2026 is an opportunity for Grant Thornton Cyprus to further strengthen its strategic presence in the local and international market and continue its dynamic growth, according to its CEO, Stavros Ioannou, who notes that the first goal is to "maintain the positive course we have achieved in Cyprus, investing in sectors that show increasing demand and providing highly specialised and strategic value services."
In an interview with InBusinessNews, as part of the IN Business Forecasting 2026 series of interviews, he underlines that "at Grant Thornton we are seeing increasing demand for services related to technology, artificial intelligence and sustainability," and explains that the biggest challenge for the sector remains attracting and retaining talent.
"We want to continue to be an employer of choice, through a culture that promotes growth, authenticity and participation," he also emphasises.
How do you think the Cypriot economy will perform in 2026 and what are its prospects? What do you consider to be the biggest risks and how can they be addressed?
The Cypriot economy has shown great resilience over time, but I believe that 2026 is expected to be decisive in managing certain structural challenges. Increased operating costs, the lack of skilled human resources and the ongoing geopolitical instability in the wider region are three of the most significant risks we face.
Now, energy, raw materials and the cost of money have significantly burdened businesses, while the difficulty of finding and retaining talent, especially in technological or other specialised roles, limits the ability of organisations to grow. At the same time, geopolitical uncertainty affects critical pillars of the economy, such as tourism and investment.
In my view, what is needed is a long-term strategy focused on diversifying our economy and strengthening its competitiveness. Cyprus can no longer rely excessively on traditional sectors such as tourism and professional services. This is the time to invest in the green economy, shipping and the technologies of the future. Sectors such as fintech, regtech, artificial intelligence, marine research, sustainable aquaculture and smart supply chains can make Cyprus a regional hub of expertise.
At the same time, we can learn from the experience of countries such as Estonia and Lithuania, where it appears that targeted investment in digitalisation, innovation-friendly regulation and R&D infrastructure creates an ecosystem that attracts talent, capital and extroverted entrepreneurship.
With the right investments, I believe we can turn today's challenges into tomorrow's growth opportunities.
How do you anticipate that your company's sector of activity will develop in 2026, what are the biggest trends/changes you expect to occur and what are the most significant challenges?
The professional services sector continues to transform at a rapid pace and is expected to accelerate in 2026. At Grant Thornton, we are seeing increasing demand for services related to technology, artificial intelligence and sustainability as businesses face complex challenges and adapt to new realities. I see our clients now looking not only for technical support, but also for strategic guidance, with solutions specifically tailored to their needs and specificities.
Artificial intelligence will continue to change the landscape in 2026. However, I believe that the human factor will remain decisive. The ability to interpret, strategic judgment and empathy are elements that cannot be replaced by artificial intelligence.
What will remain the biggest challenge for our sector in 2026 is attracting and retaining talent. International competition for skilled human resources is intense and organisations are called upon to invest substantially in the development and empowerment of their people. An attractive employment offer is no longer enough; on the contrary, a culture of authenticity, perspective and meaningful participation is required. The organisations that manage to combine innovation with the human face will be the ones that will stand out.
A strong trend that seems to be taking hold in Cypriot business is that of acquisitions and mergers. Will we see it strongly in your sector as well?
The trend of acquisitions and mergers does not seem to dominate our sector, at least not with the intensity observed in other sectors. In the professional services sector, we see the creation of strategic partnerships, whether at a local or international level, more than merger moves.
However, it is a fact that interest in acquisitions and mergers is increasing in sectors such as technology and energy, as these are sectors with great momentum and a growing need for efficiency, resource utilisation on a larger scale, know-how and access to new markets. I believe that 2026 will continue this trend.
In this environment, the strategic investment from Grant Thornton UK further strengthens our position and our ability to support organisations undertaking strategic moves, such as acquisitions, mergers or entering new markets.
In my opinion, Cyprus remains an attractive destination, both due to its business framework and the specialised services ecosystem that has developed. As long as stability is maintained and the country's visibility is further enhanced, it is very likely that we will see increased mobility in our sector in the coming years.
What can we expect in terms of your organisation's plans and growth and expansion strategy in 2026? What moves do you intend to make in this direction?
For us, 2026 represents a continuation of our dynamic growth, but also an opportunity to further strengthen our strategic presence in the local and international market. Our primary goal is to maintain the positive course we have achieved in Cyprus, investing in sectors that show increasing demand and providing highly specialised and strategic value services.
At the same time, our partnership with Grant Thornton UK allows us to expand our role in other service lines, both within and outside the network. Our teams already provide audit, tax, payroll, sustainability and technology services to Grant Thornton UK clients, bringing expertise and value on an international level.
Accordingly, we also place particular emphasis on strengthening our human resources. We want to continue to be an employer of choice, through a culture that promotes growth, authenticity and participation. Our 'As it should be' campaign highlights precisely these values and is a key pillar of our strategy. For us, growth is not only about numbers, but also the positive impact we can have on our people, our customers and society as a whole.
The new year is seeing the implementation of the tax reform, which is taking place 22 years after the previous tax reform. How do you estimate that it will affect the Cypriot economy, businesses, and the attraction of foreign investments?
The tax reform is a significant development for the Cypriot economy, as it comes to adjust a system that has remained almost unchanged for more than two decades. Although the proposed changes are not radical, they are, in my opinion, a step in the right direction. They aim to make our tax framework fairer, more functional and more competitive.
The increase in the corporate tax rate to 15%, the revision of tax brackets for individuals and the abolition of the deemed dividend distribution are reforms that respond both to the country's international obligations and the need to rationalise the system. At the same time, the reduction of the Extraordinary Defense Contribution on dividends and targeted relief for individuals create a more balanced environment.
What will determine the success of the reform is stability and clarity in its implementation. Investors seek predictability and transparency, and any move that enhances these characteristics contributes to the attractiveness of Cyprus as an investment destination. Tax reform is not an end in itself, it is a tool that, if properly utilised, can support growth and strengthen business confidence in the Cypriot economy.
(Source: InBusinessNews)
