IFZA Launches Panama Free Zone to Boost Global Trade and Strengthen UAE–Latin America Ties

Dubai, UAE – August 18, 2025:

The International Free Zone Authority (IFZA), recognized as one of the world’s most dynamic and fastest-growing Free Zone communities, has announced the official launch of IFZA Panama—its first-ever physical presence in Latin America. This milestone marks a significant step in IFZA’s global expansion strategy and reinforces its mission to build interconnected, innovation-driven ecosystems that empower entrepreneurship on an international scale.

In a landmark decision, the Government of Panama has officially granted IFZA a license to operate a Free Zone in the country. This authorization paves the way for IFZA to introduce its proven Dubai-based model of growth-oriented, investor-friendly infrastructure into Latin America.

Panama: The “Hub of the Americas”

Panama holds a unique global position as one of the most strategic and business-friendly destinations in the Western Hemisphere. Known as the “hub of the Americas,” the country is home to over 60 local, regional, and international banks, a thriving trade and logistics sector, and a highly developed financial system.

Its location—bridging North and South America—combined with the economic advantages of the Panama Canal and its globally connected air transport network, makes it a natural fit for businesses looking to expand into or nearshore within the region.

Highlighting the importance of this expansion, Martin G. Pedersen, Chairman of IFZA, stated:

“Our expansion into Panama is a natural extension of IFZA’s global growth strategy. Panama’s strategic geographic position, robust banking system, modern infrastructure, dollarized economy, and business-friendly regulatory framework make it an ideal partner for our next chapter. We are deeply committed to working collaboratively with the Panamanian government and local stakeholders to create shared economic value.”

Compliance and Investor Confidence

Panama’s international credibility has strengthened in recent years, making it more attractive to global investors. The country was removed from the FATF grey list in 2023 and from the EU’s list of high-risk countries in 2024—a move that has boosted investor confidence and positioned Panama as a reliable jurisdiction for international trade and investment.

The IFZA Panama Free Zone will be developed as a mixed-use hub, designed to support a wide range of industries including professional services, technology, logistics, trading, software development, and industrial operations.

Building Bridges Between Regions

Jochen Knecht, CEO of IFZA, emphasized the broader vision behind the expansion:

“Business has a superpower to connect people, cross borders, and break down barriers. Through IFZA Panama, our goal is not merely to open a Free Zone, but to build a bridge between Latin America and the UAE, enabling businesses to expand with confidence and shared purpose.”

This strategic move is expected to attract substantial foreign direct investment (FDI) into Panama while simultaneously creating pathways for Latin American companies to access markets in the UAE, the Middle East, Africa, India, and Pakistan.

Advantages for Businesses in IFZA Panama

Companies setting up in the Free Zone will enjoy significant fiscal benefits, including:

• Exemptions from corporate income tax, import duties, and VAT

• Full ownership rights and operational flexibility

• Ease of cross-border trading and global connectivity

In addition, businesses will gain access to IFZA’s comprehensive, end-to-end suite of support services, which include:

• Company formation and incorporation services

• Visa and immigration assistance (including family sponsorship)

• Office and workplace solutions tailored to business needs

• Corporate banking support through partnerships with leading banks

• Accounting, tax registration, and advisory services

• Relocation support for real estate, education, and lifestyle requirements

Driving Panama’s Economic Vision

The establishment of IFZA Panama aligns closely with Panama’s national economic strategy, supporting job creation, attracting international companies, and strengthening the country’s position as a competitive, innovation-led hub in the region. By leveraging Dubai’s successful Free Zone model, IFZA Panama is expected to boost the local economy, foster entrepreneurship, and facilitate international trade.

With a track record of supporting over 60,000 businesses across more than 50 countries, IFZA has proven expertise in developing ecosystems that nurture enterprise growth. The launch of IFZA Panama extends this commitment to Latin America, promising a new era of collaboration, opportunity, and cross-border business expansion.

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