visions on Curaçao New investment opportunities 02. welcome 03. Table of Contents In July 2013, Dutch Prime Minister Mark Rutte and a delegation of Dutch entrepreneurs and Captains 04. The positive added value of the Kingdom of the Netherlands of Industry visited Curaçao. This was a unique and for the parts of the Kingdom memorable occasion, that benefits all parties involved. The economies of both the Netherlands and Curaçao are for a large part based on trade and 06. Business & e-Business logistics. The key position the Netherlands has in Europe, Curaçao can acquire in the Latin 08. The need for durable economic growth and how to get there American and Caribbean region. 10. Advantages of the Curaçao Jurisdiction for setting up offices or legal structures 12. Curaçao's Regional Role in the Digital Age In this publication, several key-figures from the Curaçao business community and public service give their vison on what our economy has to offer. In addition to tourism, there is a large financial sector, a stock exchange, a data center and a refinery. But there is more. Curaçao has an all-round maritime centre and an impressive Airport City concept that has a lot of economic potential. 16. Infrastructure & Tourism I would like to thank mr. Luis Santine sr. for his effort to give an overview of the economic strength 18. Tourism Development on Curaçao and potential of Curaçao. It adds content and context to a historic visit within our Kingdom. I am 20. Curaçao Airport City looking forward to a more intensive cooperation between the Netherlands and Curaçao, in order 24. Curaçao International Airport Partners. to optimize the opportunities and possibilities for economic development. 26. Service at the Cross Roads of the main Sea-Lanes.

28. Energy 30. Vision on Sustainable Refining and Terminalling 32. Curaçao can draw Energy Investor Interest

Stanley Palm 36. Finance, Banking & Insurance Minister of Economy 38. Banking on a Sound Economy for Curaçao. 40. Curaçao’s International Financial Services Sector 46. Dutch Caribbean Securities Exchange

48. Practical Information 50. Facts & Figures 51. Colophon & Sponsors The fact that we now have King Willem-Alexander The Charter of the Kingdom gives our islands the and Queen Máxima with an extensive international opportunities to enter into treaties with other network throughout the economic and financial countries, although the Kingdom will officially be 04. The positive added sectors, can provide us with more opportunities in partner in the treaty. In this context I would like to the international economic and financial fields. The recommend that we use our embassies in the region fact that they have invited me to participate in their more intensively. All our ambassadors are available cortege carrying the Charter of the Kingdom during to assist us in opening local doors and promoting value of the Kingdom the inauguration on April 30, 2013, demonstrates their our respective countries. Our financial and economic commitment to our societies in the Caribbean parts of sectors should be an active part of delegations of the Dutch Kingdom. It is the first time in history that our King and Queen during their visits to relevant of the Netherlands this has happened. countries and meet with potential investors. Some We have to grab every opportunity out there. Articles countries in Latin America, like Argentina, Brazil, 36, 37 and 38 of the Charter of the Kingdom give Columbia and Panama, have growing economies. many possibilities for cooperation. has recently King Willem-Alexander and Queen Máxima have for the Caribbean proven through the conference “Europe meets a very good relationship with Latin America. The the Americas” that there are many international Dutch private sector is successfully using this close opportunities. Not only for the government, but most bond. Curaçao should do the same. In addition, it of all for the private sector, in particular in the field of is very important to pay attention to the fact that parts of the Kingdom international finance. The private sector of Curaçao Curaçao, due to its Caribbean location in between should be a leading force globally, in particular in the South and North America, can be a very useful hub- Caribbean and the Americas from North to South by center for Dutch companies and associations and as Since the dismantling of the Netherlands large, but particularly of community leaders, putting Curaçao on the map and creating all kinds of such can provide a creative environment as well as Antilles as of October 10, 2010 the in both the public and the private sector. It is opportunities for cooperation in different sectors. a professional infrastructure to connect, meet and whole Kingdom is at a cross road of new a fact that development starts in the people’s do business with the Caribbean and the Americas. developments. The autonomous status mind, in their attitudes, values systems and In the context of the potential of all these positive Therefore, Curaçao and the other Caribbean parts of for Curaçao and entails more judgments. To sustain our constitutional activities, the government and professionals in all the Kingdom are also of great added value for the autonomy and greater self-determination. provisions and their implementations, and the fields of the private sector should emphasize the Netherlands. This provides the islands - as new countries democratic process in general, the political fact - in particular to partners in the Caribbean and - with the opportunity to address their society should share their underlying values Latin America - that we are part of the Kingdom It is about time for Curaçao to move ahead and make financial, social and economic problems in and constantly manifest commitment to them of the Netherlands. That the Charter guarantees better use of the positive added value of the Kingdom a more island specific context. However, we through its own political activity. Without fundamental human rights and freedoms, legal for the island and our other islands in the Caribbean. also have to understand that both in spirit transformation of mindset we will have more certainty and good governance and that we have a This will effect the people in our societies in a positive and letter, more autonomy ought to be of the same, but than in a new constitutional very well functioning and independent judicial system way in the short and long term. seen as a political force and challenge and structure without any additional benefit for with the possibility of appeal to the Supreme Court of definitely not as a withdrawal behind the our society as a whole. So, what we need is the Netherlands. Our judicial system provides national Improving communication with the rest of the world walls of naive self-sufficiency or impossible less talking about issues like more autonomy and international investors with the guarantee that is only possible if we have a mutual perspective forms of self-reliance in this world of and more self-determination and a bigger their rights are well-protected. This is something not on economic developments and opportunities. globalization. focus on stimulating a social, economic and all countries in our region can guarantee. Communication cannot just occur at a political financial transformation in our societies. This or administrative level. Without the involvement Furthermore, constitutional changes alone should be both innovative and creative and According to article 39 of the Charter, Civil and of civil society groups, the business sectors and should not be seen as a kind of remedy for based on giving our islands a clear direction by Commercial law, the law of civil procedure, representatives of younger generations, we will not all these problems. History - in all parts of implementing a set of coherent policies. criminal law, law of criminal procedure, copyright succeed. It is about time to seize new opportunities. the world and for centuries - has proven These new policies should stimulate a and industrial property, the office of notary, and With the commitment and support of King Willem- that a positive development of societies sustainable economic growth and open our provisions concerning weights and measures shall be Alexander and Queen Máxima we can reach further and humanity in general cannot come from doors for globalization of our economic and regulated as much as possible in a similar manner in and make more progress in the pursuit of our political measures alone. And certainly financial sectors by creating an attractive the Netherlands, Aruba, Curaçao and Sint Maarten. ambitions. not from exclusive economic measures, economic, financial and less bureaucratic The article further stipulates that when a drastic technological innovation or constitutional climate, which at the end will present greater amendment of the existing legislation with regard changes. Deliverance will come from drastic benefits for our people. to these matters is proposed, the proposal shall not change in a reassessment of cultural, spiritual be submitted to or considered by a representative and ethical values, eventually expressed in At the same time, we should seize the Prof. Mr. Jaime M. Saleh assembly until the governments in the other countries Minister of State a transformation of both society and the opportunity of the constellation of the have had the opportunity to express their views on economy. Kingdom for promoting sustainable Professor Emeritus "Constitutional Kingdom Law" the matter. There are still discrepancies in several laws, at the University of Utrecht cooperation and cohesion between the but the basic principles and values of fundamental In the context of the constitutional situation partners in the Kingdom of the Netherlands. Former Governor-General of the Netherlands Antilles human rights and freedoms and legal certainty are of our Kingdom this means that changes in Being part of the Kingdom and having well-protected. So, many provisions in the Charter of Former President of the Court of Justice of Aruba, Curaçao, constitutional structures by themselves will its Charter (“het Statuut”) as our highest the Kingdom are of real, positive added value to our Sint Maarten and , Sint Eustatius and Saba not have any effect if this is not accompanied constitution is of great added value that is still constitutional system. by a change of mindset of people in society at underestimated by many. 06. Business & e-Business The IMF’s report Economic Outlook 2013 under the impression that these advantages indicates that Curaçao’s economy is not have not yet been applied and used to their keeping up with the countries in the Central full potential. In other words, there is still a 08. The need for durable or South American region. For 2013 – 2014 lot of room for further increase of the level of a growth of 2% - 3% is expected for the prosperity. This can be illustrated by some clear Caribbean region, 4% for Central America examples. and 3% - 4% for South America. TAC’s most economic growth and recent study "Strategies for Sustainable Long Tourism is an activity that fully complies with Term Economic Development in Curaçao" the theory of comparative advantages (sun, also concludes that for the past years, sea, beaches, friendly inhabitants, et cetera.). how to get there Curaçao has scored almost six times worse Further expansion of tourism in Curaçao is in terms of economic performance than therefore a logical step. comparable countries did. In terms of growth percentages of the GDP, Curaçao's Many activities have been identified to further Economic potential and comparative expand and improve our tourist operations, economic performance over the last ten years has not been advantages among other things the development and exuberant. On an average, the economic growth was barely construction of new hotels, villa’s, apartments, The development as described above is yacht marina’s, a second mega pier, water 0.9 %. For 2013 and 2014 shrinkage of 2.3 % is expected, remarkable because Curaçao has the potential related (sports) activities, entertainment, et partly as a result of a large number of cost increasing to excel in the economic area. This is apparent cetera. from the many comparative advantages of measures (the so called "cold turkey" approach) that have Curaçao, such as: Elements such as the legal system, reasonably been taken in the first quarter of 2013 in order to try to good physical infrastructure, presence of a • Curaçao is part of the Kingdom of the university, a scientific institution as CARMABI, reduce the budget shortfalls and to establish a balance. Netherlands, therefore the Dutch legal system, trustworthy production of utility products including access to the Supreme Court and and in particular the very good telecom guarantee of Good Corporate Governance is connectivity are a strong basis for the applicable. There is also access to schooling, development of a transnational or knowledge- education and expertise. based economy. In addition, we have an • Relatively low National Debt (32% of GDP). advantageous geographical location and good • Low inflation and stable currency. ties and relations with excellently developed • Reasonably good basic infrastructure (roads, countries. It is by all means worthwhile to sea- airport, telecom) convert the comparative advantages that • Reasonably trustworthy production of Curaçao offers in this area into a booming electricity and water. economic sector. • Hardly any analphabetism and a well- developed feeling for languages. Development, research and the application • Advantageous geographical position of alternative energy sources (wind, sun, cold in relation to natural calamities such as water, et cetera) is another economic field hurricanes and earthquakes. with a lot of potential that fits the ambition • Relatively close to countries with large to optimize the comparative advantages economic growth potential and increasing that Curaçao has to offer. Of course, these prosperity. activities would also fit within the concept of • Relatively good wages and salaries and social transnational education. security. • Preferential access to the European market. The cultivation and the further expansion • Presence of attractive facilities, including fiscal of existing sectors, such as the international ones. financial services sector, international trade • Availability of attractive marine sources and and logistics and ship repairs seem obvious, climate, donor funds, the World Heritage but require the necessary attention in order to Status for the city centre. timely introduce changes in order to remain • A population that is increasingly critical and competitive. demanding with regard to the development of their country. Oil refining activities have been an important part of Curaçao’s economy for decades and These advantages are already being applied have been the flywheel for the current level partially and have led to the current level of of prosperity. The fact that the contract with prosperity. However, too many people are PDVSA expires in 2019, evidently requires the necessary attention and decision making. means, large unemployment, insufficient The central question is: do we continue income and pensions, deficient quality of this activity, and if so in what form? And education, health care, insecurity et cetera if not, what would be the alternative to belong to the past. Economic growth creates compensate this loss of economic activity? means to be able to finance the necessary The possibilities for oil and gas exploration investments. Political will, commitment and complicate this process, but at the same time consistency combined with the creation of it creates opportunities. the necessary conditions so that the private sector can carry out its activities is the ideal This brief summary of potential (new) prescription to accomplish durable economic economic activities based on the growth. comparative advantages that Curaçao has to offer, shows that these are more than Action the current (relatively small) population of Curaçao would be able to process. The VBC has taken the initiative, together That is why we can conclude that there is with the leaders of the political parties that enough potential for durable economic form the coalition, to analyze the current development. financial and socio-economic situation in which Curaçao finds itself at the moment. The big question is why the comparative Parties have unanimously reached the advantages are not used to their full extent conclusion that Curaçao is in dire need of in order to create durable labor, income, durable economic growth. This necessary a good social security system, safety, and and desired growth can be realized by education – in short – durable economic promoting investments, both public and growth and higher prosperity. The answer to private. Parties have reached an agreement this question has already been provided by that they will do their utmost best to various studies from experts, professionals create the framework of conditions and and other individuals: a lack of (long term) circumstances to truly realize these necessary vision, action and consistency. The VBC investments. (Trade and Industry Association of Curaçao) acknowledges this analysis and strongly The agreements will be bundled in a believes that durable economic growth covenant, after which they will be executed. can best be realized if politicians and the Among other things, there is the intention of government create the necessary conditions organizing an Economic Summit where the in which the private sector can carry out its most important economic stakeholders will tasks in the most productive and structural gather to determine which are the priority way. These conditions are: projects to invest in.

