IFZA, one of the main free zone operators in the United Arab Emirates, will open a new free zone in Panama during the first quarter of 2025, reported the Deputy Minister of Industries and Trade, Eduardo Arango, who held a virtual meeting with Markus Raiser, executive of IFZA, in which the expansion plans of this important international free zone were detailed.
IFZA’s decision to settle in Panama responds to the various competitive advantages that the country offers as a business platform and global logistics hub. Its strategic location in the heart of America, its direct connection with the markets of North America, Latin America and the Caribbean, as well as its advanced infrastructure and access to one of the most important ports in the world, the Panama Canal, are key factors that have influenced this decision. In addition, the country has a solid legal framework that regulates free zones and favors the development of companies under attractive fiscal and operational conditions.
Deputy Minister Arango stressed that the new free zone in Panama will specialize in services, a key sector for the country’s economic growth, especially in areas such as technology, consulting, logistics, and financial services. This strategy will make it possible to attract international companies in these sectors to operate under the special free zone trade regime that Panama has established. According to the deputy minister, the inauguration of IFZA Panama will significantly contribute to strengthening Panama’s position as a logistics and commercial center of global relevance.
The special regime that regulates the creation of free zones in Panama is covered by Law 32 of 2011 and regulated by Decree No. 62 of 2017.
Covered by this regulation, a total of 16 free zones are active until last December.
Rodrigo Jaén, general director of Free Zones of the Ministry of Commerce and Industries (MICI), stressed that one of the main challenges of the Panamanian government will be to speed up the administrative processes and permits necessary to ensure that new companies can start operating as quickly as possible. Jaén emphasized that the government is committed to improving the efficiency of the procedures, which will allow companies to set up without setbacks and that the free zone sector continues to be a key engine for the Panamanian economy.
“The objective is to create a favorable environment for investment, in which entrepreneurs can be sure that the installation process of their companies will be agile and transparent. This will contribute to significantly boosting investments and strengthening Panama’s position as a regional business hub,” Jaén said.
In addition, in terms of infrastructure, it is projected that the new IFZA headquarters in Panama will have a building of at least one thousand square meters of offices. This initial space is designed to accommodate the first companies that are established under this regime, with short-term expansion plans to reach an area of 5,000 square meters.
IFZA is internationally known for its innovative free zone model, which has allowed the establishment of more than 28,000 companies in the United Arab Emirates in the last five years. Most of these companies are small and medium-sized enterprises (SMEs) that focus on services. This model has been a resounding success, favoring job creation and economic growth in the UAE, and its replica in Panama is expected to have a similar impact, stimulating the development of new companies and job creation in the country.
This innovative model has also been globally recognized by the World Free Zone Organization (WFZO) as a key tool to promote investment and employment, highlighting free zones as catalysts for economic growth. The arrival of IFZA in Panama not only diversifies the supply of free zones in the country, but also consolidates Panama as an ideal destination for strategic investments.
Where will this IFZA be located please?
Another missed opportunity by the US to become a real partner with Panama.