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Portfolio of Opportunities for Foreign Investment 2018 - 2019

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PORTFOLIO OF OPPORTUNITIES FOR FOREIGN INVESTMENT 2018 - 2019 INCLUDES TERRITORIAL DISTRIBUTION MINISTERIO DEL COMERCIO EXTERIOR Y LA INVERSIÓN EXTRANJERA X13 CUBA: A PLACE TO INVEST 15 Advantages of Investing in Cuba 16 Foreign Investment in Cuba 16 Foreign Investment in Figures 17 General Foreign Investment Policy Principles 19 Foreign Investment with agricultural cooperatives as partners X25 FOREIGN INVESTMENT OPPORTUNITIES BY SECTOR X27 STRATEGIC CORE PRODUCTIVE TRANSFORMATION AND INTERNATIONAL INSERTION 28 Mariel Special Development Zone X BUSINESS OPPORTUNITIES IN ZED MARIEL X55 STRATEGIC CORE INFRASTRUCTURE X57 STRATEGIC SECTORS 58 Construction Sector X FOREIGN INVESTMENT OPPORTUNITY SPECIFICATIONS 70 Electrical Energy Sector 71 Oil X FOREIGN INVESTMENT OPPORTUNITY SPECIFICATIONS 79 Renewable Energy Sources X FOREIGN INVESTMENT OPPORTUNITY SPECIFICATIONS 86 Telecommunications, Information Technologies and Increased Connectivity Sector 90 Logistics Sector made up of Transportation, Storage and Efficient Commerce X245 OTHER SECTORS AND ACTIVITIES 91 Transportation Sector 246 Mining Sector X FOREIGN INVESTMENT OPPORTUNITY SPECIFICATIONS X FOREIGN INVESTMENT OPPORTUNITY SPECIFICATIONS 99 Efficient Commerce 286 Culture Sector X FOREIGN INVESTMENT OPPORTUNITY SPECIFICATIONS X FOREIGN INVESTMENT OPPORTUNITY SPECIFICATIONS 102 Logistics Sector made up of Water and Sanitary Networks and Installations 291 Actividad Audiovisual X FOREIGN INVESTMENT OPPORTUNITY SPECIFICATIONS X FOREIGN INVESTMENT OPPORTUNITY SPECIFICATIONS 112 Tourism Sector, including Health 296 Banking and Financial Sector X FOREIGN INVESTMENT OPPORTUNITY SPECIFICATIONS 299 Insurance Activities 157 Health tourism X FOREIGN INVESTMENT OPPORTUNITY SPECIFICATIONS 162 Food Production Sector X301 TERRITORIAL DISTRIBUTION OF PROJECTS 303 PINAR DEL RÍO PROVINCE X FOREIGN INVESTMENT OPPORTUNITY SPECIFICATIONS 304 ARTEMISA PROVINCE 202 Pharmaceutical Industry and Biotechnological Sector 307 HAVANA PROVINCE X FOREIGN INVESTMENT OPPORTUNITY SPECIFICATIONS FUERA DE LA ZED MARIEL 310 ISLA DE LA JUVENTUD SPECIAL MUNICIPALITY 311 MAYABEQUE PROVINCE Sugar Agro-industrial Sector and its Byproducts 208 312 MATANZAS PROVINCE X FOREIGN INVESTMENT OPPORTUNITY SPECIFICATIONS 314 CIENFUEGOS PROVINCE 214 Light Industry Sector, introducing New Technologies 315 VILLA CLARA PROVINCE X FOREIGN INVESTMENT OPPORTUNITY SPECIFICATIONS 315 SANCTI SPÍRITUS PROVINCE 316 CIEGO DE ÁVILA PROVINCE 219 Electronics, Informatics, Automation and Telecommunications Industry 317 CAMAGÜEY PROVINCE 221 Light Industry 319 LAS TUNAS PROVINCE X FOREIGN INVESTMENT OPPORTUNITY SPECIFICATIONS 319 SANTIAGO DE CUBA PROVINCE 320 GRANMA PROVINCE 227 Chemical Industry 321 HOLGUÍN PROVINCE X FOREIGN INVESTMENT OPPORTUNITY SPECIFICATIONS 323 GUANTÁNAMO PROVINCE 233 Steel/Iron-Machinery Industry and Recycling FOREIGN INVESTMENT OPPORTUNITY SPECIFICATIONS X X324 CONTACTS OF INTEREST Advantages of Investing in Cuba Foreign Investment Legal Regime With the approval of Law No. 118 and its com- Law No. 118/2014: “Law of Foreign Investment” plementary norms, a favorable business envi- ronment has been created in Cuba. Tax incen- Decree No. 325/2014: “Regulations of the Foreign Invest- tives are not the only advantages inviting foreign ment Law” of the Council of Ministers investors to choose Cuba as a place to invest. Some of these other reasons are: Resolutions No. 46/2014 and No. 47/2014 of the Banco Central de Cuba X Formulation of sectorial policies for identifying investment opportunities with foreign capital Resolution No. 535/2014 of the Ministry of Finances and that permits access to the Cuban market and Prices its consumers Resolution No 920/2014 of Ministry of the Economy and X Secure and transparent legal framework Planning X Political, social and legal stability Agreement No. 7567 of the Council of Ministers X Geographical location in the center of an ex- Decree No. 347/2018, modification of the “Regulations of panding market the Foreign investment Law” of the Council of Ministers X Climate of safety for foreign personnel Resolutions No. 206/2018 & No. 207/2018 abolishing No. 128/2014 & No. 129/2014 of the Ministry of Foreign Trade X High indicators for education, social security and Investment and health of the population CUBA: A PLACE INVEST TO Resolution No. 14/2018 abolishing No. 16/2014 of the Min- X Highly qualified workforce istry of Labor and Social Security X International agreements signed by Cuba with the Latin American Integration Association (ALADI), the Caribbean Community (CAR- ICOM), the Bolivarian Alliance for the Peoples of Our America (ALBA), the Common Market of 15 the South (MERCOSUR), the European Union International