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I've seen some chatter that El Salvador should try to model itself on Singapore. I would say Singapore goes against pretty much every libertarian ethos except for being pro-business. It has about as heavy a hand as you can have as a government controlling society and citizens. Although I wouldn't class the UAE or Hong Kong as particularly libertarian either. So maybe we should start there. Clearly you have an affinity for the ideology, how do you square the circle regarding these regimes and personal freedoms etc...
As I have stated, I've never really nailed down a "libertarian" on what they actually believe and what a real world based on those beliefs would look like, even when I was the treasurer for our college libertarian society wayyyy back in the day (threw some good fundraising poker games). Maybe this is my chance if you're willing to go to bat.
I'm game. This being all under the caveat that libertarianism is a fairly large ideological tradition and many will disagree with me on specifics, either because they're anarchists or because they have different social views or views on power.
But they are moreso than the West, and it is really all that matters to me.
To understand why, a good guide is the conceptual frame of Hirschman's Exit, Voice and Loyalty. The basics of his view is that members of any human organization faced with the deterioration of the quality of the organization are faced with a dilemma if they want to address this problem. They can either use voice, which is to say that they can use the mechanisms of the organization to internally struggle to improve it. Or they can use exit, which is to say dissolving the relationship between them and the organization.
Libertarianism, in essence, is the ideology that favors exit paired with competition as the mechanism for solving social problems under the name of Freedom of Association. In this sense, libertarians do not care about political rights (voice) as much as liberals or socialists. But they care absolutely about exit rights. They are perfectly happy for organizations to provide services to them that they have no direct input in, as long as their ability to fully divest from such an organization is guaranteed.
Hans-Herman Hoppe is most famous for taking this lens, applying it to government and attempting to build over the years a view of a system of government that would rely on consent and still allow for the preferences of various different human groups to be addressed by free association.
In Democracy: The God that Failed, he excoriates universal suffrage (voice) as a solution to the political problem, much preferring to is the rise of natural elites, who would nevertheless be beholden to natural law. To this end, he envisions a system of "covenant communities" that would be able to exclude members that are undesirable to them. For an example he gives the idea of a village having a sign that reads "no beggars, bums, or homeless, but also no homosexuals, drug users, Jews, Muslims, Germans, or Zulus".
This is essentially how international cities function. You have no political rights. Law is applied swiftly and strictly. Undesirables are kicked out. Property rights are strongly guaranteed. Taxes are minimal. And private life is strongly separated from public life.
The west does not function like this. You are encouraged, if not forced to participate in politics. Law is loosely applied if at all. There are laws on the books against divesting yourself from essentially any group. Property rights are heavily conditional. Taxes are high. And the State is immensely interested in spying on and controlling private life.
Everything is more complicated that this in the details, of course, but I hope that I can at least give you a broad feeling as to how a libertarian might see these international cities as havens of freedom compared to, say, the European Union.
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