Panama Working on Deal with Giant Dubai Company
Top Panama officials were in Dubai last week negotiating with DP World, the government-controlled global port operator.
Panamanian government officials are hoping the Dubai giant will invest in building new infrastructure when the $6 billion expansion of the Panama Canal is complete in 2016, according to a report in The National newspaper. DP World already manages 65 port facilities around the world, including operations in Argentina and the Dominican Republic.
Why is this interesting for property investors? Because the Middle East is one of the great untapped resources for the Panama City real estate market. In many ways Panama City real estate is still a young industry and it is still being introduced to global investors, who can choose from many markets.
Wealthy investors from the Middle East are active in property markets around the world, but they are still a relative rarity in Latin America. And Dubai is, in many ways, the key connection for the region to the outside world.
More business with Dubai means more exposure for Panama. The economic stability, strong connections to North America and lush landscape are all appealing factors to the typical Middle East property buyers. Prices in Panama are also relatively inexpensive, compared to the European luxury markets currently frequented by Middle Eastern buyers.
Plus, Panama City is the closest thing to Dubai in Latin America. We’ve already had quite a bit of experience with Abu Dhabi and Dubai investors and they like Panama City. The skyscrapers and man-made islands will make any emirati right at home. And it is easy to draw comparisons between Punta Pacifica and Dubai Marina, the luxury neighborhood of residential skyscrapers on the Dubai waterfront.
In addition to DP World, officials from Emirates Airlines were also part of the discussions last week, which might be the most exciting part of the deal. Increased flights from Dubai would provide a huge boost to both tourism and property sales in Panama City.
If that happens, we can expect a lot more interest in Panama City from the Middle East.
Duncan McGowan is president of Punta Pacifica Realty, the Panama real estate agency focused on Punta Pacifica, the exclusive neighborhood of 18 towers perched on the edge of the Pacific Ocean
