SANTO DOMINGO, Dominican Republic – In a global context marked by increasing economic uncertainty and market volatility, the Dominican Republic is consolidating itself as a global benchmark for foreign investment, especially for companies seeking new destinations from which to operate to reduce costs, mitigate risks, and strengthen the resilience of their supply chains.
With a GDP growth of 5.0 percent in 2024, the highest in all Latin America and the Caribbean, the country remains one of the most dynamic, outperforming larger economies. For the coming years, this impressive dynamism is expected to continue, with IMF growth projections of 4.5 percent and 5.1 percent for 2025 and 2026, respectively, driven by solid political and social stability, a robust financial system, and favourable economic policies for business development. This extraordinary performance has also strengthened the confidence of international investors, reflected in the improvement of the country’s credit rating by major rating agencies such as S&P Global and Fitch Ratings.
Thus, beyond its idyllic landscapes, the Dominican Republic has managed to establish itself as a key destination for Foreign Direct Investment (FDI). In 2024, according to the United Nations Conference on Trade and Development (UNCTAD), FDI in the country increased by 7.1 percent, representing 41 percent of the capital flows captured by Central America.
The Dominican Republic Industrial Tech revolution is no longer a secret – it’s a movement. This dynamic shift is not only transforming the country’s industrial landscape but is also positioning the Dominican Republic as a central hub for technological innovation, creating exciting opportunities for growth and international partnerships.
Global companies continue to choose the Dominican Republic to relocate their operations in key sectors such as medical and pharmaceutical products, electrical and electronic devices, textile manufacturing, tobacco and its derivatives, jewelry, among others. Clearly, this outlook shows that nearshoring is not an emerging trend, but a reality in the country. We’ve seen how innovation, investment, and talent are transforming the nation into a powerhouse of technological advancement.
Free Zones in the Dominican Republic: Engine of Economic Diversification and Nearshoring
The growing interest in creating more resilient, sustainable, and closer supply chains to end consumer markets has made nearshoring a key competitive strategy for companies. In this context, the Dominican Republic, located just two hours by air and two days by sea from the United States, offers multiple competitive advantages:
- Geographic proximity to the world’s largest consumer markets.
- Legal security and clear, predictable rules of the game.
- Top-level connectivity and logistics infrastructure, with 8 international airports, 18 seaports, 5 logistics centers, and 33 logistics operator companies. This infrastructure includes ports that have positioned themselves as important terminal operators, playing a strategic role in the sustainability of global supply chains.
- Several Free Trade Agreements, including DR-CAFTA and EPA, which open the doors to more than 900 million potential consumers worldwide.
- Competitive operational costs.
These extraordinary advantages, combined with the attractive tax incentives offered by the Free Zones Regime, make the Dominican Republic an unbeatable investment destination for companies looking to relocate or expand their manufacturing operations.
Free Zones, which have been successfully implemented for over half a century without modifications, have played a crucial role in the industrial and social development of the country, attracting the attention of global companies, including those on the Fortune 500 list, and consolidating themselves as a key pillar of the economy. Their main benefits include:
- 100 percent tax exemptions on national and local taxes.
- Access to a skilled and competitive workforce, with experience in advanced manufacturing processes.
- Specialized training and development programs.
- Simplified customs processes that streamline export logistics.
- Competitive wage structures tailored to the Free Zones Regime.
- Parks operators which offer business services and solutions to facilitate the operations of Free Zones companies.
Clearly, this is an exceptional regime for companies interested in developing operations with certainty and predictability, strengthening their supply chains, and successfully navigating disruptions and changes in the global environment.
- MICM is the government agency responsible for the formulation, adoption, monitoring, evaluation, and control of policies in the fields of industry, exports, foreign trade, free zones, special regimes, and SMEs.