• Healthy government finance This plan of action will hopefully contribute • Small, efficient and quick-witted government to the restoration of confidence and apparatus to durable economic growth so that • Cost of doing business employment, a steady income for the people • Innovation and consistent policy of Curaçao and general prosperity will • Living climate increase. • Combating of poverty • Relations within the Kingdom • Balanced Budget • Integrity / Good Corporate Governance H. Behr • Tripartite Plan of Action. President Curaçao Trade and Industry Association

Summary

Curaçao has sufficient potential to realize durable economic growth, to such an extent that financial and socio-economic problems that manifest themselves anno 2013 can be solved structurally. Budgetary shortfalls and increasing national debt, lack of financial The international financial sector (IFS) of a friendly fiscal climate and a well-developed Curaçao is committed to maintaining its infrastructure. The island of Curaçao, as position as a favored and trusted jurisdiction part of the Kingdom of the Netherlands, 12. Advantages of the worldwide. It is a premier and high quality, qualifies perfectly. Strategically situated at globally competitive financial center that the crossroads of all the international sea contributes to sustainable economic growth lanes between the continents of Europe, Curaçao Jurisdiction and the well-being of the people of Curaçao. Africa and the Americas, Curaçao is well away The jurisdiction has also invested heavily from the devastating paths of the seasonal in establishing a robust regulatory regime hurricanes, and blessed with deep waters and with supervision that meets or exceeds well-protected inland harbors. The business for setting up offices international standards. and telecommunications infrastructure is one of the most advanced in the region. Curaçao currently complies with all the There are no government restrictions on requirements of the EU Code of Conduct foreign-owned businesses and investing is or legal structures against harmful tax practices and adopted encouraged. The strongest commercial links amongst other things the EU Savings are with the Netherlands and the United States Curaçao, which on 10-10-2010 acquired its autonomous Directive as well as measures against money and increasingly with Latin America. This is laundering and the financing of terrorism. reflected in the professional services and status within the Kingdom of the Netherlands, is one of the As an accepted jurisdiction by the OECD and skilled workforce available locally. FATF, and apart from its Qualified Intermediary premier (and oldest) international financial centres offering (QI) status awarded by the United States As a result of these benefits, on February a politically stable jurisdiction and is home to many of the Internal Revenue, Curaçao strives to remain 1st 2001, Curaçao made it possible for an internationally compliant jurisdiction, special economic zones (E-zone) to be used world’s leading financial institutions. Supervision by the evidenced by its ever growing network of by foreign trading companies. An E-zone Central Bank as well as by the Supervisory Committee bilateral tax information exchange and double is a specific appointed area in Curaçao in taxation treaties that have led to its White which international trade (without physical governing the financial and fiduciary industry ensures Listing by the OECD in the report of September transportation through the E-zone) and transparency, security and stability of the sector. 10, 2009. In addition, Curaçao is an active and trade-supportive services may be performed, complying member of various international whether or not they are supported by organizations such as the OECD, the Egmont electronic communication and information Group, the Financial Action Task Force (FATF) equipment (e-commerce). E-zone business and the Caribbean Financial Action Task Force include a broad range of international (CFATF). trading and service activities, all restricted to appointed areas, each of which is individually The level of service offered by the local managed by a specific coordinator. When administrative agents, banks and custodians, certain conditions are met, a tax rate of 2% is a multilingual workforce (English, Spanish applied, while no import duties, turnover tax and Dutch are widely spoken), a superb or other taxes are due. In general, all services telecommunication infrastructure and the except those specifically excluded, maybe presence of modern IT technology as well as performed in or from an E-zone. An example major international tax, legal and accounting of a very promising new economic revenue firms. These are all major contributors to generating pilar that can be conducted from Curaçao’s long standing reputation as an an e-zone is Online Merchant Processing via administration centre of choice. Adding further Payment Service Providers (PSP’s) and Online substance to our financial sector is the Dutch Merchant Acquiring. Caribbean Securities Exchange N.V. (DCSX) that was incorporated in May 2009 and has been In general, the e-commerce business has operational as a licensed exchange since March the potential of boosting, amongst other 2010. jurisdictions, the Dutch Caribbean financial sector. The exchange will further expand the reach of the international financial sector and serve as an extension to the range of services currently offered by the local financial services L. Santine Jr. community, enhancing Curaçao’s position as a Managing Director InfoCapital N.V. leading financial services jurisdiction. Organizations and entrepreneurs around the world are increasingly seeking countries with a major transshipment point between Latin America and island offers unique benefits for expatriate employees. A Europe. For tourists its probably one of the best-kept secrets. multicultural populace that speaks English, Spanish, Dutch, But there’s more to come. Much more. and Portuguese also makes the island an ideal location for 14. Curaçao's Regional The island is gaining prominence as a regional technology transnational commerce. hub enabling international digital commerce. The first tier-IV Uptime institute certified data center complex in the region Building a world-class data center role in the Digital Age consisting of four 57,000 square feet facilities is being built by a young and innovative company called CTEX, which stands CTEX’s founders wanted to provide customers with the most for Curaçao Technology Exchange (www.ctexpartners.com). advanced data center services out of a high end facility. Those Worldwide surveys are showing that emerging markets are It is building the most advanced Tier-IV data center facility in services include secured, collocation, security management, Latin America and the Caribbean. archiving, disaster recovery, and managed services. However, leading the digital age. China, the Middle East and parts of Three catalysts have converged in CTEX’s favor: growth in the company’s commitment to delivering services to its Latin America are leading the West in embracing the Internet. the Latin America emerging markets, advancements in cloud customers goes much further. The company wanted to deliver computing and an auspicious location, being outside the the most secure and reliable cloud computing environment Online consumers in rapid growth markets have overtaken hurricane belt and seismic active zones. in the region. With more than a dozen standard server models, CTEX and its customers can select their operating mature markets in terms of engaging with digital activities, More business, more technology needs system and configuration of choice, and the software quickly despite the benefits of more advanced infrastructures in the and automatically provisions the environments with a fixed or Business activity in Latin America has been on the rise for variable payment structure. Computing power is delivered as developed world. some time. Caribbean nations find themselves at commercial a service over the Internet, rather than customers having to crossroads between North America, Europe, and Latin make heavy capital expenditures on expensive equipment. America, and are experiencing a similar business surge. Corporations in developing markets are Curaçao’s regional role Despite this growth, there continues to be a lack of high- The company is also delivering disaster recovery becoming more regionally focused. In the end technology services. Companies wanting to conduct services. CTEX has office space with server and desktop past we were accustomed to thinking of At a time when emerging market countries business in the region have few options for storing their data, provisioning, a full communications suite using Cisco global economic relationships as relationships and companies are getting better at doing accessing advanced technologies, and getting top-notch Unified Communications Manager, and Cisco TelePresence® between east and west or north and south. business with each other and expanding support. capabilities allowing companies to conduct high-end Western companies setting up call centers and regionally, the opportunity for Curaçao to videoconference sessions with over 15.000 locations development centers in India or manufacturing play a major role as a regional technology Today, the region doesn’t have a world-class certified tier-IV worldwide. their goods in China - rich emerging market hub and facilitator of trade in the region is data center. These facilities exist in the U.S., Canada and economies, especially China, investing in US significant. As regional companies become Europe. But many regional companies are concerned with Implications for Curaçao Treasuries or Russian oligarchs buying London more sophisticated in their use of technology, privacy laws, strict regulations, and the high costs of reaching mansions. In the next stage, some of the they are often faced with aging computing and these far-flung data centers. Others are wary of utilizing The implications for Curaçao’s future are significant. As CTEX biggest deals and some of the most important data center processing infrastructures. These South American data centers due to physical security and opens the first of its four datacenters this fall, Curaçao will capital flows are occurring between emerging corporations similar to their counterparts in political instability. benefit by attracting regional companies to leverage Curaçao markets, with no need for a stop-over at the developed world continue to push their as a major consolidation hub and/or hop off point to other Heathrow or JFK. insatiable demand for all types of structured An untapped island refuge countries with the region and for that matter the world. While Latin America and the Caribbean are being and unstructured data. Add this to the fact the island previously focused on delivering offshore financial re-tooled, restructured and new information that corporations increasingly need real time CTEX was formed in Curaçao not by happenstance, but banking services, it is now also positioned to deliver a host highways are being created to support new ‘big data’ processing and analytics and one can through careful planning and exhaustive research. In Curaçao, of business process outsourcing (BPO) services to companies intra-region capital flow. The region has easily see the significant continuing demand CTEX found the perfect location for a tier-IV data center throughout the region by leveraging a state of the art data become a bright spot in the post-recession for data centers. It’s no secret that over the complex. The island is situated outside the hurricane belt and center and using advanced technologies. global economy, with strong growth projected past few years many corporations based in major seismic zones. And the data center is being purpose- Being multi-lingual also means that Curaçao can now for the foreseeable future. In the region, as the Caribbean and Latin America had no built for 100 percent reliability. It is 197 feet above sea level, build new technology based services sector including is the case in many emerging markets, an choice but to leverage data centers in North and can withstand a Category 5 hurricane and extensive but not limited to, local content development, customer increasing number of companies have regional America and Europe. But that is all changing. seismic activity. Regional companies don’t have to worry interaction services (i.e., telesales, order processing, warranty roots. One of the largest public conglomerates The world’s latest and most advanced data about putting their data or technology operations in harm’s administration), knowledge management (i.e., data analytics in the Caribbean is based in Trinidad & Tobago. center is not being built in New York city or the way. and mining) and back office transaction processing (i.e., direct The fastest growing banks in have City of London. Instead it is being built on the and indirect procurement, collections, check and credit card their roots locally. One of the fastest growing island of Curaçao. Hidden beaches, colorful Curaçao’s connectivity is also a significant benefit. Six processing). international trust and corporate services architecture, pristine reefs, and picturesque redundant submarine cables link the island to the rest of the companies is based in Panama. Some of the plantations; located in the southwest corner of world, and more are currently being installed; perfect for Curaçao’s greatest challenge will be to have enough skilled savviest emerging-market champions seem the Caribbean, Curaçao has it all. Historically, reliable, high-speed data transmissions. human resources to meet the demands of the international to be discovering that they have more in Curaçao has always been recognized as a major marketplace. common with each other than with their international hub, perfectly situated between As part of the Dutch Kingdom, Curaçao offers a very traditional trading partners in the west: they the northen part of South America and Europe. friendly environment for international business. The have analogous business models and states of The island has an experienced and professional privatization laws are favorable, the taxes are low, there development that are all culturally attuned to financial services sector. Being part of the are no import duties on technology equipment, and the Anthony A. de Lima these fast growing markets. Dutch Kingdom also enables the island to be CEO CTEX 16. Infrastructure & Tourism 18. Tourism Development on Curaçao The Curaçao Tourism Development Foundation (CTDF) is a government-funded foundation. Its main responsibility as stated in its articles of incorporation is to develop the tourism industry and the execution of the tourism policy as established by the government. In order to achieve this objective the CTDF receives funding from the national government in the form of subsidy and is awarded the income derived from the collection of (hotel)room tax. This tax is levied through the CTDF and collected by the government.

