Panama’s booming economy and growing role as the business hub of the Americas continues to draw large multinational corporations. Twelve new companies have set up operations in Panama in 2017, with several more expected by the end of the year, the Ministry of Commerce and Industries reports.
The new companies include financial powerhouse Visa, consultancy McKinsey & Co., . from South Korea and train manufacturer CRRC Corp. from China.
The companies are setting up operations under the terms of the 2007 Multinational Companies Headquarters Act (SEM), which provided specific benefits for companies that applied for SEM licenses. The government has issued 143 SEM licenses to date, the ministry said.
There is a direct relationship between the growth of multinationals in Panama and the real estate market. The companies supply a steady stream of high-level buyers and renters. PPR’s Property Management team, the largest in Panama City, works closely with several of the largest firms, including Caterpillar, Sony, Procter & Gamble, and Samsung.
The new companies will infuse more than $3 million into the local economy and create at least 75 jobs in the first year operation, according to coverage in El Capital Financiero. The new SEM companies reaffirms “the confidence of foreign investors in Panama,” said Augusto Arosemena, Minister of Commerce and Industries.
Eddie Montes is the head of Property Management for Punta Pacifica Realty, a Panama real estate agency focused on Punta Pacifica, the exclusive neighborhood of 18 towers perched on the edge of the Pacific Ocean.