I N V E ST I N GI NC U B A
2 0 1 8- BUSINESS ENVIRONMENT - FOREIGN INVESTMENT - PORTFOLIO OF OPPORTUNITIES 17/18 -- PRO BUSINESS ENVIRONMENT -LEGAL FRAMEWORKRESEARCH AND
INNOVATIONPOLYCIESSERVICE OF INVESTORSHIGH QUALIFIED PERSONNEL

TRANSPARENTSECURE LEGAL BODYSOCIO-POLITICAL AND
JURIDICAL STABILITY________________SAFETY CLIMATEINSTITUTIONSNATURAL RESOURCESAVAILABILITYINFRASTRUCTURE
60 000 Km of ROADWAY
8 000 Km of RAIL LINES_____________PRIVILEDGEDGEOGRAPHIC LOCATION- HIGH EDUCATIONAL, HEALTH CARE AND SOCIAL SECURITY STANDARDS -- PRO BUSINESS ENVIRONMENT Short access time tomajor cities in theCaribbean, America
and North America.

110032

INTERNATIONALAIRPORTS

COMMERCIAL
PORTS

At the crossroads ofthe main maritime
commercial trafficroutes in the WesternHemisphere.

- PRO BUSINESS ENVIRONMENT - PREFERENTIAL ACCESS TO A POTENTIAL MARKET OF
1.2 BILLION CONSUMERS (est.) -Diplomatic
relations+180

countries

INTERNATIONALAIRPORTS
COMMERCIAL
PORTSLAC

21Regional
Multilateral
BilateralEconomicAgreements

Traderelations+150countries

- FOREIGN TRADE / NUMBERS 2017 OPEN ECONOMY. HIGHLY DEPENDANT ON FOREIGN TRADE. NET FOOD IMPORTING COUNTRY• Goods Imports 81%, Goods Exports 19%

Exports to 119 countries.
IMPORTEXPORT• Fuels andlubricants• Food• Metals
Manufactured• Chemicals andrelated products• Transportationequipment andmachinery• Textile andManufactured
items.

• Minerals fuels• Nickel• Generic andBiotech drugs• Sugar andits products• Tobacco• Alcoholic drinks• Marine products• Steel products

TRADE EXCHANGE PERREGIONAFRICA / MIDDLE-EAST
10.3 %AMERICA37.8 %EUROPE
30.4 %

ASIA / OCEANIA
20.8 %EXPORT FREE.

CUSTOMS TARIFF IMPORT NMF 10.7%

- BUSINESS ENVIRONMENT - FOREIGN INVESTMENT - PORTFOLIO OF OPPORTUNITIES 17/18 -- ECONOMIC PERFORMANCE 2017 GROSS DOMESTIC PRODUCT grew up by 1.6%
TOURISM

TRANSPORT

4.4%

AGRO

3.0%

CONSTRUCTION

3.0%

2.8 %

Varadero beach was voted THIRD BEST in the world.
Excellence Award as the SAFEST COUNTRY FOR TOURISM

PATH OF DEVELOPMENT.CUBA NEEDS TO REACH SUSTAINED LEVELS OF GROWTH OF 5%

- GENERAL POLICIESFOREIGN INVESTMENT ENVIRONMENT EXTERNAL FINANCINGSOURCES

DIVERSIFICATION
OF EXPORT MARKETSHIGH-TECHTRANSFERADVANCEDTECHNOLOGIESENERGY MATRIXRENEWABLE GENERATIONSOURCES

NEW JOBSIMPORT SUBSTITUTION

- PRO BUSINESS ENVIRONMENT -3LEVELS OF
FAST APPROVALAPROVALSREGIMEOTHER INCENTIVESFREE TRANSFER ABROAD /FREE FROM TAXES(Dividends or profits)
SPECIAL TAXATION SYSTEMLEGAL SECURITYMARIEL SDZ6060DAYSDAYSCOMPETITIVENATIONALTALENT60PUBLIC
UNIVERSITIESTOTAL UNIVERSITY ENROLMENT112000
CITIZENS+ONE MILLION
UNIVERSITY GRADUATES

