News

More and more international companies continue to open operations in Panama, which is fulfilling its promise to develop as the business hub of the region.

In 2016 alone, 20 companies have registered new headquarters in Panama under guidelines set up by the Headquarters of Multinational Operations (SEM), La Prensa reports. Six have registered to set up Panama headquarters in recent weeks, with a promise of $4.7 million in investments and 150 jobs, SEM reports.

Recent additions include makeup giant Estee Lauder Companies, the Ando Hazama Corporation of Japan, Mondo Iberica of Spain and Elbert Software of Argentina.

The growth of multinational headquarters in Panama provides a key leading indicator of the economy. The companies not only create jobs, they provide a foundation to Panama’s economic growth, beyond the Panama Canal. Thanks to the multinationals, Panama’s 5 to 6 percent annual economic growth is based on real business, not speculation or the short-term impact of one or two projects.

Multinationals also provide a wealth of new buyers and renters for the property market. As the largest property management company in Punta Pacifica, PPR works closely with many of the top international firms to place executives in top Panama City apartments. The list includes Caterpillar, Sony and Maersk.

This was a record year for the SEM program with 20 new companies the most in a single year, SEM reports. In 2015, 13 companies registered, the agency says. The new companies should have their local operations ramped in six months, SEM director Jonathan Diaz told the newspaper.

Since 2007 companies registered through the SEM program have invested $805 million in Panama and created 5,000 jobs, the agency says.

The agency expects to approve four more companies by the end of the year, La Prensa reports.