Cuba's Economic Strategy Shifts Towards Saudi Investment Opportunities

The 41st edition of the Havana International Fair, FIHAV 2025, showcased 715 companies, including 268 from Cuba and 61 small and medium-sized private enterprises, despite ongoing economic challenges. Cuban President Miguel Diaz-Canel acknowledged significant debts owed to foreign companies, particularly from China, which have exceeded five years without payment, emphasizing the trust these businesses still have in Cuba.

For instance, China Auto Caiec, a major supplier of goods including power generators and automobiles, reported debts of about 200 million dollars since 2015, highlighting the strain on state enterprises.

Wu Han, the company's representative, noted a shift in focus towards private sector partnerships due to the state’s minimal ability to pay. In recent years, the growing presence of micro, small, and medium-sized enterprises has resulted in these private firms contributing 55 percent of retail sales in Cuban pesos, surpassing state commercial networks.

At the FIHAV 2025 Investment Forum, Deputy Prime Minister and Minister of Foreign Trade and Foreign Investment, Oscar Perez-Oliva, announced the approval of 32 new business ventures from 13 countries with a committed capital of 1.1 billion dollars.

The government will implement a new decree to replace the existing foreign investment legal framework, aimed at providing greater flexibility and autonomy to foreign investors. This includes allowing foreign companies to establish bank accounts abroad to circumvent U.S. sanctions and giving them more control over hiring processes.

Perez-Oliva stated there are no restrictions on selling products and services to any national economic actor able to pay. In light of these developments, Cuba is actively pursuing new investment opportunities, particularly with Saudi Arabia, signaling a strategic shift in its economic approach amidst ongoing challenges.

The fair also introduced areas for exportable products, renewable energy projects, and artificial intelligence applications, highlighting Cuba's focus on diversifying its economy.