A history of leadership in services

The EY presence in Cyprus goes hand in hand with the history of the island. It all began in 1937, when British nationals established Russell & Co, the first accounting services company to open in Cyprus and one of the first partnerships, with a register number of 151. And that’s before income tax was even introduced in the country.

The Bank of Cyprus was one of the first Russell & Co clients, with the company rapidly growing over the next couple decades, setting up offices in Limassol, Larnaca and Famagusta in the 1950s. The first Cypriot partner was Angelos Nicolaou in 1958, while three years later, the company became part of the Arthur Young global network.

Following independence and overcoming increasing competition, the company kept representing top local firms in all sectors of the economy. In 1989, Arthur Young globally merged with Ernst & Whinney, launching Ernst & Young, which was renamed EY in 2013.

The company has made a significant impact in the country in almost nine decades, through targeted actions and there have been quite a number of landmarks. More recently, two of them constitute outstanding developments for Cyprus as a whole.

• Τhe first publication of the global research Attractiveness Survey for Cyprus was presented in 2020, essentially forming the first comprehensive analysis of foreign investments in Cyprus and the views of the global investment community on the attractiveness of Cyprus as an investment destination.
• EY Entrepreneur of the Year, the leading institution of recognising and awarding business excellence was organised in Cyprus for the first time, with the best local businesses competing for the top awards.

Cyprus owned

Being under the management of British partners for almost 30 years, the company became Cyprus-owned in the mid-1960s, with Angelos Nikolaou being the first Cypriot partner, followed by Nicos Hadjirousos in 1977 and Andreas Demetriou in 1984.

In 1989, the merger between accounting firm Ernst and Whinney, fourth globally, with Arthur Young, at number five, led to Ernst & Young. Locally, this meant that Nikos Lakoufis, Yiorgos Kourris and Yiannakis Theoklitou joint forces with the Russell & Co/Arthur Young team.

In the ensuing decades, the retirement of several partners, have led to the introduction of new dynamic, talented partners to the Ernst & Young Cyprus personnel, not least Stavros Pantzaris, who was Country Managing Partner to 2015 and 2020, when he was promoted to President of EY Cyprus Executive Board.

The corporate profile

EY has been operating in Cyprus for over eight decades and is currently employing more than 600 people, with offices in Nicosia and Limassol. It holds a leading position locally in the professional services sector, showing the fastest development in its field of expertise. It works as a trusted auditor and associate for a wide range of clients, including individuals, new or developing businesses, public companies and multinational organisations.

EY Cyprus forms part of the global EY umbrella, a leading forcing in providing auditing, assurance and taxation services, consulting, transaction support and financial advisors, with over 300 thousand employees in more than 150 countries.

Through its extensive international work and the know how provided by the global organisation, EY Cyprus can provide high quality services to their clients and unique opportunities of professional advancement to personnel.

They are a member of the CESA area, a group of 31 countries covering Central, Eastern and South-eastern Europe and Central Asia. In the framework of this structure, it has unfettered access to the EY international network and the capability of utilising new opportunities in the region, as well as covering client needs in a wider geographical expanse.

A client centred business

‘During a time of sweeping changes, from the digitisation of the economy to climate change, the turn to viability and supply chain disruption with changing consumer behaviour and attitude, EY Cyprus supports the global scale programme of transforming its clients in both the private and public sector’, EY management says.

EY is facilitating organisations efforts in responding to rising demand for transparency and accountability, adapting to the new employment model challenges and forging a long-term value for all interest parties, as the company notes, adding ‘their support for Cypriot businesses, as well as the wider public sector in utilising resources and opportunities cropping up through the National Recovery and Resilience plan on the modernisation and propping up the competitiveness of the Cyprus economy. Through audit services, we contribute to trust building towards businesses, the capital market and the national economy’, the company concludes.

Services in four sectors

-Assurance

-Taxation (including legal services by Prountzos & Prountzos LLC)

-Consulting

-Corporate Strategy and Transactions

Timeless vision

During times of sweeping changes shaped by new technologies, modern employment methods and fast evolving markets and consumer trends, businesses are obliged to rebuild and reconsider their future position. EY believes that ambitious vision and strong commitment in speeding up this transformation by utilising innovation and technology can facilitate positive exposure for businesses, overcoming competition and creating long term value.

EY Cyprus provides assistance in utilising business opportunities that are not so conspicuous, as well as re-inventing the most vital ingredients of their organisations, from their workforce and operations to technology and client relations, through a 360 degrees all round approach.

Aims and values

Globally, the EY mandate is to forge a better labour world, no less than the foundation of its corporate culture.

‘ΕΥ empowers its people, providing the necessary skills and the right mind set to lead an international transformation and become catalysts of positive change’, management says.

