The Future is Here: Cuenca to Host Ecuador's First Tech Free-Trade Zone

Cuenca, a city long celebrated for its stunning colonial architecture and vibrant artisan culture, is now set to become the epicenter of a new technological revolution in Ecuador. In a landmark move, the country’s very first duty-free zone for technology will be established here, bringing with it a bold vision for innovation, economic growth, and a new generation of skilled professionals.

This ambitious project, a key campaign promise from President Daniel Noboa, is the result of a collaborative effort between the national government, the Chamber of Industries, Production and Employment of Azuay (CIPEM), and the Catholic University of Cuenca.

To kickstart the project, the Catholic University of Cuenca has donated three hectares of land in the Ricaurte sector, the site of its Center for Research, Innovation, and Technology Transfer (CIITT). This physical space will be transformed into a dynamic ecosystem, attracting both established companies and promising startups. Five Cuencan companies have already committed to using the site, which will eventually feature multiple new buildings to support their work.

The goal is to move beyond being a consumer of technology and become an exporter of it. As Enrique Pozo, the university’s rector, stated, "We no longer want to just be consumers; we want to be exporters of software, artificial intelligence, and technologies." This new hub will offer a unique opportunity for students and researchers from various universities to participate directly in the creation of new technologies.

The establishment of this zone comes with significant benefits designed to attract investment and foster growth. Companies operating within the zone will enjoy a five-year exemption from income tax, as well as the elimination of both VAT and ISD taxes. After this initial period, a fixed tax rate of only 15% will apply. These incentives are powerful tools to promote innovation, attract investment, and create new job opportunities for young, local talent.

Furthermore, this initiative is a testing ground for President Noboa’s "hourly payment work" proposal, which aims to increase job availability across the country. The tech free-trade zone is expected to create a highly-skilled workforce, capable of developing technological services to be sold abroad, which would significantly boost the national economy.

The project has garnered both local and international support. It-Territorios Inteligentes, a local company, is a major driving force behind the initiative, with its manager, Mariela Ochoa, serving as the Vice President of the CIPEM's Software and Technology Nucleus.

On a global scale, the project is receiving technical assistance from a world leader in artificial intelligence and innovation: the United Arab Emirates. This collaboration underscores the seriousness of the project's ambition. The Noboa administration has also held discussions with global tech giants like Google, Amazon, and Palantir for potential assistance, highlighting the high-level backing behind the initiative.

This new tech ecosystem is not just for the tech sector. It's also designed to provide much-needed support for Cuenca's burgeoning tourism industry, which has seen steady growth over the past two years. By developing advanced technological services, the zone can enhance the tourism experience and, once well-established, can help strengthen and grow other industries as well.

The creation of Ecuador’s first tech free-trade zone is a bold step forward for Cuenca, aiming to position the city as a regional hub for technology, research, and development. The project reflects a commitment to transforming the local and national economy and creating a new generation of professionals for the future.