A Cuban TikTok user known as Ale released a video on Wednesday that humorously yet straightforwardly addresses a question frequently posed by his followers: what does it take to invest in Cuba? His response is as concise as it is impactful: "a lot of courage."
"You've got to be really brave to invest here in Cuba, truly fearless," declares Ale in the brief video clip, which garnered over 21,000 views in less than a day.
Key Warnings for Potential Investors
In the video, Ale outlines four critical warnings for anyone considering investing on the island. The first is the boldness that borders on recklessness, according to him. The second warning is a stark statistic: "there's almost a 90% chance you'll lose your money" if the investment is made in dollars.
The third caution pertains to industry sectors. Ale is straightforward: "if it's not related to food, transportation, or fuel, I don't think it will be profitable." Outside these areas, he believes the chances of a business thriving in today's Cuba are slim.
The fourth and final warning is perhaps the most personal. Ale advises those living abroad who entrust their businesses to others: "you can't trust anyone, you must always keep an eye on your business." He elaborates with a saying many Cubans will recognize: "people here in Cuba spend money without you noticing because there's a lot of need, and when people see easy money that they didn't work hard for, it's easily spent."
Cuba's Struggle to Attract Diaspora Capital
The video surfaces as the Cuban regime struggles, with limited success, to attract capital from the diaspora. The recently enacted Decree-Law 117/2026, effective since May 5, created a special migratory status for Cubans residing abroad who wish to invest in sectors like hospitality, energy, tourism, or food production. The process costs 3,500 Cuban pesos and takes 30 business days to complete at consulates.
President Miguel Díaz-Canel even made a public appeal for emigrants to invest in and manage hotels in Cuba, during an interview on June 5 with the Spanish outlet elDiario. However, the diaspora's response has been largely skeptical, with many reacting mockingly.
Legal and Economic Risks Deter Investors
The skepticism is rooted in concrete issues. Resolution 6/2026, issued in March, allows the Cuban State to freeze assets without prior judicial process or notification. Cases like that of businessman Frank Cuspinera Medina—detained and with his assets seized—illustrate the genuine risks of operating in an environment where the legal framework is unstable, and the regime can use the penal system as a tool for expropriation. This is compounded by a 23% GDP decline since 2019, chronic power outages, and inflation driving gasoline prices above 4,000 Cuban pesos per liter.
Cuban-American entrepreneurs like Iván Herrera have dismissed the notion of purchasing properties or investing on the island due to the lack of guarantees, while Cuban-American writers have labeled doing so under current conditions as a "financial suicide."
Ale's video concludes with a caution that encapsulates all these concerns: "Be very careful with that, folks, always keep that in mind here."
Investing in Cuba: Key Concerns and Insights
What are the risks of investing in Cuba?
Investing in Cuba carries significant risks, including a high probability of losing money, legal uncertainties, and potential asset seizures by the state without due process.
Which sectors are considered viable for investment in Cuba?
According to Ale, sectors like food, transportation, and fuel are the only areas where investment might be profitable in Cuba.
Why are Cuban-American investors hesitant to invest in Cuba?
Cuban-American investors are wary due to the lack of legal and financial guarantees, the unstable economic environment, and the potential misuse of the penal system to confiscate assets.