Prepare for the Cuban Revival
While relations between the United States and Cuba have been strained for decades, recent diplomatic efforts from the Obama administration have resulted in much improved relations between both nations. As a result, the United States is preparing to lift economic embargos that have long been in place, thus opening the door for an unprecedented investment opportunity in Cuba. For investors looking to cash in on this untapped marketplace, experts agree the sky is the limit with regards to real estate and investment opportunities.
As US-Cuban relations thaw, various industries are poised to capitalize on these investment opportunities. One of the most intriguing and easiest ones to do is tourism, which will involve U.S. citizens taking Cuban vacations on a regular basis. Since it's located only 90 miles from Florida and is considered the natural gateway to Latin America, tourism is expected to boom in the years ahead. Many people are eager to see Cuba in its present state, which with its 1950sera automobiles and buildings is expected to be a haven for auto collectors and others with an interest in history.
Along with tourism, real estate investing is expected to take off on a level not seen in decades. Being the largest island in the Caribbean, Cuba still has vast amounts of open, undeveloped land thanks to the embargos. However, now those tracts of land are expected to be developed by companies looking to build hotels, corporate offices and other facilities there to oversee their many projects. Real estate companies are eager to get this started, for it will let them compete to help sell the land and gain a portion of the profits.
However, perhaps no industry offers more investment potential than the energy industry. Cuba is seen as an oasis in the desert when it comes to oil and natural gas, so much so that representatives from many companies have already begun making trips there to speak with government representatives. Such natural resources as gold, copper, petroleum and timber are there for the taking, prompting companies to start laying the groundwork now for future opportunities.
As relations continue to improve, investment opportunities in these and other industries will only grow. With the Cuban infrastructure needing a complete overhaul, investors will be able to choose from many potentially profitable sectors. By getting in on the ground floor now, investors expect to cash in on the unlimited potential Cuba offers.
Gennady Barsky is the current CFO of JetSmarter, a mobile travel APP.