Cuba expands private sector rights through new economic decree

Cuba has implemented a significant economic shift through Decree 160 of 2026, which expands the legal scope for private professional and economic activities. Under this new regulation, non-state economic actors—including micro, small, and medium-sized enterprises (MSMEs), non-agricultural cooperatives, and self-employed workers—are permitted to engage in any lawful activity unless it is expressly prohibited or requires special authorization.

This regulatory change replaces the previous Decree 107 of 2024 and moves away from a system of specifically permitted activities to one where most sectors are open. New authorized roles include artistic production assistants, certified translators, and childcare providers. MSMEs and cooperatives may also now enter sectors such as pharmaceutical services, optical services, and personal care.

While the state maintains control over strategic sectors like the arms industry, tobacco, healthcare, and the press, the reform allows private entities to potentially invest in areas historically monopolized by the state, including sugar production, hotels, and even parts of the biopharmaceutical and extractive industries. However, experts note that the success of these reforms may depend on the availability of capital amidst ongoing economic challenges.