The vision behind Curaçao’s tourism policy accommodation and travel destinations. is to achieve sustainable socio-economic Although we foresee a continuous growth development for the nation and people of in stay-over visitors as part of an established Curaçao. Based on that tenet, the CTDF has trend, we will be closely monitoring the ability elaborated the following vision statement of other islands in the Caribbean to continue to set the direction for the Strategic Tourism attracting a massive number of tourists due to Master Plan: "As the most diverse, safest and their competitive product infrastructure and distinctive Caribbean destination, Curaçao pricing, brand awareness and superior airlift Variety of Activities We will market Curaçao to the Cultural Explorers organization aims to develop sustainable tourism for the access. and attract visitors who want more than just sun, sea and socio-cultural, environmental and economic Offering a wide range of under water, on water and on land beaches from a Caribbean vacation. Part of this vision for benefit of all, reflecting it’s unique heritage To overcome these challenges, the Curaçao activities, there is something for everyone in Curaçao. From tourism is the mission to attract not only the monetary and traditional hospitality." Tourism Development Foundation has been going 400ft under water with the substation to the about to contributions that tourists bring to the island, but also to given the task of bringing together public be launched space tourism project, Curaçao has no limit to import their knowledge, entrepreneurial spirit, curiosity for The island relies heavily on tourism for its and private sector interests to align common the kind of activities it can offer. culture and the desire to learn more about the opportunities economic growth. Tourism has outperformed objectives and marketing plans. The mission of that Curaçao has to offer. all other sectors by a large margin, increasing the CTDF is to design - together with private Cultural Heritage its share of Gross Domestic Product from sector stakeholders - a strategic marketing Although we are confident about the new marketing strategy 10.9% in 2009 to 12.3% in 2011. For the past direction that aims to clearly differentiate Curaçao is genuinely authentic. Our historical rich heritage is and brand positioning, we are aware that it will take more two years Curaçao has experienced growth in the island of Curaçao from other tourist full of one of a kind island and city experiences influenced by than smart marketing to achieve our growth objectives. It will visitor arrivals, number of bed nights, as well destinations in the Caribbean. To achieve this, the African, Dutch, South American and Caribbean cultures. require building and maintaining strong partnerships and as in cruise calls and cruise passenger arrivals. we have reached the conclusion that we must alignments with the public and private sectors, as well as with initiate a process of product differentiation Cosmo / Tropical other local and international stakeholders. In 2012, we saw a growth of 8% in overall stay- and focus on those product attributes that add

over visitors and a 15% increase in bed nights. value to our offering. We have identified those There is diversity in terrain and environment. Curaçao has The number of cruise visitors increased by unique product attributes and made them into natural and secluded beaches, rugged green hills, arid dessert 8% compared to 2011. In addition to this, we our brand pillars: coastlines, crystal blue waters and a city centre inspired by Ghatim Kabbara have increased the awareness for Curaçao by European cities. CEO Curaçao Tourism Development Foundation producing over 4.6 billion impressions through Arts & Entertainment effective media management and over 120,000 Business followers through social media strategies. As a supporter of the arts, the island serves The coming years will prove to be challenging as a stage for global, local and emerging With a bustling business center, Curaçao is a progressive due to many factors affecting our key performers and artists. It provides experiences island nation attracted to innovative ideas and fostering the target country markets on both a political wrapped around music, art and entertainment entrepreneurial spirit of its people. We want the world to and economical level. In addition to this, for all types of visitors. Curaçao aims to know that Curaçao means business. we are observing shifts in demand for become known as "the stage of the Caribbean". 20. CURAÇAO AIRPORT CITY, a UNIQUE INVESTMENT opporTUNITY IN THE ameriCAS

Curaçao Airport Holding (CAH), owner of Curaçao The Airport City Concept a government approved integrated policy, and commitment International Airport, has recently taken the first steps in the by the seaport, airport, international trade-, ICT- and financial The Curaçao Airport City plans aim to completely transform sectors to become the #1 business destination in the region. development of the airport and its surroundings into a state- the existing airport of Curaçao to a center of a complex of-the-art Airport City: a sophisticated service hub, offering distribution and shipping network and a destination for Here are some of the reasons why: niche industries. The intended development of sophisticated green, high-tech and innovative products and services. The industrial and international trade distribution facilities • Both wide body and small body aircraft can easily reach Master Plan for Curaçao Airport City involves development will create new non-aeronautical revenue sources, both Curaçao from both sub-continents and multiple regional and to compete and to better serve the traditional aviation intercontinental use it as a ‘home base’, allowing cost of 450 hectares of land for considerable expansion of the functions, stimulate and facilitate increasing passenger and effective direct connections. existing airport services with brand new business hotels, cargo traffic and serve as a catalyst and magnet for landside • Curaçao offers trustworthy European quality on the Pan- business development. American market and privileged tariffs to the European Union. showrooms and warehouses, as well as high-end products • Dutch law makes legal acts easier and safer than in many and services such as Commercial Spaceport Operations, A short informative movie explains this aiport city master other Caribbean countries and the Dutch educational system plan: http://www.youtube.com/watch?v=cw0frbow1Go guarantees quality of labor and services on all levels. an Eco Park and innovative Eco-, Aqua- and Agriculture • Most projects are eligible for a ‘Tax Holiday’, which means related industries. ‘We envision the Curaçao International Airport to be a exemption from import duties and VAT on imported goods highly efficient airport, servicing origin and destination intended for the operation of the business; a reduced profit Airports worldwide have become powerful engines of local economic development, attracting traffic, and connecting passengers and cargo from both of tax rate of at least 2%; exemption from property tax for ten aviation-linked businesses of all types. Along with incorporating a wide variety of retail and the sub-continents of the Americas and Europe’, says CAH years; exemption from usage tax; and exemption from income consumer services into passenger terminals, many airports are developing their landside areas Director Maurice Adriaens. ‘The airport will be at the center tax for dividends paid within two years after the fiscal year in with hotels, conference & exhibition centers, offices and shopping complexes, recreational of a dynamic Airport City with aviation and non-aviation which the profits are achieved. (Please note that all are subject facilities and logistics and free trade zones. Such commercial development is substantially businesses, focusing on green, sustainable, innovative and to approval of the Curaçao Government on a project-by- and positively impacting the financial bottom line of airports, and also directly and indirectly knowledge-intensive industries, creating a powerful engine project basis.) contributing to the social and economic development of the local communities. It is transforming for economic development of our island.’ Together with the airports from landing and takeoff strips into dynamic business centers. available land on the airport territory itself, the total Airport All of these factors make Curaçao a safe gateway to and City development plan can offer over 1 million square meters from Latin America: strategically positioned between the Source: “Airport Cities, the evolution” - Prof. John D. Kasadra, Univ. of North Carolina (2008) of rentable space, attracting investments totaling US$ 1.8 subcontinents, reachable with short distance flights from all billion. ‘Our aim is to assure the continuous operation of a major airports in the Americas and strongly connected to high quality airport in Curaçao and at the same time acquire, Europe. develop, support and manage other value-added business activities’. The investment opportunity

