Portfolio of Opportunities for Foreign Investment
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PORTFOLIO OF OPPORTUNITIES FOR FOREIGN INVESTMENT 2016 - 2017 PORTFOLIO OF OPPORTUNITIES FOR FOREIGN INVESTMENT 2016 - 2017 X9 CUBA: A PLACE TO INVEST 11 Advantages of investing in Cuba 12 Foreign Investment in Cuba 12 Foreign Investment Figures 13 General Foreign Investment Policy Principles 15 Foreign Investment with the partnership of agricultural cooperatives X21 SUMMARY OF BUSINESS OPPORTUNITIES 23 Mariel Special Development Zone 41 Agriculture Forestry and Foods Sector 95 Sugar Industry Sector 107 Industrial Sector 125 Tourism Sector 153 Energy Sector 173 Mining Sector 201 Transportation Sector 215 Biotechnological and Drug Industry Sector 223 Health Sector 231 Construction Sector 243 Business Sector 251 Audiovisual Sector 259 Telecomunications, Information Technologies and Communication and Postal Services Sector 265 Hydraulic Sector 275 Banking and Financial Sector X279 CONTACTS OF INTEREST Legal notice: The information in the fol- lowing specifications is presented as a summary. The aim of its design and con- tent is to serve as a general reference guide and to facilitate business potential. In no way does this document aim to be exhaustive research or the application of criteria and professional expertise. The Ministry of Foreign Commerce and In- vestment disclaims any responsibility for the economic results that some foreign investor may wish to attribute to the in- formation in this publication. For matters related to business and to investments in particular, we recommend contacting expert consultants for further assistance. CUBA: A PLACE TO INVEST Advantages of investing in Cuba With the passing of Law No. 118 and its complemen- Legal Regime for Foreign Investment tary norms, a favorable business climate has been set up in Cuba. Other advantages are added to tax incen- Law No. 118/2014: “Law of Foreign Investment”. tives and these invite foreign investors to choose Cuba as investment territory. Among these advantages: Decree No. 325/2014: “Regulations of the Law of Foreign Investment” of the Council of Ministers X Formulation of sectorial policies for identifying investment opportunities with foreign capital Resolution No. 46/2014 and No. 47/2014 of the Banco that permits access to the Cuban market and its Central de Cuba consumers. Resolution No. 128/2014 and No. 129/2014 of the Ministry X Secure and transparent legal framework. of Foreign Commerce and Investment X Political, social and legal stability. Resolution No. 16/2014 and No. 42/2014 of the Ministry of Labor and Social Security X Geographical location in the center of an expand- ing market. Resolution No. 535/2014 of the Ministry of Finance and Prices X Climate of safety for foreign personnel. Resolution No. 920/2014 of theMinistry of the Economy X High indicators for education, social security and and Planning health of the population. Agreement No. 7567 of the Council of Ministers. INVEST TO PLACE A CUBA: X Highly qualified workforce. X International agreements signed by Cuba with the Latin American Integration Association (ALADI, by its acronyms in Spanish), the Caribbean Community (CARICOM, by its acronyms in Spanish), the Bolivar- International Agreements dealing ian Alliance for the Peoples of Our America (ALBA, with Foreign Investment by its acronyms in Spanish), the Common Market of 11 the South (MERCOSUR, by its acronyms in Spanish), Cuba has signed agreements to prevent double the European Union (EU), the World Trade Organi- taxing with Spain, Barbados, Italy, Russia, Portugal, zation (WTO, by its acronyms in Spanish). Qatar, Lebanon, China, Vietnam, Austria, Ukraine and Venezuela and it has signed 63 agreements X Governmental policy that prioritizes research and for Promotion and Reciprocal Protection of technological innovation. Investments (BITs in its English-language acronym). X Institutions at the service of investors with highly qualified personnel. X Basic infrastructure throughout the country: com- munications networks; over 20 airports; ports ad- mitting deep-draft vessels; over 95% of national territory with electrical power; rail and highway communication. Results at the close of the 2015 business year Foreign Investment in Cuba PRINCIPAL IEP INDICATORS IN 2015 show that international economic partnerships (BILLIONS CUC) reported sales of $ 4 billion CUC, representing Law No. 118 establishes the types of business X Enterprises with 100% foreign capital; for- 51 % of total exports. TOTAL SALES (MEASURE & TIME UNIT) 4.5 that can be adopted within the foreign invest- eign investors can set up on national terri- DOMESTIC MARKET 2.2 ment concept: tory as: EXPORTS 2.3 X Joint enterprise. a. Natural persons acting on their own behalf; IMPORTS 1.9 TRADE BALANCE AMOUNT 0.3 X International economic partnership agreements b. Juridical persons constituting a Cuban affili- including, among others, contracts for hotel ate of the foreign entity which they own; or management, production or services, contracts General Foreign Investment Policy Principles to provide professional services, risk contracts c. Juridical persons setting up a branch of a to explore non renewable natural resources, for foreign entity. 