before taking a business decision or providing advice. Also, there are some useful and current books available on AML and CTF as well as general compliance management. They can be helpful both as a tool to get you started and also as a reference.

MEMBERSHIP OF PROFESSIONAL ORGANISATIONS There are quite a few professional membership organisations for AML compliance professionals. One of the best ones to subscribe to is the Association of

Anti-Money Laundering Specialists (ACAMS). Becoming a member of one or more of these organisations offers access to abundant resources and practical tools to help you perform your duties INFO: Gregory Deland excel in what you las, CAMS, MICA is do. Some of them Chair of the ACAMS Cyprus Chapter also offer training and Manager, AML opportunities, semiRisk Management nars and conferences at Bank of Cyprus. to help you become and stay current with what is happening in the AML world. ACAMS offers the CAMS certification (the ‘gold standard’ in AML certification) and organises conferences in Europe and the rest of the world, especially useful to anti-financial crime professionals. Money well spent.

NETWORK, NETWORK, NETWORK Attending relevant conferences in Cyprus or abroad is a great way to meet with peers. Networking is becoming increasingly important in today’s fast-moving environment. It is vital to exchange ideas, share resources and experiences and seek help. Many professional membership organisations offer local chapters or forums where members can gather and organise relevant and specialised trainings, exchange ideas on the way they do things and even have fun together! Also, social media is very important – use LinkedIn or even Facebook and Twitter to follow professional bodies and professional membership organisations which share important news as it happens. You can then go on and share with your colleagues. That will help them appreciate your value in providing them with correct, relevant and timely information. Contrary to popular belief (!), the MLCO can be an exciting, popular and innovative person, a valuable asset to his/her colleagues and the organisation. Be open and welcoming, embracing the challenges and prospects of your position and be prepared to make a difference that really matters. www.goldnews.com.cy | GOLD | 81

| BREXIT |

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Looking ahead to what a ‘Stay’ vote will mean for the UK

By Dr. Savvas Savouri

he ‘Stay’ campaign has presented countless arguments why an exit from the “comfort” of the European Union would propel the United Kingdom into a dystopian future. We have been warned that it would disrupt trade, raise food and energy bills, increase prices for our airline tickets and, generally,

leave us so much worse off than were we to simply stay put in the EU. I will not spend time here pouring scorn on these claims but I would like to present how, to my mind at least, the decision to remain will cost us all financially dear...very dear indeed. Let me do so by transporting us to no later than the second anniversary of us having renewed our vows to the EU, on the assumption this is what we choose to do on June 23.

82 | GOLD | The Business Magazine of Cyprus

Thus far, the deep economic problems besetting the European Union have been dealt with by respectively forlorn and counter-productive monetary and austerity policies. Crucially, neither of these approaches has dragged the United Kingdom into matters. However, I am convinced that, at some point in the next two years, there will be capitulation to the need for aggressive fiscal stimulus across mainland Europe.

Yes, Germany has long resisted a spending-based solution to Europe’s economic problems. But this reluctance cannot and will not continue. To those who claim that this capitulation could only happen were Angela Merkel to leave office, I say her months are numbered anyway. Regardless of her formal position, there will be an economic catalyst for a change of policy in dealing with the deep-rooted problems around Continental

SOME READERS MAY FEEL WE HAVE A RESPONSIBILITY AS GOOD EUROPEANS TO STOICALLY HAND OVER MONEY Europe. The trigger will be the detonation of devaluations around the periphery of the eurozone. Whether it is Hungary, the Czech Republic, Romania or any other of the eight continental nations within the EU but outside the eurozone, I have no doubt that, within the next two years, one of these will experience a sharp currency reversal. The most likely reason will be the respective Central Bank taking interest rates to nil – or even negative – in response to ever weaker economic data and deflationary pressures. Rate cuts would act to effectively pull the yield support from under whichever national currency when its central bank acted decisively, in the way others already have done, viz. Sweden. And when one post-enlargement EU currency tumbles, a domino effect is certain to follow. We saw a dress rehearsal for this in 2008, when considerable bailouts were paid to calm matters. Next time, however, we will see the full drama. The most recent performance of what awaits the European audience was in Asia in 1997. Back in the autumn of that year, the Asian exchange rate crisis saw currency after currency fall sharply against the dollar, most notably the yen, which had been carried around Asia in search of yield. That crisis had the effect of unravelling the seven-year effort which had been made to revive and reflate Japan’s economy. Fast forward two decades and I predict the same awaits Europe, the frail eurozone taking the role of Japan, and Polish, Czech and Hungarian devaluations the roles of the Indonesian, Malaysian and Thai ones in 1997. Be in no doubt: Germany’s economy within the eurozone will not come off lightly.

At a time when eurozone members desperately need a more competitive currency to help their flagging fortunes, they will soon be hit with an even less affordable euro. This will prove the catalyst for the EU turning to a spending-based solution, not least because it would seriously fear defections from the euro. And it is at this point that the UK will be dragged in. Why? Because having renewed our vows to remain in the EU “in sickness and in health,” we will be required to contribute to funding the fiscal efforts being applied to our ever-more sickly EU partners. Now, some readers may feel we have a responsibility as good Europeans to stoically hand over money. Others may say we owe it to Europe to help it out in its time of need, so as to avoid its problems spilling over to us. Whilst I would applaud such benevolent sentiments, I am not at all sure that most

23 we will have renewed our EU vows and so all the more tied the knot to it financially. To repeat, until now we have largely avoided being involved in rescuing the European Union because the medicines dispensed have been austerity and monetary, neither involving the UK. By staying in the EU we will be dragged in financially. So here we are then, in my imagination, being shown things by the ghost of two summers future, as it were. Not only are we being told we have to make a sizeable financial contribution to the EU’s version of a Rooseveltian New Deal but we are two years into a period when the demand for British exports to the EU will have fallen in tandem with mainland Europe’s ailing health and lessened appetite to import. Our trade deficit with Europe will, in short, have become even wider. Note also that the pound is set to lose considerable competitiveness

THE POUND IS SET TO LOSE CONSIDERABLE COMPETITIVENESS AGAINST THOSE EU CURRENCIES WHICH DEVALUE of those convinced we should ‘Stay’ are aware of just how much the Exchequer and, through it, UK taxpayers will have to contribute. As for the idea of paying up to avoid the spill-over, I see that as a contradiction; the spill-over IS the financial burden. Could we resist paying up? Of course not. My premise, after all, is that on June

against those EU currencies which devalue, as I am certain they will do. True, the cheapening of goods from our EU partners will help lower import costs. No less true is that it will hold the Bank of England’s hand on the base rate tiller for even longer; welcome to some, but far from welcome to

all. Now, what about the economically motivated movement of people around the Single Labour Market (SLM)? Far from more competitive currencies in Poland, Romania, Bulgaria et al encouraging their nationals to remain, the more likely outcome is they will be tempted to leave, and their most likely destination across the SLM will be the UK. And I have little doubt the French will be well represented in this wave of new inflows, just as they have been amongst recent arrivals, as captured by the issuance of National Insurance numbers. I have claimed above that the European Central Bank’s programme of Quantitative Easing will inevitably prove forlorn. Let me elaborate. For one, the prevarication shown in performing has undermined its effectiveness. It has been further undermined by the austerity programmes pursued in tandem and in conflict with it. Contrast all this with the UK, where rate cuts and QE were each performed in a timely fashion. For its part, the UK’s austerity has been tame when compared to what the Troika has been demanding of Greece, Cyprus, Spain, Portugal et al. And to repeat, the ECB’s QE will ultimately fail because it will soon come up against deflationary currency shocks around the eurozone’s borders. It will be at that juncture that the financial cost of the UK remaining will become clear. The reason is that the eurozone’s problems will then become the wider European Union’s to fix, and we will not avoid carrying a considerable financial burden.

Info: Dr. Savvas Savouri is a Partner and Chief Economist of Toscafund. www.goldnews.com.cy | GOLD | 83

THE TIMES THEY ARE | BREXIT |

A-CHANGIN’

THE IMMINENT REFERENDUM ON CONTINUING BRITISH MEMBERSHIP OF THE EUROPEAN UNION COMES AT THE END OF WEEKS OF CAMPAIGNING AND DEBATE. WHILE A MAJORITY OF UK BUSINESS LEADERS HAVE COME OUT IN FAVOUR OF REMAINING IN THE EU, MANY PROFESSIONAL ORGANISATIONS HAVE CHOSEN A POSITION OF NEUTRALITY, LIMITING THEIR ACTIVITY TO “STATING THE FACTS” AND ALLOWING THEIR MEMBERS TO MAKE UP THEIR OWN MINDS. ONE SUCH ORGANISATION IS THE INTSITUTE OF CHARTERED ACCOUNTANTS IN ENGLAND & WALES (ICAEW) AND EARLIER THIS MONTH, MARTIN MANUZI, REGIONAL DIRECTOR FOR EUROPE, WAS IN CYPRUS TO PRESENT THE INSTITUTE’S REPORTS RELATING TO THE REFERENDUM. HE SPOKE EXCLUSIVELY TO GOLD ABOUT WHAT THE ICAEW WILL DO, WHATEVER THE OUTCOME OF THE VOTE ON JUNE 23. BY JOHN VICKERS | PHOTO BY ANDREAS LOUCAIDES

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couldn’t resist using that particular song title for this article, given that Martin Manuzi, the ICAEW’s Regional Director for Europe, is a huge fan of Bob Dylan. In fact, we spent a good 15 minutes discussing the man and his music before getting down to the real reason

for meeting up. He clearly knows the subject of his passion extremely well and has a massive album collection to back it up. Manuzi is based in Brussels (where he has seen Dylan perform several times over the years) and, in fact, the Institute recently celebrated the 20th anniversary of what he calls “engaging with Brussels on EU policy issues” so he is as well-placed as anyone to have a

view on many of the issues facing UK voters regarding what some see as too much intervention from the EU institutions in British affairs. That does not mean, however, that ICAEW has taken an official stance for the referendum: “We haven’t taken a position to stay or to leave because we don’t think that’s appropriate for a membership body,” he says, noting that “We wouldn’t tell our members how to vote in a national election, either”. On the other hand, he explains that the Institute is determined to play a very positive role and make a very clear contribution to the referendum debate by seeking to inform the discussion. “We recognise that there are lots of things that people will think about when casting their vote and we can’t possibly cover all of them so we’ve issued a number of papers in three specific areas: employment, trade and financial services, and we’ve set out the facts.” He is careful to acknowledge that facts and figures can be used to support arguments on both sides of the debate but he believes that statistics can make a helpful contribution to the discussion. He gives some examples of what ICAEW has presented to its members. “On employment,” he says,”it’s interesting to see that about 2 million of 3 million nonUK EU citizens are working in the UK at the moment, which is actually a higher proportion than that of non-EU immigrants or even UK nationals in work”. On the subject of trade, Manuzi points out that the EU is the UK’s most important trading partner and notes that, from 2004-2014, it made the greatest contribution in terms of Foreign Direct Investment into the UK, although this has been declining. “The UK is, of course, looking to other markets and it doesn’t follow that, in order to to do so, it has to leave the EU”. That sounds to me like a reasonably clear hint about where the Institute stands but Martin Manuzi is as enigmatic as his musical idol when it comes to answering certain www.goldnews.com.cy | GOLD | 85

| BREXIT |

questions. I point out, for example, that he obviously knows that, for years, all the UK political parties and the media have been critical of the EU and Brussels but now, with the obvious exception of UKIP, they are suddenly saying that the country won’t survive without it. Doesn’t he find this odd, I ask. “I’m obviously not going to answer all your questions!” he replies, with a broad smile, preferring to note the fact that, for 20 years now, “ICAEW has been active in Brussels, arguing in favour of a more proportionate impact assessment-focused, business-friendly approach and, to some degree, we have seen progress in that direction. For some it might not be enough but that’s what we’re in the business of doing.” Unlike certain other professional bodies, the Institute has purposely not polled its members for their views on the referendum. “If we had done so and we released the results, some of our members would probably take a different view from the majority one and the media might make an association between that result and the overall view of the Institute. We wanted to avoid that. As an organisation, we are naturally thinking about the outcome of the vote and, whatever the result, we will be assisting our members to do what they need to do for their businesses and clients. Whether the result is to leave or to remain in the EU, we as an Institute will remain fully committed to our members and our students.” While the referendum has been a main focus of Martin Manuzi’s work this year, as Regional Director for Europe, he is usually busy with other issues. “My work focuses on three areas,” he explains. “Reputation and influence, building markets for our qualifications and training, and interacting with our members. We have around 6,000 in the European region, more than a quarter of whom are in Cyprus.”

The island has long had a special place within the ICAEW and, Manuzi says, “We’re absolutely delighted with how Cyprus operates, both in the region and internationally. It was the first place where the ICAEW qualification was made available outside the UK, on the initiative of the members themselves. And Cyprus is also the model that we are pursuing elsewhere: it’s a way of working in partnership and regular liaison with the key infrastructure and the national body. That’s what we’re replicating in other countries as take-up of the ICAEW qualification grows in Europe.”

notes, “is very topical as the deadline for the full implementation of the new requirements is kicking in about now,” concerns the EU’s reforms of the profession, including the rotation of auditors. Asked how this may affect ICAEW members, he explains that “It’s difficult to give a direct answer because each country has its own differentiated approach. The more differences there are, the more complex it becomes but we are committed to making all the reforms work in the best way. Don’t forget that the rotation requirement is just one element of a broader set of changes.” Finally, he refers to the Institute’s ongoing project to attract more people to the profession and to next year’s Accountancy Profession Strategic Forum (APSF), which will take place in Cyprus. “It started about five years ago as a way of bringing bodies from each region together to focus on how to best evolve their structures to meet the broader needs of the markets and the public interest. We gather on a yearly basis for a forum in which maybe 25 bodies come together in a real open dialogue for exchanging best practices, discussing things that have been successful and even unsuccessful. We’ll be meeting here for that next year, with the national regulators and the various business stakeholders.” He describes the APSF as “a real collective exercise, which encourages bodies to think about the broader areas where the profession can make a contribution, such as public sector finances or professional and financial services in the areas of anti-money laundering, etc. and how it can develop and provide real value.” One of the ultimate aims is to strengthen the public perception of the accounting profession. “We are not just a compliance profession. That is part of our role but accountancy is about a lot more than that.” Times a-changing indeed.

WHATEVER THE RESULT IN THE REFERENDUM, WE WILL BE ASSISTING OUR MEMBERS TO DO WHAT THEY NEED TO DO FOR THEIR BUSINESSES AND CLIENTS

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This suggests that the accounting profession is on the rise but Martin Manuzi is hesitant to view the situation in quite such clear terms, pointing out that the profession means different things in different countries. “In some places it is primarily an audit profession whereas, in Cyprus, which is pretty close to the UK and Irish approach, it‘s much broader, encompassing all types of financial advisory, tax, assurance, audit, corporate finance and so on Where we are increasingly active – in Central and Eastern Europe – this broader concept is still in the process of evolution but it’s definitely coming as the needs of the market become more complex.” One major change, which, as Manuzi

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