A safe and sustainable gateway in the Pan-American Curaçao Airport Holding owns approximately 450 hectares of region land surrounding the airport, available for the development of the Airport City, of which approximately 200 hectares Being an autonomous country within the Dutch Kingdom, are available for vertical development. A comprehensive Curaçao has a unique position in the Caribbean. As beautiful Airport City Master Planlays out the intended developments as a Caribbean island can be for tourism, Curaçao has a lot and designated use of the land. CAH is currently looking for more to offer to facilitate international trade and services. parties interested in investing in the realization of the Airport It is a logistical hub providing trusted value adding services, City plans. Simon Kloppenburg explains: ‘The Curaçao Airport City offers Corporate responsibility countless opportunities for parties interested in construction of the infrastructure and the many complexes that will The management and employees of Curaçao Airport Holding make up the city, but also for the long-term operation of are mostly Curaçao natives and therefore the company is well various types of venues. Afterwards, there will be plenty of rooted in the local community. One of CAH’s main goals in room for businesses looking for permanent or temporary the development of the Curaçao Airport City is to ensure that establishment in a strategic location in the Americas. The it yields a considerable positive spinoff for the island. proposed city supports high-tech, time sensitive and freight forwarding companies. A free trade zone and exhibition Director Maurice Adriaens: ‘Green and sustainable "A Safe & Sustainable centers will facilitate trade and business between the development will function as a magnet for Research and continents.’ Development and educational industries, leading to impressive long term educational opportunities, economic Gateway at the heart of Maurice Adriaens adds by stating that: ‘The Curaçao Airport growth and job creation. Not to mention all the new jobs City is so much more than just another airport. We are talking that will be created in all the other sectors that I mentioned about new hotels, offices, warehouses, universities, housing, earlier. In addition, the SWAC, OTEC, Eco Park development the Pan-American Region" sporting & entertainment facilities, ecological industries and and agriculture and aquaculture industries will make us more even a commercial spaceport independent of the import of energy and food.’ (www.spacexc.com). Simon Kloppenburg continues: ‘Curaçao Airport City will be the first 100% self-sufficient green energy based airport Can you imagine what commercial spaceflight taking off from in the region, featuring such innovations as a Salt Water Air Curaçao will do for our international position? It will place us amongst the few international space locations worldwide, triggering enormous spinoff industries in space tourism, 100% green and self-sufficient entertainment and space technology.’ • Sea Water Air Conditioning (SWAC) (expected to be operational in 2015/2016) providing green and Desired Participation cheaper cooling, and Green Energy Production (OTEC, Solar and Wind) will lower your cost of doing business CAH is looking for parties interested in entering into • The first Green Airport in the region serves as a unique Third Party Development ofa part of the available land and attractive example and testing environment for by means of a Long Lease Agreement (50 to 75 years). new sustainable technologies Land will be made available to Investors, Developers and Businesses, subject to both general and specific Long Lease terms & conditions. Prior to the allocation under a long lease term, Curaçao Airport Holding and Conditioning distribution network, a Waste to Energy system the potential Leaseholder will enter into a Project and Ocean Thermal Energy Conversion for the generation Development Agreement, specifying the purpose of of electricity. Together with conservation of the surrounding the development, the timeframe of the development environment through sustainable infrastructure plans, and its commercial value.Partnership in project Curaçao Airport City will have a positive socio-economic development with the landowner is also possible. impact on surrounding urban areas, with the highest level of green and sustainable consciousness.’

www.ca-holding.com ; www.facebook.com/curacao. Our role as facilitator airportholding

As a publicly owned corporation, Curaçao Airport Holding assumes a facilitating role, rather than an active business role in the development of the Airport City. In this role, excellence Ir. Maurice Adriaens will be at the base of all activities. Curaçao Airport Holding Managing Director Curaçao Airport Holding acts as the landlord, protecting the long-term vision and Ing. Simon Kloppenburg the island and airport’s interest. In this capacity it also takes Commercial Developer Curaçao Aiport Holding responsibility for providing the necessary infrastructure and availability of utilities and centralized services. This includes the realization of a Sea Water Air Conditioning (SWAC) system providing its users cold and clean water for the purpose of cooling and/or agri- and aqua culture related industries. In a later phase Curaçao Airport Holding aims to be able to provide different types of sustainable energy sources s.a. Ocean Thermal Energy Convertion (OTEC), solar, wind, waste- to-energy, all the latest innovations in this field. 24. Curaçao International Airport Partners On August 1, 2003 Curaçao Airport Partners (CAP), an Development opportunities for Curaçao International Inselair also saw an increase in its transit traffic due to its Airport compliance with the IATA Operational Safety Audit (IOSA) in international consortium, started a 30-year concession 2012. agreement to develop and operate the Curaçao International Passenger Terminal expansion This success also resulted in a code sharing agreement with Airport in the Netherlands Antilles. Under this concession • The expansion will provide for a capacity of approximately 2.5 KLM. As a result of this code sharing agreement KLM transfers agreement CAP has taken responsibility for developing and million passengers annually. The location to the west of the passengers with final destination or Amsterdam new terminal building is foreseen for an extension beyond 2.5 on the Amsterdam – Paramaribo route via Curaçao. operating the airport. million passengers annually. Statistics 2012 Growth of passenger traffic developing in a Caribbean hub The airport terminal was designed on an runway by 5 entries/exits. The entry at the Passengers (Commercial and General Aviation) initial capacity of 1.6 million passengers per western end of the runway is a double entry. • Passenger numbers are expected to grow steadily. A hub year but with higher than projected average No rapid exit taxiways exist, but there is no connecting the Caribbean region is therefore an important Arrival Domestic (Aruba, Bonaire and St Martin) 204,360 annual passenger growth rates, traffic at need for it with the current traffic volume. economic target. This local hub may eventually evolve into a Arrival International 526,710 the end of 2013 is expected to approximate hub between North and South America. Total Arrivals 731,070 1.8 million. Accordingly, plans are currently The airfield layout with its current centerlines • Additional wide-bodied passenger flights seem likely (charter Departure International 511,049 underway to expand the terminal facilities and clearances on runway and parallel taxiway flights), but this will evidently depend on the growth of Departure Domestic (Aruba, Bonaire and St Martin) 197,948 to accommodate a passenger volume of allow a code F aircraft operation. tourism on Curaçao (no large numbers of transfer passengers Total Departures 708,997 approximately 3 million passengers per The passenger apron is located in front of the are expected). Total Transfers 269,806 year. terminal building. Total Direct Transits 47,295 Growth of cargo traffic Total Transits 317,101 The property For the island of Curaçao, the airport is the Total Passengers 1,757,168 main gateway to the world’s air traffic and • Conditions for increased cargo traffic are favorable at Curaçao Daily Average 4,801 Curaçao International Airport is located on for the speedy delivery of goods. Not only International Airport. A cargo hub is well within the realms of the north coast of the island, only a few miles does the local population rely on this vital possibility. Air Traffic Movements (Civil Aircraft) 2012 from its capital – a unique World infrastructure; the main economic sectors Heritage City with attractive Dutch Caribbean tourism, oil refinery and banking can not exist Commercial development Landings 23,549 architecture. The new passenger terminal without a well performing airport. Take Offs 23,547 building was built in 2006 and is designed to The airports performance and reliability are • A number of options are conceivable for the remaining Total Movements 47,096 be compliant with IATA standards for service absolutely crucial for the entire island. undeveloped airside areas are conceivable, e.g hangars for Daily Average 129 level C, which has provided spacious facilities. private or commercial customers. All main passenger processes take place in the A combination of foreign investments and • Further development of General Aviation. Landings by Origin (Civil Aircraft) 2012 terminal. Some support functions are located structural economic growth will make the in the adjacent old terminal building. airport property an attractive zone for In 2012 Total Passengers increased with 7% from 1.65 million Local flights (origin + destination = Curaçao) 847 The building concept allows future expansions new types of businesses and it will also passengers to 1.76 million passengers. While Total Arriving Domestic flights (AUA, BON, SXM, EUX) 12,176 on both the east and west side. generate a significant in-flow of capital and Passengers and Total Departing Passengers showed healthy International flights 10,526 entrepreneurial opportunities. growth percentages (both 4%), Total Transit Passengers, The island’s airport location, about 40 showed a spectacular growth of 23%. Total 23,549 miles north of offers strategic There are about 146 hectares (ha) of land This growth is the result of the collaboration of the Curaçao Daily Average 64 convenience for transhipment/storage of suitable for development in and around the home carrier Dutch Antilles Express (DAE) with Ufly (also goods and fuel supply and transit services for airport, making it one of the largest contiguous known as Falcon Air) from the US. Furthermore Curaçao welcomed COPA and Westjet as new trans-Atlantic flights to and from the Caribbean areas of land available within the central core carriers to Curaçao in 2012. The first connecting Panama 4 and Latin American market. of the island. An extensive Airport City concept This collaboration enabled DAE to expand its network with times weekly with Curaçao and the latter connecting Toronto has been proposed by the government and is US destinations. The collaboration gave DAE the opportunity 1 time weekly with Curaçao. The airport has a single runway oriented 11/29 being actively explored. to convert Venezuela and to a lesser degree also Surinam into with a length of 3’410 meters and width of 60 vital catchment areas for its network. meters. The main operating direction is 11. A parallel taxiway runs along the complete Inselair, the other international home carrier from Curaçao R. Blanchart length of the runway and is linked to the has already been applying this model with success. CEO Curaçao International Airport Partners It is the vision of CDM to become the best logistics ship repair, Planning for Future growth building and naval knowledge center in the Caribbean, based on a strong sustainable organization. CDM is poled for growth, thanks to the ever-increasing 26. serviCE AT THE CROSS demand for ship repair in the CALA region (Caribbean and Modern Facilities and Equipment Latin America). The yard is planning to build a new graving dry dock to double its repair capacity and in turn, its turnover roads OF THE MAIN CDM’s facilities are ideally located at the crossroads of and jobs. the main sea-lanes in the southern part of the Caribbean connecting North and South America and the Atlantic and The new Curaçao Maritime Center (CMC) plan will enable the sea-LANES Pacific Oceans, which makes it the logical location for a restructuring and renewal of all components, stabilizing the maintenance and repair centre for fleets visiting these waters. entire infrastructure that will allow private investors to invest Curaçao has a strategic location in the Southern Caribbean, outside of the major hurricane routes. It has a sunny climate, ideal for cleaning and coating of ships hulls.

