Foreign Investments in Argentina- Policies

According to a Presidential decree governing foreign investment in Argentina, foreign companies may invest in Argentina without registration or prior government approval, and on the same terms as investors domiciled in Argentina. Investors are free to enter Argentina through merger, acquisition, green-field investments, or joint ventures. Foreign firms may also participate in publicly-financed research and development programs on a national treatment basis.

In December 2011, the Argentine Congress passed Law 26.737 (Regime for Protection of National Domain over Ownership, Possession or Tenure of Rural Land) limiting foreign ownership of rural land, even when not in border areas, to a maximum of 15 percent of all national productive land. Furthermore, individuals or companies from a same nation cannot hold over 30 percent of that amount; and individually each foreign individual or company faces an ownership cap of 1,000 hectares (2,470 acres) in the most productive farming areas, or the equivalent in terms of productivity levels in other areas. As approved, the law will not be retroactive. Section 11 of the Law establishes that “for the purposes of this Law and according to the BITs underwritten by the Republic of Argentina that are in force at the time this Law becomes valid, the acquisition of rural land shall not be considered an investment as it is a non-renewable natural resource provided by the host country.”

Taxes

Foreign and Argentine firms generally face the same tax liabilities. In general, taxes are assessed on consumption, imports and exports, assets, financial transactions, and property and payroll (social security and related benefits).

Promotion Programs 

The GOA has established a number of investment promotion programs. Those programs allow for Value-Added Tax (VAT) refunds and accelerated depreciation of capital goods for investors and offer tariff incentives for local production of capital goods. They also include sectoral programs, free trade zones, and a Special Customs Area in Tierra del Fuego Province, among other benefits. A complete description of the scope and scale of Argentina’s investment promotion programs and regimes can be found. 

Currency

Since 2011, government restrictions on foreign currency purchases have led to the expansion of an informal retail foreign exchange market. The informal dollar rate reached a record high ($7.54 pesos to the USD) in January 2013, exceeding the official exchange rate ($4.96 pesos to the USD) by more than 50 percent.

Company purchases of foreign exchange are in practice almost halted, even for trade purposes, unless a firm demonstrates it has sold exports for an equivalent amount of foreign exchange. 

Requirements 

The GOA subjects speculative capital inflows to three major requirements: (a) investments may not be transferred out of the country for 365 days after their entry; (b) proceeds from foreign exchange transactions involving these investments must be paid into an account in the local financial system; and (c) a 30 percent unremunerated reserve requirement, meaning 30 percent of such transactions must be deposited in a local financial entity for 365 days in an account that is denominated in dollars and receives no interest payment.

There are some notable exceptions to the deposit requirement. A deposit is not required for capital inflows to finance energy infrastructure. Nor is a deposit required on inflows for the purchase of real property by foreigners as long as the foreign exchange liquidation occurs on the day of settlement (and transfer of the title). A deposit is also not required for inflows from foreigners to be used for (a) tax payment and (b) social security contributions within 10 days of the settlement of the foreign currency. In October 2011, the Central Bank imposed new market controls on non-residents. They are now required to immediately “register capital inflows into the local foreign exchange market when they purchase a local company, contribute capital or purchase real estate.”

Hard currency earnings on exports, both from goods and services, must be converted to pesos in the local foreign exchange market. In 2011, the GOA eliminated the exceptions previously granted to hydrocarbon and mining exports

Formally, no performance requirements are aimed specifically at foreign investors.

Government incentives apply to both foreign and domestic firms.

In general terms, foreign investors have the same rights as Argentines to establish and own businesses, or to acquire and dispose of interests in businesses.

The Argentine government also owns or participates in companies in the following sectors: Civil commercial aviation, water and sanitation, oil and gas, electricity generation, transport, paper production, banking, railway, shipyard, and aircraft ground handling services.

More than 500 U.S. companies have significant investments across a broad range of sectors, employing approximately 155,000 Argentines. Other important foreign sources of investment capital include Spain, Brazil, Chile, Mexico, the UK, the Netherlands, Germany, and Italy.

More Info 

Claudia Luna 

claudia@argentinainvestorshub.com

www.argentinainvestorshub.com

Ten Reasons to Invest in Argentina

1. Sustained economic growth

 

Growth. Argentina is one of the fastest growing economies in the world. The compound annual growth rate for 2003-2007 was 8.8%, coming in just below China (10.7%) and India (8.9%), and well above all other Latin American economies. Projections for 2008 confirm this sustained growth trend. This strong economic performance led to a net job creation of 3.1 million positions since 2003. As a result, the unemployment rate is currently at the lowest point of the past fifteen years (7.5%).

 

Solid macro foundation. Investment—measured as a percent of GDP—reached 24.3% in 2007, the highest level of the last three decades, higher than Brazil, Chile and Mexico. Unlike previous growth cycles, Argentina shows a sound fiscal and current account surplus (3.2% and 2.8% of GDP, respectively). Furthermore, the Central Bank’s foreign exchange reserves remain at an unprecedented level (US$46.2 billion at the end of 2007). These performance figures are the basis of Argentina’s projected sustainable growth in the foreseeable future.

 

Exports. Exports doubled in the last five years, reaching US$65.8 billion in 2007 and a projected level of US$78.7 billion in 2008. Rising international prices, an expanding export capacity and a competitive real exchange rate were the key factors for such a performance. Not only traditional primary commodities are leading this growth, but also Argentine exports of manufactures (for example, automobiles, food and beverages, and design manufactures) and value added services (such as information technologies, professional consultancy, and tourism) are expanding at accelerated rates.

 

 

2. Attractive business profitability

 

Business results. Argentina offers investors attractive profitability in a wide range of sectors. Earnings as a percent of Foreign Direct Investment (FDI) stock are currently at the highest level of the last 15 years and reached 9.3% in 2007. Earnings as a percent of revenues for the top 300 foreign companies operating in the country are also at elevated historical levels and averaged 12.6% in 2003-2005.