agreements related (EU), the World Trade Organization (WTO) to foreign investment X Governmental policy that prioritizes research Cuba has signed agreements to prevent double and technological innovation taxation with Spain, Barbados, Italy, Russia, Portugal, Qatar, Lebanon, China, Vietnam, Austria, X Institutions at the service of investors, with the Ukraine and Venezuela and it has signed qualified personnel 63 agreements on Reciprocal Promotion and Protection of Investment. X Basic infrastructure throughout the country: communications networks; over 20 airports; ports admitting deep-draft vessels; over 95% of national territory with electrical power; rail and highway communication. In 2017, 36 new businesses were approved, of Foreign Investment in Cuba PRINCIPAL EPA INDICATORS IN 2017 these 11 were in ZED Mariel while 10 previously (BILLION CUC) established businesses were renewed with new Law No. 118 establishes the types of businesses X Enterprises with Totally Foreign Capital; foreign investments. TOTAL SALES 4.5 that can be adopted within foreign investment: investors can set up on national territory as: DOMESTIC MARKET 2.8 Results at the close of the 2017 business year X Joint Enterprises a. Natural persons acting on their own behalf EXPORTS 1.7 show the international economic partnerships reporting sales of over 4 billion CUC: IMPORTS 1.0 X International Economic Partnership Agree- b. Legal persons constituting a Cuban affiliate TAXABLE PROFITS 1.4 ments including, among others, contracts for of the foreign entity which they own hotel management, production or services, contracts to provide professional services, c. Legal persons setting up a branch of a for- General Foreign Investment Policy Principles risk contracts to explore non-renewable nat- eign entity. ural resources, for construction and for agri- 1. To conceive of foreign investment as a source forestry and sickle bush (marabú) biomass, cultural production for the country’s short, mid and long range eco- generation of water and biogas power. nomic development. Access to cutting edge technologies, securing managerial methods, 7. To consider the participation of foreign capi- diversifying and broadening export markets, tal in the complementation of national scien- replacing imports, access to foreign financing, tific and technological development projects, Foreign Investment in Figures creating new job sources and securing greater preserving intellectual property over the re- incomes on the basis of production linkage with sults obtained, especially brand names and At the close of 2017, the greatest number of foreign the domestic economy are all objectives that patents created by the Cuban Party. investment businesses have been undertaken as should be proposed in order to attract foreign international economic partnership agreements, for investment. 8. To consider foreign investment in certain 47 % of the total, and among these hotel manage- economic sectors and activities as an active ment agreements outnumber the rest. Joint enter- 2. To secure new managerial methods that con- and fundamental element for growth. tribute to achieving better market position, in- CUBA: A PLACE INVEST TO prises follow at 40% and 70% of active businesses CUBA: A PLACE INVEST TO are concentrated in the sectors of tourism, energy crease productivity and profitability, efficiency of 9. To consider agricultural and foods industry and mines, and industries. complex investment processes and their assimi- production as prioritized sectors along with lation by the rest of the economy. tourism, including health tourism, the devel- opment of energy sources especially renew- FOREIGN INVESTMENT BUSINESS 3. To immediately prioritize foreign investment di- able energy, the exploration and exploitation MODALITIES 2017 rected towards replacing food imports. of hydrocarbons and mining resources and 47 40 construction or the improvement of industri- 16 4. To encourage the development of comprehen- al infrastructures. sive projects generating production linkage in 17 the search for collective efficiency. These proj- 10. To guide most of foreign investment towards ects may be executed with one investor or with export sectors. Moreover, to direct it towards several having this mutual interest. eliminating bottlenecks in the production chain, encouraging modernization, infra- 5. Corresponding to the country’s demographic structure and changing the economical tech- dynamics, foreign investment must allow access nological model as well as efficiently meeting to state-of-the-art technologies that increase the country’s needs in the aim of replacing 13 productivity and permit the efficient use of the imports. workforce. 11. To encourage foreign investment based on Totally Foreign Capital Enterprises 6. To contribute to changing the country’s energy a
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