Mexico will need 7.5 million homes in the coming years. As for the real estate epicenter, it will focus on the Valley of Mexico, Guadalajara, and Monterrey. The dynamics both reflect demographic pressures and the reconfiguration of space in Mexican cities, where economic, demographic, and infrastructure factors converge to define the next housing construction boom.

In the metropolitan areas on the periphery of the Valley of Mexico, housing projects have spread towards the edges of the state, bordering Hidalgo and Morelos. In Guadalajara, real estate growth has occupied former industrial corridors. In Monterrey, expansion is directed towards municipalities to the north—source: Research on the Real Estate Situation in Mexico, BBVA.

Real estate growth in Mexico is redrawing the geography of urban limits and reconfiguring cities towards where economic opportunities are located. The fact that new construction is shifting to neighborhoods far from city centers is not coincidental: population growth and migration are also intertwined with the location of new infrastructure, industrial development, and strong labor markets. The increase in real estate demand in Mexico, with all the weight this sector has for the country’s economy, is above all a sign of these growing points.

The Concentration of Housing Growth in Mexico

As for growth in the housing market, it will concentrate in the coming years in the country’s six largest states and a handful of metropolitan areas. The report Real Estate Situation in Mexico, Second Half of 2025, prepared by BBVA, estimates that Mexico will need 7.5 million homes in the coming years, 56.5% of which will be concentrated in six states: the State of Mexico, Mexico City, Jalisco, Nuevo León, Guanajuato, and Baja California.

“These three metropolitan areas concentrate about half of the total demand,” states the report, referring to the Valley of Mexico, Guadalajara, and Monterrey, respectively. Likewise, these three territories also hold a special position, since they are logistics hubs, and centers of industry, manufacturing, services, and commerce, where strong migration is also generated.”

These locations, where industrial corridors and high economic value coexist with demographic weight, will concentrate demand from a social-interest point of view. These states represent the center of gravity of real estate demand in Mexico, while in the south of the country, housing needs are lower, with less than 60,000 expected units in the case of Campeche, Tlaxcala, or Zacatecas. Demand is also concentrated in the north and center of the country, where economic growth and infrastructure expansion are the most robust.

“The type of housing and the market segment where it is intended to be located directly influences the territorial distribution of housing demand,” states the report. That is why population flows to new construction jobs “reflect the internal migratory flow that shows an additional preference to concentrate in regions with a greater diversity of industries and employment.”

The Type of Housing That Will Boost Growth

The nature of demand also changes depending on its socioeconomic characteristics. If we look at the number of homes by housing type, we find that of the total number of units, 41.6% are traditional, 35.2% social-interest, 19.9% middle income, and 3.4% residential or luxury housing. This distribution between the different segments shows, among other things, the prevalence of the affordable housing sector in the national market and the influence of the housing funds on access to housing.

If we break down demand by housing type, we find that the social-interest housing segment has the most robust demand nationwide. In this segment, demand is particularly concentrated in the most urbanized states: The State of Mexico requires the construction of nearly half a million homes, followed by Mexico City, Jalisco, Guanajuato, Puebla, and Nuevo León, which, added together, account for 51.8% of the national total. In other words, access to a job and urban infrastructure are critical factors for real estate demand in Mexico.

In contrast, the states with the least demand are Campeche, Colima, Zacatecas, and Baja California Sur. These entities present lower urban population densities, less diversified productive structures, and lower levels of industrial diversification, which translate into less internal migratory pressure, lower growth, and lower demand for housing.

Traditional Housing and the Consolidation of the Middle Class

Traditional housing (a housing type with higher values than social-interest housing but still within a fair price range) is a little more than 3 million potential units. Demand for this type of housing is also more concentrated than other types of housing, but it does appear in more areas of the country. It is a trend that is also associated with the progressive consolidation of the Mexican middle class, which seeks more secure access to housing and mortgage credit.

Traditional housing, often associated with middle-income households, opens up possibilities to access a mortgage with a more formal credit structure. It is here where demand begins to be distributed further afield from capital cities and starts to point to secondary areas of real estate demand in Mexico. Querétaro, León, or Mérida are also cities where demand will increase thanks to job creation and greater connectivity. That is why the states with the most significant demand are also those with the most industrial activity and the highest population density: State of Mexico, Jalisco, Mexico City, Nuevo León, Guanajuato, and Baja California account for 51.3% of national demand.

