Speech by the Minister of Finance, Javier Silvania, at the World Congress of Free Zones in Dubai

Distinguished Ministers, it is a great honor for me to be part of this panel in Dubai, where we can share experiences and strategies to create new opportunities for our regions’ future through the free zone mechanism.

Firstly, I would like to introduce Curaçao, a beautiful island in the eastern Latin American Caribbean that is part of the Dutch Kingdom of the Netherlands. As a result, we have close ties with the Dutch Nations and enjoy a range of economic and social benefits, including access to the European Union through the Overseas Country and Territories (OCT) Decision.

Recently, Curaçao completed a crucial strategic planning exercise that aimed to answer the question: “What are the new opportunities that globalization brings to our island, and how can an appropriate and modern free zone regime become one of the most important instruments to attract the necessary investments and opportunities that we need urgently today?” The international benchmarking exercise yielded three main results:

1. We found that our island receives two million visitors annually, which is 13 times the size of our population, and most of these tourists are beach and sea enthusiasts. As policymakers, we recognize that this population requires special attention. Furthermore, it is possible to carry out e-commerce trade operations on the planes that transport these tourists, as the bellies of the planes are usually empty.

2. Curaçao is located geographically above Colombia and Venezuela, and the latter country is on the verge of a new border and trade opening. This development will attract new opportunities for the supply of products and services to the island’s economy. Additionally, by strengthening the logistics of our free zones, we aim to provide vital services to the islands of Aruba and Bonaire.

3. Curaçao has Curinde, the main operator of three business parks on the island, situated in strategic locations such as the country’s harbor, the Harbor Free Zone, the Airport Free Zone next to the international airport, and an industrial park. These business parks currently host 145 companies and generate over 1,200 jobs. They also hold quality certifications such as ISO 28001 plus ISO-18788 and are in the process of joining the OECD’s Safe Free Zones program.

Curinde will be the driving force behind the change coming to Curaçao. The study prioritized several strategic sectors, which we believe are the main pillars of our investment attraction strategy, namely:

I. We have a competitive advantage as an area free from the risks of hurricanes and other natural disasters, and we are ready to relaunch shipyard services for yachts, boats, sailboats, and international marinas under the country’s free zone regime. Additionally, our designated areas to accommodate luxury yachts, coupled with the fact that our maritime areas will fall under the free zone regime, make Curaçao an attractive destination for luxury yacht owners. Furthermore, the same free zone regime that applies to our shipyard services also applies to call centers, making Curaçao an ideal location for such businesses to establish themselves.

II. Health: Health policies in modern countries often include a health tourism component. We are confident that Curinde will capitalize on this opportunity through its free trade zones.

III. Cross-border e-commerce: E-commerce is expected to reach 35% of world trade in less than three years, and Curaçao and its free zones want to play a significant role in this transformation by taking advantage of every airplane’s empty cargo belly.

IV. BPO services: Services trade will be the future, as the supply chains altered by disruptions such as COVID-19 and other international events are rearranged, precisely due to risk aversion. Services have an ever-increasing demand trend, and as Curaçao’s population speaks English, Spanish, Dutch and Papiamento, we have an incredible opportunity to provide services.

V. Shared Services Centers: We aim to develop a comprehensive strategy to address all aspects of the free trade zone supply chain, drawing on the experiences of leading countries in this field, such as India and Dubai. By doing so, we aim to turn Curaçao into a paradise for, among others, the Dutch population to work from the island during wintertime.

VI. Cinematography: Curaçao’s unique and picturesque landscapes make it a popular destination worldwide. By establishing an entertainment production hub in a free zone, we can capitalize on this reputation and make a strategic and obvious decision.

VII. Data Centers: Data centers offer a unique opportunity to attract local and foreign businesses to Curaçao by creating a gateway to the international trade system. Reducing barriers to entry and promoting exports is crucial for building a competitive business ecosystem.

Having identified these key strengths of the island, we analyzed the incentives offered by other Latin American and Caribbean islands, such as the Dominican Republic, Jamaica, Costa Rica, Panama, and Colombia. We have designed incentives that conform to the parameters of the World Trade Organization and the principles of substantial activity required by the OECD, in order to level our tax proposal with those of other Latin American and Caribbean countries.

The outcome from this prospecting exercise is the elaboration of a bill that will be presented to our congress by the minister of economic affairs, the minister of justice and the minister of finance. Once the law is enacted, Curaçao will have one of the most modern free zone legislations in Latin America.

In conclusion, I would like to express my gratitude to the WFZO organization for their valuable contributions to the development of free trade zones globally. We are truly grateful for your support.

I also would like to reiterate my confidence in the Government of Curaçao and the free zone mechanism as powerful tools for economic and human development, effectively tackling social and poverty issues.

We would be thrilled to have you visit our island, and we pledge to provide you with an unforgettable experience. And who knows, maybe we can even treat you to our famous blue liqueur while you’re there!

Thank you.