"By 2030, the profession will be more specialised and internationally integrated," Iosif Frangos, the Founder and Managing Partner of Frangos Law suggests.
In a recent interview with GOLD magazine, he continues, "Cyprus’ role as a technology hub, investment centre and base for regional headquarters, coupled with EU regulatory complexity, will generate mandates spanning AI and data governance, funds and fintech, sanctions, FDI screening, energy transition and shipping."
All this, according to the expert, means that, "Opportunity will favour firms combining legal expertise, genuine sector knowledge and coordinated cross-border capability."
Among other things, Fragos also shares his view on the reform of the judicial system and the impact of the implementation of the Screening of Foreign Direct Investments Law.
He, in addition, weighs in on the sector's use of AI and comments on how Inflation and rising operational costs are impacting law firms in Cyprus.
The modernisation of Cyprus’ judicial system has faced a number of significant implementation challenges. With the Commercial and Admiralty Courts yet to become fully operational, the iJustice platform experiencing delays and case backlogs continuing to affect court efficiency, what do you believe are the principal barriers to successful reform? What recommendations would you make to ensure that various initiatives deliver their intended objectives?
In my view, the principal obstacle is the implementation gap between reform on paper and reform in practice. New courts, procedures and digital systems require not merely sufficient personnel but appropriately skilled judges and court staff, fit-for-purpose infrastructure, rigorous testing and clear institutional accountability. The Commercial and Admiralty Courts should become operational against realistic milestones, with transparent progress reporting. Reform must also be informed by continuous consultation with those who use the system. Equally, the historic backlog requires a distinct, properly resourced strategy; otherwise, legacy cases will continue to absorb capacity and obscure the benefits of reform. The same disciplined approach is required for the further development of iJustice into a stable and integrated case-management system.
With the Screening of Foreign Direct Investments Law now in force, how does the new regime affect cross-border transactions?
The regime subjects qualifying transactions to mandatory, suspensory review and therefore introduces a distinct category of regulatory execution risk. Broadly, where a non-EU/EEA/Swiss investor acquires at least 25%, or decisive influence, in a Cyprus undertaking of strategic importance through an investment of €2 million or more, the Ministry of Finance’s prior written approval is required. The Law deems any transaction requiring approval to be subject to a condition precedent to obtaining it; approval cannot be inferred merely from the expiry of the review period. FDI analysis must therefore inform the transaction’s structure, timetable and allocation of regulatory risk from inception. As the regime is new, administrative practice has yet to develop and it remains to be seen whether applications will be determined consistently and within the statutory timeframes.
What has the process of adopting AI been like for law firms?
Adoption has been rapid but necessarily measured. AI can improve research, document review and drafting, yet apparently authoritative output may conceal legal or factual error and compromise confidentiality, privilege, data protection or intellectual property. A further, less examined risk arises from client use: clients may rely on AI-generated advice or documents before consulting lawyers, creating false confidence, embedding defective assumptions into transactions or disclosing sensitive information. Lawyers must then identify and unwind risks obscured by polished but legally unsound output. Firms therefore require secure systems, clear protocols, proper training and rigorous human verification. Artificial intelligence can augment legal judgement; it cannot exercise it or assume professional responsibility.
Inflation and rising operational costs are squeezing law firms. How are these challenges reflected in how lawyers conduct their business?
Inflation has exposed the distinction between revenue growth and disciplined profitability. Firms must understand the true cost of each matter, scope work carefully, deploy the appropriate level of seniority and monitor time, budgets and collections. Pricing will increasingly combine hourly rates with fixed, capped, blended or retainer arrangements where appropriate. Efficiency, however, cannot come at the expense of quality or professional development. Sustainable firms will use technology and delegation intelligently while continuing to invest in talented people, specialist expertise and the trusted relationships on which legal practice ultimately depends.
How do you envision the Cypriot legal profession evolving by 2030? Do opportunities exist for expansion into new lines of business?
By 2030, the profession will be more specialised and internationally integrated. Cyprus’ role as a technology hub, investment centre and base for regional headquarters, coupled with EU regulatory complexity, will generate mandates spanning AI and data governance, funds and fintech, sanctions, FDI screening, energy transition and shipping. Opportunity will favour firms combining legal expertise, genuine sector knowledge and coordinated cross-border capability.
This interview first appeared in the August edition of GOLD magazine. Click here to view it.