 

Legal framework. By law, FDI receives equal treatment than domestic investment. Free remittance of profits and capital abroad is allowed. There are no sectors restricted to transnational companies’ involvement. In addition, Argentina holds 19 bilateral treaties for the avoidance of double taxation and 55 bilateral investment treaties for the protection and promotion of investments.

 

 

3. A globally and regionally integrated economy

 

Open economy. Trade, financial and investment flows link Argentina to the global and regional economy. Argentina is a founding member of the WTO and actively participates in the multilateral trading system. Argentina’s exports and imports of goods and services represent almost half of its GDP. The average import tariff for agricultural products is 9.9% and 10.5% for non-agricultural products. In addition, Argentina is a full member of Mercosur, a customs union which also includes Brazil, Paraguay and Uruguay (Venezuela is currently negotiating to become a full member of the trade bloc). The intra-Mercosur trade tariff is 0% and a Common External Tariff (CET) applies to trade with non-Mercosur countries. Mercosur is a common market open to the world. A Preferential Trade Agreement with India is in place, a free-trade agreement with Israel is awaiting Congress’ approval and diverse trade agreements are under negotiation with the Southern African Customs Union (SACU), countries of the Gulf Cooperation Council (GCC) and Morocco. A more comprehensive agreement with the European Union is under negotiation. Mercosur has also been an active participant in the negotiations of the Free Trade Area of the Americas (FTAA).

 

Mercosur. Mercosur offers investors in Argentina access to a large and attractive regional market as well as the market access benefits from trade negotiations with Latin America and third countries and regions. In Mercosur, Argentina has preferential access (0% tariff) to a regional market of 238 million inhabitants, with a combined GDP of US$1,607 billions (2007). Argentina’s outstanding economic performance has transformed the country into the main growth engine of Mercosur’s intra-regional trade, contributing 64% of the increase in intra-Mercosur imports in 1998-2007. As part of Mercosur, Argentina has signed Free Trade Agreements and/or Economic Complementation Agreements with Bolivia, Chile, Colombia, Ecuador, Peru and Venezuela (associate members of Mercosur).

 

Foreign direct investment. More than 1,000 overseas companies operate in the country, including half of Fortune 100 firms, and many have more than half a century of presence in the country. Transnational companies are involved in a wide range of activities in such diverse sectors as agro-industries, automotive industry, chemicals and petrochemicals, pharmaceuticals, information technologies, telecommunications, public utilities, finance and retail. Foreign firms represent 67% of the country’s 500 largest non-financial enterprises and account for more than 80% of their sales, three times the region’s average (ECLAC, 2007). FDI has exhibited a dynamic performance since 2004, and reached US$5.7 billion in 2007, a level 14% above 2006 inflows and also higher than last decade’s average annual flows net of privatizations (US$5.3 billion). Recent flows are the result of the increase in production capacity of transnational corporations with long-standing presence in the country and of new transnational firms entering the domestic market, resulting both in greenfield investments. Unlike previous phases, mergers and acquisitions represent currently a small part of total FDI (less than 5% in 2007) and reinvestment of earnings are at record-high historical levels (over 25%).

 

4. A diversified economy

 

Value added products. Argentina is a growing producer of technological and differentiated goods and services. In fact, it is the second largest producer of genetically modified crops, the world’s fourth largest producer and exporter of television content, and as any tourist will attest to: a world renowned producer of high-quality gourmet beef. The software and IT services industry has been growing at a compound rate of 20% per year since 2002; at the same time, its exports have been increasing at an annual rate of 24% for the same period. Automotive production and exports also expanded significantly, at a compound annual rate of 29% and 22%, respectively, over the last five years. Recent investments in agro-industry, biofuels, creative industries, professional services and tourism, among others, are also expanding the domestic production capacity for the local and global markets.

 

Commodity leader. Current and projected global consumption patterns and trends entirely match Argentina’s productive capacity. In a context of increasing global demand for food and natural products, Argentina is a key producer and exporter of commodities and raw materials: it is the world’s leading exporter of sunflower oil, soybean oil, pears and lemons, among a diversified basket of agricultural products. In fact, exports of primary products increased 90% over the period of 2003-2007 and exports of agricultural-based manufactured goods grew 92% in the same period, topping US$19 billion in 2007. The country shows a diversified export pattern, exhibiting an export concentration index that ranks Argentina right after Canada and the United Kingdom and over countries such as New Zealand, India, Mexico, South Africa and Australia, among others, according to the World Bank (World Trade Indicators, 2008).

 

5. Skilled and talented human resources

 

Human capital. Argentina is internationally acknowledged for its well trained and highly educated human resources. The country ranks first in the region in educational attainment and adult literacy and has educational levels similar to developed countries like Italy and Israel (UNESCO Global Education Database, 2007).

 

Brainpower. Argentina offers a pool of motivated and talented entrepreneurs. The country ranks 10th in the Global Entrepreneurship Monitor (2007) and counts with world-class business schools. More than 65,000 undergraduate and 4,600 postgraduate students from 103 universities across the country enter the labor market each year. English penetration is among the highest in the developing world, as shown by Cambridge University’s English Exams results that place Argentina above Brazil, Chile, France, Italy, Indonesia, Mexico and Spain (Cambridge ESOL, 2007).

 

Innovation driven. Argentina’s professionals also have outstanding capabilities for technological innovation. The number of scientists and engineers devoted to research and development activities per million inhabitants is higher than Brazil, Chile, Mexico and Uruguay (UNESCO, 2007). Notably, the number of patents per million inhabitants registered at the United States Patent and Trademark Office has been the highest in the region in the last 40 years (1963-2005).

 

 

6. Abundant and diverse natural resources

 

Natural riches. Argentina is one of the world’s most geographically varied and resource rich territories. It is the second largest country in Latin America and the eighth in the world. Along its 2.8 million square kilometers Argentina is endowed with extraordinary fertile agriculture lands (mainly in the Pampa Húmeda), unexploited forest resources (mostly in the Northeast), exploitable mining deposits (along the 4,500 kilometers of the Andean Mountain Range) and rich fisheries (along the 4,700 kilometers of the Atlantic Coast).