In addition, there are naturally sheltered ISO 9001:2008 certified by Lloyd’s Register deepwater ports, modern facilities, a Quality Assurance. We operate in accordance wide array of shipping services with with the International Code for the Security of excellent telecommunication facilities Ships and Port Facilities (ISPS) Code. and infrastructure and is therefore able to facilitate every need of the modern The most valuable assets of the CDM are its shipping industry. employees. Skills, know-how and constant training have resulted in a high-quality and Ship repair is a major economic pillar of specialized workforce. Curaçao. For over 50 years, Curaçao Drydock Company Inc. (CDM) has a tradition in ship Main Services repair, engineering and conversion resulting in a vast experience for a wide variety of vessels, CDM provides the largest variety of Ship A-Dock dimensions capital in CMC for 80/70%, the other 20/30% of the shares will such as: Crude Oil Tankers, Product Tankers and Repair Services (Yard) together with the most remain government owned for further development of the Chemical Tankers, Container Ships, General extensive Port Repair Services (PRS) in the Between dock walls : 280 x 48 mtr. yard. The new development will allow both the government Cargo Ships, Bulk Carriers, Cruise Ships, Ferries, Caribbean: Between fenders : 280 x 47.35 mtr. and private investors to participate in Public Private Ro-Ro’s, LPG-, LNG Carriers, Dredgers, Tugs, Depth over keel blocks : Fwd. 5.70 mtr. – Aft . 8.48 mtr. Partnership (PPP), allowing further business development Offshore Supporting Vessels, Seismic Support • Fabrication and repair of hull structures Slope : 1:100. and increased revenues from the yard operations. Vessels, Navy Vessels, Coast Guard Vessels, constructed from normal, higher strength and Height of keel blocks : 1.57 mtr. Barges and Small Craft. low temperature steel. Deadweight tonnage : 155,000 tons. CMC will be the development company for several businesses • Hull & Tank treatment. and activities: The first-class reputation that CDM has gained • Fabrication and repair of steel, stainless steel, B-Dock dimensions over the years is first of all based on ongoing copper-alloy and low temperature pipelines. Ship Repair Yard • Ship Building Yard • Small Craft yard • commitment towards customers, secondly on • Repair of mechanical and electrical/electronic Between dock walls : 192 x 26.5 mtr. Training Center • Green Yard • Marine Services • Marine the implementation of technical improvements equipment, devices and components. Between fenders : 192 x 25.9 mtr. Logistics • Solar Energy in the yard’s facilities and thirdly on the • Propeller repair. Depth over keel blocks : 6.3 mtr. even keel. continuous improvement of our organization, • Docking activities. Height of keel blocks : 1.45 mtr. supported by the Quality Management System • Port Repair Services. Deadweight tonnage : 28,000 tons. E. Martina C-Dock dimensions Managing Director of Curaçao Drydock Company

Between dock walls : 165 x 30 mtr. Height of keel blocks : 1.30 mtr. Lifting capacity : 10,000 tons.

Approximately 2,000 meters of repair quays outfitted with rail gantry cranes with a capacity up to 75 tons. Mobile cranes are available. The maximum allowable depth alongside our quays is 10 meters. 28. energy Discussion The Curaçao Government commissioned a study by ECORYS (NEI Rotterdam) whose final 2012 Report, in cooperation with Labour Purvin & Gertz for technical matters, is optimistic about the 30. vision on SUSTAINABLE Today, the Refinery called Isla, owned by the Curaçao future of the Curaçao Refinery. However, the three subjects Government and leased to PDVSA (Venezuelan State Oil mentioned above must be addressed, which will cost around Company) since 1985, employs about 1500 people, directly US$ 2.5 billion. This is much less than building a new grass- and through contracted labour. Except for a handful of roots refinery. PDVSA is interested in becoming an equity refining AND top positions, the entire staff consists of local people. They partner, in addition to being a lessee, but may not have the proved, in the course of time, to be very dependable and necessary funds. We - as is Venezuela - are open to third became successful in mastering new trades, such as manning party participation, for instance by Colombia (Ecopetrol). TERMINALLING and operating Control Rooms and computers, in addition to Brazil (Petrobras), China (Petrochina), Repsol (Spain), et cetera. earlier technical professions such as welders, pipefitters, et cetera. A Shell HR expatriate from Holland once attributed In addition, if oil or gas is found and produced after further For nearly 100 years, Curaçao has been connected to oil the historical successes of the Curaçao labourer to “unique exploration of the waters around Curaçao, being able to eye-hand coordination”, all-important for secure welding. One refine the crude oil locally or use some of the gas found is an refining. There were many memorable periods. A significant could ask: does this also explain the ongoing success of the added incentive to maintaining a viable Refining Industry on Curaçao-born baseball players around the world? the island of Curaçao. share of the Aviation Gasoline for the Allies was made in the Shell owned and operated Curaçao Refinery for Refinery Hardware 1. History The Refinery is a so-called “Fully-Complex” refinery, including Originally built by Shell at the end of WWI at Emmastad, on the shores of Schottegat Bay, Curaçao's beautiful inner harbour. Purpose: To refine Shell crude oil instance, leading to a successful conclusion of World War considerable upgrading units and even all types of lubricating from Venezuela for export markets. Contributed greatly to the success of the Allies II. It brought great economic benefits to the island, wiping base oil manufacture. It is considered to be among the best in in WWII (aviation gasoline, etc.) Well maintained and continuously modernized. northern South America and the Caribbean. It achieved this Peak employment around 1960: 12,500 persons. Shell sold Refinery in 1985; taken out all unemployment until the 60's. distinction by periodic updating, modernization and proper over by Government of Curaçao. Refinery was then leased to PDVSA till 2019 maintenance. Its geographical location (the Schottegat bay) (originally to 1994, then 2014, then 2019) and is now called Refineria Isla (Curaçao). is most favorable both for crude oil producing countries, such 2. Type of refinery In fact, to meet the peak demand of about 12,500 workers in 1960, on an island with a as Venezuela, Colombia, Brazil, Mexico and West Africa, as is The Refinery is "FulIy Complex" with considerable upgrading, including Lubricating population of less than 100,000 people, workers were brought in from a large number of the proximity to countries in the Caribbean and the USA and Oil manufacture. Capacity: Greater than 320,000 barrels/day Crude oil type: Can Caribbean islands and , and even from as far away as Madeira (Portugal) to live and Canada, importing products that are made in other parts of refine both Light and Heavy crudes (say 10 API). Originally ran only Venezuelan work on site. With the advent of automation and modernization, there was lesser need for the world. crudes. It has also processed Ecuadorian Oriente, Colombian crudes, Mexican, manual labor at the Refinery. When Shell left in 1985, direct employment was 2,500 people, including Heavy Maya, Nigerian Ultra Light crude (greater than 40 API), etc. Units in operation: Crude Distillers (2), High Vacuum Units (5), Catalytic Cracker, Catalytic although Refinery capacity had not been reduced. The activities were simply carried out by a Oil Terminal Reformer, Mild Hydrocracking, Thermal Crackers (2), Alkylation, Desulphurization smaller group of people with different, modern skills. In 1976 Shell built the first transshipment terminal in the (4), Sulphur Plant, Lubricating Oil manufacture/process (HVI/MVl/LVl Lubs). Caribbean at Bullenbay. It has been used to transfer crude Associated Intermediate and Storage Tanks Jetties for receiving/loading Crude oil from VLCC’s (Very Large Crude Carriers, 300,000-600,000 Oil and Product Tankers, Highly automated since mid-60's. Employment now about 1000 people fulltime and about 500 Contractors. Except for a handful of DWT) coming from the Middle East and Africa to smaller expatriates, they are all local people. Modern Utility facility supplying Power, Steam, vessels, say 100,000 tons, to be able to enter the shallow US Water and Compressed Air. Refineria Isla continues to be well maintained by its harbors. At present PDVSA uses it in reverse order, namely Venezuelan Iessees and continuously updated. crude oil and / or Heavy Fuel is brought to Curaçao in small vessels and transshipped to VLCC’s that then go on to the Far 3. Full range of finished products made LPG, Motor Gasolines, Kerosine/Jet Fuel, Gasoil/Diesel Oils, Fuel Oils, Asphalt/ East (e.g. China). Terminalling can be a stand-alone activity Bitumen, Lubricating Oils. that enhances the value of having a well-operated Refinery nearby. 4. Value of refinery Based on a study carried out by ABN AMRO Bank in 2006, depending on Vision assumptions made: between USD$ 1 billion and USD$ 3.5 billion.

