Noboa announces the establishment of Ecuador’s first ‘technology free trade zone’ in Cuenca

In his Tuesday visit to Cuenca, President Daniel Noboa predicted a new technology center in the Ricaurte parish would become a high-tech magnet for research and development, attracting national and international firms. Called a “technological free trade zone,” companies locating to the three-hectare site will enjoy tax breaks and other incentives.

Construction of the technology center in Ricaurte will begin in October or November.

The new Center for Research, Innovation and Technology Transfer will be managed by the Catholic University of Cuenca in partnership with the Chamber of Industries, the Ministry of Production and Foreign Trade. The center will include laboratories, data centers and research and development facilities as well as office space for participating companies.

According to Noboa, a team of specialists from the United Arab Emirates will provide expertise for artificial intelligence projects at the center.

In his comments, Noboa said government support will help generate employment and offer career opportunities for young people in the areas of programming and software development. “Because of its many universities, Cuenca is known for its large pool of highly skilled technology workers who will help develop the center and create new products and services,” he said.

He added: “Another reason for locating the project here is Cuenca’s reputation for being one of the safest, most secure cities in Latin America. This will be especially attractive to foreign investors.”

Sofía Arce, executive director of center, reported that five local companies have confirmed they will relocate to the Ricaurte facility. She said several foreign companies have expressed an interest in joining the center as construction progresses.

Among the tax incentives the government is offering participating companies are: 0% income tax for five years and a fixed rate of 15% thereafter, a permanent exemption from the national VAT, the currency exit tax and tariffs.

During his Cuenca visit, Noboa recognized 131 women graduates of agricultural development projects. He also announced that 268 land titles would be presented to farmers in Azuay Province.