 

Unique geography. Exuberant beauty and extraordinary flora and fauna spread along Argentina’s territory. Visitors are surprised by blue lakes, high peaks, large salt pans, paleontological sites, fertile valleys, snow-covered volcanoes, subtropical rain forests, white deserts, long rivers, great waters, boundless flat lands and vibrant cities. Argentina promotes sustainable development and natural resource protection. The country ranks 38th among 149 countries on the Environmental Performance Index (University of Yale, 2008).

 

7. Remarkable quality of life

 

Live Argentina. Argentina enjoys an outstanding quality of life; ranking 11th in the Quality of Life Index elaborated by the trade publication International Living (2008) and is the second top tourist destination in Latin America (World Tourist Organization, 2007). The high quality of life, rich cultural heritage and a people known for its hospitality and warmness make Argentina an exceptional place to live.

 

To your health. Argentina ranks first in Latin America in the United Nations Human Development Index (2007/2008) and in the UN Gender-related Development Index (2007/2008). In both the areas of health and education, there are prestigious local institutions whose services are comparable to their best international counterparts. Visitors will find a number of top bilingual schools specializing in the English, German, French and Italian languages, as well as complex care medical centers in every major city.

 

Tickets please. The vivacious life in Argentina’s main urban centers is world renowned, where dynamic and diverse cultural activities include 740 museums, 2,807 theatres and 498 cinemas. Argentina’s sporting events (the football classic—yes, soccer—Boca vs. River stands out), as well as the possibility to practice every imaginable sport, will impress any sports afficionado. Argentina was nominated the best golf destination in the region (International Golf Travel Market, 2007) for example.

 

Capital views. The capital city, Buenos Aires, is an attractive metropolis with first-rate hotels and restaurants, and an active nightlife. Calm residential neighborhoods in the suburbs to the busy streets lined with French style petits hôtels in Recoleta are but two of the diverse neighborhoods in the city. Buenos Aires is considered the second best city to visit in the world (Travel & Leisure, 2007) and ranks second in Latin America in the Worldwide Quality of Living Survey (Mercer Human Resource Consulting, 2007). Owing to its traditional design background and strong contemporary art scene, Buenos Aires was appointed first UNESCO City of Design in 2005.

 

 

 

8. A vibrant culture

 

Creative industries. Argentina is a country endowed with an enormously rich and varied culture. From music, dance and theatre to cinema, literature and plastic arts, the intense cultural life makes for a growing cultural and creative industry, which represents almost 3% of GDP (a level above the region’s average).

 

Tango. Tango music and dance are world renowned and today stand as the main “porteño” cultural icon, as shown by the growing sale of records, tickets for concerts, dance shows, dance classes, shoes, trinkets and specialized publications. Tango-themed tours are increasingly popular, as visitors cannot resist the music and dancing at Milongas, the tango events held at local dance halls. 

Step by step. But not everything boils down to tango in Argentina. Folk dances are popular and a new generation of ballet dancers offers marvelous performances at the splendid Buenos Aires Opera House (Teatro Colón) and diverse open-air scenarios. Argentina is also known for its theater industry that can be compared to that of very few countries in the world; with over 200 plays shown regularly on Saturdays: 10 shows per hour. Indeed, the national film industry reached its height last decade with the arrival on the scene of young directors making up the “new Argentine cinema”. In 2007, Argentina experienced extraordinary growth in the movie industry, when 80 national films were released. The television content and advertising industries are also developing at high speeds and increasingly supplying regional and global markets.

 

Literature and works of art. Admiration for Argentine artists and authors goes well beyond the country’s national borders. The most famous of Argentine literature exponents is Jorge Luis Borges, but it also includes three other Miguel de Cervantes Prize winners (Ernesto Sábato, Adolfo Bioy Casares and Juan Gelman) and a new generation of gifted young writers. The Argentine people’s growing interest in reading can be measured by attendance records at the Buenos Aires International Book Fair, which was visited by 1.2 million people this year. Meanwhile, Argentine works of art are experiencing an unprecedented growth in sales with roughly 4,000 works sold in 2007 alone.

 

 

 

9. Quality connectivity and modern infraestructure

 

Wired. Argentina benefits from advanced and competitive telecommunications in a highly deregulated market. Large capital investments have resulted in digital networks with national and international connectivity. Fixed-line and mobile density in Argentina (105 subscribers per 100 inhabitants) is the highest in Latin America; while Internet penetration (21 users per 100 people) is increasing rapidly, ranking well above the region’s average (World Bank, 2008). Companies also value Argentina’s time zone (GMT-03:00), which allows them to efficiently serve both American and European markets.

 

High road. The country has a developed transport and infrastructure system: more than 38,700 kilometers of national roads; one of the longest rail road networks in the world (35,753 kilometers); 25 seaports and 38 river ports; and 58 airports (23 international). More than 25 airlines offer non-stop flights from Argentina to more than 40 destinations in five continents. In fact, Argentina ranks second in the Logistics Performance Index in the region and is the only Latin American country among the world’s top 50 countries in terms of ease and affordability of arranging international shipments (World Bank, 2007).

 

 

 

10. Public sector supportive of investment

 

ProsperAr. The recent creation of Argentina’s National Investment Development Agency, ProsperAr, is a clear sign of the government’s commitment to support the expansion of investment and the attraction of FDI for competitiveness and sustainable development.

