Cuba Friday offered a wide range of lucrative investments on the island to interested Lebanese businessmen and firms.
Addressing Lebanese officials and investors in Beirut, Cuban Foreign Trade and Investment Minister Rodrigo Malmierca Friday identified 246 business opportunities with a value of $8.7 billion available for foreign investment in covering 11 sectors.
“Investment opportunities cover sectors ranging from agriculture, agro-food, tourism, transportation, construction and many other industries which make of Cuba an attractive business destination,” he said.
Malmierca’s remarks came during the Cuban Lebanese Economic Forum (CLEF 2015) held at Le Bristol Hotel, bringing together Lebanese and Cuban businessmen to discuss potential opportunities of investment in Cuba.
Malmierca said Cuba was keen on establishing strong economic ties with nations all over the world, having already been able to maintain its relations with many states despite the previously imposed U.S. sanctions.
“Despite the sanctions that were imposed on us by the United States we were capable of maintaining good ties with many countries which helped us in doubling our trade figures enabling Cuba to register a positive growth rate in a variety of sectors namely tourism,” he said. “[The] Tourism sector in Cuba, for instance, attracted over 3 million tourists in 2014,” he added.
A recent agreement between the United States and Cuba to restore diplomatic ties by the end of July has further bolstered interest among investors from all over the world who started scrutinizing business opportunities in Havana as soon as the country was crossed off the U.S. terrorism list almost a month ago.
“Cuba constitutes a very attractive investment destination due to the stability of its economic, social and political atmosphere in addition to the absence of corruption and high ranking on the country transparency index,” said Ali Kazma, president of the Lebanese Cuban Businessmen Council.
Kazma said that Cuba enjoys an international reputation of being one of the richest cultures in the world. “The country is well known for being advanced in producing pharmaceutical products, tobacco, minerals and agro food industries,” he said.
He added that authorities in Cuba formulated a strategy aimed at attracting foreign investments including the ratification of Law 118, which provides great facilities for potential investors.
A handout distributed during the forum explains that the new foreign investment law was adopted in Cuba in December 2014. It said that under the new law, investment is encouraged in all economic sectors, including utilities, administrative concessions, real estate, hotel management and professional services. It also provides for investment in stocks and other securities or bonds, public or private, which do not fit the definition of direct investment.
The new law also cuts tax on profits from 30 to 15 percent for most industries and eliminates the prior 25 percent tax on labor costs. Moreover, Law 118 allows 100 percent foreign ownership, which, though previously legal, was never allowed in practice.
In addition, investors in joint ventures get an eight-year exemption from all taxes on profits. It also recognizes the intellectual property rights and technological innovation of the foreign investor.
Lebanese Economy and Trade Minister Alain Hakim praised law 118 for its role in attracting investment in Cuba, saying that Lebanon also offers investment incentives through Law 360.
“We call upon businessmen and investors to explore the details of these laws in a bid to get acquainted with facilities offered by the governments in Lebanon and Cuba for attracting investments,” he said.
Hakim called upon authorities in the two countries to expedite cooperation in a bid to provide Lebanese and Cuban businessmen with support while facilitating their movement and activities. He also emphasized the need to work on increasing trade between the two countries.
Kazma told The Daily Star on the sidelines of the forum that trade is non-existent between the two countries for the time being. “We have started planning the export of Lebanese wine and canned food to Cuba and we will start doing so practically following the Havana Trade Fair 2015 which will take place during Nov 2-7,” he said.
Meanwhile, Mohammad Choucair, president of the Chamber of Commerce, Industry and Agriculture, said Cuba’s free economic system makes the island a promising market for Lebanese products. Choucair added that Lebanese have great expertise in many sectors in the region and in the world. “Therefore, we encourage Cuban companies to establish partnerships with their Lebanese counterparts,” he added.
