What Happened
Panama became the meeting point for a major global debate on the future of free zones and special economic zones, as the World Free Zones Organization held its 12th annual congress in the capital from May 12 to 14. More than 2,000 business leaders, zone executives, international organization representatives and senior officials from 60 countries attended, including 27 ministers.
The central message of the gathering was that free zones must evolve beyond traditional tax- and incentive-based models. The new direction emphasized integrated industrial ecosystems built around innovation, renewable energy, green infrastructure and circular-economy principles.
World FZO president Mohammed Al Zarooni said the Panama edition marked a key milestone for the organization, placing free zones at the center of global conversations on trade, investment, innovation and economic development. For Panama, hosting that conversation reinforced the country’s role as a regional logistics hub and as a venue for high-level commercial diplomacy.
Why the Debate Matters
The discussions reflected the pressures now shaping global trade. Geopolitical shifts, supply-chain restructuring, digital transformation and sustainability requirements are forcing governments and zone operators to rethink how these platforms work. Free zones are no longer being discussed only as places where companies benefit from fiscal advantages; they are increasingly viewed as instruments for industrial policy, export competitiveness and job creation.
Sessions during the congress examined artificial-intelligence-driven manufacturing, digital transformation, sustainable infrastructure, eco-industrial zones and the role of special economic areas in strengthening regional integration. Those themes are especially relevant for Panama, where logistics, port activity and services connected to trade already play a central role in the economy.
Organizers also highlighted opportunities in logistics, tourism, agribusiness and the knowledge economy. For a country such as Panama, which sits at the crossroads of hemispheric trade routes and depends heavily on connectivity, those sectors align with broader efforts to attract investment and diversify growth.
Regional Cooperation in the Caribbean
One of the most significant outcomes was the signing of a memorandum to create the Caribbean Special Economic Zones Association, known as Cari-SEZA. The new regional group is designed to support modernization, strategic development, trade and investment cooperation across special economic zones in the Caribbean.
Founding signatories include Jamaica, Saint Lucia, the Dominican Republic, Aruba, Grenada, Trinidad and Tobago and the Caribbean Association of Investment Promotion Agencies. The move signals growing regional interest in treating special economic zones as shared development tools rather than isolated national projects.
UN Tourism and the World FZO also presented a joint report on tourism special economic zones, outlining how existing zones can be adapted to attract tourism investment and how new zones could be created with tourism as the main focus. That is particularly relevant for Caribbean and Central American economies seeking to expand beyond traditional export and logistics sectors.
What Comes Next
The congress also held its Annual General Assembly, which adopted strategic resolutions aimed at strengthening the organization’s operational framework and its global free-zone network. Elections for a new board were also conducted.
The next annual World FZO congress will take place in the Dominican Republic in 2027, followed by Dubai in 2028. For Panama, the event adds momentum to a broader regional shift: free zones are increasingly being judged not only by the incentives they offer, but by how well they support cleaner production, smarter infrastructure and more competitive supply chains.