 

Investment incentives. Argentina’s strategy to attract investment also includes a series of fiscal, export-related, training, innovation and industry-related incentives. A number of incentives designed to promote investment and improve profitability are in place at the national, regional and municipal level. Specifically, Argentina offers investors: fiscal and tax benefits to reduce the fiscal burden of the investment phase (0% tariff on imports of capital goods, accelerated depreciation for machinery and equipment, early recovery of Value Added Tax); incentives for export promotion (reimbursement of VAT, drawback mechanisms, temporary admission regime); fiscal credit for specific training programs; and funds for scientific and technological research and innovation. Furthermore, some investment schemes are in place in sectors such as software, biotechnology, biofuels, autoparts, mining and forestry.

Why to Invest in Argentina

Argentina has a highly diversified economy with the primary, secondary and tertiary sector representing respectively 14%, 21% and 65% of the economy.

Argentina offers a range of profitable investment opportunities supported by its highly qualified human resources, who are known for their versatility and talent; a primary sector internationally recognised for its abundance of natural resources and high productivity levels; a modern and permanently expanding infrastructure; a solid macroeconomic context ensuring competitive costs; and a public sector actively supporting business.

Argentina, a country with strong ties to Latin America is a full member of the MERCOSUR with preferential access (0% tariff) to a regional market of 275 million people and a combined GDP (PPP) of US$ 3.5 trillion, a member of Union of South American Nations (UNASUR); Latin American Integration Association (ALADI); and Economic Commission for Latin America and the Caribbean (ECLAC). It is also a member of the G-20 and a founding member of the World Trade Organization (WTO).

Argentina is fully committed to developing multilateral investment as demonstrated by its role as an Observer at the Investment Committee of the OECD since 1996. In addition, it is a member of the Multilateral Investment Guarantee Agency (MIGA) and a member of the World Bank group, whose objective is to mitigate the investment risks and provide advice and information on investment opportunities in emerging economies.

Sustainable economic growth

• Argentina is one of the fastest-growing economies worldwide, a leader in Latin America for the past decade.
• Sustainable macroeconomy: sustained external surplus, accumulated international reserves, consolidated fiscal solvency and a substantial reduction in public debt.
• High investment rate in the last 30 years (24.5% of GDP in 2011).
• Record-high exports of goods and services in 2011, close to US$ 100 billion.
• The region's highest per capita income in terms of purchasing power (2011).
• Dynamic domestic market: 8% annual expansion in consumption in real terms since 2003.
• Five million new jobs created since 2002; a decrease in unemployment levels from 21.5% (2002) to 6.9% (2012).
• Improved income distribution: the Gini ratio has been consistently dropping in the 2003–2011 period,from 0.53 to 0.43.

Diversified economy

• Diversified productive matrix with investment opportunities in every sector.
• Great technological development in the agribusiness value chain, including innovation in seeding, direct sowing, precision agriculture, agricultural machinery production, silo bag storage and vaccine development for animal health, among others.
• Leading country in the international food market, with exports exceeding US$ 25 billion in 2011.
• One of the world's main exporters of vegetal oils, cereals, meat, fruit, honey and wine, among other products.
• High sanitation and environmental standards that meet the most demanding requirements from global food and beverage consumers.
• Industrial structure with a strong tradition in diverse productive sectors: agro-industry, textiles, footwear and handbags, chemicals and pharmaceuticals, capital goods, durable consumer goods, automotive and auto parts, etc.
• Accelerated development of renewable energy, biotechnology, software, creative industries and other frontier sectors.
• Highest proportion of FDI projects with high technological intensity in South America (ECLAC).

Abundant and diverse natural resources

• 8th largest country in the world and 2nd in Latin America (3.8 million km2).
• 9th largest extension of agricultural area in the world with 170 million hectares of arable lands (FAO).
• Highest agricultural productivity levels in the world.
• Ample forest resources: 1.2 million hectares of planted forests (FAO).
• 4,500 km of mountain ranges with mining resources: gold, copper, lithium, carbon, lead, zinc, tin, silver and potassium.
• Vast oil and gas resources with exploration and exploitation opportunities.
• Ranked 3rd worldwide in shale oil and shale gas reserves.
• High development potential for hydraulic energy, which accounts for more than one third of the country's total electricity output.
• Promising developments in renewable energy (wind, biofuel, solar, geothermal, biomass).

Skilled and highly creative workforce

• Workforce internationally renowned for its skill set, creativity and versatility.
• More than 98,000 graduates from higher education programs and almost 11,000 postgraduate students from 115 universities across the country enter the labour market each year.
• Economically active population (EAP) with the highest education level in Latin America.
• Latin American country with the highest number of Nobel Prizes awarded in science (three prizes).
• Highest level of public investment in education in the region (equal to 6% of GDP).

 

"Mercosur is one of the top markets for PSA Peugeot global development strategy. Moreover, the continuous investments in our production centre in El Palomar confirms Argentina´s great possibilities as a regional sourcing hub"

Argentina has strong relations with Brazil. 

JAVIER VARELA SOBRADO

PRESIDENT AND GENERAL DIRECTOR

PSA PEUGEOT CITRÖEN ARGENTINA

 

"The high standard of technology and innovation, the pool of local creative talent of international quality and the competitive cost level were the main reasons for choosing Argentina. We firmly believe that the country has the ability to become a creative player on the global scene."

Argentina's Investors Hub

A.I.H Your Gateway to Argentina's Mayor Investments Opportunities. Claudia Luna. CEO & Founder Argentina's Investors Hub ( A.I.H )

A.I.H

Association & Forum to promote Argentina's productive investments in GCC and supports the internationalization of domestic enterprises, as well as their busisness development and trade.

As an Argentina's  mains companies representative, and support by Argentine goverment, A.I.H ( Argentina´s Investors Hub ) is in charge of the assistance to develop linkages and partnerships between international investors and local companies.

Why to invest in Argentina..?

 -Sustainable economic growth

-Attractive business profitability

-Strength to face the global crisis

-Strategic location ( Latin America heart)

-Openness to the world

-Diversified economy

-Abundant and diverse natural resources

-Skilled and highly creative workforce

-High level of scientific, technological and productive innovation

-Modern infrastructure and high-quality connectivity, are some of the reasons that makes Argentina an attractive investment destination at a global level.

