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BiggerA U.S. report highlights that the Dominican government actively promotes foreign investment.
The U.S. State Department, in its report titled “2025 Investment Climate Declarations: Dominican Republic,” stated that the Dominican Government, led by President Luis Abinader, has actively promoted foreign investment in the country.
The document highlights that the Dominican Republic, a country with an upper-middle-income status, has been one of the fastest-growing economies in Latin America over the past 50 years, with a projected real Gross Domestic Product (GDP) growth rate of 5% by 2024. According to the report, foreign direct investment (FDI) plays a crucial role in the Dominican economy, with the country historically being one of the largest recipients of FDI in the Caribbean region.
The document also highlights that, in addition to financial incentives, the Dominican Republic’s membership in the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR ) represents an advantage for foreign investors. Experts note that the agreement has contributed to increased competition, strengthened the rule of law, and expanded access to quality products in the country.
The United States remains the most significant individual investor in the Dominican Republic. CAFTA-DR includes protections for foreign investors, such as dispute resolution mechanisms, which reinforces the confidence of international capital in the Dominican economy.
Challenges and challenges
However, the report notes that the Dominican Government faces significant investment challenges. Among the challenges cited by investors are the lack of priority given to key reforms, such as those in the electricity sector, and high levels of informality.
Foreign investors also identify a lack of transparency, poor implementation of existing laws, and the perception of corruption at both the national and local levels. Other obstacles include a lack of technical expertise within the Government, delays in Government payments, excessive bureaucracy, and non-standardized procedures for customs valuation and import classification.
Likewise, problems related to land tenure and the protection of private property rights persist, as does the perception that administrative and judicial decisions are inconsistent, opaque, and slow.
Parts of the report where the above is mentioned:
