Gold Magazine issue 41

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Issue 41 August 14-September 13, 2014

6 EDITORIAL 8 UP FRONT 18 FIVE MINUTES WITH…

31

+ 80

+ OPINION

TOP

LAW FIRMS

IN CYPRUS

THREE YEARS AGO (SEPTEMBER 2011) FOR THE 6TH ISSUE OF GOLD, WE COMPILED A LIST OF THE TOP 50 LAW FIRMS IN CYPRUS. WE REVISIT THE SUBJECT AND PRESENT AN UPDATED LIST OF MORE THAN 60 COMPANIES, FROM THE BIGGEST AND LONGEST-ESTABLISHED TO NEW BOUTIQUE FIRMS.

PL SPECIAL ADUS VERT

FEATURE ISING of th e Top law firm 80+ in Cyprus s

45

20

FINANCING THE NEW ECONOMY By Dr. George Theocharides

30

THE WAY FORWARD? By Dr. Constantinos Charalambous

85

93 | DRIVING AN IDEA FROM CONCEPT TO PRODUCT How Yiannis Gavrielides created Covve, an online application that reinvents the professional address book.

94 | FINGER ON THE PULSE

82 | WIND OF CHANGE Alexandros Economou, founder of the newly-established eponymous law firm, shares his experiences of embracing change.

A leading global tech company will soon be celebrating 60 years in Cyprus.

86 | BETTER REGULATION + BETTER BANKING = BETTER FUTURE Interview with Robert Priester, Deputy Chief Executive and Executive Director of the Wholesale and Regulatory Policy Department of the European Banking Federation.

90 | BEING DYNAMIC WORKS

FEATURE

Angelos Gregoriou, CEO, and George Georgiou, Managing Director, Dynamic Works, give Gold an insight into the intricate workings of the company.

20| KEEPING THE FAITH Interview with Constantinos Economides, Managing Director Cyprus and Malta of Orangefield Fidelico.

24 | DELIVERING EXCELLENCE DHL’s Cyprus operations go from strength to strength.

26 | THE LONG & WINDING ROAD Andreas Karapatakis, Founder and Managing Director of the AJK Group, reflects on what Cyprus needs to do to become a competitive investment destination. 4 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

82

94 100 {money} 102 {business} 106 {economy} 108 {tax & legal} 110 {lifestyle}

EDITORIAL ISSUE 41 AUGUST 14 - SEPTEMBER 13, 2014 PRICE €4.95

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80 8 0+ TOP

F

ew lawyers will not be familiar with well-known quotations by famous writers, including Shakespeare and Mark Twain, that are, shall we say, less than complimentary about their profession. And while we all like to poke fun at those whom we perceive to be less than totally ethical (“The trouble with the legal profession is that 98% of its members give the rest a bad name”), we are at the same time aware that good lawyers are absolutely essential to the smooth running of a democratic society. Here, the legal profession has always been held in great esteem and, as an essential part of the island’s significant and thriving professional services sector, it has played a substantial role in developing Cyprus’ reputation as a leading regional international business centre. The Cyprus Bar Association has almost 3,000 members and, despite everything that has happened during the past 18 months, that number continues to rise. In September 2011, the cover story of the 6th issue of Gold featured a list of the Top 50 Law Firms in Cyprus. It was the first issue of the magazine that quickly sold out and one about which we continued to receive enquiries for months on end. Today, almost three years later, we revisit the list which has been enlarged and fully updated. The big firms are still the big firms but the trend towards smaller boutique providers of specialised legal services is on the rise and this is clearly reflected in the composition of the list. It is also notable that many firms are starting to offer advice on sectors that are relatively new to Cyprus such as Oil & Gas and Intellectual Property, both of which have garnered considerable interest over the past couple of years in particular. The legal profession is a key component of the professional services sector but not the only one and while elsewhere in this issue we include an interview with Alexandros Economou, a lawyer who is in the process of setting up his own firm (page 78), we also cover other areas including banking, in the form, of an interview with Robert Priester of the European Banking Federation (page 84), wealth management by talking to Andreas Karapatakis (page 26), administrative services and more in our interview with Constantinos Economides (page 20) and technology, for which we profile NCR Cyprus and Dynamic Works (pages 94 and 88 respectively). In next month’s issue, we shall be bringing you information about the annual CIPA International Investment Awards, the ceremony for which takes place on 10 September at the Presidential Palace. This is the third year of the awards, hosted by Gold, in honour of foreign companies that have invested in Cyprus and in recognition of their contribution to the island’s economy and reputation. Previous winners of this prestigious award include companies active in the sectors of shipping, oil & gas, banking, education, investment, retail, online entertainment and more. Finally, I am delighted to note that, thanks in part to our advertisers but also to our subscribers, readers and associates, this issue of Gold is the biggest that we have ever produced. I trust that it will provide you with some good holiday reading. Enjoy what’s left of the Cyprus summer and we’ll be back in mid-September.