5. Oil transshipment terminal The contract with PDVSA expires in 2019 but before then, Curaçao Oil Terminal (COT) built in 1975. Located at Bullenbay, it is the Western certain technical adjustments to the Refinery must be Hemisphere's largest. Contains 6 Jetties and sufficient number of huge floating considered, in order to remain competitive and viable. The roof tanks. Able to handle the largest VLCC's built, from 300,000-600,000 DWT. Can Sulphur content of key products made there, such as Gasoline also handle LR Tankers (100,000 DWT). Originally conceived to transship crude oil from VLCC's from the Middle East and Africa to smaller vessels. Nowadays mostly to and Diesel has to be reduced to meet new and stricter US transfer from smaller vessels to VLCC's for sailing to the Far East, e.g. China. product specifications. Also, the effluent smoke from the chimneys requires cleaning up via Flue-Gas Scrubbers or by burning LPG or LNG gas, instead of High Sulphur Fuel oil or asphalt. Last, but not least, to improve refinery profitability, J. de Sola the barrel has to be whitened further by still more upgrading, Curaçao Management Consultants reducing fuel oil production and increasing more valuable so- called “white products” (gasoline, kerosene, gasoil/diesel) Exploration for oil and gas is confined to The simplest type of trap is called an “anticline”. sedimentary basins. Sedimentary basins can Essentially, this is a hill located beneath the be formed as follows. Erosion causes soil and earth’s surface. As the fluids move into this 32. Curaçao can draw rock particles to move into rivers and along buried hill or anticline, the oil and gas which these rivers into the ocean. These particles are riding on top of the water in the reservoir are then deposited upon the ocean floor, will accumulate at the top of the anticline and, frequently, particles of plant and animal since they are lighter than water, and they will Energy Investor matter are deposited along with these particles become trapped there as the water continues of rock and soil. As a layer of these deposits to move beneath them. This then gives a good builds up on the ocean floor, it is soon covered localized area of hydrocarbon accumulation by additional layers of similar deposits. This is that may become commercial under certain Interest. how sedimentation occurs in geologic time conditions. These conditions will be explained and how so-called “petroleum basins” can be below. By now there seems to be available an ample body of public formed. Curacao and Bonaire form part of such a petroleum basin. Anticlines and other types of potential traps knowledge indicating that at least four of the attributes that are can be located by utilizing seismic surveys. required for the accumulation of oil and/or gas may be present Because the oil and/or gas in a source rock In maritime areas these surveys are obtained are usually widely disseminated throughout by a ship towing an array of sensors capable under the seafloor of the Curacao maritime area. The first of these the rock, they are not considered an attractive of recording very small shock waves. Small target for exploration because a well drilled explosions are initiated by an array of explosive elements is called “source rock”. Source rocks can only form where into such a rock will not encounter enough devices also towed by the ship. The small sediments have been deposited. hydrocarbons to be commercial. The explosions send shock waves downward into hydrocarbons from the source rock must be the water and into the sediments below the consolidated and localized in order for there to seafloor. Changes in the type of sediments be a chance for the hydrocarbon accumulation can cause a portion of the downward to be commercial. Frequently, as additional trending shock waves to be reflected back layers of soil and rock are added, the increasing to the sensors. The time from the instant the pressures result in the hydrocarbons being explosion occurred to the time the reflected squeezed out of the source rock into adjoining shock wave arrived at the sensors is measured. rocks which contain more and bigger pore Methods are then utilized to determine the spaces between the bits of soil and rock. velocity of the shock wave during this time The hydrocarbon fluids accumulate in this period, and the depth to the change in the porous rock and such a rock is called “reservoir sediments that caused the shock wave to be rock”. This type of rock is essential for the reflected to the sensor can be measured. The accumulation of hydrocarbons. Unless the time for the shock wave to come from the top rock contains adequate pore space and those of a buried hill or anticline will be less than the spaces are connected, the hydrocarbon fluids time from the sides and bottom of the hill, so a cannot accumulate in sufficient quantities to map of these reflected times will show how the become a commercial accumulation. depth of the reflector is changing over an area. Although no wells have been drilled in the The presence of good source rock and good Curacao maritime area, more than 4,000 km of reservoir rock are not sufficient by themselves seismic profiles have been recorded in this area to provide a hydrocarbon accumulation. through the years. The hydrocarbons must be accumulated in a localized area and be of large enough size in However, an anticline is only part of the trap. order for the accumulation to have a chance The anticline only becomes an actual trap if the to be commercial. Since the hydrocarbons reservoir rock within the anticline is covered are produced from a well that can drain by a nonporous, impermeable “seal”. Without only a limited area, there must be a large such a seal, the oil and gas would simply amount of hydrocarbons in a local area for the continue to move through porous rocks into accumulation to be commercial. This requires the area of lesser pressure. Since the top of the the presence of a “trap”. There are many types anticline would be the area of lesser pressure, of traps, but essentially, all traps are formed the hydrocarbons could just continue to move because oil and gas are lighter than water. If all upward until they encountered a nonporous three liquids are present in a rock, the gas will rock that would halt their movement upward. tend to float on the oil, and the oil will tend to Then they would continue to move in an float on the water. “updip” direction until they reach another trap of some sort or until they reach the ocean surface. In the event they reach the ocean surface, The amount of overhead, taxes, etc. is to a large they are called oil or gas seeps. Many of these seeps extent dependent upon the type of exploration are known throughout the world. But such type agreement entered into between the company seeps have not been documented in this particular exploring for oil and gas and the host country area. where the prospects are located. The location of the country in question also has a bearing on the costs. The next question is whether an accumulation of The closer the country is to a market, the smaller hydrocarbons in the Curacao maritime area may the transportation costs will be to get the oil or gas be a commercial accumulation. Important factors to market. in determining eventual commerciality are: (i) the size of the accumulation (as was already remarked An additional important point to keep in mind is above); (ii) the cost to drill and produce the the fact that a very large number of countries are accumulation; (iii) the price received for the oil and/ interested in having the petroleum potential of or gas produced. their country evaluated and developed, because the development of these The size of the hydrocarbon accumulation resources can provide a very large source of is determined by the area covered by the revenue to the country. Quite naturally, those accumulation and the thickness of the countries with established production have the accumulation. The results from seismic surveys best chance of promoting further exploration show that the area covered by the accumulations and development because all four of the critical may be quite large, so this may be of considerable attributes required for the accumulation of interest. The thickness of the accumulation is hydrocarbons are already known to be present. This controlled to a large extent by the height of the means that those countries without established anticline containing the accumulation. In this way production must offer what appears to the geoscientists can make an estimate of what is companies to be a bigger share of the profits called the “structural closure” of a trap. from future production in order to entice them to explore in an area where discoveries have not as yet The cost to drill and produce these accumulations been made. will be very large. One of the factors that have a great impact on the cost to drill a well is the depth As a result, there is a considerable amount of of water. The average depth of water in the Curacao competition between host governments on the maritime area is about 1300 meters. This was a fiscal terms offered to energy investors. These major prohibitive factor to exploration in the past, investors are prone to seek out only that class of because the maximum water depth for commercial frontier risk ventures where early, low cost technical production was about 500 meters. work might provide an option to dramatically improve their probability of success. This process is Major advances have been made in drilling and called “derisking” a prospect. producing in deeper waters. Consequently, water depths of 1300 meters are no longer a deterrent Exploration to date has been accomplished at to further exploration. Although it is technically little expense to the government. The efforts are possible to drill and produce wells in such water continuing and may bear fruit in the future, as depths, the cost to do so is very substantial. Such petroleum exploration is a step-by-step process very large investment expenditures will obviously which depends on a convergence of favorable limit the number of companies that will be economic and political circumstances locally and in interested in exploring in such an area. the world.

A further element in the determination of whether If future exploration in the Curacao area is or not a field once discovered will be commercial successful, it is expected that some company will is the price received for the oil or gas produced. almost certainly be interested in also testing the During recent years, this price has shown structures in the adjacent Bonaire maritime area. considerable variation. The current price of oil is about $90 per barrel depending upon the grade of the oil and its location. Because of the variations, most companies tend to be very conservative when C. Gomes Casseres trying to project future production rates and future prices when evaluating a prospect prior to drilling. 36. finance & e-Zone • A modern Civil Code accommodating several jurisdictions. people from other countries, who are looking for suitable • Modern deep-sea harbors and international airport. locations under the sun. That sector has known a considerable • Low inflation. growth up to recently. Once the global crisis abates, these 38. banking on a Sound • A local currency that is stably linked to the US dollar. activities can be picked up again. • Advanced telecommunication services. • The contracts for the oil refining will expire in 2019. • A modern financial and business services infrastructure (local Modernization of the refining process is necessary, Economy for Curaçao offices of international banks, accounting firms, law offices requiring hefty investments so it can meet the quality and and consultancies). environmental standards of the 21st century.