Sustainable economic growth

A DYNAMIC ECONOMIC MODEL BASED ON SOCIAL INCLUSION

> One of the fastest-growing countries worldwide: leader in Latin America for the past decade.

> Sustainable macroeconomy: sustained external surplus, accumulated international reserves, fiscal solvency and substantial reduction in public debt.

> Record-high exports close to US$ 100 billion for goods and services in 2011.

> Five million new jobs created; a decrease in unemployment levels from 21.5% in 2002 to 7.1% in 2012.

> Ranked as a Very High Human Development country in the United Nations 2011 Human Development Index.

Attractive Business  Profitably 

PRODUCTIVE INVESTMENT DELIVERING HIGH RETURNS

> High profitability in a wide range of productive sectors.

> New record-high profits from Foreign Direct Investment (FDI) as a percentage of assets, with the annual average exceeding 10% in the last four years.

> Profits over sales above 13% for the 500 non-financial private companies in 2006-2010.

> More than 2,000 multinational companies operating in diverse sectors share a long-term vision and renewed investment commitment.

> Highest investment rate in the last 30 years (24.5% of GDP in 2011) fueled by the diversity and profitability of all existing investment opportunities.

PUBLIC POLICIES AIMED AT FOSTERING DEMAND

> An inclusion-based model for growth, in which the strong and dynamic domestic market is one of the key pillars.

> Proven ability to sustain the economic growth cycle from the on-start of the global crisis, exceeding the average of emerging countries.

> Low level of public debt and high level of international reserves, increasing capacity to implement counter-cyclical public policies.

> Job protection and social inclusion policies drive domestic demand and production.

> Investment promotion initiatives such as credit facilities for the productive sector and a construction plan to build 400

Strategic Location 

STRONG TIES WITH LATIN AMERICA

> Located in a region endowed with resources to meet current and future global demands.

> Strategic player within the main food exporting region in the world.

> A motor for Latin America’s increased integration in terms of economy, politics, society and culture.

> Full MERCOSUR member, together with Brazil, Paraguay, Uruguay and Venezuela: preferential access (0% tariff) to a regional market of 275 million inhabitants; aggregate GDP of US$ 3.35 trillion; and great industrial complementarity.

> Member of UNASUR (Union of South American Nations); ALADI (Latin American Integration Association); and ECLAC (Commission for Latin America and the Caribbean).

Openness to the World  

GLOBAL ECONOMIC INTEGRATION

> G-20 Member, with an active presence in several international organizations, including the World Trade Organization, G77+China, United Nations, UNCTAD, ECLAC and FAO, among others.

> Strengthening of the bilateral relations with the BRICS (Brazil, Russia, India, China and South Africa) as well as other developing countries.

> Highly dynamic exports to more than 150 destinations, with values tripling over the past 8 years.

> Trade growth with the rest of the world (2003-2011) over 17% per year.

> Highest proportion of FDI projects with high technological intensity in South America (ECLAC).

Diversified Economy 

INVESTMENT OPPORTUNITIES IN EVERY PRODUCTIVE SECTOR OF THE ECONOMY

> Leading country in the international food market, with exports exceeding US$ 25 billion in 2011 and great technological development in the agrifood value chain.

> Industrial structure with a strong tradition in countless diverse productive sectors, along with dynamic growth of industrial exports (16% per year in 2003-2011).

> Accelerated development of renewable energies, biotechnology, software, creative industries and other frontier sectors.

> Main tourism destination in Latin America, with almost 6 million tourists per year.

> Increase in the productive capacity of domestic and foreign companies, with 96% of FDI flows being directed to new projects and expansion.

Abundant and Diverse Natural Resources 

RICH RESOURCES AVAILABLE FOR SUSTAINABLE DEVELOPMENT

> Vast extension of fertile land for agriculture: 9th largest extension of agricultural area in the world with 140 million hectares of arable lands (FAO).

> 4,500 km of mountain ranges with mining resources: gold, copper, lithium, carbon, lead, zinc, tin, silver and potassium.

> 4,700 km coast along the Atlantic Ocean with rich fisheries.

> Vast oil and gas resources with exploration and exploitation opportunities.

> Ranked 3rd worldwide in shale oil and shale gas reserves.

Skilled and Highly Creative Workforce  

STRONG ENTREPRENEURIAL CULTURE COMBINED WITH A DIVERSE WORKFORCE OF RESOURCEFUL SKILLED AND SEMI-SKILLED WORKERS

> Workforce internationally renowned for its skill set, creativity and versatility.

> More than 98,000 graduates from higher education programs and almost 11,000 postgraduate students from 115 universities across the country enter the labor market each year.

> Economically active population (EAP) with the highest education level in Latin America.

> Highest level of public investment in education in the region (equal to 6% of GDP).

> The most dynamic work productivity in the region in recent years (ECLAC).

High Level of Scientific, Technological and Productive Innovation 

PROMOTION OF INFORMATION AND COMMUNICATIONS TECHNOLOGY TO FOSTER HIGHER COMPETITIVENESS AND BRING ADDED VALUE TO PRODUCTION

> Public policy supportive of scientific and technological development spearheaded by the Ministry of Science, Technology and Productive Innovation created in 2007.

> 55% increase in the number of R&D professionals over the period 2003-2011.

> Highest ratio of researchers to the economically active population (EAP) and ranked 3rd in terms of the number of R&D technicians, measured as total number per million inhabitants in Latin America (World Bank).

> Development of aerospace projects led by INVAP, a public company of world renown for satellite development and other space projects.

> One of a few countries in the world with multispecies cloning capacity

A STRONG NETWORK IN EXPANSION PROVIDING THE NEEDED SUPPORT FOR PROJECTED GROWTH

> Public investment at a historic high (going from 0.5% of total public spending in 2002 to 6% in 2011).

