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General information
Before starting a company on Aruba, it's important to know how everything works. And to know what
kind of problems you can expect. On this page all the general information of Aruba is located,
the Frequent Questions page is to answer the most common question of people for businesspeople
here.
For more information you can also look on:
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Official Name:
Capital:
Nationality:
Official Language:
Local Language:
Population:
Head of State:
Head of Government:
Next Election:
Currency:
Exchange Rate:
Time Zone:
Phone Code:
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Aruba
Oranjestad
Dutch
Dutch
Papiamento, English and Spanish are widely spoken
70,844 (Sep. 2002)
HM Queen Beatrix Wilhelmina Armgard of the Netherlands
Prime Minister Nelson Oduber
By December 2005
Aruban Florin (AWG)
Afl 1.00 = U.S. $0.56; U.S. $1.00 = Afl 1.79
Est. +1; GMT -4
Country code (297), plus the local 7 digit number
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Flag of Aruba
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Location:
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Aruba is located 19 miles from the Venezuela mainland.
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Area:
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193 square km. (77 square miles)
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Topography:
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The island is 19.6 miles long and 6 miles across. On the west coast, the white sand beaches
stretch for miles. The terrain is basically flat, expect for the northeastern part which is hilly.
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Climate:
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Aruba has a very healthy and comfortable tropical climate, with refreshing northeast trade winds.
The average and almost constant temperature is 28°C (82°F). Aruba has a dry and desert type
nature because of low rainfall estimated at 278 mm in 1997. The relative humidity is 82.2 percent.
The island distinguishes itself from the absence of tropical storms and hurricanes.
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Aruba is a parliamentary democracy. The head of state is the Queen of the Netherlands who is
represented by a governor. The governor is appointed by the Queen, upon recommendation of the Aruban
Council of Ministers, for a six-year term of office. Vested with executive power and headed by a
Prime Minister is a seven-member Council of Ministers.
This Council is responsible to a 21-member parliament ("Staten"), which is elected every four years on
the basis of a multi-party system. Aruba’s judicial system, which has been derived mainly from the
Dutch system, operates independently of the legislature and the executive. Jurisdiction, including
appeal, lies with the Common Court of Justice of Aruba and the Supreme Court of Justice in the
Netherlands.
Elections
Aruba's last general election was held on 23 September 2005, with result as follows:
Movimiento Electoral di Pueblo (People's Electoral Movement) - 11 seats
Arubaanse Volkspartij (Aruban People's Party) - 8 seats
Movimento Patriotico Arubano (Aruban Patriotic Movement) - 1 seat
Red Eternal Democratico (Network of Eternal Democracy) - 1 seat
Government leaders
Note: Ministries are located at L.G. Smith Boulevard 76, Oranjestad, Aruba.
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Governor General
Fredis Refunjol
Prime Minister,
Minister of General Affairs & Utilities
Nelson Oduber
Tel: (297) 582-4900
Fax:(297) 583-5985
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Tourism remains a mainstay of this tiny Dutch island. Aruba’s economy also remains a
strong casino gambling industry, oil refining and storage and offshore banking.
The island has banked on tourism as its number one revenue producer. It’s a process that has been
successful. Over the past 15 years as Aruba has seen its tourism numbers dropped both 2002 and
during the first six months of 2003.
After growing at more than 4 percent per year from 1996 until 2000, the Aruban economy experienced
two years of retrenchment, with GDP falling an estimated 1.2 percent in 2001 and 3.8 percent in 2002,
according to the International Monetary Fund.
"This downturn reflected a lull in investment activity but especially weak tourism following the U.S.
recession and the terrorist attacks of September 11, 2001," the IMF continued, "In 2003, sharply
higher private and public investment and a modest revival in tourism should boost economic growth to
over 4 percent. With higher tourism capacity and continued sustained investment, economic growth
should remain around 3 percent in the medium-term."
There are no plans to supplant tourism as the number one income generator for the Netherlands kingdom.
The government now derives nearly 30 percent of its income from tourism. Cruise ship arrivals,
airline flights, and the construction of new hotels and facilities have all increased, and today
Aruba remains one of the most popular destinations for, in particular North and South Americans.
The boom in arrivals created numerous hotels, many of them like the high-rise, Miami Beach type of
structure, and of course a burst of growth in the numbers of restaurants and other facilities,
including the casinos, around the island.