“Social-interest housing demand is more geographically concentrated,” says the report, “while traditional housing has a greater territorial dispersion, based on the borrowing capacity of the middle class and commercial bank credit.”

The Middle-Income and Residential Market: The Strength of the Metropolises

In this high-value segment, the territorial concentration is more pronounced. Demand for homes worth more than 2.5 million pesos, which includes the middle and residential segments, reaches 1.7 million units, which is equivalent to 23.2% of the national total. It should be noted that this demand, the one associated with the country’s most dynamic economies, largely comes from the metropolises, where employment is generated, services are concentrated, and foreign investment is attracted.

In this range, the entity with the highest demand is Mexico City, where the number of potential homes exceeds 300,000 units, followed by Jalisco, the State of Mexico, Nuevo León, and Baja California, which, added together, account for 52.5% of the national total. In this range, demand also shows other factors associated with changing consumption patterns and new housing needs, such as the emergence of mixed-use, vertical, and environmentally friendly models.

What Housing Will Be Needed?

“In short, as the value of the housing unit increases, the territorial concentration becomes more acute,” says the report. In the future, growth in the real estate sector in Mexico will be focused on the metropolitan areas in the country’s three largest conurbations, the Valley of Mexico, Guadalajara, Monterrey, and Tijuana. On the one hand, this will mean that public policy and urban management will have a decisive influence on the country’s real estate future.

It is vital that investment be channeled into public transport, services, and infrastructure, as well as improved access to credit to meet future demand. On the other hand, we should note that the most dynamic real estate growth will also be in areas with high economic value, which means that regional economic balance will be necessary to guarantee and expand the housing market in Mexico. In the BBVA report, it is also emphasized that half of the demand is in three metropolitan zones of the country, “representing a challenge for territorial planning, investment prioritization, and targeting social housing policies.”

In a context of increasingly large metropolitan areas, housing needs, services, climate adaptation, and the future of urban transport will therefore be central to understanding the real estate construction that Mexico needs. Real estate demand in Mexico and the new construction where it is focused will be one of the driving forces of the country’s economic dynamism, which is already beginning to show signs of the industrial acceleration that nearshoring can generate.

Strengthens Uruguay’s economic diversification

Uruguay and Saudi Arabia took another step towards building stronger investment relations with the signing of the Investment Promotion and Protection Agreement. The agreement is one of a series of similar accords and a part of a comprehensive strategy initiated at the beginning of President Yamandú Orsi’s government, aimed at diversifying the markets for Uruguayan production and attracting foreign investment to the country.

The agreement was signed by the Foreign Minister, Mario Lubetkin, on Thursday in the Saudi capital of Riyadh with the Kingdom of Saudi Arabia’s Minister of Investment, Khalid bin Abdulaziz Al-Falih. The agreement aims to provide greater legal security and protection for Saudi investors who wish to do business in Uruguay, as well as to incentivize Uruguayan businesses to invest in and do business in Saudi Arabia’s growing market.

Guarantee and protection for investors

“The signing of this agreement guarantees for Saudi entrepreneurs who wish to make investments in Uruguay, and under stable, predictable, and fair conditions”, emphasized Minister Lubetkin. The agreement will create a firm legal framework to enable foreign investors to do business in Uruguay under transparent and stable legal conditions, he said. “We also want Uruguayan investors to be able to make their way into this dynamic economy,” he added.

In his speech, Lubetkin stated that the signing of the agreement, which was another milestone in the international investment promotion policy of the Uruguayan state, began with a view to not only expanding trade between the countries but also strengthening and consolidating Uruguay’s image as a safe and reliable investment destination.

Uruguay and Saudi Arabia: In line with the foreign policy of the Orsi Government

This agreement is in line with President Yamandú Orsi’s foreign policy since the beginning of his government. He pointed out that the priority of his government since the beginning of its term has been to seek to diversify and deepen integration with new areas and trade blocs, beyond traditional regions and markets such as the European Union and Latin America.

In this regard, the government aims to attract investment from around the world, especially from countries and regions with strong financial capacity, such as the Gulf countries. “The signing of the Agreement on Reciprocal Promotion and Protection of Investments between the Kingdom of Saudi Arabia and the Eastern Republic of Uruguay, signed today, is just one more step in a process that began months ago and which we do not intend to stop”, he said.