> Well-developed transport and infrastructure system: 35,000 kilometers (21,700 miles) of national roads; one of the longest rail road networks in the world (36,000 kilometers / 22,000 miles); 43 ports; and 54 airports.

> Ranked 2nd in the Logistics Performance Index of the World Bank in Latin America (2010).

> High rates of internet penetration in companies and homes.

> Highest fixed and mobile telephone density in Latin America, ranking 6th worldwide (World Bank, 2010).

Join our A.I.H Association & Forum to be part of the benefits of doing business with Argentina´s mayor companies. 

Claudia Luna

CEO & Founder LA RED media group

Argentina's Investors Hub

Website http://www.laredmediagroup.com/

Mobile

Personal 00 54 9 381 155551960

cklo1290@hotmail.com - claudialunalared@gmail.com

Twitter. @luna1290

LinkedIn .- Claudia Luna

Skype.- Angelmoonfv

Fuente:

www.inversiones.gob.ar

Dubai. GCC Business's Hub

DUBAI

The Dubai bubble may have burst and some of its more glitzy ambitions modified, but it remains an important market – and gateway – for a wide range of UK companies. And it’s still awash with cash and opportunity.

A member of the United Arab Emirates Dubai is known for the breakneck speed it transformed itself from a sleepy fishing village nestling on The Persian Gulf into the ultimate world-class glass metropolis following the discovery of oil in the 1960s. Since it was formed in 1971 Dubai has undergone wholesale economic and social development, elevating it to the premier business centre in the region.

With a GDP of £55 billion, oil plays a far less prominent role these days. Producing between 50,000 and 70,000 barrels a day, oil now accounts for a mere six per cent of its revenue. Oil reserves are likely to be exhausted within the next twenty years.

With this in mind Dubai made the conscious decision a decade ago to radically diversify its economy into trade, tourism and property. It now boasts some of the most grandiose structures on earth including the globally-renowned palm islands. It also hosts Burj Khalifa, which at more than 2,700 feet is the world’s tallest building as well as the planet’s only seven-star hotel, the al Burj. It is home to the former British liner the QE2. With more than 70 malls it has earned the nickname of “shopping capital of the Middle East”.

Over the past decade it has seen a huge building boom and property inflation. However, since the financial collapse, property prices have depreciated savagely.

Along with Abu Dhabi, Dubai holds premier position amongst the emirates.

With Iran, Iraq and Saudi Arabia on its horizon, around 80 per cent of its two and a quarter million inhabitants are non-indigenous. More than 200 UK firms have a presence in the tiny state which has an area of under 1,600 square miles.

Annual trade between Dubai and the UK is worth around £9 billion, making Dubai and the wider United Arab Emirates Britain’s sixteenth biggest overseas market.

It has been designated as one of UK Trade & Investment’s high growth markets. The key sectors offering opportunities to UK companies are infrastructure (construction and mass transport), energy, defence and security, financial and professional services, education and training, financial and professional services and creative and media as well as travel and tourism, education and healthcare and transport and logistics.

Britain’s principal exports are telecommunications, power generating machinery and equipment, electrical goods, transport equipment, office machinery, interior and retail goods and non-metallic mineral manufacture. Many of these goods are re-exported to Saudi Arabia and Iran. Dubai imposes a five per cent across-the-board import tariffs on most categories of goods.

Jebel Ali in Dubai is the world’s largest man-made port with 63 deepwater berths and good warehousing facilities. An expansion of the port is underway.

Dubai offers a number of key market strengths in that it is regarded as the chief hub not only of the UAE but the wider region. There is no tax on either personal income or capital gains and English is widely spoken in business circles in the country. As a member of the Gulf Cooperation Council Dubai offers a route to other affiliate countries. There is also a large British presence with around 120,000 ex-pats resident in Dubai attracted by a liberal business environment and high standard of living. Until the economic downturn it was experiencing growth levels of around 10 per cent a year. It has ultra-low crime rates.

Another key advantage is that Dubai has more than 20 Free Trade Zones in which overseas companies can retain full ownership, enjoy tax exemption and take advantage of purpose built offices or warehouses. These cover such areas as cars, healthcare, media and textiles. There are no customs duties on imports or re-exports and assistance in gaining work permits for staff.

As a pivotal trade centre Dubai is serviced by 100 airlines and more than 170 shipping lines.

Following the 2008 crisis the Dubai government increased spending on infrastructure and transport projects by more than 40 per cent. Spending on education and health rose by around a fifth with the same increase for security, borders and the judiciary.

Join our A.I.H Association & Forum to be part of the benefits of doing business between Argentina´s mayor companies and GCC stronger Investment Companies. 

Claudia Luna

CEO & Founder LA RED media group

Argentina's Investors Hub

Website http://www.laredmediagroup.com/

Mobile

Personal 00 54 9 381 155551960

cklo1290@hotmail.com - claudialunalared@gmail.com

Twitter. @luna1290

LinkedIn .- Claudia Luna

Skype.- Angelmoonfv

Argentina Real State Guide

From the mountains to the ocean... Landscapes that seem stolen from a fairy tale book, Argentina matches the most exigentes dreams... Welcome to the land of the wonder... Claudia Luna. CEO & Founder Argentina's Investors Hub

Argentina 

Argentina, the second-largest country in South America. It’s a country of great geographical and cultural diversity with historic links to a wide range of European countries, as well as being an emerging property destination.

Argentina’s economic turnaround has been remarkable since the crash of late 2001. Buenos Aires is a cosmopolitan city where high-quality properties can now yield high rental returns for owners. Potentially lucrative property deals are not restricted to the capital either. Rural land, for example in the wine-making region of Mendoza, is cheap compared with other international locations and also benefits from rental opportunities from tourism, which is playing a part in demand all over the country.

Underlining its arrival on the global property scene, representation for the country was up on previous years at the SIMA exhibition in Madrid recently despite total exhibitor numbers being down. With investor interest stirred by the prospect of low prices, good capital appreciation (with no CGT) and sizeable annual rental yields, there are opportunities in the country for overseas agents who plan their strategy carefully.

