TEHRAN- On a global stage increasingly defined by economic fragmentation and unilateral sanctions, two nations with decades of experience in navigating external pressures—Iran and Cuba—are actively seeking to deepen their bilateral economic ties. Recent high-level exchanges and business delegations signal a mutual determination to translate longstanding political solidarity into tangible commercial partnerships.

At the heart of these efforts lies a complex interplay of opportunity and obstacle: Cuba’s gradual opening to private sector participation, Iran’s resilient industrial base, and the persistent logistical and financial barriers that have thus far constrained substantive cooperation.

This report synthesizes the outcomes of two key diplomatic and business engagements—a meeting in Tehran between the Head of the Iran Chamber of Commerce and the Cuban Ambassador, and a subsequent Iranian business delegation visit to Havana in late 2025. While the first part details bilateral discussions on frameworks and aspirations, the second part captures the delegation’s on-the-ground exploration of specific investment projects. Together, they paint a comprehensive picture of a partnership poised for growth, provided that regulatory transparency and payment mechanisms are adequately addressed.

Strategic dialogue in Tehran; laying the groundwork for cooperation

In a significant diplomatic exchange, Samad Hassanzadeh, Head of the Iran Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA), met with Jorge F. Lefebre Nicolás, the Cuban Ambassador in Tehran, at the place of ICCIMA on August 24, to assess the evolving landscape of Iran-Cuba economic relations. The meeting underscored a shared recognition that while political ties are robust, economic interaction remains below its potential, primarily due to logistical and monetary transfer challenges.

Hassanzadeh opened the dialogue by affirming Iran’s readiness to enter the Cuban market, contingent upon the resolution of two critical bottlenecks: transportation and financial settlements. He stated unequivocally that “if logistical and monetary transfer issues are resolved, Iranian investors will enter the Cuban market.” He identified several promising sectors for joint cooperation, including offshore farming, sugar production, automotive parts, and sanitary products. These areas, he noted, align with Iran’s industrial strengths and Cuba’s import substitution needs.

The Cuban Ambassador responded by detailing the significant legal and structural reforms underway in Cuba. He explained that intensified U.S. sanctions have compelled the Cuban government to overhaul its economic model, pivoting toward a more robust private sector. This shift, he emphasized, has now gained legal status, permitting private banks, exchange houses, and a broader role for foreign investment in previously state-dominated sectors. Ambassador Nicolás invited Iranian investors to consider opportunities in fuel supply and distribution—now managed by Cuba’s private sector—as well as hospitality, where Spanish companies once held sway, and agriculture, where Vietnam has already pioneered land-lease arrangements. He also highlighted mining (nickel and quartz), car rental services, and renewable energy as areas ripe for Iranian participation.

Legal reforms and the private sector as a catalyst

A central theme of the Tehran meeting was the changing legal framework in Cuba. Hassanzadeh stressed the need for written documentation of these new laws to enable the Iran Chamber of Commerce to disseminate accurate information to its members. He recalled previous negotiations with Cuban officials during his visit to Cuba, where proposals for specialized committees to address trade barriers were discussed but not yet implemented. He urged the Cuban side to provide formal investment packages and clear regulatory guidelines, noting that Iranians, having navigated forty years of sanctions-induced restrictions, are uniquely equipped to operate under constrained conditions. He framed economic engagement not merely as a profit-seeking venture but as a religious and moral duty to stand alongside other nations, improving living standards through mutual cooperation.

Ambassador Nicolás acknowledged that transportation remains the primary operational hurdle, yet he expressed confidence that solutions exist, including route reconfiguration and alternative payment corridors that avoid the dollar-based system. He proposed practical next steps: holding online B2B meetings through the embassy, organizing a delegation of interested Iranian companies to visit Cuba, and facilitating a reciprocal Cuban business mission to Iran. He stressed that Iranian companies unafraid of sanctions can operate in Cuba using any currency, and that the Cuban embassy stands ready to act as a bridge for market familiarization.

Sectoral opportunities and the call for concrete action

Hassanzadeh provided additional granularity on potential cooperation areas. He reported on his visits to Cuban farms and sugar production facilities, concluding that joint investment in sugarcane cultivation and sugar processing holds considerable promise. He also floated the idea of designating free trade zones in Cuba exclusively for Iranian products, which would serve as a distribution hub for the Caribbean and Latin American markets. Furthermore, he revealed that official invitations have been extended to Cuba’s Economy Minister, Industry Minister, and Chamber of Commerce President to visit Iran, hoping that such a high-level visit would expedite mutual understanding and deal-making.

The Cuban Ambassador reinforced these overtures by reiterating that Cuba’s new legal framework allows foreign investors to repatriate earnings, a critical assurance for any potential investor. He noted that even the supply and distribution of fuel—a strategic sector—has been privatized, demonstrating the depth of Cuba’s commitment to economic transformation. He concluded by underscoring that this is a favorable moment for Iranian companies, especially large chain enterprises, to enter the Cuban market, provided they move swiftly to understand the new investment laws.