Progress in Trade and Investment

In his speech, the foreign minister also highlighted progress in the Uruguay-Saudi Arabia relationship, achieved through the signing of the record-breaking agreement between Mercosur and the European Free Trade Association (EFTA) countries. These are Switzerland, Norway, Iceland, and Liechtenstein. The four countries form a free trade area with a GDP of more than 4.3 trillion dollars and a market of almost 300 million people.

“That is why this agreement is the result of our determination to continue to be competitive and act in time to safeguard the interests of Uruguayans, especially in strategic markets like the European one”, he concluded. “The signing of this Agreement is in line with the government’s ongoing effort to position Uruguay as a modern, reliable, and growing country that is not afraid to take part in global supply chains.”

Facilitates the access of Uruguayan products to new markets

In another part of his speech, Lubetkin also noted the achievements that Uruguay has made in recent months to access new markets for the export of agricultural and food products. In this context, he reported that “working hand in hand with the MGAP and MEF teams, we have already achieved new sanitary authorizations for the export of Uruguayan products to the markets of the Philippines, Algeria, Qatar, Hong Kong, Singapore, Malaysia, Kuwait and China, among others.”

Lubetkin emphasized that the signing of the agreement between Uruguay and Saudi Arabia will create an opening to further advance the export of Uruguayan products to the Middle East. In a context of growing demand in the Middle East for high-quality food and agricultural products, the importance of the market is critical for Uruguay to be able to access and expand its sales in the region.

Uruguay and Saudi Arabia: Developments in other world regions

Lubetkin also referred to the developments in the relationship with other countries in other world regions, in particular with Asian countries. In this respect, he celebrated that “Uruguay has recently become a member of the Treaty of Amity and Cooperation of Southeast Asia (ASEAN) in a ceremony held in Kuala Lumpur, which ratifies, by including us in this Treaty, the strength and closeness of our relationship with some of the main regional economies such as Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.”

Finally, the Minister of Foreign Affairs referred to the strong links that the country has been building recently with countries in the Middle East and Africa. “These results reflect our coherent and dynamic policy, a policy that will continue to propel us forward with this same drive so that Uruguay can take its place as a protagonist in the markets of the future,” he concluded.

As the Costa Rican semiconductor ecosystem consolidates, experts say it is time to recalibrate the Costa Rican investment attraction strategy. Costa Rica has established itself as one of Latin America’s most vibrant semiconductor ecosystems in recent years. More than five thousand direct jobs have been created, and there are now more than six hundred local suppliers in the country’s semiconductor value chain. But to continue adding value, Costa Rica must ascend the global value chain and assert itself as a true regional manufacturing hub. In the context of a rapidly changing semiconductor industry, marked by new competitors, technological shifts, and geopolitical alignments, industry leaders are calling for a redefinition of Costa Rica’s approach to attracting semiconductor investments through a renewed investment-attraction strategy.

Experts believe that if the Costa Rican investment attraction strategy does not adapt to these new dynamics, the country will risk losing competitiveness and long-term FDI that no longer aligns with its economic or technological development. According to Federico Quesada Chaves, ECA’s Director and an economist, the recent closures of multinational semiconductor subsidiaries are the catalyst for rethinking Costa Rica’s strategy in the sector. “It is a strong alarm signal for a semiconductor ecosystem in Costa Rica that we have been building, to continue betting on the productive linkages with the national industry and the transfer of technology and know-how to be cross-cutting elements in the country’s development,” said the expert in an interview with UNIVERSIDAD ESTATAL A DISTANCIA.

The strong foundations of the Costa Rican semiconductor ecosystem

Costa Rica’s semiconductor ecosystem has taken shape over two decades, strengthening its role as a trusted haven for high-tech investment and advanced manufacturing. During this period, the Costa Rican business climate, institutions, and labor pool have been built as elements of attractiveness for this industry. Currently, according to data from the Costa Rican Foreign Trade Promotion Agency (PROCOMER), around 5,000 direct jobs have been generated, and more than six hundred Costa Rican suppliers serve the international technology industry, many with capabilities at the global level.

Last year, the Ministry of Foreign Trade (COMEX) presented its Semiconductor Roadmap, a comprehensive strategy to position Costa Rica as a regional hub. The long-term plan, with a horizon to 2040, envisions a multi-faceted approach to attract and retain semiconductor projects, including human talent development, regulatory improvements, and fiscal incentives. However, as Quesada explains, the rapid reconfiguration of the global semiconductor industry may call for changes to the roadmap.

