In order attract investors and generate capital, a new foreign investment law was approved by Cuba's National Assembly through a special session, Reuters reported citing official media.

The law, which was voted upon unanimously by the Assembly will take effect within 90 days. It would give generous tax breaks and investment security to potential investors. Investors that would be willing to form joint ventures with the state or with Cuban firms would have their profits tax reduced by half to 15% from 30%. Investors would also be exempt from paying the tax burden for eight years. For companies that are totally-owned by a foreign firm, however, a lot of the tax breaks would be withheld, the report said.

Despite the passage of the law, analysts and diplomats based in Cuba remained unconvinced that the state authentically wants to get foreign investors to its shores on international terms. Some of the fields in Cuba that are deemed ready for investment are agriculture, real estate development, infrastructure, building renovation, sugar and nickel mining, the report said.

According to Rodrigo Malmierca, Cuba's Minister for Foreign Trade and Investment, the country would need to lure foreign direct investment to the tune of $2 billion to $2.5 billion annually to be able to attain its 7% economic growth goals, the report said.  

Malmierca said, "If the economy does not grow at levels around 7 percent ... we are not going to be able to develop." He added that for foreign investors to come, Cuba has to "provide incentives." A comprehensive trade embargo has severed Cuba from US investment. The country has been unable to meet its annual investment goals for the past five years, the report said.

The passage of the law represents one of the structural economic reforms that President Raul Castro undertook when he replaced his sick brother Fidel in 2008, the report said.