Stavros Ioannou: 2025 will be a landmark year for Grant Thornton Cyprus

2025 is expected to be a landmark year for Grant Thornton Cyprus, according to its CEO, Stavros Ioannou. In an interview with InBusinessNews as part of the "IN Business Forecasting 2025" series, he describes Grant Thornton UK’s recent strategic investment in his company as a milestone for its growth and a significant vote of confidence in both the team and the Cypriot market.

He anticipates that 2025 will be a defining year for the sector overall, with increased demand for services related to technology, sustainability, transformation, and compliance.

"An interesting trend observed recently is the growing interest of private equity investment firms in organisations within our sector. Although it is still uncertain how this trend will develop, it is something we are seeing globally," he adds.

He also expects increased activity in mergers and acquisitions, which he describes as “an integral part of modern business, with our sector being no exception.”

How do you expect the Cypriot economy to perform in the coming year? How optimistic are you about its prospects?

The Cypriot economy has proven its resilience to challenges such as the pandemic, the energy crisis, and international geopolitical tensions. While today’s conditions create some uncertainties, we see clear signs of stabilisation and growth in Cyprus.

I believe 2025 will be a year of opportunities, with dynamic growth in the technology, tourism, and financial services sectors. In particular, investment in green technologies and sustainable infrastructure will strengthen Cyprus’s position as a modern and competitive destination for businesses and investors.

Additionally, the enhancement of digitisation and the promotion of innovation can open new prospects and provide momentum for various sectors. I am optimistic that our country will continue to leverage its geographical position, human capital, and flexibility, adapting swiftly to global developments.

As a company, we are well-positioned to support our clients during this transformative period by offering top-quality services.

What do you see as the biggest threats to our country’s economy? What should be prioritised to ensure its continued growth?

One of the primary risks for the Cypriot economy is international economic instability, which impacts energy costs, exports, and demand in key sectors such as tourism and financial services. Additionally, climate change and the need for sustainable practices are challenges we cannot ignore.

The recent International Business Review study by Grant Thornton International highlighted the critical role of small and medium-sized enterprises (SMEs) in the transition toward ESG practices. According to the study, SMEs, with the right support, can act as a driving force capable of positively influencing the entire business ecosystem.

In my view, to keep the economy on a growth trajectory, it is essential to reduce energy costs through green investments and to enhance innovation. At the same time, by supporting strategic sectors such as renewable energy and advanced technologies, we can contribute to ensuring the resilience and competitiveness of our country.

What should Cyprus do to become an even more attractive destination for foreign investments? How important do you consider foreign investments for the economy?

Cyprus already possesses significant advantages, such as its strategic geographical location, a stable and business-friendly tax system, and a highly educated and specialised workforce. These characteristics make it an attractive destination for foreign investments.

However, maintaining and improving our competitiveness requires continuous progress in critical areas.

I believe that upgrading technological infrastructure, accelerating digital transformation, and promoting innovation are essential for attracting high-value-added investments. Additionally, the adoption of sustainable practices and a commitment to achieving environmental goals will enhance Cyprus’s credibility as an investment destination.

Moreover, improving the legal and regulatory framework, with a focus on transparency and faster decision-making, can create even better conditions for investors.

Foreign investments are vital, not only for the island’s economic growth but also for the introduction of innovative ideas and technologies that can stimulate the local business community.

Shifting toward sectors such as artificial intelligence and renewable energy could position Cyprus at the forefront of developments, strengthening its role as a regional hub of innovation.

2025: A landmark year

How do you expect your company’s sector to perform in 2025? Are there any concerns you have?

2025 is expected to be a pivotal year for our sector, as we observe increased demand for services related to technology, sustainability, transformation, and compliance. Businesses are increasingly focusing on adapting to global trends and transparency requirements while seeking solutions that enhance their resilience in a dynamic economic environment.

Grant Thornton UK’s recent strategic investment in our company marks a milestone for us, representing a significant vote of confidence in both our team and the Cypriot market.

This investment enables us to expand our service offerings by incorporating innovative technologies and specialised solutions for our clients. Several of our teams have already initiated projects under this framework, which we expect to continue robustly in the coming years.

At the same time, one of the major global challenges in our industry is attracting talented professionals. The attractiveness of our profession is a concern, and we observe this trend in Cyprus as well. As an organisation, we have made addressing this issue a strategic priority. I remain optimistic that the recent developments within our company, combined with our ongoing investment in people development, will allow us to attract and retain top talent.

In my view, the key to success lies in creating a work environment that fosters innovation, collaboration, and continuous learning while ensuring a sense of emotional safety for everyone. Through this philosophy, we can not only meet the industry’s challenges but also ensure that we deliver high-quality services that meet our clients’ evolving needs.

What are the major trends/changes you expect in your sector, and what are the key challenges?

It is undeniable that the role of technology and artificial intelligence is gaining increasing significance. Process automation and data analysis through AI not only enhance efficiency but also enable businesses to make faster and more well-informed decisions. These technological advancements are expected to transform our sector, opening up new opportunities for innovation.

For us, these developments shape a new horizon of possibilities. As an organisation, we have always focused on providing solutions that meet the evolving needs of the market, combining our specialised expertise with innovative approaches to help our clients remain competitive in a changing environment. This trend also creates the need to strengthen our teams with specialised professionals. As mentioned earlier, talent acquisition remains a challenge, but with proper management, it is not insurmountable.

Additionally, an interesting trend we have observed recently is the growing interest of private equity investment firms in investing in organisations within our sector. Although it is still uncertain how this will evolve, it is a trend that can be seen on a global level.

Emphasis on international mergers

A strong trend in Cypriot business appears to be mergers and acquisitions. Will this trend be prominent in your sector as well?

Mergers and acquisitions have become an integral part of modern business, and our sector is no exception. Personally, I believe we will see increased activity in this area, particularly in the form of international company mergers aimed at resource consolidation and expanded access to larger markets.

These partnerships are not merely business moves—they are strategic choices that strengthen the resilience and capabilities of companies. With proper management, mergers and acquisitions can yield positive results, creating larger, stronger, and more resilient enterprises while simultaneously boosting market confidence.

Significant opportunities with Grant Thornton UK’s investment

What can we expect in terms of your organisation’s plans and growth strategy for 2025? What actions do you intend to take in this direction?

I believe 2025 will be a landmark year for us. Grant Thornton UK’s investment brings significant opportunities, and we are already seeing the first steps being implemented.

Our teams are working closely together, leveraging expertise and best practices to propose strategies that lead our clients toward sustainable growth. We believe that continuous investment in our teams, enhancing their skills, and integrating them into a dynamic and supportive environment is key to achieving the best outcomes for our clients and ensuring our own sustainable development.

Our goal is to expand our activities in areas such as sustainability, technology, and compliance, addressing the growing needs of our clients.

At the same time, we observe that the consulting services sector is evolving rapidly, and our teams, with their experience and expertise, are working diligently to provide our clients with the best possible support and solutions.