The challenge of the changing global semiconductor industry

Semiconductor supply chains are undergoing the largest reconfiguration of the last century, as countries and corporations seek to move production closer to home, reduce costs, and shorten supply lines. Governments and technology companies are investing billions of dollars in semiconductor manufacturing worldwide, from the United States (CHIPS and Science Act) and Japan to the European Union and China. The semiconductor sector has also seen the emergence of new competitive players in Asia and Eastern Europe, offering compelling incentives to attract projects and investments.

According to Quesada, Costa Rica can benefit from this global shift and position itself as a natural destination for semiconductor companies looking to move closer to American markets. “Emerging economies in Asia and Eastern Europe, with less stringent environmental and labor regulations, are displacing some of these established leaders in the sector. Costa Rica will have to be prepared to position itself and face this change: it must anticipate it, strengthen its technological base, and plan what it wants to be in this new industrial revolution,” he added.

This new context challenges Costa Rica to move to a more holistic semiconductor investment attraction strategy—one that is not only about promoting FDI but also about building the country’s own innovation, technology, and industry. Costa Rica can no longer simply aim to attract subsidiaries; instead, the goal must be to attract research, design, and higher-value-added operations that contribute to a more advanced and sustainable Costa Rican investment attraction strategy.

The challenges facing Costa Rica in the global semiconductor industry

The semiconductor roadmap is an important step in planning for the country’s future role in the industry, but it must be updated as the context changes. Faced with global supply chain reconfigurations and a rapidly changing international semiconductor landscape, Costa Rica must deal with a number of key challenges that will define the next stage of its strategy for economic development. In this regard, the economist at UNIVERSIDAD ESTATAL A DISTANCIA emphasizes four key points that Costa Rica must focus on:

• Productive Linkages: Companies located in Costa Rica, especially multinational corporations, must generate local value. Through supplier development programs, technology transfer, and innovation partnerships, Costa Rica must integrate itself into a wider value chain that allows it to position itself as a center of excellence in a specific area. Integration in a broader regional ecosystem is key to the sustainability and growth of Costa Rica.
• Technology Transfer: FDI is not only about job creation but also about innovation and research. R&D and innovation need to be fostered through the creation of innovation clusters, links between academia and the productive sector, and technology centers focused on new materials, chip design, artificial intelligence, and other core technological areas that will power Costa Rica’s next-generation industries.
• Specialized Talent: Costa Rica must have the skilled and specialized talent to support industries of the future. Universities, technical schools, and the private sector must work together to expand talent and encourage professionals in engineering, data science, materials, advanced manufacturing, and related fields. The creation of Costa Rican human talent is the most important tool in the strategy.
• Strategic Adaptability: Costa Rica must be agile and able to quickly identify and seize opportunities in a shifting global industrial landscape. A clear focus on regulations, attracting talent, and positioning in areas of global strength will be key to Costa Rica’s ability to compete in a changing global context.

To successfully navigate this path and remain relevant, Quesada warns that Costa Rica’s investment attraction strategy needs a profound update that prioritizes the rethinking of productivity linkages with the Costa Rican productive sector. Experts are particularly concerned that companies operating in the country may no longer serve as generators of productivity linkages with the national industry and may not support the strengthening of Costa Rica’s own knowledge.

In this new industry, Costa Rica must prioritize both attracting direct investment and strengthening the competitiveness of its semiconductor industry and its research and development ecosystem. By generating effective and strategic links with its own productive sector, the country will be able to ensure that every dollar of FDI invested in Costa Rica will not only generate high-quality employment but also contribute to building a more sustainable and inclusive economy and technological leadership for Costa Rica. In a year in which multinational companies are ending projects and uprooting plants from Costa Rica, the Costa Rican investment attraction strategy must be urgently rethought if the country wants to continue consolidating itself as a hub for high-tech investment.

President José Jerí Oré presided over a high-level working meeting on October 27, 2025, with the general managers of Peru’s most representative business associations to speed up the work of dismantling bureaucratic barriers and strengthening the overall business climate. The objective is to consolidate trust in the government’s policy of attention and increase the volume of investment flow in Peru through greater transparency, efficiency, and articulation between the public and private sectors.

