Free trade zone investment in the Dominican Republic is concentrated in three provinces

Photo: Forbes Dominicana

By 2021, foreign direct investment accumulated by the free trade zones reached US$4,642.01 million. 

A recent study published by the Dominican Republic’s Export and Investment Center (ProDominicana) revealed that 73% of free zone investment in the Dominican Republic is concentrated in three provinces of the country.

These are Santo Domingo, where free zone companies have allocated 32.7% of their investments; Santiago, where they have invested 26%; and San Cristóbal, which has 14.3%. Also noteworthy is the participation in La Romana, which has captured 5.4%, and the National District, 3.2%. The remaining percentage is distributed in other parts of the country.

In Santo Domingo, which is the capital and where most of the population is concentrated, the sector’s investment, which increased 14% last year, exceeds 1,928 million dollars and generates some 40,894 jobs.

The main economic activities in this province are commerce, manufacturing, and logistics services, according to the study.

“In Santo Domingo, foreign capital companies dedicated to service and manufacturing activities such as DP World Caucedo, Grupo Vinci, Jumex, and Frito Lay Dominicana stand out,” says the publication entitled “Provincial Productive Profiles for the Promotion of Exports and the Attraction of Investment for Development”.

In Santiago, in the country's north, the amount invested in the free trade zones amounts to US$1,553.24 million and direct jobs to 53,534. In 2021, companies operating under this regime increased their investments by 17% in this province, where the main economic activities are industry, agribusiness, and agriculture.

In San Cristóbal, which borders Santo Domingo to the east, the investment amounts to US$846.46 million and the sector creates 27,538 direct jobs. Both indicators grew by around 10% in this demarcation in 2021.

The study states that, according to preliminary data from the National Council of Free Export Zones (CNZFE), as of 2021, the accumulated foreign direct investment by free zones reached US$4,642.01 million.

Investors come mainly from the United States, United Kingdom, Germany, Canada, Switzerland, Sweden, Denmark, Spain, China, among other countries.

Source: Lilian Tejeda (2022, June 16). Inversión de las zonas francas en República Dominicana se concentra en tres provincias. Forbes Dominicana. Retrieved June 23, 2022, from https://forbes.do/negocios/2022-06-16/inversion-de-las-zonas-francas-en-republica-dominicana-se-concentra-en-tres-provincias