In the vibrant outskirts of Montevideo lies Zonamerica, a beacon of the developed world that has significantly influenced the stock exchange and brought positive changes to the region. Established in a humble neighborhood called Villa Garcia, this vast estate spans over 90 hectares and boasts 200,000 square meters of contemporary office buildings and expansive storage facilities. Zonamerica unfolds like a small, self-sufficient town with well-maintained streets, lush parks, and comprehensive services, making it the largest of the 12 free zones operating in Uruguay.
Modern Hub for Business and Innovation
As of 2024, Zonamerica is home to over 350 companies engaged in various activities such as logistics, administration, consulting, finance, and IT under a regime that exempts them from national taxes. This model, first instituted over a quarter-century ago, has proven tremendously successful, offering a conducive environment for businesses to thrive and expand.
The Origins
The story of Zonamerica begins with Orlando Dovat, who, inspired by his professional experiences in Mexico, returned to Uruguay with the vision of establishing a free trade zone. The opportunity came with the approval of the free zones law in December 1987. Dovat rallied support, securing capital and scouting for a strategic location. He enlisted a customs broker and convinced the Development Interamerican Corporation to invest U$S $4.5 million, giving birth to what was initially known as Montevideo Free Zone (MFZ).
Strategic Location
Finding the perfect spot was no easy feat. Experts recommended proximity to the airport and a minimum area of 25 hectares. The land they settled on was a Salesian Agricultural school situated 17.5 kilometers along Highway 8. They acquired 50 hectares for U$S 200,000. With the permit process underway, the free zone officially commenced operations in February 1990. This venture aimed to develop an industrial park that would bring essential services, promote cost savings, and adhere to modern global standards.
Unprecedented Growth
Zonamerica’s growth has been nothing short of remarkable. The estate expanded from 50 to 90 hectares in 2003. The number of companies surged from 40 in 1997 to over 300 by 2011. Today, approximately 350 companies operate within Zonamerica, underscoring its significance as a business hub.
Ownership and Investments
Currently, Zonamerica is owned entirely by Zonamerica Bahamas Limited, with Orlando Dovat and other shareholders holding a 56.5% share through America Real Estate Investments, while the Belgian business group, Fernand Huts, holds 43.5%. Notably, Zonamerica has consistently reinvested its earnings rather than distributing dividends. In 2014, it billed U$S $53.9 million, driven by existing clients expanding their leased areas. Continuous investments in infrastructure and services, particularly in technology, have been pivotal.
The company has now embarked on opening its capital in the stock market, bolstered by support from both international partners and the Montevideo stock exchange.
Workforce Dynamics
The workforce at Zonamerica is impressive. Some companies employ large numbers; for instance, Sabre has around 950 employees in call center operations. Tata Consulting Services, which started with just 15 employees in 2002, now boasts over 600 employees within Zonamerica and another 1,000 in Montevideo, offering services from software improvements for health corporations to auditing, retail, and insurance in the U.S.
By 2014, Zonamerica had a workforce of 10,744, with only 2% being foreign nationals. A 2014 satisfaction survey revealed a 92% satisfaction rate among users, the highest since such surveys began. Employees often enjoy their lunch breaks in the park or dine at Jacksonville’s trendy establishments, adding to the work-life balance appeal.
Zonamerica in 2024
Today, Zonamerica stands as a paragon among business parks. It has generated an extraordinary free zone regime, attracting companies keen on offshoring and outsourcing activities, essential in the modern capitalist economy. It offers a competitive space that supports the dynamic needs of service-focused businesses, supplying skilled, flexible, and adaptable workforces.
WTC Punta del Este Free Zone: The Future Beckons
As we look to the future, another significant development on the horizon is the WTC Punta del Este Free Zone, set to open in the second half of 2025. This new free zone will further bolster Uruguay’s reputation as a prime destination for international business.
Located in the scenic coastal city of Punta del Este, the WTC Punta del Este Free Zone aims to replicate and enhance the success of Zonamerica. With state-of-the-art facilities, advanced technological infrastructure, and an array of services designed to support businesses of all sizes, this new free zone promises to be a game-changer.
Companies operating within the WTC Punta del Este Free Zone will benefit from Uruguay’s favorable tax regime, top-notch connectivity, and a strategic location that provides easy access to both South American and global markets. Additionally, the zone will offer a high quality of life, attracting talent from around the world to enjoy the stunning beaches, vibrant culture, and modern amenities of Punta del Este.
In summary, Zonamerica has set a high standard for free zones globally, and the upcoming WTC Punta del Este Free Zone is poised to continue this legacy. Together, they represent Uruguay’s commitment to fostering innovation, supporting businesses, and driving economic growth in the region.
If you’re planning to establish your business in this vibrant market, reach out to Team Haverkate, the foremost experts in Uruguayan real estate. Their unparalleled expertise will help you secure the ideal location to achieve your business goals.
