In a context where global foreign investment increased by 10.9% in 2013, in particular in Europe (+25.2%) and in Latin America (+17.5%), FDI flows to developing economies reached a new high of US$759 billion. However macroeconomic fragility and policy uncertainties are driving investors to caution.
Since 1993, the island has progressively opened up to foreign investment, but in a selective way. In contrary to the Cuban government declarations, the island ranks among the last countries in the world in terms of receiving FDI, according to the UNCTAD. Even though all sectors are open to FDI, the government defined in 2007 the strategic economic sectors that should be prioritized for investment. The government favours investments that provide advanced technology and contribute to the infrastructures such as tourism, mining, oil and any other activities that can help to develop and to supply goods for local consumption. The access to the retail and food service sectors is very difficult for foreign investors.
In 2013 FDI only reached over 100 million USD.
The main foreign investors in Cuba, generally in the form of joint investments with Cuban state enterprises, are Spain, Canada, Venezuela, Italy and France. Venezuela has made a number of strategic investments in the field of exploration and exploitation of hydrocarbons, in the form of joint ventures and mutual investments.
China, with its petrochemical project worth $6.5 billion and substantial financial support, has become a very important partner for Cuba.
Information on the 2013 FDI influx in this region can be accessed in the Global Investment Trade Monitor published in January 2014 by the United Nations Conference on Trade and Development (UNCTAD).
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Last Updates: October 2014