The Vice President of the Republic, president and coordinator of the Investment Promotion Cabinet, Raquel Peña, highlighted that the Dominican Republic enjoys special characteristics that make the country an attractive destination for foreign direct investment, such as its geographic location, a robust regulatory framework, together with true political, economic and social stability.
“Our country is an attractive destination for foreign direct investment, due to our geographic location and proximity to highly relevant commercial destinations, which places us on the map of ‘nearshoring’, a strategy increasingly used as a mechanism to reduce costs and mitigate risks associated with tariffs and delays in the supply chain,” said Peña.
The purpose of the meeting with the Diplomatic Corps accredited in the Dominican Republic was to present the work of the Investment Promotion Cabinet, and to increase the benefits between countries. At the event, held in the Salón Las Cariátides of the National Palace, the official said that the Dominican Republic currently enjoys a more robust regulatory framework, which has been strengthened to provide greater legal certainty to investors.
She highlighted that the nation has the most connected airport in the Caribbean, as well as a port infrastructure that places this nation in the third place of best maritime connectivity in the region, which makes the Dominican Republic a safe bet for investment in a context of political, economic and social turmoil worldwide.
“It is for this and other reasons that the Economic Commission for Latin America (ECLAC) recognized our country as a leader in foreign direct investment, capturing 48% of the capital invested in the region,” stressed the Vice-Minister.
Peña pointed out that the favorable climate for foreign investment that we have, highlighted by international organizations, is not the result of chance, but rather, it is due to the forceful measures that President Luis Abinader has taken at the most opportune moment to promote economic growth, in spite of the adverse conditions due to war conflicts and the effects of COVID-19.
“This government has placed foreign investment in a position of great relevance, aware that this represents the greatest vehicle for sustainable economic development, and an example of this is precisely the integration and articulation, by decree, of the Investment Promotion Cabinet,” he said.
For his part, the Minister of Foreign Affairs, Roberto Álvarez, expressed that “for countries like ours, well-managed foreign investment is vital when it is to stimulate, among other things, local capital investment; facilitating improvements in the placement of human capital can improve and increase quality jobs and therefore vital income; this chain of actions and their effects, guide us towards economic stability but above all towards sustainable development that redounds to that of the State and the population”.
Álvarez emphasized that Mirex has spared no effort in promoting the execution of the second axis of the foreign policy, which refers to the promotion of Dominican exports, foreign trade and the attraction of foreign direct investment.
The Minister of Industry, Commerce and Mipymes, Victor “Ito” Bisonó, indicated that the Dominican Republic has been the Latin American country with the highest economic growth in recent years, according to IMF data. For the period 2014 – 2019, the country grew by an average of 6.2%, above Mexico (2.4%) and Costa Rica (3.3%).
“Our country enjoys one of the best levels of connectivity in Latin America, which allows access in record time to the markets of Europe, Asia and the United States. It has 8 international airports from which 320 flights depart daily, connecting the country,” highlighted Bisonó.
Entities highlighting favorable climate
The World Tourism Organization released the first Investment Guide of the Dominican Republic, where it highlighted the country as one of those with the best conditions for investment in the tourism sector due to its geographical location, legal security, solid political stability, among other factors.
Meanwhile, the World Bank, in its overview of the Dominican Republic, noted that the timely response of the government during the pandemic allowed a rapid recovery, reaching a growth of 12.3% in 2021.
The World Bank report also highlights the fiscal and monetary policies as the mainstay of the economy; this, together with the effective vaccination campaign, the consolidation of the tourism sector, as well as the increase of free trade zones to promote exports. As a result, the country was recognized as the second fastest growing economy in Latin America.
The Investment Promotion Cabinet
In 2020, President Luis Abinader created, through Decree 498-20, ten cabinets, including the Investment Promotion Cabinet, in order to guarantee higher levels of coordination and increase efficiency, effectiveness and agility in decision making at the level of the Public Administration and by the President.
In addition, through Decree 849-21, President Abinader appointed the Vice President of the Republic, Raquel Peña, as coordinator of the Investment Promotion Cabinet, which has the objective of promoting within the Public Administration the policies, guidelines and mechanisms so that, in an articulated and agile manner, facilities and processes can be developed to encourage investment in strategic sectors that contribute to the improvement and elevation of the country’s competitiveness.
The Investment Promotion Cabinet is integrated by the heads of the following institutions: the Vice-Presidency of the Republic, who presides and coordinates it; the Export and Investment Center of the Dominican Republic (ProDominicana), who acts as secretary. Also the Ministry of the Presidency; Ministry of Finance; Ministry of Industry, Commerce and Mipymes; Ministry of Tourism; Ministry of Environment and Natural Resources; Ministry of Economy, Planning and Development; and Ministry of Foreign Affairs. In addition, the General Directorate of Public-Private Alliances and the Banco de Reservas.