John Vickers, Chief Editor john@imhbusiness.com

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THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

BANKING How Spain restructured its system

BITCOIN The Future of the Digital Currency

INTERVIEWS Peter Greenberg Matthew Kidd Alexis Tsielepis

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

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+ ANDREI HUDZASVILI, KYRIAKOS KYRIAKOU, ROBERT PRIESTER MONEY

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The richest UK-based Cypriots

Constantinos Economides Alexandros Economou Andreas Karapatakis

Covve DHL Cyprus Dynamic Works

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

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MANAGING DIRECTOR

George Michail

GENERAL MANAGER

Daphne Roditou Tang MEDIA MANAGER

Elena Leontiou EDITOR-IN-CHIEF

John Vickers JOURNALISTS

Effy Pafitis, Chloe Panayides CONTRIBUTORS TO THIS ISSUE

Constantinos Charalambous, Anthony Day, Marina Ioannou, Costas Markides, George Theocharides ART DIRECTION

Anna Theodosiou SENIOR DESIGNER

Alexia Petrou PHOTOGRAPHY

Jo Michaelides MARKETING EXECUTIVE

Kevi Chishios SALES & BUSINESS DEVELOPMENT EXECUTIVE

Phivos Karayiannis ADVERTISING EXECUTIVES

Irene Georgiou, Christopher Constantinou OPERATIONS MANAGER

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Cassoulides Masterprinters CONTACT 5 Aigaleo St., Strovolos 2057, Nicosia, Cyprus Mailing address: P.O.Box 21185, 1503, Nicosia, Cyprus Tel: +357 22505555, Fax: +357 22679820 e-mail: gold@imhbusiness.com subscriptions: goldsubscriptions@imhbusiness.com www.imhbusiness.com

UP FRONT

Hubert Frach and Domingos Soares de 6SP]LPYH L_JOHUNPUN )LUÄJH legend EusÊbio’s signed jersey.

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mirates and Portugal’s most sucJLZZM\S MVV[IHSS JS\I )LUÄJH OH]L signed a three-year agreement that THRLZ ,TPYH[LZ [OL JS\IZ 6MÄJPHS Airline Partner until 2016. The deal JVTLZ Q\Z[ [^V `LHYZ HM[LY ,TPYH[LZ ILNHU ÅPNO[Z [V 7VY[\NHS HUK OPNOSPNO[Z [OL HPYSPULZ ongoing commitment to expand its presence in [OL JV\U[Y` 3PZIVU QVPULK [OL ,TPYH[LZ UL[^VYR in July 2012. The agreement was unveiled last month by Hubert Frach, Emirates’ Divisional Senior Vice President Commercial Operations West, and +VTPUNVZ :VHYLZ KL 6SP]LPYH *,6 VM )LUÄJH The sponsorship deal gives Emirates brand vis-

EMIRATES PARTNERS WITH BENFICA PIPSP[` H[ [OL ,Z[mKPV KV :WVY[ 3PZIVH L )LUÄJH as well as promotional rights. Emirates will also be able to capitalize on advertising opportunities VU )LUÄJHZ TLKPH WSH[MVYTZ ^OPJO ^PSS PUJS\KL digital activations. The airline will also receive player access and interactive hospitality rights. )LUÄJH PZ VUL VM [OL TVZ[ Z\JJLZZM\S JS\IZ PU the world, having conquered several domestic titles, and is the only club to have won all PortuN\LZL JVTWL[P[PVUZ 0U[LYUH[PVUHSS` )LUÄJH OVSKZ two European Champion Club Cups. Emirates’ football sponsorship portfolio includes Arsenal FC, Real Madrid, AC Milan, Paris Saint Germain 7:. /HTI\YNLY := HUK 6S`TWPHJVZ -*

HILTON CYPRUS Voted Leading Cyprus Business Hotel

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ilton Cyprus was named the country’s Leading Business Hotel for the second consecutive year at the World Travel Awards 2014. Held in Athens on August 2, the annual global travel awards are among the most highly coveted, prestigious recognitions distributed within the international travel and tourism industry. Hilton Cyprus Manager Charis Michael commented, “I am delighted to see Hilton Cyprus recognised at

these well-respected awards, especially for the second consecutive year. “This demonstrates our team’s outstanding commitment to providing Hilton’s world-renowned hospitality to our guests.â€? This year, 213,000 industry professionals participated in the voting process of the World Travel Awards, which is scrupulously monitored and independently audited.Â

CASINO RESORT LICENCE IN 2015

C

yprus will grant its first casino resort licence within the next year, officials revealed last month. “This will be one of the most important infrastructure projects in Cyprus in coming years,� Government Spokesman Nicos Christodoulides said. The licence will be valid for 30 years, with the successful bidder entering into an exclusivity agreement for 15 years. The state will impose a 15% tax on gross income from gambling, Christodoulides noted in a statement. The creation of casinos on the island is viewed by the current Government as vital to the development of Cyprus’ tourist product, in stark contrast compared to the previous’ Government’s refusal to pursue the notion of introducing legal gambling to the island. The authorities will soon invite expressions of interest in a two-stage selection process, once approval of the relevant legislation is approved by the House of Representatives.

