As for the Foreign Direct Investment received from Japan from 1998 to 2002, there was an accumulated amount of US$ 304,169,000, from which the bank sector received 9.52%, Colon Free Trade Zone 66.67% and others 23.81%. In view of its excellent geographic location, a number of multinational corporations, such as Federal Express, DHL, Evergreen, Price Costco, Sony, Panasonic, Toyota, Continental, Delta Airlines, Telefonica de Espana, Cable & Wireless, Hutchison Wampoa, Kansas City Rail and others have chosen Panama to set regional offices for their operations.
The government of Panama is offering great investment opportunities in the following sectors:
- Multimodal Logistic Center
- International Banking Services
- Technology of Information and Telecommunications
Panama is a major container hub for redistribution of merchandise to Latin America and the Caribbean, with a proven and sustained growth in port development. Since the global volume of container traffic is increasing, and it is believed that the current infrastructure will not be sufficient in the future. Therefore, our country has announced a Public International Tender for the construction of a Megaport at the Pacific entrance of the Panama Canal, which has an approximate cost of US$ 600 million and is expected to move 1 million containers annually. Nowadays, Panama container terminals on both ends of the Canal move around 2.6 million containers per year.
Moreover, Panama has one of the most stable and modern international banking centers in Latin America, with more 70 banks- 23 from Panama, 1 multinational and 56 foreign banks, with assets amounting to US$ 40 billion, and operating under strict international standards.
Our banking system offers many competitive advantages, among them the use of the U.S. dollar as legal tender, which has been in place since the birth of the republic in 1903. Free flow of capital as well as the use of the US currency has contributed to the lowest inflation rate in the continent.
On the energy front, and in order to meet energy supply, Panama is working on the establishment of an energy hub, which includes the development of a regional refinery for the processing of 360,000 MB/D, and a used lubricants processing plant to recycle used lubricants, converting them into diesel for the local and international market. It also includes the construction of a gas pipeline from Cartagena, Colombia, to Colon City, on the Caribbean side of Panama, which would extend through the sea. For a presentation on Energy Projects in Panama, click on “PANAMA: Opportunity for an Energy Hub”“PANAMA: Opportunity for an Energy Hub”
In addition, investors can also benefit from the Panama Pacific Economic Area, which is the result of the reconversion of the former Howard U.S. Air Force Base into civilian use. It is also known as Howard and it combines our logistic platform and telecommunications system, with our commercial, financial and services expertise, making Howard an important trade hub for international commerce. It has almost 5,000 acres of land, and infrastructure such as an international airport, tank farm, industrial, commercial and residential areas as well as public services. It offers an integrated system to expedite procedures and paper work for the investor, as well as special legal incentives in fiscal, labor, customs and migratory matters, making the Panama Pacific Economic Area a very attractive investment zone in Panama.
Furthermore, since 1998, Panama established the City of Knowledge, an international complex for education, research and innovation, aimed at promoting and facilitating synergy among universities, scientific research centers, companies, and international organizations. As Howard, the City of Knowledge offers a well-developed infrastructure as well as several incentives in fiscal, labor, customs and migratory matters.
In the tourism sector, and based on the Law No. 8 of 1994, Panama also offers excellent incentives for investors interested in developing infrastructure in areas declared as tourism zones until the year 2,015. In addition, there is a boom in the real estate sector as many investors are engaged in housing projects for citizens of foreign countries who are increasingly moving in to Panama for pleasure or retirement. And, more recently, the government enacted the Law No. 2 of 2006 whereby it gives in concession insular territories for investment in tourism infrastructure. Needless to say, large hotel chains such as Marriott, Hyatt, Sheraton, Rosewood, Inter-Continental, Radisson, Best Western, Country Inn, Holiday Inn, Sol Melia and others have chosen Panama to locate their branches. In 2005, the average of daily lodge occupancy was 2,635 rooms, while the average number of visitors at lodging facilities was 3,996 individuals per day.
Contraloria General de la Republica(only ESP)
Ministry of Commerce and Industry(only ESP)
Superintendency of Banks of the Republic of Panama (ESP / ENG)
Asociacion Bancaria de Panama(only ESP)
LINK TO INVESTMENT SECTORS:
CITY OF KNOWLEDGE
ASPECTOS BASICOS DE ETIQUETA Y PROTOCOLO DE NEGOCIOS JAPONES (Solo en Español)
“Special Law for Multinational Companies (Only ESP)”