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The growth has been so rapid that the government recently instituted a moratorium on new hotel construction
and the establishment of new tourism corporations for a year. It also trying to attract new businesses
such as high tech, finance, and communications in the hope that a rounded economy will be beneficial
in the long run.
Additionally, development is underway at the country’s ports, including major changes at the Ports of
Oranjestad and Barcadera over the next 20 years. This will involve the relocation of all cargo and free
zone operations to the port at Barcadera in order that Oranjestad is made exclusively for cruise ship
traffic and related retail activity.
Meanwhile, Aruba’s Chamber of Commerce has moved to a new commerce and finance park being developed on
30,000 square meters near the Tamarijn Beach Resort. The project includes eight parcels of land and
parking space area. It is hoped the park will become home to the headquarters for banks, insurance
companies and other professional services on the island.
The Government of Aruba is participating in a major development plan for San Nicolas, in cooperation
with the Sasaki Consultants Group and the San Nicolas Business Association. The Sasaki Project
involves a dozen projects representing U.S. $300 million in investments over the course of the next
15 years. Included in the comprehensive package are projects relating to city beautification, roads
and infrastructure, housing, public parks, recreation and sports, and nature preservation.
Work also is ongoing on renovation and expansion of the water and power plants.
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Energy
Production of liquefied petroleum for local consumption began in January 1997. However, in the same year,
increased competition and low international demand led to cessation of oil transshipment and storage
activities.
Total crude oil throughput capacity was expanded to about 280,000 barrels a day in 2000. The Coastal
Aruba Refining Co. processes Mayan crude from Mexico.
Tourism
The tourism industry in Aruba accounts for about 35% of total employment.
For 2002, the lucrative stay-over passenger industry fell 7.1% to 642,627 tourists; cruise passengers,
however, flocked to the island, as their numbers swelled by 22,8% to 512,539 in the first 11 months
of 2002 according the Caribbean Tourism Organization.
To lure additional tourist business, Aruba moved its cargo and free zone operations to Barcadera.
This will allow the Port of Oranjestad to be able to accommodate six mega-cruise ships at the same
time. It is then expected that cruise arrivals will exceed previous levels in the near future, with
new facilities increasing the average visitor expenditure.
Investment opportunities
The new management company and its global outlook project continuous development of free zone activities,
an important component of the economy. Specifically targeted are:
- Capital intensive manufacturing
- Trade and service-related companies
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Economic outlook
The IMF commended Aruba for its record of sustained economic growth and relatively low inflation.
This has helped Aruba achieve on of the highest per capital incomes in the region at U.S. $ 28,000.
Although unfavorable external shocks to the tourism sector have caused a decline in economic activity,
the IMF expects growth will resume. This would be spurred by higher private and public investment and
a moderate recover in tourism.
Aruba has kept inflation at bay, averaging 2.7% in the 1990s. However, increased energy prices, indirect
taxes, and faster credit growth as a result of controls being suspended, caused inflation to accelerate
during the second half of 2002, reaching 4.5% in November, the IMF reported.
External accounts remain in a comfortable position, and net foreign assets are above the central bank
targets of 5 to 6 months of imports. The banking sector is highly liquid and well capitalized despite
the downturn, but interest rates remain high because of a lack of competition.
Aruba has implemented a new indirect tax on imports and services for 2003. A New Fiscal Regime for
corporate income was also introduced, which will result in more uniform taxation of corporate profits
and dividends. Although the previous offshore and tax holiday regime will be phased out, incentives
for export-oriented activities will remain through an imputation system.
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Principal Exports
Refined petroleum products, tourism services.
Principal Imports
Crude oil, food, consumer goods, machinery, textiles, transport equipment.
Major Trading Partners
U.S., Japan, The Netherlands, Netherlands Antilles, Colombia, Venezuela
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Potential Growth Areas
The growing tourism industry presents opportunities for potential growth in the import of food.
The delayed coker of the oil refinery, now operational, encourages the import of additional
crude to be refined into oil products for exporting purposes.
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Free Trade Zones
Free Zone Aruba (FZA) N.V.: is the new professional and market-oriented company incorporated
to oversee the continuous development of the free zone industry in Aruba. The primary free zone area
is located at Barcadera and includes about 90 hectares. Another free zone area near the airport
covers about 13 hectares.
