IFZA Launches New Free Zone In Panama To Enhance Global Business Opportunities

IFZA has unveiled its latest venture, IFZA Panama, marking a significant milestone in its global expansion. This new Free Zone in Panama City is IFZA's first physical presence in Latin America. It underscores the organisation's dedication to nurturing global entrepreneurship and interconnected business ecosystems.

The Panamanian government has officially granted IFZA a licence to operate a Free Zone. This move allows IFZA to introduce its growth-oriented infrastructure model to Latin America. Panama, known as the "hub of the Americas," is a bustling trade and financial centre with over 60 banks. Its strategic location, bridging North and South America, along with the Panama Canal and extensive air transport network, makes it ideal for supporting nearshoring strategies and international expansion.

Martin G. Pedersen, Chairman of IFZA, stated, "Our expansion into Panama is a natural extension of IFZA’s global growth strategy." He highlighted Panama's strategic geographic position, robust banking system, modern infrastructure, dollarized economy, and business-friendly regulatory framework as key factors making it an ideal partner for their next chapter. Pedersen emphasised their commitment to collaborating with the Panamanian government and local stakeholders to create shared economic value.

Panama's removal from the FATF grey list in 2023 and the EU’s high-risk countries list in 2024 further enhances its appeal to international investors. This development demonstrates Panama's strong commitment to global compliance standards.

Companies operating within IFZA Panama Free Zone will enjoy substantial fiscal benefits. These include exemptions from corporate income tax, import duties, and VAT. Such advantages make it an attractive base for global trade and expansion.

The Free Zone will serve as a mixed-use hub supporting diverse industries such as professional services, technology, logistics, trading, software, and industrial sectors. Businesses establishing themselves here will gain access to comprehensive services including company formation and incorporation; visa assistance; office solutions; corporate banking support; accounting services; and relocation guidance.

Connecting Markets

Jochen Knecht, CEO of IFZA, commented on the initiative: "Business has a superpower to connect people, cross borders, and breakdown barriers." Through IFZA Panama, their goal is not just to open a Free Zone but also to build a bridge between Latin America and the UAE. This will enable businesses to expand confidently with shared purpose.

Beyond its physical presence in Panama City, IFZA aims to identify high-potential opportunities across Latin America. The organisation plans to tailor its Free Zone model to lower entry barriers while ensuring compliance and accelerating business growth.

Economic Impact

The Free Zone aligns with Panama’s national economic vision by contributing to job creation. It positions the country as a competitive innovation-led hub in the region. Additionally, this initiative creates opportunities for Latin American companies to access markets in the UAE and broader Middle East regions including Africa, India and Pakistan.

With experience supporting over 60,000 businesses globally and partnerships in more than 50 countries, IFZA is well-positioned to attract significant foreign direct investment into Panama.

With inputs from WAM