ΜΒΑ from the CIM and INBusinessNews.com

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he Cyprus Institute of Marketing and INBusinessNews.com are offering for yet another year 2 full scholarships for the CIM MBA programme, of total worth â‚Ź13,200. This is a unique opportunity for Cypriot professionals and very well timed having in mind the severe Ă„UHUJPHS JYPZPZ The Cyprus Institute of Marketing and INBusinessNews. JVT ILPUN SLHKLYZ PU [OLPY YLZWLJ[P]L Ă„LSKZ OH]L QVPULK forces to promote this great initiative which offers the opportunity to two professionals to enhance their career

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

prospects by acquiring a world-class MBA. The CIM MBA is accredited by SEKAP and was ranked in 2010 as 16th HTVUN ,\YVWLÂťZ 9PZPUN :[HYZ ^^^ Ă„UK`V\Y4)( JVT The CIM MBA has been offered for more than 25 years with great success through evening classes in Nicosia & Limassol. The scholarships application process ran throughout July and the number of applications was evidence of the overwhelming success of the initiative. Interviews will be taking place this month and the names of the successful applicants will be announced in September.

Updated Property Valuations Online

yprus’ Department of Lands and Surveys has released updated property valuations for some 500,000 properties located throughout the island. As part of the bailout agreement with the Troika of international lenders, Cyprus completed the revaluation of half a million properties in June. Though it was expected that Immovable Property Tax for the year would be levied based upon the new land values, the drafted bill was not approved by parliament. Nevertheless, the revised property valuations are available to the general public, via the following link: www.moi.gov.cy/moi/dls/dls. nsf/dmlindex_en/dmlindex_ en?OpenDocument

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MeritKapital Acquires Direct Clearing Membership at CSE

MeritKapital Ltd has acquired the status of Direct Clearing Member of the Cyprus Stock Exchange (CSE) from 6 August 2014. Clearing members are persons or entities involved in the liquidation of transactions. In particular, Direct Clearing Members deal with the liquidation, undertake risk taking trading, and clearing transactions, drawn from the same as trading members. To be accepted as a *SLHYPUN 4LTILY H Ă„YT T\Z[ OH]L WLYTPZZPVU MVY [OL ZHMLRLLWPUN HUK HKTPUPZ[YH[PVU VM Ă„UHUJPHS PUZ[Y\TLU[Z HZ KLĂ„ULK PU 3H^ 0 A basic prerequisite for acquiring the status of Direct Clearing Member is that a company must have previously obtained Trading (Market) Membership.

UKRAINIAN TOURIST ARRIVALS SOAR BY 64.9%

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ourist arrivals from both Russia and Ukraine have displayed a significant increase this year, according to figures released by the Statistical Service of Cyprus. In the first six months of 2014, arrivals from Russia increased by 17.6%, whilst incoming Ukrainian travellers soared by 64.9%. Hotels in Agia Napa/Protaras, Limassol

and Paphos have, in particular, benefitted from this increase, with all three resorts serving as popular destinations amongst Russian and Ukrainian tourists. Whilst there is no obvious explanation for the sudden increase, stakeholders from the tourism industry praise Cyprus’ safe and welcoming environment as being key to its continued popularity with Russian and Ukrainian tourists.

JUNCKER TO CREATE FINANCE DIRECTORATE?

T

he new European Commission President, Jean-Claude Juncker, is considering plans which include appointing an EU financial services tsar, charged with regulating the London’s financial services sector and ensuring financial stability in the region, according to the Financial Times. Juncker is reportedly mulling over the creation

of such a powerful standalone finance directorate in the context of his task of dividing commission portfolios and rearranging areas of responsibilities assigned to European Commissioners. EU financial regulation is currently overseen by Michel Barnier, former French foreign minister and Commissioner for Internal Market and Services. FT commented that the new finance

directorate would probably move banking and markets units from Barnier’s department and combine them instead with the financial stability unit stripped from the department for Economic and Financial Affairs. Though a frontrunner for the position has yet to be announced, prospective candidates reportedly include Dutch Finance Minister and Head of the Eurogroup, Jeroen Dijsselbloem.

CORRECTION

In the last issue of Gold, the name of entrepreneur Hector Kolonas was spelt wrongly on a number of occasions. We apologise for the error. THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

Gold 9

presents

September 2014 | Presidential Palace, Nicosia.

ORGANISERS

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