- PRO BUSINESS ENVIRONMENT SPECIAL TAXATION SYSTEMON PROFITS0%YEARS OF EXCEPTIONS - JOINT VENTURES 815% FOR REINVESTED PROFITS.0% - IEA AGREEMENTS FIRSTON USING OF LABOR FORCEEXEMPTED

0%FIRST YEAR, AFTER THATON SALES OR SERVICES1%ON PERSONAL INCOMES TO PARTNERS OR PARTIESCUSTOMS TARIFF (INVESTMENT PROCESS)

- PRO BUSINESS ENVIRONMENT SPECIAL TAXATION SYSTEMON PROFITS35%MAY GO UP TO50% NATURAL RESOURCESEXPLOITATION- TOTALLY FOREIGNCAPITAL COMPANY -35%5%

ON USING OF LABOR FORCE

10%

ON SERVICES

5%

ON RETAIL SALESON WHOLESALE SALESCUSTOMS

10%TO BE SET IN THE
CUSTOMS TARIFFS

- FOREIGN INVESTMENT/MARIEL SDZ -1ST in Cuba.

45KM

CONTAINERS West of Havana
Most modern in the Region
TERMINAL Neo Panamax vessels

ONE STOP SHOP SYSTEM
OFFICE SUPPORTFAST APPROVALREGIME2LEVELS OF
APROVALS

60DAYS

- FOREIGN INVESTMENT / NUMBERS 2017 -+2BILLIONUSDCOMMITTED CAPITAL
COUNTRIES +20JOINT VENTURESTFC COMPANY+5+11HOTEL ADMINISTRATION CONTRACTS +9IEA AGREEMENTS +5MULTINATIONALS+9- BUSINESS ENVIRONMENT - FOREIGN INVESTMENT -- PORTFOLIO OF OPPORTUNITIES 17/18 -- PORTFOLIO OF OPPORTUNITIES 17/18 -10.7Bil. USD

50 Projects406 Projects

- PORTFOLIO OF OPPORTUNITIES 17/18 -ALL SECTORSEXCEPT SERVICESHEALTH / EDUCATION / MILITARY SECTOR

JOINT VENTURESTOTALLY FOREIGN CAPITAL COMPANY
NATURAL PERSONS / SUBSIDIARY / BRANCHMODALITIESINTERNATIONAL ECONOMIC ASOCIASION AGREEMENTSRISK CONTRACTS / CONSTRUCTION / HOTEL PRODUCTION / SERVICES MANAGEMENTCUBAN PARTICIPATION MAJORITY SHARESEXTRACTION OF NATURAL RESOURCES/ PUBLIC SERVICES/BIOTECHNOLOGY/ WHOLESALE/ TOURISM

EMPLOYER-ENTITY SUPPLY AND CONTROL THE WORKFORCESTATE ASSETS WILL NOT BE TRANSFERRED IN PROPERTY

- PORTFOLIO OF OPPORTUNITIES 17/18 SECTORIAL POLICY
Increase food production, encourage sustainable development
and increase efficiency, quality and competitiveness in thedifferent forms of production management at work in thissector.
AGRO-FOOD (1)FRUIT, VEGETABLES, GRAINS AND CEREALS, BEEF, PORK,POULTRY, ANIMAL FOOD AND MILK, AS WELL AS INTEGRALPRODUCTS INCLUDING INTENSIVE MANAGEMENT OFFORESTRY PRODUCTS HAVING A COMMERCIAL NATURE.

It excludes tobacco agricultural products and the premium
projects cigar industry / capture and industrialization of lobster.
LAND OWNERSHIP SHALL NOT BE TRANSFERABLE.
In joint business ventures, the contribution of the Cuban Party
may include the real right of usufruct for the land.

