The U.S. State Department’s latest report, titled ‘2025 Investment Climate Declarations: Dominican Republic,’ underscores the Dominican Republic’s robust economic growth and its efforts to attract foreign investment under President Luis Abinader’s leadership. The report highlights the country’s upper-middle-income status and its position as one of Latin America’s fastest-growing economies over the past five decades, with a projected real GDP growth rate of 5% by 2024. Foreign direct investment (FDI) has been a cornerstone of the Dominican economy, making it one of the Caribbean’s largest FDI recipients. The government has actively incentivized foreign investment through tax exemptions and other benefits, particularly in strategic sectors such as tourism, real estate, telecommunications, free trade zones (FTZs), mining, and energy. Additionally, the Dominican Republic’s membership in the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) has bolstered its appeal to international investors by enhancing competition, strengthening the rule of law, and improving access to quality products. The United States remains the country’s most significant individual investor, with CAFTA-DR providing protections such as dispute resolution mechanisms to reinforce investor confidence. However, the report also identifies challenges, including a lack of priority for key reforms, particularly in the electricity sector, and high levels of informality. Other concerns include transparency issues, poor law enforcement, perceived corruption, bureaucratic inefficiencies, and inconsistent administrative and judicial decisions. Land tenure disputes and weak protection of private property rights further complicate the investment landscape. Despite these obstacles, the Dominican Republic continues to present significant opportunities for foreign investors, driven by its economic potential and strategic initiatives.
A U.S. report highlights that the Dominican government actively promotes foreign investment.
