Investment framework and opportunities in Cuba

- All sectors of the economy are open to FDI excluding health and education services, as well as the Armed Forces, except for their business sectors. Priority sectors include: Agriculture  and  Forestry;  Food  Industry;  Energy  and  Mining;  Sugar Industry;  Light, Chemical and Electrical Industries; Pharmaceutical Industry; Wholesale Trade; Export of health services and health tourism; Construction; Tourism; Transport.

- Foreign  firms  may  seek  collaborations  with  state-owned companies  and  possibly cooperatives, but not privately owned Cuban businesses.

- FDI may take the form of three separate modalities:
1) Minority  or  majority joint  venture companies  (JVs, Empresas Mixta)  in cooperation with state-owned enterprises.
2) International   Economic   Association   Contracts (IEAC, Contractos   de Asociación   Económica Internacional),   for   production   or   management   of facilities, usually in tourism.
3) Full foreign-owned  ventures ( Empresa  de  Capital  Totalmente  Extranjero).
Cuba generally prefers JV with a majority holding by the Cuban partner.

-FDI  enjoys full  protection against  expropriation except  for  reasons  in ‘the  public interest’. In these cases, the law foresees compensation. In case of conflict, investors are  entitled to appeal to a mutually agreed upon international investment dispute resolution entity.

- The Cuban government will notify foreign investors of the approval or rejection of an application within a period of 60 days.