- PORTFOLIO OF OPPORTUNITIES 17/18 -LAND OWNERSHIP IN THE HAND OF STATEMANAGED
AGRO-FOOD (2)70% BY NON STATE ENTITIES
30% BY STATE ENTITIES

6.24 MILLION HECTARES OFAGRICULTURAL LANDONLY
2.7MILLION
projects

CULTIVATEDZONE OF2000 MILLIONTYPE 1 DISEASESMARKETFREE EXISTING IN THE AREA USD DOMESTISPOTENTIAL

- PORTFOLIO OF OPPORTUNITIES 17/18 -+1.2 BILLION USD ESTIMATED AMOUNTRECOVERY / PRODUCTION / DEVELOPMENT / PROCESSING

AGRO-FOOD (3)INTERNATIONAL ECONOMIC ASSOCIATION AGREEMENTSTOBACCOTOTALLY FOREIGN CAPITAL COMPANYMARIEL SDZ
projects

MODALITIESJOINT VENTURESCITRUS FRUITSLEADING PRODUCTS

FRUITS / COFFEE / CACAO / HONEY / CHARCOAL

- PORTFOLIO OF OPPORTUNITIES 17/18 -EXAMPLESCOMPREHENSIVE PROJECT TO RAISE
BEEF CATTLE IN STABLES, WITH A
CAPACITY FOR 5000 HEAD.

AGRO-FOOD (4)ESTIMATED AMOUNT 7 MILLION USD
PRODUCTION OF BANANAS FOR THE
DOMESTIC MARKET AND EXPORT.
ESTIMATED AMOUNT 2.3 MILLION USD

projects
INCREASED PRODUCTIONPOTENTIAL FOR SHRIMP FARMING.
ESTIMATED AMOUNT 3 MILLION USD

RENEWABLEENERGY (1)- PORTFOLIO OF OPPORTUNITIES 17/18 SECTORIAL POLICYTo create, enlarge and modernize
production capacities.

projects

To promote projects to generateenergy from renewable sources.

4.3% CURRENTLY

LONG-TERM ECONOMIC /SOCIAL DEVELOPMENTPROGRAM
DEVELOPMENT PLAN UNTIL 2030

BIOMASS24%

PHOTOVOLTAIC ENERGY

WIND POWER RESOURCEBIOGASHYDRO-ENERGYRENEWABLE
ENERGY (2)- PORTFOLIO OF OPPORTUNITIES 17/18 -+10UNIVERSITIES WITH HIGHLY
TRAINED SCIENTIFIC-TECHNICAL PERSONNELTOP PRIORITY
BIOMASSprojects

INSTALL 755MW AT 19 BIOELECTRIC PLANTS AT SUGAR MILLSWIND POWER RESOURCEINSTALL 633 MW AT 13 WIND FARMS, WITH CAPACITY FACTORS OF
OVER 30 % THAT WILL PRODUCE OVER 1000 GWH/YEAR

PHOTOVOLTAIC ENERGYPOTENTIAL FOR SOLAR RADIATION 5KWH700 MWP (PVSP) UP TO 2030

HYDRO-ENERGYPER SQUARE METER PER DAYTO BUILD 74 SMALL HYDROELECTRIC
PLANTS WITH OVER 56 MW.

DEVELOPMENT PROGRAMS FOR PORK, BEEF AND POULTRY PRODUCTION

BIOGAS

RENEWABLE
ENERGY (3)- PORTFOLIO OF OPPORTUNITIES 17/18 -385 MILLION USD ESTIMATED AMOUNTprojects

TOTALLY FOREIGN CAPITAL COMPANYMODALITIESJOINT VENTURESPOTENTIAL MARKET
ELECTRICITY GENERATED IS COMPLETELYDIRECTED TO THE NATIONAL ELECTRIC SYSTEM

- PORTFOLIO OF OPPORTUNITIES 17/18 SECTORIAL POLICY
Manufacture of finished products andactive drug ingredients for generic
medicines.

DRUGS AND
BIOTECHNOLOGY(1)

In the case of biotecnologicalproducts, we will be evaluating
specific businesses that would
complement domestic projects,
Preserving intellectual property andlooking out for the proper use ofwhat may be jointly generated.

projects
The creation orextension ofproduction capacities.

