Ecuador: Investing

FDI in Figures

Foreign investment inflow decreased in 2009. Ecuador is not an easy place to do business in. As a matter of fact, the country has complex regulations in labor issues and discourages private investment through mergers, acquisitions or take-overs. Inconsistent contract enforcement is one of the main concerns to foreign investors in Ecuador.

Oil is the sector that attracts foreign investment the most, followed by financial services and food processing. The USA is the largest investor.

Recently, the country's politicized decision of failing to meet its obligations of 2012 and 2030 will alter its capacity to reach international financial markets. The government has just recently announced a proposition on which it will pay 30 cents of each dollar of the outstanding debt. The financial crisis should affect the economy in two ways: First, the weakness in prices and the decrease of demand which reduces the USD exchange and tax revenues. Then, the repercussions of the financial situation will test the ability of the commercial and banking sectors, in particular, to continue their functions normally.

	Ecuador	Latin America & Caribbean	الولايات المتحدة	Germany
Index of Investor Protection	4.0	5.1	8.3	5.0

Source: Doing Business

Note: The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	1,001	319	164
FDI Stock (million USD)	11,638.7	11,651.3	11,815.4
Performance Index*, Ranking on 141 Economies	107	125	-
Potential Index**, Ranking on 141 Economies	81	-	-
Number of Greenfield Investments***	10.0	6.0	-
FDI Inwards (in % of GFCF****)	7.9	-4.7	-
FDI Stock (in % of GDP)	22.1	21.7	-

Source: UNCTAD - Last Available Data

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

Tax Rates

VAT (IVA): 12%
Company Tax: 24%
Withholding Taxes: Dividends: 0 ; Interest: 24% ; Royalties: 24%
Bilateral Agreement: Ecuador and Egypt are not bound by a Double Taxation Agreement.
Social Security Contributions Paid By Employers: 11.15%

Investment Opportunities

Tenders, Projects and Public Procurement: Inter-American Development Bank, Tenders in South America
DgMarket, Tenders Worldwide
Setting Up a Company: Consult Doing Business Website, to know about procedures to start a Business in Ecuador.
Useful Resources: Corporation for promotion of exports and investment (only in Spanish)
Egyptian Embassy in Ecuador
Tarqui E4- Y6 De Diciembre
17 - 7 - 9355 Quito
Phone: (+5932) 509501 - 543981 - 225240
Fax: (+5932) 563521
Contact the Embassy via Email.
Embassy of Ecuador in Egypt
33, Ismail Mohamed St.
Piso 2nd. Floor
Zamalek
Phone: (002) 02 27372776; (002) 02 2736 7355; (002) 02 2736 1839
Fax: (002) 02 2736 1841
Contact the Embassy via Email

Any Comments About This Content? Report It to Us.

Learn more about Investing in Ecuador on Globaltrade.net, the Directory for International Trade Services.