In parallel, it is also building the conditions for personnel to follow a career as unique as their personality, never deviating from their values and forging their own extraordinary experience at EY.

Guided by values of integrity, cooperation, energy and bold leadership, EY aims at honest business and forging relations on solid foundations. It is now shaping a new strategy, aimed at ‘improved client service and long-term value to all interested parties in a fast-changing world’, as they note.

The EY family believes that ‘a better labour world is one of sustainable economic development, without exclusions. We work towards constant upgrading of service quality, investing in technology, innovation and personnel capabilities. Effective solutions emerge through the right questions; Probing, inspiring and leading to new and better answers’, EY declares.

One of the fastest growing companies

The history of EY Cyprus goes back many years and, more specifically, to 1937 when the first company providing accounting services on the island was founded. Today, the company is one of the fastest growing in Cyprus, and it has achieved this by consistently providing high quality services. EY Cyprus Country Managing Partner, Ronald Attard, spoke to us about the company’s present and future, and its culture and values.

All organisations, develop over time the principles and values that form their DNA. What is the case of EY?

At EY we have defined our purpose as building a better working world, which, for us, is a world where economic growth is sustainable and inclusive. This acts as our North Star, guiding our people and providing the context and meaning for our work. We strive to continuously improve the quality of all our services, and use our knowledge, skills and experience to help fulfil our purpose and create positive change.

To achieve this, we have built an inclusive culture, which encourages truly innovative thinking, allows us to realize the full potential of all of our employees, listen to and build on diverse perspectives and drive better decision-making. Nothing stimulates innovation and strengthens resilience to disruption more than an Inclusive organization. This is a core value for us, and one that we encourage all our clients to adopt. It has enabled us to bring together, in Cyprus and throughout the world, people with energy, enthusiasm and the courage to lead, who deliver our promises to our clients and all stakeholders.

How have you grown your business to become a major employer of more than 600 people?

Our 80-year history, which is closely interwoven with the history of Cyprus, probably provides the best answer to your question. We are the oldest professional services provider in Cyprus, and, today, one of the fastest growing firms in the island. We have achieved this by consistently delivering high-quality services to our clients, always supporting them in meeting the continuously evolving market demands and in navigating through their toughest challenges. We have supported the country’s entrepreneurs, through good times and bad, and strive to provide exceptional services and advice, so that our brand today is known in the market for excellence. In so doing, we promote trust and confidence in Cypriot companies, its capital market and its economy. We build strong relationships based on trust with our people, our clients and all our stakeholders. We seek to attract the best minds, by being a flexible employer, providing unique opportunities for our people, and championing diversity and inclusiveness.

On this basis, we have achieved market leading growth and continue to grow strongly building new capabilities and competencies, such as strategy and consulting.

We have placed innovation at the core of our business, bringing fresh thinking to build better businesses, and embracing technology to transform client operations at scale and speed, in order to serve the customers of the future. We help our clients to understand the risks as well as the opportunities arising from climate change and lead the way in advising on sustainability. With regard to innovation, it is worth mentioning the projects we have undertaken recently for the supply, installation and operation of infrastructure and smart city systems for Nicosia, as well as the institutional reorganization of the Cyprus Police. Above all, however, we are the most globally connected firm that can deliver One EY to our clients seamlessly, while providing our people with the opportunity to accelerate their career in Cyprus and beyond.

Future growth

What areas are you focussing on for future growth?

Our main task at EY is to help our clients understand and adapt to the drastic changes sweeping our world and harness the opportunities these bring with them. So, it is these changes that define the areas we are focusing on. If you look at the world around us today, there is no doubt that climate change will be driving change over the foreseeable future, therefore, sustainability will be a key priority for our clients.

The second driving force for change, today, is technology and innovation. We will continue helping our clients embrace technology-driven transformation. But we must always remember that transformation is meaningful only when it addresses people’s needs and expectations. The National Recovery and Resilience Fund, which focuses precisely on sustainability and digital transformation, will, provide, as we all know, a huge opportunity for Cyprus, in the coming years, and we will be supporting companies and government institutions, to help ensure that Cyprus is transformed into a more modern, competitive, and sustainable economy and an even more attractive investment destination.

Seeking new talent

How is being part of a global organisation benefits the country and local clients?

Today, the world is more interconnected than ever before and we all know that, to achieve real innovation and sustainable growth, you need to get people from all disciplines and walks of life to work together and share ideas and knowledge. EY Cyprus is today part of a network of more than 300,000 people in more than 150 countries around the world. For our clients, this means that they can rely on a unique combination of local expertise and global knowhow and insights. For our people, it brings the opportunity to grow and learn in a challenging global organisation, to be part of global cross-service teams and expand their horizons by working also on challenging international projects. To ensure that we will always offer the level of service clients have come to expect from EY, we have set out an ambitious recruitment plan across all sectors, seeking out the best talent available. I am confident that the benefits of becoming part of this international organisation, combined with our flexible work model make EY Cyprus a unique proposition for young professionals.

