Venezuela’s location, the diversity of its resources, its modern infrastructure and its present and future economic prospects make it a natural candidate for companies in search of international investment opportunities, which guarantee long term profitability.

Opportunities for investments and trade in Venezuela are abundant in sectors such as the production and distribution of oil and gas, electrical distribution, petrochemicals, aluminium, steel, agriculture, tourism and consumer products and services, to name just a few.

The country’s extensive participation in regional and sub-regional trade agreement allows many Venezuelan products to be exported with reduced tariffs to other Latin American countries. Many of its products enjoy preferential access to North American and European markets as well.

There are many reasons as to why Venezuela is one of the best emerging countries to invest in:
Strategic Location
Venezuela is at the same time an Andean, Caribbean, and an Amazonian country. Conveniently located at the North end of the South American continent, it has an enormous potential for development and investment. It is an ideal site for international business operation due to the combination of its proximity to Latin American and Caribbean markets and its relatively short distance from North America and Europe.

Legal Security
The restructuring and reform process which began in 1999 has been accompanied by the establishment of a body of norms which seek to, among other things, promote investment and distribute it fairly among both national and foreign investors. This is the reason why legal security is needed to facilitate the growth of private investment in the country. As a consequence, investment (foreign and national) is protected by the Constitutions of the Bolivarian Republic of Venezuela through the promotion and protection of investment laws: Statutory decree number 2095 and in decisions numbers 291 and 292 of the Andean Community of Nations.

The Constitution of the Bolivarian Republic of Venezuela, approved by a national referendum in December 1999, is aligned with international principles that regulate investment among which the following are highlighted:

Economic Overview
The country has a long tradition in the production and export of petroleum and gas, and Venezuela’s proven hydrocarbon reserves are among the largest in the world. This fact, combined with its substantial hydroelectric resources, characterises the country as one of the most important energy sources of the Western Hemisphere, and certainly as its main energy exporter. Concerning the economy overview, thanks to the efforts and sound policies implemented by the Government, the country has achieved an important and positive outcome in the year 2007. Today, its economy presents strong and clear signs of recovery through indicators such as the capacity to pay its international financial obligations, the liquidity and solvency of its financial system, a substantial improvement in the perception of country risk, the elimination of unbalances in the fiscal accounts, a substantial growth of GDP, the fall in the rate of unemployment and the restraint of inflation, which is under control.

According to predictions from the Economic Commission for Latin America (CEPAL), the Venezuelan economy enters its fifth consecutive year of sustained growth in 2008, and was the third fastest growing economy in the region for 2007, with a growth rate of 8.5 percent, surpassed only by Argentina (8.6 percent) and Panama (9.5 percent), a CEPAL report said in December 2007.

INVESTMENTS BY SECTOR
Petroleum Sector: The petroleum industry on an international scale has a market competitiveness, which is constantly improving, pressed by opportunities in traditional and new areas, in which technology stimulates development and competitiveness that were previously unavailable to the market because of high costs and difficulty of operation.

In Venezuela, sustained petroleum strategies have been carried out according to a policy of production in tune with the petroleum market and with adherence to OPEC agreements. At the moment, proven oil reserves surpass 76, 000 million barrels, which make Venezuela the country with the fourth largest proven oil reserves in the world. Its huge daily production of oil puts her in third place as a world producer. On top of this, one of the largest reserves of heavy and extra-heavy oil in the world is found in the bituminous Orinoco belt, with 51% of the total reserves of heavy crude oil in the world.

Gas Sector: The prospects of energy growth on a global scale are increasing by the rate of 2.5% annually including an increased participation in conventional sources of clean energy gas, awaiting a more pronounced increase in its global demand over the next ten years, to the rate of approximately 2.7%. This was estimated with reference to the sustained growth over the last 10 years. For Venezuela, with reserves of around 146 trillion cubic feet (TCF), the need for the development of infrastructure is great, as a guarantee for opportunities expected to result from demand on a global and domestic sale.

Petrochemical Sector: Petrochemical development in Venezuela has the potential to be much greater than it currently is. Among the competitive advantages that Venezuela has in this area, it is worth mentioning the availability of raw materials, their geographical location and the easy access to markets with high growth, i.e. Latin America. These advantages can sustain the diversification of our exports and reactivate the national economy in this sector.

Mining Sector: Mining is an activity of great economic potential by virtue of the enormous reserves that exist within the country. Stimulated by the exploration, storage, and marketing plan both internally and externally.

Tourist Sector: Venezuela has varied climate and scenery, which provide a unique potential for a tourist destination. Nevertheless, this sector has not been adequately exploited, so it can definitely be converted into an attractive source of investment. Venezuela is aware of this reality, and that is why it has approved a series of laws that is aimed at promoting its development. At present there are several projects for building hotels and tourism complexes in preferential areas to develop adventurous, mountain, ecological and beach-front tourism activities.

Trade Sector: The objective of trade policies in Venezuela is to facilitate and consolidate the change towards competitive commercialisation, in order to satisfy the consumption of goods and services through the promotion of competitiveness and exports, with the aim of placing our goods and services on international markets.

Industrial Sector: The main objective of the strategy for industrial development is found in the re-industrialisation of the country, in conditions of greater equality and competitiveness, supported by a policy which has been agreed upon.

Agriculture Sector: Agriculture plays a fundamental role in the new economic model which is being implemented in the country. It is of pivotal importance to the national food system and production of fibres as an industrial raw material. The important water and biological resources available make possible an agriculture sector of a much larger scale than the current one, and with a competitive potential in tune with the new international realities of new technologies and of the geographic location of the country.

Aluminum Sector: The inclusion of private capital into companies in the aluminium sector. There are reasons for recommending the opening of the sector to private investment, in order to attract new investment: Technological updating which increases competition, maintain industrial activity and the source of employment, open opportunities for economic expansion and employment, under water development: national transformers.

Telecommunications Sector: One of the non-petroleum sectors that have had the greatest growth in the economy over the last few years has been telecommunications. It has accumulated an investment of over $ 16 billion in the last 5 years. With the development of new technologies and the granting of new concessions, the telecommunications sector can be expected to receive further investment of over $8 – 10 billion in the next ten years.