The activity was carried out at the Government Palace and represents a new stage in the economic policy of the Administration. “This meeting will be the first of a series of structured dialogues between the Executive and the business sector that will allow us to develop concrete and practical measures to definitively overcome long-standing administrative obstacles,” stated the President. The dialogue, he added, will give continuity to the structural reform process underway and will boost the competitiveness of Peru and the region.

Dialogue to face common challenges

On this occasion, the President of the Republic pointed out that this new mechanism marks a milestone in the government’s collaboration with the business community, signaling the government’s intention to make the state more agile, transparent, and predictable in its relationship with companies, especially micro, small, and medium enterprises (MSMEs). “For this, the authorities are committed to simplifying regulations and eliminating bureaucratic red tape,” he added.

One of the central axes of the first session was precisely the topic of modernizing municipal regulations. “We agree that, at the municipal level, many procedures are outdated, disarticulated, or even excessively bureaucratic,” stated the participants in the event. A first measure is to make inspection processes, operating licenses, and building permits more homogeneous between municipalities. The proposal is also to digitalize administrative procedures so that they have fewer bureaucratic barriers, less discretionary power, and are predictable in terms of response times.

These measures seek to consolidate the recent positive trend in investment flow in Peru, particularly in the manufacturing, retail, and logistics sectors. According to official data, these economic activities employ a large portion of the workforce and have high productivity levels, and their full potential can be unleashed with the simplification of administrative procedures.

Private sector welcomes dialogue

Business leaders, on their part, also showed their satisfaction with the meeting and the openness to dialogue expressed by the President. “The head of state has put his ear to the ground and, in person, he has had the opportunity to listen to us about the main difficulties we face and, at the same time, to receive suggestions and initiatives from each of us in order to strengthen the business climate,” explained the president of the business association.

He also added that this dialogue space will be renewed and that the dialogue will continue in other forums. “We have to find mechanisms and effective formulas to effectively dismantle these barriers in order to increase investment flow in Peru and activate economic growth,” he expressed.

Representatives of organizations such as the Society of Foreign Trade (ComexPerú), the National Confederation of Merchants (Conaco), the Hardware Chamber of Peru, the National Society of Industries (SNI), the Association of Shopping and Entertainment Centers of Peru (ACCEP), the Lima Chamber of Commerce (CCL) and the Mypes Unidas del Perú business association attended the event.

In addition, representatives of the Association of Grocers of Peru, the Peruvian Association of Beauty Entrepreneurs (APEB), the Peruvian Association of Gamarra Entrepreneurs, the Union of Restaurant Guilds and Associations of Peru, the Association of Bakeries and Pastry Shops (Aspan), the Chamber of Entrepreneurs of Mesa Redonda and many other associations working in commerce, services and manufacturing sectors participated. Each of the invited institutions presented a series of proposals to advance in the improvement of local regulations.

Some of the proposals are to reduce the number of agencies involved in each process, both at the municipal level and in national entities, as well as to coordinate each agency’s inspection processes so that these are not repeated, generating delays in operating permits and construction licenses. Each representative has reported the obstacles they face in the field that affect the business operations of their associates.

In particular, microentrepreneurs, especially in the capital, pointed out that they live a daily routine in which the problem of permits and inspections is exposed, not only at the municipal level but also with other national institutions. Faced with this situation, the participants have asked for official coordination so that they are not affected by repeated inspections or the non-release of licenses.

The meeting was described as constructive, transparent, and result-oriented. It was noted that, at last, there is a government that wants to act with legality, efficiency, and on a large scale to promote trust between the public and private sectors.

Open-door policy

In this sense, President Jerí Oré assured the general managers of the different business associations present that his administration will continue to open the doors of the Government Palace to listen to the concerns of the population in general and of all social organizations in particular. “Effective government also requires dialogue with those who generate activity in the country,” he said.

The head of state also emphasized that his administration will continue to call for forums, technical roundtables and consultations with both national and regional business sectors in order to advance in the modernization of the country’s business climate. In addition, it reaffirmed the importance of continuing to work on the issue of investment flow in Peru so that the country is seen not only as an open place for investors but also for businesses of all sizes and their trade associations.

Likewise, Peru’s new chief of state ratified the commitment to continue advancing in the simplification of all regulatory processes and to definitively eliminate bureaucratic barriers. He also announced that his intention is to prioritize the further development of municipal regulations that, he stressed, should be as uniform as possible in the entire country.