- PORTFOLIO OF OPPORTUNITIES 17/18 -CUBADRUGS AND
BIOTECHNOLOGY(2)+500

DRUGSABROAD+800+30+50HEALTH PRODUCTREGISTRATIONSBIOLOGICAL PRODUCTSCOUNTRIESINCLUDING

projects

HEBERPROT- PNIMOTUZUMAB

- PORTFOLIO OF OPPORTUNITIES 17/18 -+834.2 MILLION USD ESTIMATED AMOUNTDRUGS AND
BIOTECHNOLOGY(3)
INTERNATIONAL ECONOMIC ASSOCIATION AGREEMENTS
JOINT VENTURES

projects

MODALITIESCUBAN PARTICIPATION MAJORITY SHARES
BUSINESS ARRANGEMENTSPROJECT NEGOTIATIONS / R&D PROJECT JOINT DEVELOPMENT DISTRIBUTION
AND REPRESENTATION / R&D PROJECT JOINT DEVELOPMENTTECHNOLOGY TRANSFER AGREEMENTS

- PORTFOLIO OF OPPORTUNITIES 17/18 -SECTORIAL POLICYTo promote projects to modernize and create new capacities
in the aim of covering national demand, replace importations
and generate exportations.

INDUSTRIAL (1)It includes the branches of MECHANICAL-METAL, LIGHT,CHEMICAL and ELECTRONICS INDUSTRY.

PRIORITIESprojects

PRODUCTION OF ALUMINUM AND GLASS BOTTLES FOR BEVERAGESTIN CANS FOR FOODSDESIGN AND PRODUCTION OF METALLIC STRUCTURESPRODUCTION OF DIFFERENT ASSORTMENTS OF PAPERINDUSTRIAL DEVELOPMENT FOR MOLDS FOR THE PLASTICS INDUSTRY

- PORTFOLIO OF OPPORTUNITIES 17/18 DEVELOPMENT PLAN UP TO 2020

ELECTRONICS INDUSTRYOWN DESIGNS OF LCD TO LED TVs, INDUCTION STOVES,UPS, LED LIGHTINGOVER 600 FACTORIESINDUSTRIAL (2)16 PRODUCTION ACTIVITIESLIGHT INDUSTRY OPEN TO FOREIGN INVESTMENTDECORATIVE LAMPS, SPORTING GOODS AND FOOTWEAR

INDUSTRIAL GASES/ FERTILIZERS AND PESTICIDES/ PAPER/ RUBBERCHEMICAL INDUSTRYCHEMICAL ENGINEERING AND RESEARCH CENTERprojects

MECHANICALMETAL INDUSTRYOVER 47 FACTORIESOPEN TO FOREIGN INVESTMENTRIGID TUBES FOR CIGARS/ SYSTEM FOR THE MANAGEMENT OF SOLIDURBAN WASTE/ METALS TRANSFORMATION CENTER.

- PORTFOLIO OF OPPORTUNITIES 17/18 -+1.2 BILLION USDESTIMATED AMOUNTINDUSTRIAL (3)INTERNATIONAL ECONOMIC ASSOCIATION AGREEMENTSTOTALLY FOREIGN CAPITAL COMPANYMODALITIESJOINT VENTURESprojects

CUBAINDUSTRIAINTERNATIONAL INDUSTRIAL CONVENTIONAND EXHIBITION.

JUNE 19/22, 2018

- EXPOSITIONS AND FAIRS IN CUBA 2018 -FIAGROP - InternationalAgriculture and Foods FairLocation: Rancho Boyeros /March 17th to 25th

ALIMENTOS CUBA - IIInternational Foods andBeverage Fair
Location: Pabexpo / May
22th to 24th

FECONS - XII InternationalConstruction Fair
Location: Pabexpo / April
3rd to 6th

FIHAV 2018, InternationalFair
Location: Expocuba /October 29th to November
2nd

SALUD PARA TODOS –XXIV
International Medical Fair
Location: Pabexpo / April
17th to 20th

FIART - XXI Handcrafting
International Fair
Location: Pabexpo /December 4th to 18th

2018
120TH ANNIVERSARY OF THE
JAPANESE MIGRATION TO CUBA

どうもありがとうございました

I N V E ST I N GI N

C U B A2 0 1 8