The Press: What They're Saying About Panama For Business
Brazil and Mexico may be getting most of the foreign investor attention in Latin America these days and Chile continues to be seen as the region's free-market champion, but Panama isn't doing so badly, either.
In the past few months, Panama has topped several key regional rankings. In addition to being named the most globalized country in Latin America last week by Latin Business Chronicle, Panama recently was ranked the best country for exporting and importing containerized goods in Latin America by the World Bank, the fastest-growing tourism market in Latin America by the World Tourism Organization and last, but not least, the fastest-growing economy in Latin America by the International Monetary Fund and the United Nations Economic Commission for Latin America and the Caribbean (ECLAC). That comes in addition to being ranked third in Latin America (after Chile and Mexico) when it comes to competitiveness, according to the latest annual index from the World Economic Forum released this month.
And Panama can also boast having Latin America's largest number of international bank offices ,the world's largest shipping registry and the second-larges free trade zone in the world after Hong Kong. Now, it may also become a major regional energy hub. Spain-based Tecnicas Reunidasand Singapore-based Jurong Consultants are planning to create a $40 billion oil refinery, petrochemical production facility and liquified natural gas import terminal aimed at serving the U.S. and Asian markets, Reuters reported last week. That comes on top of U.S.-based oil giant Occientalís plans to build a $8 billion refinery.
Skycrapers and Banks
"Panama is amazing," says Antonio Arranz, vice president of operations at the Latin America division of DHL. The express delivery services giant just expanded its Panama hub, which already played a key role in its Latin American distribution thanks to the country's central location between Central and South America. "We are seeing double-digit growth." Added to that is the continued strong growth in foreign investment in financial services and real estate. "You are seeing investments in the financial sector, a lot of investments in real estate[and] you can see a lot of skyscrapers being built every day," Arranz points out. DHL isn't the only company using Panama as a regional hub. Dell operates its Latin American financial, marketing and human resources administration out of Panama. That comes on top of having its largest contact center in the region based in Panama. And other companies are joining the club. Both Hewlett-Packard and Caterpillar have recently announced the opening of regional offices in Panama. "Panama is working hard at attracting new companies and new investment,"
Latin Business Chronicle, November 2007
Investment Propells a Real Estate Boom for Panama
The hilltop view overlooking the former Howard US Air Force Base in Panama says it all. The vacant barracks will be the site of a $10 billion minicity slated to be the size of Central London. Just beyond the hills, the Panama Canal is undergoing a $5 billion expansion, and in the background cranes hang over new skyscrapers that seem to rise every week. Panama, it seems, is in its prime.
Once overlooked as nothing but a canal, this tiny Central American nation of 3 million is attracting residents, businesses, and investors the world over. Some are seeking a haven from political situations in the region. Others are jumping on what they see as one of the best investments around. But as the government markets itself as the Latin American lodestone, many caution that the city is growing too quickly out of its own infrastructure.
"We are the geographic hub of the Americas," says Ivan Carlucci, the president of the Panamanian Association of Real Estate Brokers and Developers, adding that 11,000 new units will come online this year. He boasts that 99 percent have already sold. Some say that speculators have fueled the boom, but Mr. Carlucci says he expects the real-estate market to maintain its momentum because of other large infrastructure and industrial projects throughout the country. "We will be sustained by all the other aspects."
Christian Science Monitor, November 2007