Country Reports

Aruba Country Report

Content provided by
IHS Markit Logo

Risk Level

Very High


Executive Summary

As authorities contain the COVID-19-virus outbreak and gradually reopen the economy, efforts are being made to resume international flights to resume tourism, the mainstay of the economy. Efforts to reopen Aruba’s oil refinery, which had prior capacity of 209,000 b/d, are likely to intensify in the one-year outlook as Aruba looks for international oil companies willing to undertake its refurbishment and operation following the mutually agreed cancellation of the USD685-million contract with US-based Venezuelan oil company Citgo in March 2020. IHS Markit forecasts a 12.1% GDP contraction in 2020 and a return to growth in 2021 of 4.0%.Prime Minister Evelyn Wever-Croes of the People’s Electoral Movement (PEM) party heads a coalition government that holds a narrow but stable majority in the Staten (parliament) with 12 out of 21 seats. The opposition Aruban People’s Party (APP) remains in a process of rebuilding its support following the outcome of the 2017 election, although the party is likely to offer a strong challenge to the PEM at the 2021 election.Top policy priorities for 2020–21 include reducing the island’s debt, which stands at about 90% of GDP, by cutting public spending; attracting foreign direct investment to strengthen the tourism industry, offshore financial services, and construction; and mitigate the negative impact of COVID-19 virus on tourism. The government is likely to continue with austerity measures to strengthen public finances and seek to refocus tourism towards more affluent segments by emphasising its capacity to provide a higher quality of service, rather than the mass tourism offered by some of the larger Caribbean islands.Aruba has a low crime rate by regional standards, with only rare incidents of violent crime directed at foreign visitors. Main tourist areas are safe, with few instances of street or opportunistic crime. Increasing migrant inflows from Venezuela have not been shown to have increased crime rates.
Last update: September 10, 2020

Operational Outlook

Aruba has a modern and well-developed infrastructure by regional standards and a business-friendly operational environment. Aruba is likely to attract foreign direct investment in the financial services, oil, and tourism industries in the one-year outlook. The country’s bureaucracy is relatively efficient and corruption levels are low by regional standards. Aruba still plays a significant role as an offshore centre for drug-related money laundering, although the government has taken concrete steps to fight organised crime, including legislation for Prevention and Combating of Money Laundering and Terrorist Financing (LWTF), which foresees strict rules relating to customer due diligence, client identification and verification, and the reporting of unusual transactions.

Last update: July 17, 2020


There is no specific terrorist threat in Aruba, and no threat from domestic or home-grown groups. There is a very low risk of international terrorism targeting Western interests such as bars, nightclubs, shops, restaurants, or other places where expats and tourists may gather, but there are no indications that Aruba has ever constituted a target or base of operations for terrorist groups. The Aruban Port Authority has taken measures to boost port security, working in partnership with maritime security and counter-terrorism consultancy SeaSecure to assess the risk of terrorism in the island's strategic ports.

Last update: July 17, 2020


One of the main domestic security issues in Aruba revolves around street and opportunistic crime, which is low by regional standards. The territory has a high number of tourists in relative terms to other Caribbean nations, with most of its local labour force engaged in the tourist industry. Casual crime against property is, therefore, attractive to local criminals, although violent crime directed at tourists or other foreign visitors is rare. Main tourist areas are generally safe.

Last update: July 17, 2020

War Risks

Overall, there are no significant external threats to the island beyond the spread of COVID-19. Relations have deteriorated in the past between the Netherlands, Aruba, and the then-Netherlands Antilles on the one hand, and Venezuela under late president Hugo Chávez – who suggested in 2010 that Aruba and Curaçao could be used by the United States as a springboard for an invasion in that country. Relations since 2010 improved based on trade, however Venezuela closed the countries' mutual aerial and maritime border in February 2019 for alleged security reasons. In July 2019, Aruba also refused to reopen the border to prevent Venezuelan illegal migration.

Last update: July 17, 2020

Social Stability

The territory has many tourists in comparison with other Caribbean nations, with most of its local labour force engaged in the tourist industry. There is a low risk of large-scale or violent protests. Unions are not militant and incidents of industrial action tend to be quickly resolved and do not pose property damage risks. Some unrest is likely around elections.

Last update: July 4, 2019