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Introduction

Increasing interchange on Trade, Finance, Investment and Cooperation.Commercial relations with more than 75 countries. Trade has tripled in the last 10 years.

Cuba has widened and diversified its international insertion

Subsequent recovery of the 90’s economic crisis.•Macroeconomic balance.•Public deficit reduction. •Acceptable inflation rates.•4,9% GDP average growth in the last 10 years.

Despite the recent deceleration there is a growing recovery for the year 2015, with a prospect over 4% rate.

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Income recovery in terms of exports.

Goods and Services Trade Balance Superavit.

Reformulating exports through more value added goods and services:

Health and tourism services, among others.Medicines and biotechnological products. • Accomplishing foreign financial

commitments.• Gradual renegotiation of the external debt.

Subscribing important Agreements.

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Expectations on economic relations with U.S.A. resulting from the announcement made on December 17, 2014.

U.S. Government Recognition of the failure of its policy against Cuba.The measures that modify certain provisions of the embargo application, though limited, are a step in the right direction. From the Cuban side, the will of moving forward and the commitment of achieving results.Cuba is no more in the U.S. State Department’s list of terrorism sponsors.

Cuba has received a large number of American companies interested on investing in the country which are driving pressure to lift the embargo.President Obama could use his executive motions to substantially modify the application of the embargo provisions which do not require Congressional approval.

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CIÓNCuba develops a process to update its economic

model on the basis of the Economic and Social Policy Guidelines of the Party and the Revolution, which were widely debated and supported by the Cuban people.

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Foreign investment promotion is one of the greatest meaningful actions in the process to update the Cuban economic model. This determination is based on the importance of attracting external resources through foreign direct investment (FDI) as far as domestic savings are insufficient to match accumulation rates over 20%, which is the level required for a GDP sustained growth.It is estimated that to achieve the proposed GDP growth rates it would be required to attract between $ 2 and 2.5 billion US dollars of foreign investment flows.

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In accordance to the recognition of the importance of potentiating foreign investment for the economic development of the country, some actions have been taken :

The approval of the Foreign Investment Policy.

The approval of Law 118, Law on Foreign Investment, and the issuing of its complementary regulations.

The creation of the Special Economic Development Zone of Mariel, with an attractive regime for the investors.

The creation of the Portfolio of Opportunities for Foreign Investment.

FOREIGN INVESTMENT POLICY

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The Foreign Investment Policy was approved by the Council of Ministers on October 19th 2013, including 25 general principles and 11 sectorial principles.

• To consider Foreign investment as an active and fundamental component for the growth of certain economic sectors and activities.

• To focus Foreign Investment on increasing exports and imports substitution, as well as to eliminate bottlenecks in production lines, updating infrastructure and advancing towards a technological pattern change.

SOME GENERAL PRINCIPLES

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• To promote Foreign Investment on the basis of a wide and diverse Portfolio of Projects.

• To encourage integral projects to enhance the concept of productive chains.

• To develop such investments that would contribute to a change in the energetic matrix of the country.

SOME GENERAL PRINCIPLES

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SECTORIAL PRINCIPLESThe main objectives of attracting foreign capital to each sector, are expressed in sectorial policies. At the time, prioritized activities are defined and, in some cases, those in which we have not planned foreign investments. In addition, these policies contain other details of interest.• Agriculture and

Forestry• Food Industry• Sugar Industry• Pharmaceutical and

Biotechnological• Tourism• Construction

• Energy and Mines• Wholesale• Health• Industries:

Metallurgical, Light manufacturing, Chemical and Electronics,

• Transport

LEGALFRAME

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The new legal framework for foreign investment consists of:

Law No. 118/2014 “Law of Foreign Investment”.

Decree No. 325/2014 “Regulations of the Law on Foreign Investment”.Resolutions No. 46/2014 and No. 47/2014. Central Bank of Cuba.Resolutions No. 128/2014 and No. 129/2014. Ministry of Foreign Trade and Investment.Resolution No. 16/2014 and 42/14. Ministry of Labor and Social Security.

Resolution No. 920/14. Ministry of Economy

Resolution no. 535/14. Ministry of FinanceAgreement No. 7567 of the Council of Ministers in May 2014.

It is published in the Official Gazette of the Republic of Cuba (Special Issues No. 20 and No. 53) from April and December 16th., 2014.

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Some peculiarities of the LawForeign investment may be authorized in all sectors except health care and education services for the population and armed forces entities, except their entrepreneurial systems.Foreign investors’ contributions may be in cash or in tangible and intangible assets.

Foreign investment can be achieved through:Joint VenturesTotally foreign owned capital companiescompanies (subsidiary, branch, natural persons)International EconomicAssociation Agreements

CUBA S.A.

MARIEL SPECIAL DEVELOPMENT

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CUBA: A PLACE FOR FOREIGN INVESTMENT

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Favorable business environment

Cuba is provided with a suitable environment for the investors:

Secure and transparent legal body.

LEGAL FRAME Port, road, railroad

and communications infrastructure.

INFRASTRUCTUREInstitutions to serve investors are enhanced with highly qualified staff.

INSTITUTIONS

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IÓNInvesting in Cuba is favored by:

Favorable business environment

The political, social and legal stability.The high educational level and high qualification of the workforce.The safety climate for foreign personnel.The excellent geographical location.The existence of policies that prioritize and favor the processes of research plus technological innovation.

Access to Cuban domestic market and its consumers, including the supplying for the increasing tourism sector and third markets supported by multilateral and bilateral international agreements.

PORTFOLIO OF BUSINESSOPPORTUNITIES

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The Portfolio of Business Opportunities for Foreign Investment contains 326 projects to be developed with foreign capital.The estimated value of these projects is over $8.7 billions. The projects included in the Portfolio have been presented by Cuban companies, in accordance with sectorial development strategies and policies adopted.Most projects have viability studies or technical and economic pre-feasibility studies, developed by organizations specialized in this activity.

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The projects included in the portfolio are distributed in all provinces, including the Special Municipality of Isla de la Juventud.

The Special Development Zone of Mariel has an important role in the Portfolio of Business Opportunities.

The provinces with the largest number of projects are Artemisa, Havana, Ciego de Avila, Camaguey, Holguin, Cienfuegos, Sancti Spiritus, Villa Clara and Matanzas

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The Portfolio of Business Opportunities for Foreign Investment is organized in two sections:

Each project has a summarized specification form showing its main features: description, modality of foreign investment, Cuban counterpart, the estimated investment amount, location, market, expected results and contact details.

Mariel Special Development Zone: Contains useful information about the ZEDM and specific projects

The Portfolio of Opportunities will be annually updated.

Opportunities by sector: Related to 11 sectors; it provides information about each one of them, the approved sectorial policies and the specific forms of the corresponding projects.

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Cuba bets strongly to use the benefits associated to foreign investment to boost the development of its economic model and to achieve the prosperous and sustainable socialism we are building.

Important steps are being taken to encourage foreign capital investments looking forward to having the appropriate business environment in the country.