On this topic, the President also reported that, with decentralization as a central axis, the objective is to extend the initiative to other regions of the country with important productive potential, such as Arequipa, Trujillo, Piura or Cusco. In this sense, he also announced that, with greater regularity, the Government will call on representatives of economic sectors such as agriculture, mining, tourism, logistics and more, to seek new formulas of articulation that reduce bureaucratic barriers, simplify processes and generate the necessary conditions for the success of productive investments, especially in the aforementioned regions.

On the subject of investment flow in Peru, he added that “today we are giving great support and impetus to attract new investment flow to Peru and that they continue to be long term”, recognizing that only thus will it be possible to continue working on the structural change of the country and to guarantee sustained economic growth in the long term.

Impromptu inspections at police stations

In the framework of his visit to the police station in the district of Surquillo, which was executed in an improvised way, the President of the Republic also announced the fulfillment of a social promise by visiting the Surquillo police station, which was rebuilt in haste. In addition to inspecting the station, the president pointed out that he will also prioritize the facilities of the Lince Police Station.

On this occasion, the President of the Republic carried out an impromptu visit to the police station of the Lince district to verify the work conditions and identify the most urgent infrastructure requirements. The head of state was received by the district mayor, Manolo Rodríguez.

Police station in Surquillo

In the district of Surquillo, Jerí Oré walked through the premises of the police station located in San Diego Avenue, in the height of José Baquíjano, which had to be rebuilt in a hurry after the roof collapsed and had to be rebuilt. In addition to inspecting the place, the mayor of Surquillo, Cintia Loayza Álvarez, accompanied the head of state, who also announced the approval of a social promise with which the president pointed out that he will also visit the facilities of the police station in the district of Lince.

In this way, he stated that he has given priority to this security post with a new government project, due to the urgent need to rebuild it, which will be within the framework of a regional improvement project for this part of the city. The new construction, which is projected as a public security complex, would have not only the police station and its access square, but also a center for security assistance and job training, as well as a municipal theater.

The plan for the future

With these measures and the announcement of projects that will strengthen the country’s security, the administration seeks to face the security problems in the short term with permanent solutions and, in the long term, with structural improvements. It has been said that the visits are part of the President’s ongoing work program in the district and that this agenda includes an inspection tour that, on an incidental basis, is the government’s response to fulfill the social promise to rebuild the police station in the district of Surquillo and, shortly, in the district of Lince, which are the two most affected by a deterioration of their facilities. It is foreseen that soon there will be new infrastructure for these security centers in order to have better buildings.

Panama has once again positioned itself at the center of Europe’s attention as a prime destination for foreign investment. The president of the Panamanian Association of Business Executives (APEDE), Giulia De Sanctis, promoted the forum “Business Climate in Panama: An Entrepreneurial Perspective” in Rome. Held in partnership with Unindustria, the leading Italian business federation, the meeting aimed to bring the Latin American country closer to one of Europe’s most important industrial powers and assert the region’s emerging protagonism as a logistical, financial, and productive platform for access to Europe from Latin America and vice versa. “As stated in a press release by the Panamanian business group, the meeting served as a working base to promote productive and economic cooperation between both countries. The meeting’s theme and organization point to Panama’s interest in attracting Italian investment, an objective that will be achieved by showcasing the country’s open, stable, and globally connected business environment.

During her talk, De Sanctis pointed to Panama’s growth prospects, as “its economy will continue to expand by between 4% and 4.5% in 2025,” she predicted, thanks to its sound financial structure, dollarization, low inflation, and a robust service sector geared to regional trade. “Panama is a land of real opportunities,” she stressed, noting that its open, connected, and resilient economic model positions it as a unique meeting point between the Americas and Europe. That message could not have been received more enthusiastically by the Italian captains of industry, representing the industrial, energy, logistics, and financial sectors, which are already taking an active interest in the Andean region, thanks to Panama’s macroeconomic resilience and strategic location.