Havana business delegation; from dialogue to due diligence

Moving from high-level political discourse to operational engagement, an Iranian business delegation led by ICCIMA Head Samad Hassanzadeh visited Havana in late November 2025 to explore concrete investment projects aimed at reviving Cuba's idle industrial capacity.

The delegation’s agenda was far more specific than the Tehran discussions, focusing on rehabilitiating dormant factories and establishing joint ventures in sectors where Iran possesses proven technical expertise. In meetings with Cuban officials, Hassanzadeh requested a comprehensive list of non-operational plants, particularly in sugar and cement, to guide Iranian companies seeking investment opportunities. He argued that Iran could play a pivotal role in restoring Cuba’s once-prominent sugar industry, leveraging Iranian machinery and agricultural technology. Similarly, he noted that joint cement production would be more cost-effective than continued imports, and Iranian investors were prepared to construct several cement plants, provided clear regulatory conditions and investment guarantees are established.

Industrial revival and mining as a long-term pillar

ICCIMA Deputy Head Ghadir Ghiyafeh expanded on the industrial front, describing mining as a cornerstone for enduring cooperation. He characterized Cuba as a resource-rich but underdeveloped mining market, where Iranian firms—with advanced technical expertise in mineral exploration, extraction, and processing—could contribute significantly. He specifically mentioned cobalt and nickel production, from geological surveys to processing, and noted that Iranian engineering companies are ready to assist in training Cuban specialists for a planned national steel plant. Khuzestan Steel Company has already signaled its readiness to collaborate. Ghiyafeh projected that a clear legal framework could help push bilateral trade volumes to one billion dollars within five years, targeting construction, roadbuilding, food industries, agriculture, and mining as preferred sectors for Iranian investors.

In a separate meeting with Cuba’s Minister of Domestic Trade, Hassanzadeh urged the preparation of a formal investment package tailored for Iranian companies. He reiterated Iran’s industrial depth across agriculture, mining, petrochemicals, tourism, and energy, but emphasized the necessity of transparent rules and investment security. The Cuban minister responded positively, stating that President Miguel Díaz-Canel had ordered ministries to identify opportunities for importing food, clothing, and consumer goods from Iran, following the 2025 Havana International Fair (FIHAV). The minister stressed that Cuba aims to boost domestic production as a buffer against U.S. sanctions and is prepared to support foreign investors willing to assume risk.

High-level endorsement and the way forward

The visit culminated in a symbolic yet significant moment during Iran National Day at FIHAV 2025. Hassanzadeh declared that the presence of Iranian manufacturers reflected a shared commitment to expanding cooperation, urging both countries to translate political ties into economic outcomes. He outlined additional areas for Iranian contribution, including dam construction, road and housing projects, hydropower development, and renewable energy. Cuba’s Industry Minister, Eloy Álvarez Martínez, echoed this sentiment, calling for practical cooperation to match political solidarity, citing the 2023 comprehensive cooperation agreement as an essential framework for small, medium, and large firms to form direct partnerships.

Most notably, President Miguel Díaz-Canel personally visited Iran’s pavilion at the fair, where he was received by Hassanzadeh, Ghiyafeh, and Iran’s Ambassador to Cuba, Zabihollah Naderi. The Cuban president engaged with representatives of Iranian companies, learning about their products and export capacities. He expressed hope that the exhibition would pave the way for enhanced mutual cooperation and emphasized that his government supports the expansion of economic exchanges and joint investments. His visit underscored the political will at the highest level to pursue tangible results, particularly in petrochemicals, food industries, industrial equipment, and commercial services.

A partnership at a crossroads

The convergence of diplomatic dialogue and business delegation activity reveals a clear trajectory: Iran and Cuba are not merely maintaining symbolic solidarity but are actively engineering a practical economic partnership. The Tehran meeting established the foundational principles—acknowledging legal changes, identifying sectoral opportunities, and agreeing on the necessity of resolving logistical and monetary hurdles. The Havana delegation then tested these principles against reality, identifying specific factories for rehabilitation, mining projects for development, and trade volumes to target.

Three critical takeaways emerge for both sides. First, the resolution of banking and transportation challenges is not just a technicality but the key that unlocks all other potential. Alternative payment mechanisms and shipping routes must be operationalized swiftly. Second, Cuba’s legal reforms must be translated into accessible, written investment guidelines that provide Iranian companies with the confidence to commit capital. Third, the high-level political endorsement, epitomized by President Díaz-Canel’s visit to Iran’s pavilion, must now be followed by bureaucratic efficiency—streamlined permits, clear repatriation rules, and responsive ministerial coordination.

If these conditions are met, the current phase of exploration can transition into a phase of execution. Iran’s industrial resilience, honed under forty years of sanctions, offers a natural complement to Cuba’s resource wealth and strategic location. Together, they have the potential to build a resilient economic corridor that defies external pressures and delivers tangible benefits—in sugar, cement, mining, pharmaceuticals, and beyond—for both nations. The path is clear; the time for decisive action is now.