GAESA, The Secretive Military Empire That Controls Cuba’s Economy

Economy

Key Facts

—The entity. GAESA is a business empire owned by Cuba’s armed forces.

—The reach. Estimates put it at roughly 40% of the Cuban economy.

—The cash. Leaked papers suggest about $14.5bn sits in overseas accounts.

—The sectors. It spans tourism, retail, banking, ports and remittances.

—The secrecy. It publishes no accounts and is exempt from state audit.

—The contrast. It profits while ordinary Cubans face blackouts and shortages.

One Cuba military conglomerate quietly controls much of the island’s economy and almost all of its hard currency, operating in such secrecy that even the country’s own auditors cannot see inside it.

There is a company in Cuba that most visitors never notice but can barely avoid. Stay in a Havana hotel, shop in a dollar store or send money to a relative, and a firm called GAESA is almost certainly involved.

GAESA is not an ordinary business. It is a sprawling conglomerate owned and run by Cuba’s armed forces, and it sits at the very centre of how the island’s money moves.

For an outsider, the scale is startling. By many estimates the group controls around forty percent of the Cuban economy, and some analysts put the figure even higher.

How the Cuba military conglomerate took over

The empire has clear origins. It was built by Raúl Castro to give the military a financial base during the desperate years after the Soviet Union collapsed and Cuba lost its main backer.

From there it spread relentlessly. The group came to dominate tourism through its hotel arm, along with retail chains, banking, ports, construction and the flow of remittances sent home by Cubans abroad.

Its long-time chief gave it shape. The late general who ran it for a quarter of a century turned a modest currency operation into what one report called an empire of dozens of companies.

The structure looks oddly capitalist. Inside a self-declared socialist state, GAESA behaves like a private corporation, even using subsidiaries registered abroad to move money and sidestep restrictions.

A state within a state

What sets GAESA apart is its secrecy. According to a study by Columbia Law School, it publishes no accounts, sits outside the national budget and is exempt from audit by the state comptroller.

That opacity has real consequences. The country’s own comptroller was reportedly dismissed in 2024 after admitting she had no access to the conglomerate’s books.

The hidden numbers are large. Leaked documents reported by international media suggested the group held around eighteen billion dollars in assets, with some fourteen and a half billion parked in overseas accounts.

Its profits dwarf the norm. The same leaks pointed to a profit margin near forty percent, far above the single-digit margins typical of big global firms, earned while much of the country went without.

Why the Cuba military conglomerate matters to outsiders

The contrast with daily life is stark. As the group financed new hotels, ordinary Cubans faced blackouts, food shortages and wages worth only a handful of dollars a month.

It also captures the hard currency. Because its stores and hotels charge in dollars while paying wages in a collapsing local peso, the group hoovers up the foreign money the wider economy badly needs.

Its dollar-only shops show the divide plainly. Most Cubans paid in pesos are effectively shut out of the military‘s retail chains, where remittances and tourist dollars are funnelled toward the conglomerate.

Its grip even reaches the docks. The group controls the modern port of Mariel and the channels that handle money sent home from abroad, two of the island’s most valuable economic gateways.

That makes it a magnet for foreign firms. Almost any company doing business in Cuba ends up dealing with GAESA, which is exactly why it has become a target of renewed American sanctions.

What it means for investors

For any investor eyeing Cuba, GAESA is the central obstacle. The most profitable corners of the economy are already in its hands, leaving little room for newcomers on fair terms.

The secrecy compounds the risk. With no public accounts, an outside partner cannot easily know who ultimately benefits from a deal or whether it breaches the latest sanctions.

It also shapes any future opening. Economists note that the assets worth having sit inside the conglomerate, so any real reform or negotiation would have to confront its power directly.

The wider lesson is about hidden power. When a single opaque entity controls a nation’s most valuable assets, the official economy can look far weaker, and far poorer, than the country truly is.

Cuba military conglomerate questions, answered

What is GAESA?

GAESA is a business conglomerate owned and run by Cuba’s armed forces. It controls a large share of the island’s economy, spanning tourism, retail, banking, ports, construction and remittances.

Why is it so controversial?

It operates in near-total secrecy, publishing no accounts and escaping state audit, while reportedly holding billions of dollars abroad. Critics say it profits as ordinary Cubans endure blackouts and shortages.

Why does it matter to investors?

Almost any foreign firm doing business in Cuba ends up dealing with GAESA, which now faces American sanctions. Its grip on the best assets makes it the central hurdle for outside investment.

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