What are your priorities and personal focus areas in leading the organisation in Cyprus?

I think that a key priority, and a fundamental challenge, will be to continue to attract and retain the best talent in a very competitive environment. To do this we must ensure that we provide the best opportunities for personal growth and professional development and, building from our experience during the pandemic, we must create the flexible environment that young professional throughout the world value so much today. Above all, we must communicate effectively our core values of integrity, respect, energy and the courage to lead, and demonstrate every day our commitment to them. I firmly believe that talent, like consumers and even investment capital, will gradually migrate to companies that can demonstrate their commitment to values.

With regard to personal focus areas, as a devoted family man and a father of four, balancing between my professional and personal priorities has always been of utmost importance to me. Having a healthy work-life balance ensures and safeguards my job satisfaction. The same applies to all our people at EY. Better balance leads to greater satisfaction and less stress, and ultimately to happier and more loyal employees.  Another thing that is important to me is to keep in touch with the younger generation. I have been a lecturer at the University of Malta for about 25 years, although, unfortunately, I have had to I reduce my teaching hours in recent years. I find my interactions with students extremely valuable as I am learning from them as much as they are learning from me. Given our line of work, it is very important that we know and understand how young people think, what motivates them, what interests them and what their aspirations are.

An in-depth study of the course of FDI in Cyprus

How can a firm like EY support FDI, innovation and entrepreneurship in Cyprus?

In 2020, we presented, for the first time in Cyprus, the EY Attractiveness Survey, an in-depth study of the growth of FDI in the country, including an analysis of the international investment community’s perceptions of Cyprus’ attractiveness as an investment destination. The survey showed that investors expect to see a further improvement of the Cyprus’ investment climate in the coming years, and greatly appreciate a number of factors which make it an attractive destination, including its infrastructures, especially digital, the high level of tis labour skills and its favourable tax regime. I am confident that the survey’s second edition, which we will release later this year, will send equally optimistic messages.

With regard to innovation, EY Cyprus is a proud partner and supporter of Cyprus Seeds, a non-profit organisation with the mission to help commercialize innovative academic research in Cypriot universities and research institutions. Its aim is to help academic research teams develop their corporate strategy and critical business skills, allowing them to transform their innovative ideas into sustainable businesses that can produce positive change for our economy and society.

Additionally, EY Cyprus is one of the Innovation Partners of Microsoft for Start-ups, a new pioneering program which aims at training start-ups from all over Cyprus, so that they are able to successfully enter the global market.

Finally, this year we launched, for the first time in Cyprus, the EY Entrepreneur of the Year awards, a unique program that seeks to recognize and honour successful entrepreneurs who are having a positive impact on our economy and society. Entrepreneurs have a critical role to play, especially at a time when we need to restart, but also to transform, our economy, and we see it as our duty to pay tribute to those among them who, through their innovative spirit, vision, perseverance and social contribution can act as a role model for all of us. I am proud to say that this’ year’s winners and finalists have justified our decision to bring these prestigious awards to Cyprus.

The consequences of the war in Ukraine are manageable

What is your view on the resilience of the Cyprus economy post pandemic?

If I have learnt something, since I became Country Managing Partner at EY Cyprus, it is that the Cypriot economy is nothing if not resilient and adaptive. It has shown this during the financial crisis of the previous decade and, again, during the pandemic. In spite of the economy’s heavy reliance on the hospitality sector, GDP has recovered to pre-pandemic levels after a 5.7% growth last year, driven by the rebound in tourism, with prospects remaining optimistic for robust growth in 2022, despite the challenges of the energy crisis and the war in Ukraine. Unemployment remains on a downward trend. The government’s increased spending to support the economy during the pandemic, was balanced by a rise in tax revenues, leading to a lower public debt as a percentage of GDP. Increasing interest rates are a cause of concern, globally, but, thanks to its large cash reserves, the government has no immediate need to borrow on international markets this year. Our Business Leaders’ Confidence Barometer, released last Summer, showed a cautiously optimistic mood among respondents, including, interestingly, business leaders from the Hospitality, Real Estate and Construction sectors, which were the most hard-hit by the crisis. Of course, we will need to see how this has been affected by recent developments, but, overall, I remain optimistic.

How will the war in Ukraine impact the Cyprus economy?