The area Barcadera is being developed into a state-of-the-art free zone with modern infrastructure
and multiple facilities, including a new cargo port, services areas and commercial center. The free
zone at the airport is used primarily for showrooms and for goods requiring transportation by air.
Admittance to the free zone is granted if it is expected that the operation will contribute to the
further development of Aruba into an international center for services. Only a limited liability
company, founded under Aruban law and exclusively for free zone operations, is admitted to conduct
a business in the free zone.
Profits of free zone enterprises earned form exports are taxed at 2%. Goods, imported into the free
zone for re-export are free of duty. Sales to the local market are allowed only with permission of
the Management of the Free Zone Aruba N.V. Excise and import duties are applied to goods imported
from the free zone into the domestic market, while profits earned form these sales are subjects
to the tax rates, according to the profit Tax Ordinance.
Free Zone Aruba (FZA) N.V.
Anasastraat 4, Oranjestad
Tel: (297) 582-0909
Aruba Trade & Industry Association
P.O. Box 562, Oranjestad
Tel: (297) 582-7593
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Fiscal Incentives
New legislation is to be introduced to create an investor-friendly environment through the combination
of innovative tax policies and low tariffs on imported capital goods.
Wage Rates
Effective January 1, 1998, a minimum wage rate of U.S. $ 608.30 per month has been in force for workers
above the age of 18. This excludes social charges and other benefits.
Work permits
Any foreigner desiring to exercise a profession must have a work and residence permit. Work permits
normally will be granted only if there are no qualified persons locally available, and must be filed
through the prospective local employer. A residence permit subject to submission of a number of documents
including evidence that the applicant is financially self-supporting.
Taxes
Import duties: The standard tariff is 7,5%, but can vary up to 21%. In general, primary foodstuffs
are exempted from import duties and higher tariffs apply to luxury items.
Excise Taxes: Excise Taxes are levied on alcoholic beverages, cigarettes and fuel products.
Transit and Export duties: No duties are levied on exports, except on irregular transit. In the
latter case, a low levy is applicable.
Gambling licenses: Casinos pay fixed gambling license rights of Afl 5,000 monthly, together with
a 3% levy on the gross income.
Room tax: Payable by the guest at a rate of 5% over the cost of the accommodation.
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Central bank
Formed in 1986, the Centrale Bank van Aruba is responsible primarily for maintaining the internal
and external value of the florin, as well as safeguarding and promoting the integrity of the financial
system.
The commercial banks in Aruba provide a wide range of domestic and international financial services.
The onshore financial system also consist of 10 life insurance companies, one Government and eight
company pension funds, one provident fund, three finance companies, two credit unions, two mortgage
banks, and four other financial institutions. The two offshore banks active in Aruba are allowed to
conduct transactions with non-residents only.
Centrale Bank van Aruba
J.E. Irausquin Boulevard 8
Tel: (297) 525-2100
Fax:(297) 525-2101
E-mail: cbaua@setarnet.aw
Website: www.cbaruba.org/
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Foreign Exchange Transactions:
The Centrale Bank administers the foreigen exchange regulations, based on the State Ordinance on foreign
exchange transactions. Merchandise import payments may be freely, and exports of goods and services do
not require a license. Export proceeds must be generally converted into local currency within 8 working
days or credited to an account with a local or foreign bank, which is notified to the bank.
Effective July 1, 1998 no license is required for other capital payments made bu local entities for an
amount equivalent to a maximum of Afl 500,000 a calendar year.
A foreign exchange commission of 1.3 percent is levied on all payments made by residents to non-residents,
except when settled in Netherlands Antillean guilders.
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Transportation
Land
Railroads: None
Highways: Aruba has a well-developed road system connecting all major cities.
Sea
Sea Ports: Aruba has three sea ports; Oranjestad, Barcadera and San Nicolas. The first two
are administered by the Aruba Ports Authority.
Oranjestad, Aruba’s container port and cruise ship terminal, is accessible to all types of vessels.
It has a depth of 38 feet MLW and 4,070 feet of docking space. The container terminal has a 50-ton
gantry crane with a maximum capacity of 60,000 TEUs containers per year, and a 140-ton mobile crane.
