RIO DE JANEIRO, BRAZIL – Uruguay, a small and stable country with clear rules, has several competitive advantages that make it an exceptional investment location.
Recently, Uruguay has grown at an average annual rate of 3.8%. This indicator is a clear sign for companies worldwide: it is a stable economy growing and consolidating despite internal and external turbulence. In economic terms, they see a suitable and predictable environment for successful investments. And they are right.
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Uruguay is designed to attract investment from a wide range of companies, with a friendly ecosystem on all sides. It offers an attractive and stable legal framework and a regulatory and institutional framework that adapts to investors’ needs. The success of companies based in the country has made it a model for growth in the region.
With a population of 3.4 million, Uruguay tripled its per capita income between 2005 and 2020 from US$5,000 to US$16,000. The country also ranks first in Latin America on several indicators of well-being, including in the Human Development Index (HDI). According to key global institutions, it is a leader in democracy, social mobility, the rule of law, civil liberties, and low perception of corruption.
Between 1990 and 2019, Uruguay’s HDI value increased from 0.694 to 0.817, a rise of 17.7 percent. The country’s life expectancy at birth increased by 5.3 years, mean years of schooling increased by 1.8 years, and expected years of schooling increased by 4.0 years. Uruguay’s GNI per capita increased by about 104.3 percent between 1990 and 2019.
This, in turn, makes the country a better place to invest every day. A large middle class (62%) is highly skilled to meet the challenges of leading companies in their sectors. In other words, the best equation for additional profits: attractive tax benefits and government incentives, coupled with skilled and competitive talent.
AN IDEAL PLACE TO INVEST
Despite the unfavorable regional and global environment due to the Covid 19 pandemic, the main rating agencies confirmed Uruguay’s investment grade in 2020, the only country in Mercosur with this rating, highlighting the resilience of its economy.
In this regard, foreign direct investment (FDI) plays a fundamental role, representing 49% of GDP, above the Latin American average (34%). FDI comes mainly from Argentina, Brazil, Chile, and the United States, Spain, and Switzerland.
As a gateway to Latin America, it offers a first-class logistics infrastructure, state-of-the-art telecommunications technology, and the region’s best energy supply based on renewable energy and important sectors for investment.
In food, for example, 93% of the area is suitable for agricultural development. The pharmaceutical sector stands out for its long tradition in the industry, with successful entrepreneurs and research groups with extensive experience and knowledge.
Innovation, Science and Technology (ICT) companies in Uruguay will find an innovative startup ecosystem and modern infrastructure and benefits such as a 100% income tax exemption for ICT exports.
The country’s capital Montevideo is less than 1,000 miles from major cities like Buenos Aires, Porto Alegre, São Paulo, Santiago, and Rio de Janeiro. Through Uruguay, it is possible to access a market of 400 million people, which accounts for 68% of Latin America’s GDP and has a foreign trade share of almost 74% of the region’s total.
To revitalize activities, the country has launched a successful Covid-19 vaccination program, in which 70% of the population has been vaccinated. This is the result of a coherent and universal health system that prevented the collapse during the worst phase of the pandemic.
This makes Uruguay a first-class, reliable, and transparent business center with advantages and minimal risks for the investor. In short, a great ally for the leadership that businesses seek.