We’ve looked at many websites relating to property in Argentina and present our selection of what we consider to be the ten best in English.

Latin Business Chronicle. News and opinion from South America, with the ability to filter by country or sector (there is a dedicated real estate strand). Though a substantial number of articles are free to access.

Real Estate Guides presents a useful and thorough guide to the buying process, with particular reference to Buenos Aires. They covers all the topics to consider before, during and after buying and highlights some of the potential pitfalls that a buyer may encounter.

Apartments BA. This property consultancy site contains some excellent articles about different aspects of the buying process. 

Real Estate and Economy. The English-language version of the ReporteInmobiliaria.com site has analysis and articles on the Argentine property market. 

Argentina’s Travel Guide. The most comprehensive site promoting Argentina as a tourist destination. It provides regional guides, lifestyle information, forums and articles on many topics and serves as a good introduction for anyone unfamiliar with the country.

The Economist Country Briefing. The continuing saga of Argentina’s economy is more colourful than that of many countries, as the free-to-access content on this highly reputable source of analysis and opinion testifies. The site also has some of the most up-to-date and comprehensive data available online. 

Buenos Aires Herald download. A series of articles translated into English, on different aspects of buying property in Argentina. The Herald site has a sizeable quota of news and articles in English, covering business, politics and lifestyle topics.

Cityscape Latin America.- High-quality partners are key to successfully conquering a new market. This annual conference organized by Informa Group offers an opportunity to learn about upcoming developments in Central and South America and network with developers, construction companies and financial institutions, among others.

Latin America Monitor. Regional economic news site operated by Business Monitor International. 

Join our Argentina's Investors Hub Association & Forum to be part of the benefits of doing business with Argentina´s mayor companies. 

Contact me 

Claudia Luna

CEO & Founder LA RED media group

Argentina's Investors Hub

Website http://www.laredmediagroup.com/

Mobile

Personal 00 54 9 381 155551960

cklo1290@hotmail.com - claudialunalared@gmail.com

Twitter. @luna1290

LinkedIn .- Claudia Luna

Skype.- Angelmoonfv

Argentina. South America Queen

All the wonders converge to one point of encounter. The name is Latin "Argentum" means Silver... And that, define us. Claudia Luna 

CAPITAL CITY Ciudad Autónoma de Buenos Aires

SURFACE AREA

3.8 million of km2

(2.8 million Km2

 on the Antarctic continent 

and South Atlantic Islands)

MARITIME COASTLINES 4,725 km

POPULATION 40.1 million

POPULATION GROWTH 1.1% per year

LITERACY RATE 98%

LIFE EXPECTANCY AT BIRTH 76 years

GROSS DOMESTIC PRODUCT (GDP) PER CAPITA (PPP) US$ 17,660

CURRENCY Argentine Peso (AR$)

POLITICAL DIVISION 23 autonomous provinces and the 

Autonomous City of Buenos Aires

POLITICAL SYSTEM Republican, Representative and Federal

FISCAL YEAR January-December

MEASUREMENT SYSTEM Metric

TIME ZONE GMT -03:00

OFFICIAL LANGUAGE Spanish

PRESIDENT Cristina Fernández de Kirchner

Located in the southernmost point of South America, Argentina is the eighth-largest country in the world 

and the second largest in Latin America in terms of land area. Argentina covers 2.8 million Km2

, with an 

additional 969 thousand Km2

 on Antarctica. Argentina’s continental land extends 3,694 kilometers north to 

south (between latitudes 21º and 55º) and 1,423 kilometers from east to west (between longitudes 53º 

and 63º). 

The country has access to the South Atlantic Ocean and the South Pacific Ocean through the Magellan 

Straits. It borders Uruguay, Brazil and the Atlantic Ocean to the east; Chile to the south and west; and it 

shares its northern border with Bolivia and Paraguay. Its geographical location provides direct access to a 

regional population of 240 million, in addition to its own 40 million of inhabitants

Argentina is one of the world’s most richly endowed countries in natural resources, in terms of their 

great abundance and diversity. The vast expanse of extraordinary fertile agricultural lands, in particular the 

seemingly endless stretches of the Pampa Húmeda, covers a surface area of 170 million hectares, bolstering 

Argentina’s position among the world’s top food producers.

Abundant forest resources cover much of northeastern Argentina and western Patagonia. The mineral-rich 

Andes mountains contain mining deposits of gold, silver, zinc, copper, oil, magnate lithium, uranium and sulfur 

along its 4,500 kilometer expanse. Argentina is also endowed with extensive aquifers and oceans stretching 

along its 4,725 km of coastline and a network of rivers, streams and inland waterways. Both the Argentine 

Sea and the continental platform are rich in fishing and hydrocarbon resources. 

Argentina actively promotes sustainable development and protection of its natural resources; an example 

of these policies is its voluntary reduction of carbon dioxide emissions.

Argentina’s natural heritage draws visitors from all over the world. There are many highlights: Iguazú Falls, 

which plunges 80 meters in the midst of rainforests on the frontier with Brazil, is a vast horseshoe-shaped 

cataract of 260 unique waterfalls declared a World Natural Heritage Site by UNESCO and named one of the 

seven wonders by the Swiss foundation Seven Wonders. The Guaraní aquifer, shared by Argentina, Brazil, 

Paraguay and Uruguay, is one of the largest fresh water reserves in the world. Aconcagua at 6,959 meters 

is the highest mountain in the western hemisphere. Perito Moreno glacier, another UNESCO World Natural 

Heritage Site, is one of the most impressive of its kind in the world.

The Human Development Index (HDI) published by the United Nations Development Program (UNDP) places 

Argentina among the countries in the high human development category. It ranks second in Latin America.

Argentina has a high rate of urbanization with 93% of the population living in metropolitan areas. The country´s 

main urban centers include Buenos Aires, Rosario, Mendoza, Córdoba, Tucumán, La Plata and Mar del Plata.