The Curaçao banking sector may indeed be proud of the It is primarily a public task to ensure that Curaçao has an It goes without saying that the banks also see a role reserved fact that despite the global crisis in the last decade, local attractive investment climate, characterized by a flexible for themselves in these developments. Where possible, labor market, a supple admissions policy for entrepreneurs, through financing the banks will literally chip in to make retail banks manage time and time again to score positive sufficient supply of a qualified work force, legal certainty and these developments possible. It’s true: our banks operate political stability, attractive fiscal regulations, low inflation, et on the islands of Aruba, Bonaire, Curaçao, St. Maarten, St. business results. That is partly due to a conservative attitude, cetera. Eustatius and Saba. But nevertheless, they are very aware of both from the banks and the supervisor, the Central Bank. the fact that they have to look beyond their own borders to In addition, it is up to the Government to be steering, better cope with external challenges. Even when policy is At the same time, the banks realize that they do not live 'on stimulating and regulating in a market-driven environment. flawlessly regulated on these islands, developments in the an island' and that they benefit from other sectors in the Apart from the administrative tasks, care for a sound financial region or regarding important trade partners still may have state management and sustainable growth of the economy, a major impact on everyday business on the Islands. That is community going through a sound development as well. the Government should not lose sight of its responsibilities precisely why it is always a wise thing to save something for a with regard to social aspects such as thorough education, rainy day. Caution remains a golden rule for the future too. medical care with everything that comes with it (healthy Without exaggeration, it may be stated that sector undoubtedly is also at the basis of lifestyle), suitable homes, (the effects of) population ageing, Enough challenges ahead the global financial crisis largely passed this. The regulatory body has asserted its care for the socially disadvantaged, etc. by the Curaçao banks. Where the effects authority at crucial times and has recently In the last decades banks have gone through huge were felt, they could be taken care of and stepped on the brakes in order to limit the Banks can only stay healthy if other actors in the economy are developments in their arsenal of products and services, not be compensated relatively easy, thanks to lending in connection with foreign exchange also in good shape. When stating this, of course traditional in the least by incorporating technological developments: a strong starting position. Often the banks developments. sectors are thought of, but perhaps there are also new sectors online banking, e-commerce, mobile banking, et cetera. have been criticized for being ‘much too that need to be developed, because they have the potential The prognosis is justified that these developments will cautious’ (i.e.: reluctant) in providing loans Towards the future to grow considerably, and to help Curaçao forward. In that also continue just as speedy in the years to come. In that to consumers and businesses. When the light the banks set their minds especially to the following respect, the banking industry should get ready to also have global crisis started to manifest itself in For the future of our industry the motto expected developments that may be considered solid everything in place in the near future and to continue to 2008, all of a sudden it became apparent remains that continuity of the soundness of foundations for the economy. keep a close eye on security. One can safely assume that how this conservatism pays off. In many the local banking system should be based the possibilities for use of newer communication tools will countries, banks have toppled over or are on a balanced and sound management at • Despite the intense competition in the Caribbean in the field further affect this process. It is now up to the banks to stay on still balancing on the edge of the abyss. the individual banking institutions, and as a of tourism, Curaçao has already shown to hold its own in this top of things in order to maintain their ground in the fierce Fortunately, the banking community in collective. area. Tourism is already the main economic pillar for Curaçao competition between banks, telecommunication companies Curaçao has been spared that fate. Our and the island has everything to further develop this sector and tech companies, as well as to keep the bond with the banks have continuously showed sound In addition, the banks, as far as their future and to become less dependent than it used to be on just a few customers alive. In short, a lot of challenges lie ahead in their financial results. is concerned, highly depend on the social markets for the increase in visitors. own industry as well. developments of which they form an integral • The international financial services sector has long been one Recent publications of the company results part. of the main pillars of the Curaçao economy and the sector over 2012 have again shown that the local in cooperation with the government is doing its utmost to banks are not only profitable, but they also Just like any other entity, both civilian and remain competitive and strengthen the sector. L. Rigaud have very healthy balance sheets. From these institutional, the banks also benefit from, for • Thanks to the strategic location of the island and thanks to its President Curaçao Bankers' Association figures also emerges that at different banks, example, the following fundamental points of excellent infrastructure in seaports, the airport and the free revenue and assets have increased and that departure: zone, the logistic sector offers tremendous growth potential earnings have gone up likewise, all of which in that is far from being exhausted. itself is an excellent sign. Despite the relative • A stable political environment based on a • The plans on the table for the expansion of the activities in conservatism the credit portfolios have parliamentary democracy, with the Dutch King shipbuilding and ship repair offer perspective. These include continued to grow. The careful evaluation of as head of state. the activities for the dismantling of ships, the expansion of projects before extending credit has prevented • Respecting international treaties on human the work of the Curaçao Dry Dock Company (CDM) for ship large real estate bubbles as has been the case rights, liberty of religion and expression, press repairs, the building of small and medium-sized ships, as well in many other parts of the world, which benefit freedom, et cetera. as a training institute wholly concentrated on this industry neither the banks nor the communities. In • An independent Court of Justice with sector. this context it should definitely be mentioned the possibility of going all the way to the • There is good business perspective in the further development that the careful control by the Central Bank highest Court of Appeal (Hoge Raad) in The of the real estate market regarding second homes for wealthy (of Curaçao and St. Maarten) on the financial Netherlands. 41. Curaçao’s International Financial Services Sector Curaçao is an autonomous country within the Kingdom of the Netherlands and has a stable political environment and high quality legal system, based on civil law. The island offers excellent physical and financial infrastructures and is located outside the traditional hurricane belt. Curaçao has an open economy and offers free access to foreign currencies, such as the US Dollar and the Euro.

Since the 1950s the international financial crucial ingredient for the development of the services sector has been an important international financial services sector. economic pillar for Curaçao. For over 70 years Curaçao has shown its strength in its After the war, the government created a special multilingual and highly educated workforce. low-tax regime for foreign companies that Nowadays, Curaçao is an established, secure were a legal resident of Curaçao but physically and reliable international financial center. conducted their business outside of Curaçao. With this special low-tax regime Curaçao Due to its long history, the island has could persuade Dutch multinationals to locate developed a sophisticated international subsidiaries on the island. It was then that the financial sector. A wide variety of international international financial sector of Curaçao was companies are managed from Curaçao, such born. as investment companies, (group) finance companies, holding companies, mutual funds, The island’s connection with the Dutch captive insurance, international banking Kingdom has always been very important for institutions, intellectual property holding the international financial sector. In the 1960’s companies, family offices and hedge funds. the Netherlands’ post war Tax Treaty with the US was extended to the Dutch overseas History territories and Curaçao became a major player in the Eurobond market. After Germany invaded the Netherlands and Dutch multinationals shifted their legal In the 90’s Curaçao received the connotation domiciles to Curaçao. The island became a safe of being a tax haven, due to its low-tax regime, haven for Dutch multinationals to conduct and the international community was putting international business and to protect their pressure on Curaçao and other international (international) business interests. The arrival financial centers to reform. of Dutch multinationals during World War Due to this pressure, Curaçao abolished all its II also brought accountants, lawyers, and harmful tax legislation, at the beginning of this other professionals to the Dutch islands, a century. A well-balanced transition regime was introduced the European Union. As a protectorate of the for existing international structures. Nowadays, Netherlands, Curaçao enjoys European Union there is no longer a distinction in the tax laws for market privileges. The independent and high- foreign and local tax payers. quality legal system of Curaçao is based on the Dutch civil law system. Additionally, Curaçao falls Curaçao has taken great strides over the past under the jurisdiction of the Supreme Court in years to meet international standards set by intra- The Hague (the Netherlands), which is also the governmental bodies and non-governmental Supreme Court for the Netherlands itself. organizations like the European Union, the The supervision of the financial system is under Organization for Economic Cooperation and the rigorous supervision of the Central Bank of Development (OECD), G20 and Financial Action Curaçao and St. Maarten and is executed in close Task Force. Curaçao is regarded as a cooperative cooperation with the Dutch Central Bank. The jurisdiction and is mentioned on the white regulatory and supervisory environment in Curaçao list of the OECD. Furthermore, Curaçao is FATF is comparable to that of the Netherlands, meeting approved, which confirms that the necessary high standards and in compliance with the anti- anti-money laundering, anti-terrorist financing, money laundering and anti-terrorist financing know your customer, suspicious transactions and guidelines of the G20’s Financial Action Task Force. related processes and legislation are in place, adequately and in conformity with international In comparison to the size of the economy, Curaçao FATF standards. This was acknowledged during has highly sophisticated tax legislation. In addition, the plenary meeting of the FATF in Paris in October Curaçao has concluded a large number of treaties, 2012. including over 40 foreign investment protection agreements, 22 tax information exchange Current Situation agreements (TIEAs) and 4 agreements for the avoidance of double taxation (DTAs). The international financial services sector accounts The tax system, including treaty eligibility, is also for 10% of the total economy of Curaçao and linked to that of the Netherlands. generates 4% of the foreign exchange income. The sector employs a direct workforce of over DTA 1700 local professionals and pays ANG 125M in Aruba • Netherlands • Norway • St. Maarten salaries. In comparison, both the local and the international financial sector employ a total of TIEAs 4,700 local professionals. Professionals working Antigua and Barbuda • Australia • Bermuda • in the international financial sector of Curaçao Canada • Cayman Islands • Colombia • Denmark • are highly educated and experienced. In addition, Faroe Islands • Finland • France • Greenland • Iceland the workforce of Curaçao is multilingual and • Mexico • New Zealand • Saint Kitts & Nevis • Saint speaks English, Spanish, Portuguese, Dutch and Lucia • Saint Vincent and the Grenadines • Spain • Papiamentu. Spanish and Portuguese are widely Sweden • United Kingdom • United Stated • Virgin spoken. The sector spends ANG 375M a year on Islands, British intermediate goods and services in the local economy and generates some ANG 225M in profit Source: http://www.eoi-tax.org/jurisdictions/ & income tax and social security premiums for the CW#agreements government of Curaçao annually. Curaçao: Connecting Markets The fact that Curaçao is part of the Kingdom of the Netherlands has always provided for a safe Despite the fact that Curaçao has historically always and secure environment and a high level of been a center of commerce and business between comfort. The Dutch monarch is head of state and Europe and the Americas, the international is locally represented by the Governor. The Dutch financial sector was operating independently and government is responsible for defense and foreign predominantly focused on facilitating Dutch and policy, and has oversight over Curaçao’s finances. US companies. Currently, Curaçao is focusing on The internal affairs are administered by the Central Latin America more than ever. Government of Curaçao and include areas such as law enforcement, communications, taxes, public Its geographical location and the available cultural health, education, establishment of enterprises, mix of European and Latin-American nationals labor legislation, and the island's infrastructure. and languages, make Curaçao the ideal hub for Due to Curaçao’s connection with the Netherlands, international operations conducting business with the island also has a strong connection with Latin America. A number of opportunities exist and are already As a consequence, the regulatory and supervisory Captive Insurance data from Latin America to the rest of the world being developed. In the beginning of 2013 for environment in Curaçao is comparable to that of As evidence of the broad knowledge and and vice versa. AMS-IX is an integral part of the example, Curaçao signed a TIEA with Colombia, The Netherlands, meeting high standards and experience of its workforce, members of the Amsterdam Internet Exchange (AMS-IX). With showing Curaçao’s commitment to transparency compliance with the anti-money laundering and Curaçao financial services sector are also offering almost 600 Interconnected IP networks, AMS-IX and ambition to contribute to the development of anti-terrorist financing guidelines of the G20’s re-insurance activities that either focus on third is the largest Internet Exchange in the world and the Latin American market. Financial Action Task Force. party or group activities. Curaçao has recently giving it a dominating position in global Internet proposed changes to its existing captive insurance traffic. (cw.ams-ix.net) Furthermore, the products and services of the Trust Service Providers legislation that allows the industry to continue international financial services sector are more Because of Curaçao’s strong tradition in this niche, to work in a highly competitive and increasingly DCSX and more linked to other sectors. The island clients perceive the jurisdiction as a knowledgeable global environment. Dutch Caribbean Securities Exchange (DCSX) is the has a diverse economy in comparison to other and price-competitive alternative to the numerous (www.cifa-curacao.com) international securities exchange in Curaçao and Caribbean islands. Tourism, oil refining, ship repair, Anglo-Saxon solutions in the region. Curaçao is lists bonds, equity and funds. The DCSX is licensed transshipment, international trade and IT are all home to over 90 trust service providers and all Free Zone by the Minister of Finance and has a set of well- major pillars of the economy. The connection major corporate management providers that offer Curaçao has two free zones: the Harbor Free defined rules to regulate and supervise the market with other sectors provides for a more investment domiciliation and management to all sorts of Zone Distribution Center and the Airport Free and its participants. Because of its efficient listing driven environment as well as local substance, international clients. (www.cifa-curacao.com) Zone Merchandise Center. Curaçao’s Free Zones procedure, the rigorous supervision by the Central while providing additional added value to are fenced-in areas where goods can be stored, Bank of Curaçao and St. Maarten and its civil law international clients. International Banks displayed, packed, manufactured, released legal framework, the DCSX is quickly becoming Curaçao has a variety of international banks from bond and where services, for example a listing destination of choice for especially Latin A good example is the number of developments from different regions in the world, with a strong regional repair centers, may be rendered. Import, America. in the IT sector. The top tier data center that has presence of international banks from Latin America. export and transit are completely duty-free and (www.dcsx.an) been developed by CTEX (Curaçao Technology The international banks conduct a wide range of special tax incentives are provided to free zone Exchange) offers an excellent starting point for international banking transactions for individual, companies. The Curaçao Free Zones are being Accountants & Legal the international financial sector to attract new institutional and corporate clients throughout the regulated by the free zone law, and is one of the Curaçao’s financial services sector has a broad international customers and to provide services. world. In addition, the international banks offer tools supporting the development of Curaçao as base of accounting, tax and legal experts. All Cloud computing, disaster-recovery facilities, real- a broad range of commercial banking services, a Logistics and Distribution Center. The activities Big 4 accounting firms have long been present time back ups are becoming increasingly important like foreign currency bank accounts. Curaçao has must be focused on trading with or providing in Curaçao, in some cases for more than half a for the financial services industry. an beneficial tax regime to facilitate international services to consumers and companies outside of century. Although the legal system of Curaçao is By complementing these IT solutions with financial banks operating from Curaçao. (www.ibna.an) Curaçao. (www.curinde.com) based on civil law, the professionals also have the products and services, Curaçao is able to present know-how when it comes to the common law international clients with a unique product. This Fund Administrators Telecommunication / E-Commerce / E-Zone structures. The financial services professionals example also holds for other sectors. As recently as 2008 Curaçao was named The telecommunications infrastructure in Curaçao have in-depth knowledge of the most complex the number one location for hedge fund is highly- developed with broadband Internet products in the financial arena, from financial In order to facilitate the growth of the international administration services, outperforming access on par with world financial services centers. engineering to auditing multi-national listed financial services sector the Curaçao International jurisdictions like Singapore, Hong Kong, Curaçao has top tier data centers and offers a high- businesses, which meets the highest international Financial Center (CIFC) has been established. Luxembourg, the Netherlands and the Cayman speed telecommunication infrastructure providing standards and principals. CIFC is a public private partnership between Islands. Curaçao is regarded as one of the few reliable state-of-the-art global communications. the Government of Curaçao, the Central Bank of jurisdictions in the world that can deliver the Curaçao’s redundant fiber connectivity provides Curaçao and St. Maarten and the private sector. The highest level of fund administration services. The intercontinental linkages by means of multiple goal of the public private partnership is to promote price/quality ratio, well-educated and experienced submarine cables and its data centers offer clients E. Ys and develop the international financial services staff and a strong legal and regulatory framework the ability to maintain critical information assets in Chairman Curaçao International Financial Services Association (CIFA) and former Prime Minister of the Netherlands Antilles sector in Curaçao. are the reasons Curaçao can provide high quality a reliable and highly secure environment. Curaçao fund administration. (www.cifa-curacao.com) is home to a several E-Zones. E-Zones are specific A. Adams The Sector – An Overview appointed areas from which business can be Chairman Association of International Bankers (IBA) and CEO of AIC Family Office conducted with the rest of the world. Services that The Curaçao international financial services sector Curaçao is an ideal location for family offices, and are recognized under this legislation are amongst R. Römer offers products and services tailored to the need many have been operating here for generations. other: on-line travel agencies, international trade CEO Curaçao International Financial Center (CIFC) of high net worth individuals, families, closely held Due to its stable political climate as part of the and e-commerce, IT and application related businesses, up to and including internationally Kingdom of the Netherlands, its sophisticated services and most type of business conducted over listed corporations. Curaçao’s financial services tax regime and its geographic location close to the Internet. E-Zone companies can benefit from sector offers a wide range of products and services Latin America, it is regarded as a safe haven for favorable tax facilities as long as they are physically in the area of Asset Protection, Inbound and families to set up and manage their affairs from. located and officially admitted in an E-zone. (www. Outbound Finance and Trading. Curaçao is one of the few highly developed civil cifa-curacao.com) law jurisdictions in the Caribbean, surrounded by The financial institutions on Curaçao are under the numerous Anglo-Saxon fast-track jurisdictions that AMS-IX Caribbean rigorous supervision of the Central Bank of Curaçao can provide the stability and low profile a family Curaçao is home to AMS-IX Caribbean, the biggest and St. Maarten. The supervision is executed in office seeks. (www.cifa-curacao.com) internet exchange in the region and is important close cooperation with the Dutch Central Bank. peering point in the exchange of electronic 46. duTCH CARIBBEAN seCURITIES EXCHANGE The Dutch Caribbean Securities Exchange (DCSX) is an international electronic exchange based in Curaçao, for the listing and trading of bonds, equities and funds.