1. To conceive of foreign investment as a source cane, forestry and scrub (marabú) biomass, construction and agricultural production. for the country’s short, mid and long-range eco- generation of water and biogas power. nomic development. Access to state-fo-the-art technologies, securing managerial methods, 7. To consider the participation of foreign cap- Foreign Investment Figures diversifying and broadening export markets, ital as complements for national scientific replacing imports, access to foreign financing, and technological development projects, At the close of 2015, joint enterprises and inter- creating new job sources and securing great- preserving intellectual property over the re- national economic partnership agreements were FOREIGN INVESTMENT er incomes on the basis of production linkage sults obtained, especially brand names and the preferred types, while hotel management BUSINESSES 2015. with the domestic economy are objectives that patents created by the Cuban Party. contracts were very important. According to the THE MOST ATTRACTIVE SECTORS should be proposed in order to attract foreign foregoing, the most attractive sector for foreign investment. 8. To consider foreign investment in certain capital has been in the tourism sector, followed economic sectors and activities as an active 2. To secure new managerial methods that con- and fundamental element for growth. by mining and activities in energy and the indus- MINEM 25 tribute to achieving better market positions, in- CUBA: A PLACE TO INVEST TO PLACE A CUBA: trial field. MINTUR 101 creased productivity and profitability, efficiency 9. To consider the agricultural and foods in- INVEST TO PLACE A CUBA: MINDUS 19 of complex investment processes and their as- dustry production as prioritized sectors similation by the rest of the economy. along with tourism, including health, the FOREIGN INVESTMENT BUSINESS TYPES GAE-CIMEX 15 2015 development of energy sources especially MINAL 10 3. To immediately prioritize foreign investment renewable energy, the exploration and ex- directed to replacing food imports. ploitation of hydrocarbons and mining re- MICONS 9 102 103 sources and construction or improvement MINAG 4 12 4. To promote the development of comprehen- of industrial infrastructures. 13 MITRANS 10 sive projects generating production linkage in the search for collective efficiency. These proj- 10. To guide the greater part of foreign invest- MFP 1 ects may be executed with one investor or with ment towards export sectors. Moreover, to MINCOM 4 several having thatsame interest. direct it towards eliminating bottle-necks AZCUBA 5 in the production chain, encouraging mod- 5. Corresponding to the country’s demographic ernization, infrastructure and changing the BCC 3 dynamics, foreign investment must allow ac- technological model in the economy as well OHCH 3 cess to state-of-the-art technologies which in- as efficiently meeting the country’s needs crease productivity and permit efficient use of with the aim of replacing imports. INRH 2 9 the workforce. MINFAR 1 11. To encourage foreign investment on the ba- 6. To contribute to changing the country’s energy sis of a broad-based and diverse Portfolio 100% Foreign Capital Companies CITMA 1 matrix by taking advantage of renewable en- of Projects. To focus promotion by stages MINCEX 1 IEP Contacts Joint Enterrpises ergy sources, using solar and wind power and and potential sectors/activities and to pro- power from agro-industrial waste such as sugar mote diversification in the participation of the businesss sector from different countries. 17. Ownership of State goods will not be trans- 25. Any increase to the investment budget will 26. Investments in infrastructures, directly and To prioritize massive promotion for the Special ferred other than in exceptional cases where be assumed by the International Economic indirectly induced, may be executed under Economic Development Zones starting with they will be destined for purposes of the coun- Partnership. foreign investment types with long term the work by the Special Economic Develop- try’s development and when they do not ad- funding. Those associated with the develop- ment Zone of Mariel. versely affect the political, social and economic ment of tourism will be prioritized. foundations of the State. 12. To consider prioritized activities implicating transfer of technology,