Main Urban Centers in Argentina

CITY (METROPOLITAN AREA) POPULATION (NUMBER OF INHABITANTS)

Buenos Aires and Greater Buenos Aires 13,175,000

Córdoba 1,418,000

Rosario 1,272,000

Mendoza 912,000

Tucumán 822,000

La Plata 751,000

Mar del Plata 621,000

Salta 549,000

Spanish is Argentina’s official language. English is widely spoken. Argentine students consistently reflect one 

of the highest levels of English fluency on international exams in the region, according to the University of 

Cambridge. Portuguese, French and Italian are second and third languages for a large number of Argentines, 

and there is growing interest in other languages, including Arabic and Chinese.

The development of science and technology is also a public policy priority, reinforced by the creation of the 

Ministry of Science, Technology and Productive Innovation (MINCYT for its acronym in Spanish) in 2007 and 

by the increase in the levels of public investment in these areas.

Numerous prestigious institutions, companies and public and private universities dedicated to the development 

of science and technology have over 50 years of expertise and international renown. Some of the best known 

are the National Council for Scientific and Technical Research (CONICET for its acronym in Spanish); the National 

Atomic Energy Commission (CNEA for its acronym in Spanish); INVAP, a company specializing in nuclear and 

space technology; the National Institute of Agricultural (INTA for its acronym in Spanish) and the National 

Institute of Industrial Technology (INTI for its acronym in Spanish); and the Leloir and Favaloro Institutes.

The country also boasts a roster of well-known scientists and researchers recognized by leading institutions 

around the world. Among them are the Nobel Prize Bernardo Houssay (Physiology and Medicine, 1974), Luis 

Leloir (Chemistry, 1970) and César Milstein (Physiology and Medicine, 1984). Argentina is the Latin American 

country with the highest number of Nobel prizes in sciences, ranking fourth among developing countries.

The Argentine Constitution as sanctioned in 1853 adopts a republican, representative and federal form of 

government.

The federal form of government establishes the division of powers between the national government and 

the provinces, guaranteeing their autonomy. In this system, the national or federal sovereign government 

with jurisdiction over the entire national territory coexists with local governments whose jurisdictions are 

limited to their own respective territories. 

Argentina is divided into 23 provinces and the City of Buenos Aires which has a special autonomous regime 

although it is not considered as a province. The provinces divide their respective territories into municipalities; 

some of them are also divided into districts.

Argentina is a democratic country and has enjoyed an uninterrupted period of institutional stability since 

1983

Foreign relations

Argentina is an open economy integrated into the world markets. It is one of the two countries representing 

South America at the G-20 and is a founding member of the World Trade Organization (WTO) and the InterAmerican Development Bank (IDB). It has been a member of the International Monetary Fund (IMF) at the 

World Bank since 1956 and has taken part in UN Peacekeeping Operations for over 35 years. Argentina is 

also an active member of the Union of South American Nations (UNASUR for its acronym in Spanish) and of 

the Community of Latin America and Caribbean States (CELAC for its acronym in Spanish).

Argentina is a full member of the Southern Common Market (MERCOSUR for its acronym in Spanish), a 

customs union formed with Brazil, Paraguay, Uruguay and Venezuela. Associate member countries Chile and 

Bolivia grant MERCOSUR member countries preferential access to their markets. 

Infrastructure and communications

Argentina’s transport and communications infrastructure includes over 39,322 kilometers of national 

highways and 195,837 kilometers of provincial roads; one of the largest railway networks in the world 

(35,753 kilometers); 43 ports, seven of which are sea ports; and 53 airports, 21 of which are international. In 

addition, there are over 30 air carriers offering direct flights from Argentina to over 40 destinations, reaching 

every continent in the world. This well developed and extensive infrastructure ranks Argentina second in 

Latin America in the World Bank’s Logistics Performance Index.

The country has an advanced and highly competitive telecommunications system. The capital investments 

made in the industry are reflected in the extensive national and international digital networks. The density 

of fixed and mobile lines (168 subscriptions per 100 inhabitants) is the highest in Latin America. Internet 

penetration (67 users per 100 inhabitants) is increasing rapidly and stands well above the region’s average 

rate. Argentina places 13th in the world ranking of Internet penetration with over 11 million hosts. The City 

of Buenos Aires is recognized as the WiFi capital of Latin America, posting the highest concentration of 

wireless hotspots per inhabitant (more than in São Paulo, Mexico City and Santiago de Chile).

MULTINATIONAL ENTERPRISES IN ARGENTINA

Argentina has pursued a policy of openness towards foreign investments since its earliest stages of economic 

development, today reflected in the historically strong presence of international companies in the country. Some 

2,000 foreign subsidiaries are currently operating in Argentina with a total FDI stock of US$ 96.3 billion in 2011. 

In 2010, 324 of the top 500 largest non-financing companies in Argentina were overseas branches, employing 

over 462,000 people and with US$ 157 billion in sales. In that year, foreign-controlled companies represented 

81% of the gross added value and 83% of the profits produced by the 500 largest non-financial companies. 

The high levels of profitability (profits/sales) achieved by the major multinationals in Argentina are worth 

mentioning: 13% on average from 2008 to 2010. 

Multinationals are active in a wide range of sectors and industries, mostly operating with a long-term approach, 

as there are practically no industries off limits to foreign capital investments. Their presence is particularly 

strong in the energy, telecommunication, automotive and agro business sectors, among others. 

Join our A.I.H Association & Forum to be part of the benefits of doing business with Argentina´s mayor companies. 

Contact me 

Claudia Luna

CEO & Founder LA RED media group

Argentina's Investors Hub

Website http://www.laredmediagroup.com/

Mobile

Personal 00 54 9 381 155551960

cklo1290@hotmail.com - claudialunalared@gmail.com

Twitter. @luna1290

LinkedIn .- Claudia Luna

Skype.- Angelmoonfv