Investment Opportunities in Cuba Today. Global Investors examined Cuba's economic situation with the idea of a day that will allow private investors in Cuba. These experienced global investors were business entrepranours, writers and reporters,that no longer wanted to talk about the Cuban embargo but were seeking the actual conditions nesecary to invest directlyin Cuba with the potential for reform teh major Cuban investment sectors led by Hotel Development, Real Estate, Contruction infrastructure, and Internet telecommunications systems such as Google, You Tube, Twitter, Skype & FaceBook.
Opportunities- Today there are some major obstacles that hinder direct investment into Cuba.
Investors have said that Cuba is consistently ranked as the worst business environments in the world by various investors that ahve already been burned by the Cuban Investment landscape and government beacracy that seems to block growth and encourage internal fraud by Cuban officials.
Cuba also has the second highest debt in the world and is routenily blocked out of the international capital markets that are currently controld by the American Financial institutions. The fragile Cuban economy is very dependent on the global tourism Markets and to exports to a small number of international partners.
Investors also face huge chalanges placed by the Cuban government that include at least a 50 Cuban government ownership in all Joint Ventures, plus the foreign partner ahs to put up 100% of the capital & Financing. The foreign investors must hire workers through the Cuban Employment agency with a dual-currency system that in effect charges the Foreing company 20 times the salary paid to the Cuban worker.
There is a natural built in lack of transparency in all Cuban investment procedures. There is still no reliable news of the 1994 Mexican Domus investment in Etecsa one of the larger foreign private Cuban investments todate.
All this may change soon if Cuba had a regulatory legal framework that truly protected foreing investors.
Everyone agrees that major investment in Cuban telecommunication sector would be very profitable to foriegn investors if Cuba has the lowest rate of cell phone users in the world. Experienced investors pointd out that Cuban regulations aren’t the only problems to eventual American investment since the American embargo severely damages the economy and services that U.S. company do currently provide to Cuba.
Despite all this American Companies sold over $1 Billion dolalrs of American made goods to Cuba in 2009 despite the Obama Administration’s commitment to expand economic and political ties between the U.S. and Cuba.
Conclusion: The economy was tough for Cuba in 2009 however Cuba is gradually beginning to change its old stlye system into a newer and freer market by allowing more small businesses entrepreneurial in the tourism and agricultural area. World wide investmetn funds are awaiting the day that they can begin to sell investmetns in the main Cuban sectors of the economy to enhance foreign direct investment. The top investments will be in Cuban hotels, tourism, food production, sugar products and real estate property development that could have positive repercussions for foreign real estate investors. Investors & Politicians agree that Cuban health, education, and military areas are presently excluded
from all foreign investment yet the impressive Cuban healthcare and pharmaceutical sectors could offer ample opportunities for foreign Investment such as York Biosciences.(YM:TSE),
Final point was made by all investors that no matter what happened Cuba remains one of the best places in the world to invest in new projects due the its location to the USA.