There are two roll-on roll-off ramps, and facilities for 36 reefer connections are available.
Barcadera is the industrial port with a depth of 36 feet and 1,148 feet of docking space. The Port of
San Nicolas hosts the oil terminals and one reef berth administered by the Valero Aruba Refining Company.
Shipping Lines: Direct shipping connections are available on a frequent basis from Aruba to
European and some Latin America countries by major shipping lines such as Compagnie Generale
Maritime (CGM) and P&O Nedlloyd.
Air
The "Aeropuerto Internacional Reina Beatrix", located 4.0 km (2.5 miles) easy of Oranjestad,
is served by 12 scheduled airlines to 27 destinations, and is frequented also by an increasing number
of charters. The airport offers 9.000-foot, Category I Precision Approach runway, operating under
the ILS system. An extended range primary surveillance radar, a Mode-S secondary radar, and an
automation system for approach control and tower operations have been established. The radar system
complements the face-lifting program of the Queen Beatrix Airport.
The Cargo building has 3.000 square meters of storage space; there are also catering facilities.
Flight Times: Miami-2.5 hours; New York-4 hours.
For more information: www.airportaruba.com
Electricity
Electricity is produced by the "Water-en Energiebedrijf Aruba (WEB) N.V." The total power generating
capacity of the steam turbines amounts to 149 megawatts. There is also a 20 megawatt standby diesel gas
turbine. Power is supplied at a 60-Hertz frequency, and at 127 and 220 volts.
Industrial Purpose: The cost of power charged into industries differs for companies
considered as small industries and for those considered as other industries. Small industrial
activities with a consumption of over 10 kW but not exceeding 50 kW are charged Afl 8.00 per kW peak
load and a consumption charge of Afl 0.126 kWh, supplemented by a fuel surcharge of Afl 0.0763 per
consumed kWh. Minimum charge Afl 75.00 monthly.
Elmar N.V.
Wilhelminastraat 110
Oranjestad, Aruba
P.O. Box 202
Tel: (297) 523-7100
Fax:(297) 582-8991
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Telecommunication
Telecommunications services are provided by SETAR (Servicio di Telecomunicacion di Aruba),
a Government-owned company. GSM and SMS services were introduced in three years ago, now they got
competition from DigiCell. Additionally, Aruba has some 33,000 fixed telephone lines, and another 3,400
cellular users, according to the latest figures of 2003.
The local telecommunication infrastructure is advanced compared to other Caribbean island nations.
The digital exchange provide a wide variety of advanced telecommunications services and are
inter-connected by means of fiber optic and digital microwave network, guaranteeing role diversity,
high availability and reliability. The penetration rat of services is one of the highest in the region.
For international telecommunications SETAR has a network consisting of a 5ESS exchange, Standard A and
Standard B earth stations, an international telex exchange, and a digital microwave system. With the
available infrastructure, SETAR can provide its customers with IDR and IBS satellite services. The earth
stations are equipped for video up and down linking.
SETAR has a packet switching node for credit card validation purposes, and additional data communication
services. The company’s mobile communication infrastructure offers cellular network, trunking
(public mobile radio system) and paging, for tone, voice (mail), numeric and alphanumeric options.
SETAR is also an Internet provider. It is estimated that there are currently 24,000 internet users on the
island, as of 2002. The internet country code is ".aw".
SETAR
Sero Blanco
Tel: (297) 525-1576
Fax:(297) 583-6970
International Dialing Instructions: To call Aruba, dial the access code (011 from the U.S.),
the area code (297), plus the 7 digit number.
Communication
Newspapers (English)
Aruba Today
Tel: (297) 582-2047
Fax:(297) 582-7093
Website: www.arubatoday.com
The News
Tel: (297) 582-4725
Fax:(297) 582-6125
Radio Stations
There are several local radio stations operating in Aruba.
Television Stations
ATV Aruba Broadcasting Co. N.V.
P.O. Box 5040, Oranjestad
Tel: (297) 583-8150
Fax:(297) 583-8570
Cable TV Aruba
P.O. Box 311, Oranjestad
Tel: (297) 583-0274
Fax: (297) 582-2250
Tele Aruba
P.O. Box 392, Oranjestad
Tel: (297) 585-7302
Fax: (297) 585-1683
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