Key to its success is its time- and cost- The DCSX utilizes a trading mechanism efficient listing procedure, ensuring a powered by Trayport Exchange Systems. The smooth listing process for local as well as trading system enables DCSX to offer services international companies, and investment to issuers of government-owned bonds funds. DCSX has all the regulatory processes wishing to tap the local and regional capital and a robust trading platform in place to markets, while offering an attractive solution set the stage for the successful listing of to issuers seeking to list equity or bond domestic and international securities. instruments, as well as funds and ETFs. Other benefits include Curaçao’s common law and The DCSX ensures transparency to the investor Dutch legal court system, strong regulatory and guarantees visibility for the issuer at regime supervised by the Central Bank of all times whilst its listing fees are highly Curaçao and St. Maarten and an Appeals competitive. DCSX operates in an exchange- Committee consisting of members of the DCSX regulated market and is a membership-owned Foundation and representatives of the financial self-regulatory organization. sector.

The exchange was officially launched in The DCSX is noticing an increased local and January 2011 and was awarded the status international interest in the possibilities of Correspondent Exchange by the World presented by the exchange and its positioning Federation of Exchanges (WFE) in October as an entrepreneurial platform appears to be 2012. The WFE is an international trade catching on. The Curaçao’s financial sector is association of 59 publicly regulated stocks, regaining its status as a reputable financial futures and options exchanges and its center providing a platform for investments to market operators are responsible for the and from Latin America, Pan-European and Far functioning of key components in the financial East markets. world. Membership of WFE is considered by some governments and national associations The exchange will further enhance the of asset managers as an essential criterium for position of Curaçao as a leading financial preferential investment policy and taxation services jurisdiction with in-depth knowledge for these markets. Any company, regardless of of financial, fiscal and legal requirements its industrial sector or country of origin, may and providing products and services that request a listing on the DCSX. Listing on the meet those requirements geared towards DCSX offers multiple advantages to issuers international investors and fund managers. of equities, bonds or mutual funds, such as access to a broader international investor base For more information on the DCSX and its services and capital. As legal or regulatory constraints please visit www.dcsx.an or send an email to may prevent certain investors from investing [email protected] in unlisted securities, a listing enhances the marketability of the listed instrument. A listing on the DCSX also provides a secondary market facilitated by a proven trading platform R. Römer bringing transparency to both buyer and seller. CEO Dutch Caribbean Securities Exchange (DCSX) 48. practical Information 50. Facts & figures 51. Colophon & Sponsors

Geographical features Sponsors - ANT, Banco di Caribe, Colline Holdings, Ennia, Fundashon Bon Intenshon, Guardian Group, Maduro & Curiel's Bank. Area in square kilometers 444 Population density per square kilometer (January 2012) 341 Average temperature in degrees centigrade 27.5 Total average monthly rainfall in millimeters 629

Population and workforce

Total population (per January 2012) 151.339 Labor force (2011) 68.763 Employed population (2011) 62.042 Unemployment rate (%, 2011) 9.8

Employment population by economic activitiy (2011, 3-year moving average)

Agriculture, fishing and mining 485 (0.8%) Manufacturing 3.947 (6.6%) Electricity, gas and water 749 (1.2%) Construction 4.755 (7.9%) Trade, restaurants and hotels 15.658 (26.1%) Colline Holdings NV Transport, storage and communication 4.431 (7.4%) Banking, insurance and business services 11.813 (19.7%) Public administration / social services 5.349 (8.9%) Education 3.067 (5.1%) Health / social work 5.916 (9.9%) Other services 5.872 (9.8%) Total 60.042 (100%)

Import & export

Imports excl. oil and oil products (x mln Naf), 2011 2.267 Exports excl. oil and oil products (x mln Naf), 2011 298

GDP

Gross Domestic Product (x mln), 2011 5.439,3 Colophon - Publishing & Coordination - Luis Santine, Luis Santine Jr. • Copy Editing - Eelco Real GDP growth, 2011 0.6 Parie, Daniëlle Palm • Proof Reading - Luis Santine, J. de Sola, C. Gomes Casseres • Design & Inflation (%, 2011) 2.3 Layout - Salt , Carl Ariza • Photography - MarikaRingnalda.com • Printing - Drukkerij Curaçaosche Courant

Source: CBS, Statistical Orientation 2012 Special Thanks - Fortus Corporate Communications, Info Capital, I'nTipi, Salt, Marika Ringnalda,

and all contributing writers. www.visionsoncuracao.com