Since 2018, Ceuta has undertaken a significant strategic shift in its economic and productive activity. With the support of the Government of Spain, the city not only seeks to replace lost revenue from cross-border trade, but also position itself as a crucial economic player in the region, taking advantage of post-Brexit opportunities and responding to global market dynamics.
Local institutions are transforming Ceuta into a nerve center for the gaming sector online and to attract technology companies and the green sector. This change responds to the need to seek new avenues for economic growth, especially after the cessation of cross-border commercial activities on the Tarajal border due to tensions with Morocco. This practice frequently classified as “contraband” through Morocco, had been a vital source of income that supported more than 400,000 people in northern Morocco and significantly impacted local tax collection as activity stopped.
The government of Juan Vivas (PP)under the direction of its Treasury Minister, Kissy Chandiramani, is promoting comprehensive support measures, facilitating assistance in the procedures for establishing these new companies and the training of specialized personnel, to enable their integration.
In response to this situation and the challenges added by Brexit, which reduced Gibraltar’s competitiveness as a hub economical, Ceuta has redoubled efforts to create an attractive ecosystem for technological investments. The local government, with a strong institutional commitment, has implemented a favorable fiscal regime and offers comprehensive assistance in the establishment procedures and specialized training to new investors. The proposed modifications to corporate taxes, as well as the adaptation of the tax regime to the reality of European VAT, are part of an effort to make Ceuta a more attractive and understandable place for technology companies.
For the Ceut counselor, “improving the fiscal and special regime is essential.” “We must adapt our special economic and fiscal regime, which was designed for a form of economic structure of Ceuta that was trade and services across the border, to a much more technological, much more modern environment, which does not need as much land and that it is very talented in terms of the number and type of people who work in the sector,” he adds. Chandiramani hopes that the special economic and fiscal regime is adapted as soon as possible, which is why the Government of the Nation has been asked to take into account Ceuta’s claims when making decisions.
Companies like Entain (Bwin, PartyCasino, PartyPoker), Flutter (PokerStar y Betfair) which is based in Gibraltar, transferred their licenses to operate from Malta, while William Hill-888, He did it from the pen. Operators like Casino777.es, Betway, Casino Barcelona, y Sportium, among others, they have also established operations in the city, taking advantage of the tax benefits it offers. For the association that includes most of the companies that have come to the city, Bet On Ceutathese incentives have not only attracted companies in the sector, but have also contributed to economic growth and job creation in the autonomous city.
800 jobs since 2019
Last week Ceuta hosted an event that attracted the most cutting-edge companies in the gaming sector online European and others that are trying to position themselves in the city within the technology market and where, according to sources from the organization, four others have achieved a commitment to settle in Ceuta. There was talk of the creation of more than 800 jobs in the sector since 2019.
Arantxa Campos, president of the businessmen of Ceutapoints out that “gaming companies are such large conglomerates that they have subsidiaries in many countries. What I understand is that to operate in Spain you have to have a Spanish gaming license and operate from here and that gives you the possibility of doing so in Europe.” , so that’s the difference now with Gibraltar.”
For CEOE ceutthe data reflects that the incursion of technology and gaming companies online In Ceuta it injects vitality into its economy, positively influencing the real estate and office rental sector, given the growing need for spaces for commercial and professional activities. The leader of the Ceuta businessmen points out that “this demand energizes the market, potentially increasing rental prices and property values, which benefits local owners and investors.”
At the same time, the increase in employees in these sectors leads to an increase in internal consumption, from restaurant services to retail trade, infusing energy into the economic fabric of Ceuta. This increased flow of capital not only strengthens local companies, but could also improve public coffers through taxes, allowing the administration to invest in infrastructure and services that result in a higher quality of life for the people of Ceuta.”
In Ceuta, the implementation of the gaming sector online has not reached a complete political consensus. Although the government of Juan Jesús Vivas lacks the necessary support to govern alone, it generally manages to find political allies for projects that it considers beneficial for the city.
The “heroine of the 21st century”
However, the localist formation “Ceuta Now!”, which is represented in the Ceuta Assembly, is firmly opposed to the expansion of this sector in the city, citing moral and social concerns. Mohamed Mustaf, deputy, criticizes that the sector promotes gambling, comparing it to the “heroine of the 21st century”, and questions the effectiveness of anti-gambling programs implemented by the same entities that promote gambling. “It’s like putting the fox to take care of chickens,” with this expression he illustrates the inconsistency and conflict of interest that in his opinion causes the world of online betting.
From an economic point of view, Mustaf argues that The employment generated by this sector does not substantially benefit citizens from Ceuta. Although the advantages and aid for the implementation of gaming platforms online They are designed to increase local hiring, the volatile nature of employment and the possibility of teleworking allow jobs to be carried out from places such as Murcia, Madrid or Segovia, without guaranteeing that the jobs directly benefit Ceutes. In addition, he criticizes that, contrary to the expectations generated after Brexit to attract international companies with competitive tax benefits, companies that were already operating in other regions of Spain have mainly been attracted, suggesting that this has caused and dumping tax that mainly benefits Ceuta.
The Ceuta Chamber of Commerce plays a crucial role in the economic and technological transformation of the city. Under his impulse and in collaboration with the business community, he has managed to attract significant investments and has promoted the advantages of Ceuta, which has led to a notable increase in the number of recently established companies and the planned projects and infrastructures will be complete in the next few years. fifteen months, evidencing the success of these initiatives. For its president, Karim Bulaix, “this reflects the confidence in the potential of Ceuta as a center for investment and economic development”.
Furthermore, with the favorable tax regime and the collaborative ecosystem that involves various administrations, organizations and associations, Ceuta continues to gain attractiveness as a destination for investors. This positive atmosphere was reflected in the first edition of CETEC (Ceuta Summit Innovation), an event that took place at the beginning of April and attracted a hundred investors, with more than ten of them committing to establish themselves in the city.