WPP has established a foothold in Cuba after signing a deal with state-owned Palco Group to allow a permanent executive to be based in Havana.

The holding group claimed that it becomes the first major international communications services group to conduct business on the island and said that the deal would contribute to the Caribbean island nation’s economic development.

The agreement with Palco Group will see the permanent WPP executive based on the island and backed by a local support team. It raises the total number of countries in which WPP operates to 112.

Since February 2015, WPP has been in touch with an array of Cuban agencies and businesses to seek partnerships across areas including data, PR, branding, digital, relationship marketing and direct marketing.

WPP said the new office would benefit its international clients, giving them “strategic counsel on the institutional and economic environment” in Cuba, ultimately paving the way for entry to the market.

It said in a press statement: “In these areas WPP is to deliver its services in collaboration with front-rank local companies, also to promote foreign projection of the products and services generated from Cuba.”

The Havana office is based in the Miramar neighbourhood near the city’s business districts.