Cuba allows foreign real estate investment

Cuba has begun implementing major free-market reforms that allow foreigners to invest in real estate and let domestic companies import and export without government intermediaries.

The government started putting the changes into effect on Wednesday through decrees, resolutions and regulations.

One decree authorised private Cuban companies to work directly with foreign investors, hold accounts in overseas banks and import and export goods without going through state intermediaries. Previously, most foreign investors were required to form joint ventures with the state.

The reforms had been unveiled in June by Cuba's communist leadership as the island faced a severe economic crisis after five months of a US fuel blockade.

Other measures include authorising private companies with more than 100 employees and allowing privately owned banks, pharmacies and gas stations.

President Miguel Diaz-Canel has denied that the measures amount to the introduction of capitalism by stealth, saying they are intended to “preserve” socialism.

Official data says more than 15,000 small and medium-sized enterprises operate in Cuba and employ more than a third of the working population. Private companies now dominate food and fuel distribution.