All of us at EY are deeply concerned about the humanitarian crisis unfolding in Ukraine and want to see a peaceful resolution as soon as possible. The war and the sanctions imposed on Russia will clearly have an impact on our economy, but, careful analysis suggests that this will not be critical. This includes the banking sector and deposits, where the share of Russian deposits has shrunk significantly during the last decade, and tourism, where strong demand from other markets will largely offset a possible decline from Russia. Once again, Cyprus has repeatedly shown that it is able to sustain such challenges and rebound.

An impact on the professional services sector is also expected, however, it is still early to determine its magnitude, as it will depend on the duration and the outcome of the war, as well as any new sanctions that may be imposed on Russia and their practical implications.

At EY, our first priority is the safety of our 700 EY colleagues in Ukraine whom we are doing our utmost to support with financial assistance, relocation, transportation and immigration services.

Multidimensional social action

Part of its commitment in forging more effective and fairer employment opportunities and conditions globally, EY is implementing EY Ripples, an initiative mobilising EY people and networks internationally, utilising their unique skills and knowledge towards having a positive impact on the lives of a billion people by 2030. Three pillars structure and support this programme:

1. Supporting the next generation
2. Supporting businesspeople who develop high social impact action
3. Contributing to creating a sustainable, viable future, through the protection and regeneration of our planet.

• EY Cyprus is a partner (Innovation Partner) in the latest Microsoft Start-ups innovative programme, a European University Cyprus and Microsoft initiative, aiming towards the training of start-ups across the island, facilitating a dynamic presence on the global market.
• By participating in Cyprus Seeds, EY supports start-ups in turning their innovative ideas into viable businesses that can actually bring about positive change on a global scale.
• Through the Future Skills EY workshops and supported by EY personnel, students learn how to best pose questions and plan their own future.
• EY Cyprus supports charity organisation Ronald McDonald House (RMHC), facilitating the creation of Ronald McDonald House® in Cyprus that will provide accommodation for families of children across the island who are being treated at the Makarios Hospital, as well as other Nicosia hospitals and clinics.
• EY cooperates with Zooniverse, a research platform for a community of over two million volunteers who work for foundations and institutions such as the WWF, the University of Oxford, the Darwin Initiative and the University of Reading, contributing towards efforts to combat climate change.

Ukraine war consequences manageable

How resilient is the Cyprus economy post–pandemic?

If there’s one thing I’ve learned since I took over as Managing Director at the EY Cyprus, it’s the reality of the fact that the country’s economy is by in large resilience and adaptable. That was successfully put to the test during the financial crisis of the previous decade and once again, during the pandemic. In spite of the country’s significant dependence on the hospitality sector, the GDP has recovered to pre-pandemic levels, following a rise of 5.7% last year as tourism bounced back. Prospects of healthy growth remain optimistic in 2022, despite the Ukraine war and energy crisis challenges. Unemployment remains on a downward trend and the government’s additional expenditure on supporting the economy during the pandemic, were balanced out by the rise in taxation income, leading to a lower public dept as a GDP percentage. The rise in interest rates is of course, of global concern, but the government is clear of any immediate borrowing from international markets this year, due to its significant reserves.

People indicated a cautiously optimistic response in the Business Leaders’ Confidence Barometer, presented last year and significantly including hospitality, real estate and construction businesses, taking the brunt of the crisis. We will of course have to factor in the latest developments, but on the whole, I am also optimistic.

How will Ukraine impact the Cypriot economy?

EY is really concerned about the humanitarian crisis unfolding in Ukraine and we hope for a peaceful settlement the soonest possible. War and sanctions on Russia will surely come to bear on our economy, but relevant data seem to indicate that repercussions will be manageable. Such adverse effects will include the banking sector and deposits, with Russian money significantly reduced over the past decade and tourism, where strong demand from other markets, will greatly counter a possible drop in Russian arrivals. I will reiterate that Cyprus has repeatedly shown to be resilient to such challenges, quickly recovering. A certain fallout is also expected in the professional services sector but is yet too early to determine the dimensions of its impact. That will depend on the length and outcome of the war, as well as the eventuality of additional sanctions on Russia and what that will entail in practical terms.

Major awards and international distinctions

• EY Cyprus won the National Transfer Pricing Firm of the Year in 2021 for the third year running, a recognition by International Tax Review (ITR) of the company’s high quality taxation services. ‘It’s a significant recognition of the EY taxation team’s professionalism, hard work and specialised knowledge’, the company says.

• In 2021, EY Cyprus was awarded by the national certification body for implementing good quality practices in the workplace. It was a recognition of the organisation’s commitment towards the fundamental principle of equal treatment and opportunities.

• In 2020, EY globally were among the companies awarded Fortune’s Best Workplaces, with 79% of personnel saying it was ‘a great place to work’.