Traditional and next generation sectors forge opportunities
With a small, but robust economy and big ambitions to become a world leader in clean energies, Uruguay is enticing investors
“We are among the strongest and most stable democracies with great civic engagement. Contracts are respected 100 percent.” Azucena Arbeleche, Minister of Economy and Finance
Combining strong fiscal fundamentals and political, social and economic stability with competitive advantages including world-class infrastructure, strategic location and modern mindset to trade and commerce, Uruguay has attracted record sums of foreign direct investment (FDI) to a diverse range of economic sectors in recent years.
Supported by a reassuring legal framework and a favorable tax support package provided by the pro-business government, the republic of 3.5 million people is a bastion of institutional and political stability in Latin America and continues to punch well above its weight. The high-esteem in which the country is held is reflected in its strong position in global rankings. Late last year, U.S. automobile giant Ford returned to Uruguay after 35 years with substantial investment in a state-of-the-art manufacturing complex.
“There are several factors that explain why Uruguay is an attractive destination for FDI, beyond the entire tax support package,” explains Azucena Arbeleche, Minister of Economy and Finance. “We are among the strongest and most stable democracies with great civic engagement. Contracts are respected 100 percent. Uruguay has also set a strategic course—and this is perhaps a completely new element—in environmental matters. We have given a political priority to action against climate change.”
Omar Paganini Herrera, Minister of Industry, Energy and Mining, echoes this upbeat view, noting while the booming export and agro-export sector remains the principal generator of foreign currency, Uruguay is now exploring its rich potential in high-tech sectors and clean energy solutions, like hydrogen production. “We have a thriving agro-industrial sector and sectors with a high technology aggregate, such as software, the application of life sciences—as seen during the pandemic in medical and veterinary areas—audiovisual production and green energies. All this positions us as a country with a very positive future.”
Colleague Fernando Mattos Costa, Minister of Livestock, Agriculture and Fisheries, adds: “Uruguay has been rapidly incorporating sustainable production systems to meet demand. As a major exporter, we align with international requirements, like laboratory diagnostic and certification systems. This ensures the quality and prestige of Uruguayan products.”
Haroldo Espalter, president of the Chamber of Commerce Uruguay-u.s., sees plenty of lucrative opportunities for international investors: “You have to thoroughly analyze what Uruguay is, the opportunities it offers, the advantages available, and make an effort to look at Latin America as a continent of very diverse countries. Without a doubt, Uruguay offers an environment for the foreign investor, probably unique and first class, to be able to invest money, to come and live, to be able to be digital nomads.”
A network of Free Zones (Zonas Francas) has been an essential ingredient for attracting investors, acting as a streamlined, secure conduit for businesses concentrated on export activities. “Investment and access to market our services and products are our fundamental pillars,” says Zonas Francas director, Ana Alfie. “Our system contains important legal guarantees.”
Responsible for almost a tenth of GDP, Uruguay’s tourism industry has bounced back well from the closure of international borders. Its tourism tapestry blends natural, cultural and historic delights. As Tabaré
Viera Duarte, Minister of Tourism, enthuses: “Make the most of life and come to Uruguay to enjoy the type of tourism you like the most.”