A Solid Bridge between the Americas and Europe

The Business Climate in Panama forum was thus intended to help consolidate Panama’s positioning as a strategic investment and commercial hub. It is a hub that is gaining strength as Panama prepares to enter the ranks of the Organisation for Economic Co-operation and Development (OECD) and implements an ambitious plan to develop its infrastructure, which will exceed $20 billion in projects. Some of these include Line 3 of the Panama Metro, the Fourth Bridge on the Panama Canal, and new ports and airport terminals. The latter investments are expected to further connect the country to the world’s leading economic centers. Together, these projects will not only expand Panama’s logistical capacity but also strengthen its position as the natural bridge between the Pacific and Atlantic markets. There are, therefore, further reasons why Panama seeks to attract Italian investment, particularly in infrastructure, logistics, and high-tech value chains.

These developments are key to Panama’s role as an important node in global trade, making the Latin American country a privileged partner for European economies seeking to diversify their presence in the Western Hemisphere. Italy, whose industries are often export-led, could gain access to Latin American markets through Panama’s geographic and financial advantages, enabling a rapid and predictable commercial presence in the region.

Incentives and a Transparent Legal Framework

During her speech, De Sanctis also highlighted Panama’s special investment regimes, including the Headquarters of Multinational Companies (SEM) and the Multinational Manufacturing Services (EMMA) framework. These regimes are designed to provide fiscal incentives, legal certainty, and operational flexibility for companies establishing regional headquarters or production plants in the Andean countries. European, North American, and Asian multinational companies are already taking advantage of these favorable conditions that allow them to benefit from exemption mechanisms and stability agreements. These policies prevent investors from being harmed by changes to the legal environment and tax regime, demonstrating the government’s intention to build a long-term, pro-business ecosystem built on trust.

The Panamanian business delegation highlighted that the country is not just a financial center but also a diverse business ecosystem that offers first-class infrastructure, a skilled, bilingual workforce, and a safe, transparent regulatory framework. This combination makes Panama an effective regional hub for operational management, one that international companies can count on to deliver the speed and logistical efficiency they need to succeed in an increasingly globalized market.

Logistics, Port, and Human Capital

One of the Latin American country’s most valuable assets is its logistical infrastructure, which has enabled it to rank among the best in the region. The interconnection of the country’s port system across both oceans, the modernization of its airports, and the continuous development of digital networks enable companies to operate seamlessly in the region. In addition, human capital is also well-trained and bilingual (English and Spanish), with professionals who are increasingly competent in areas such as technology, engineering, and business administration. This competitive edge is what sets the Andean country apart from other emerging markets in the region.

Panama’s potential, De Sanctis emphasized, goes far beyond geography: “The Andean country’s macroeconomic stability, sound banking system, and first-class logistics offer Italy and the rest of Europe an ideal platform to expand their investments into Latin America. Its business environment, on the other hand, is what makes Panama unique, as the Panamanian model offers investors a rare combination of predictability, global connectivity, and human talent that is key to obtaining sustainable yields,” the president of APEDE added.

Openness, Innovation, and Sustainability

The Rome meeting was supported by the Italo-Panamanian Chamber of Commerce, one of the institutions that are multiplying between the two countries. In addition, Panama’s ambassador to Italy, Winston Spadafora, and the ambassador to the Food and Agriculture Organization (FAO) of the United Nations, Francisco Ameglio, were also present. They both highlighted European investors’ growing interest in Panama, and especially from Italy, in productive sectors such as renewable energy, agribusiness, sustainable tourism, and advanced logistics.

APEDE reiterated its commitment to promoting Panama abroad with three fundamental pillars: trust, transparency, and sustainability. “These will be the defining elements of the new stage of development that we are just beginning to chart as a nation and as a business community,” said De Sanctis. In that sense, Panama seeks to attract Italian investment by building an economy that is as open as it is sustainable and by making European investors feel that they have a reliable, trustworthy partner.

Italy as a Strategic Ally

Italy, with its large industrial base and technological know-how, is an ideal partner for Panama to diversify its economy. Italian companies with experience in energy, infrastructure, shipping, or advanced manufacturing could find in Panama both a commercial ally and a regional operations center. It is a center that allows them to take advantage of fiscal advantages, strategic positioning, and political stability, among other issues. This can promote technology transfer, sustainable industrial development, and strengthen bilateral trade.

Panama Seeks to Attract Italian Investment with its Open Economic Model: Conclusion

As Panama seeks to attract Italian investment, it is not just presenting itself as a destination for capital but also as a strategic partner in the European Union’s economic projection into Latin America. With its solid macroeconomic base, state-of-the-art infrastructure, and reputation for trust, Panama is increasingly consolidating itself as one of the most dynamic and forward-looking economies in the region.