Introduction
The International Free Zone Authority (IFZA), a rapidly growing and dynamic free zone based in Dubai, UAE, has launched IFZA Panama Free Zone in 2025. This is an important step because it’s IFZA’s first free zone outside the Middle East, located in the centre of the Americas.
By combining Dubai’s free zone advantages with Panama’s geographical and economic strengths, IFZA Panama is creating new ways for global entrepreneurs, SMEs, and multinational corporations to expand into Latin America, North America, and beyond.
IFZA
IFZA (International Free Zone Authority) is one of the UAE’s most popular free zones. It is known for its:
- Easy company setup packages
- Affordable business licensing solutions
- Investor-centric regulations
- Powerful ecosystem of partners
IFZA has attracted thousands of businesses from more than 100 countries.
IFZA started as a licensing authority but has now grown into a place that helps businesses with everything they need including banking, visas, compliance, and office space. Now, with IFZA Panama, entrepreneurs in Latin America can enjoy the same facilities .
Panama – ‘Hub of the America’s ‘
Panama has long been referred to as the “Hub of the Americas”, due to its geographical location and infrastructure:
- Panama Canal: A world-class trade route between the Pacific and the Atlantic Oceans.
- Financial Center: Over 60 international banks have operations in Panama, one of the best financial centers in Latin America.
- Dollarized Economy: All transactions are conducted in USD, giving a sense of stability and convenience to international investors.
- Connectivity: Panama City’s Tocumen International Airport has flights to Latin America, the US, and Europe, making travel and business easier.”
This strategic location ensures that businesses establishing operations in IFZA Panama Free Zone will have direct access to North American and South American markets .
What IFZA Leaders Say About the Panama Launch
- Martin G. Pedersen, IFZA Chairman, described the strategic decision:
“Panama’s strategic geographic position, easy banking system, modern infrastructure, dollarized economy, and business-friendly regulatory framework make it an ideal partner for our next chapter.”
- Jochen Knecht, CEO of IFZA, added:
“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.”
Panama’s Past Challenges: FATF Grey List & Reputation Issues
Although Panama is internationally renowned for its canal and financial sector, it has also encountered reputation issues.
- In 2016, the Panama Papers leak showed that some people were hiding money in Panama to avoid taxes, which gave the country a bad reputation.
- “In 2019, the Financial Action Task Force (FATF) put Panama on its Grey List because the country had weak rules to stop money laundering and financing of terrorism.”
- “At the same time, the European Union called Panama a high-risk country, warning banks and investors to be careful.”
Because of these listings, it became harder for Panama to attract serious investors. International business deals needed extra checks, which often slowed down trade and finance.
Major Reforms & Current Changes
Panama responded by improving its financial system:
- Strengthened laws to stop money laundering and terrorist financing.
- Made banking and company registration more transparent.
- Worked more closely with international financial authorities.
- Monitoring to make sure companies in free zones followed the rules
By these efforts:
- In October 2023, FATF officially delisted Panama from its Grey List, recognizing significant progress.
- In February 2024, the European Union dropped Panama from its list of high-risk countries.
This reputation boost has turned Panama into a more trusted, transparent, and investor-friendly destination opening the doors for initiatives like IFZA Panama.
Advantages of IFZA Panama Free Zone
For Entrepreneurs and SMEs
- Easy Company Setup – Panama makes starting a business simple and smooth .
- Banking Made Simple – Panama using the U.S. dollar and having a strong financial system make international payments easy.
- Access to Markets – Businesses can reach North and South America directly, ideal for trade, tech, finance, and logistics.
- Investor Confidence – Panama’s improved reputation after leaving the grey list makes it safer and more reliable for investors.
For the Economy of Panama
- Job Creation – The free zone will attract local and international companies, creating more jobs.
- More Investment – More foreign businesses will set up in Panama, boosting the economy.
- Business Variety – Encourages growth in services like consulting, logistics, and software.
- Stronger Reputation – IFZA’s global brand makes Panama more credible as a business hub.
- Better Logistics – Perfect for e-commerce, trading, and distributing goods in Latin America.
- Cross-Border Growth – Businesses can expand from the UAE (IFZA Dubai) to Latin America (IFZA Panama).
- Lower Costs – Running a business in Panama is cheaper than in many North American markets.
Opportunities for UAE–Latin America Trade
This growth enhances economic links between the UAE and Latin America:
- Easier Market Access for UAE – UAE exporters can use Panama to reach countries like Mexico, Brazil, Colombia, and Chile.
- Opportunities for Latin America – Companies from Latin America can expand into the UAE and Gulf markets with IFZA’s support.
- Faster Trade – Shipping goods through the Panama Canal makes supply chains simpler, faster, and cheaper.
Future Outlook
IFZA Panama will start with 1,000 m² of offices, with an expansion target of 5,000 m² subject to demand. It will target service industries such as consulting, technology, trading, finance, and software development.
It is expected to be operational by 2025, and experts think that it will be a key player in the plans of Panama to become a leading global business center.
Conclusion
IFZA Panama launch is a huge milestone for international business. It provides business owners quicker company establishment, solid banking support, and immediate access to Latin American and international markets. For Panama, it translates into new employment, increased investment, and enhanced credibility internationally. Combined, IFZA Dubai and IFZA Panama provide a link between the Middle East and the Americas, opening strong business opportunities for businesses of every size.
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FAQs
- What is IFZA Panama Free Zone?
It is IFZA’s first international free zone outside the UAE, located in Panama, offering fast company setup, banking, and access to Latin American markets. - Who can set up a business in IFZA Panama?
Entrepreneurs, SMEs, and multinational companies across industries like trading, consulting, finance, technology, and logistics. - What are the main benefits of IFZA Panama for businesses?
Quick company registration, banking in USD, direct market access, reduced operational costs, and investor confidence due to Panama’s improved reputation. - Why is Panama considered a strategic location?
Panama is home to the Panama Canal, a strong financial system, a dollarized economy, and excellent connectivity to North and South America. - Is Panama safe for foreign investment?
Yes. Panama implemented strong anti-money laundering reforms and transparency measures, and it has been removed from the FATF Grey List and EU high-risk list. - How does IFZA Panama support UAE–Latin America trade?
It enables UAE businesses to access Latin American markets and vice versa, simplifies logistics via the Panama Canal, and fosters cross-border growth. - What types of industries are ideal for IFZA Panama?
Technology, finance, consulting, trading, logistics, software development, and other service-oriented sectors. - How much office space will IFZA Panama provide initially?
It will start with 1,000 m² of office space, with a planned expansion up to 5,000 m² depending on demand. - How does banking work in IFZA Panama?
All transactions are in US dollars, using Panama’s robust financial system, making international payments fast and secure. - When will IFZA Panama become fully operational?
It is expected to be fully operational in 2025, providing global businesses a reliable gateway between the Middle East and the Americas.
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