If the Dominican Republic is synonymous with tourism, so is Foreign Direct Investment (FDI) and the year 2022 was proof of this. According to the Central Bank of the DR, last year it reached US$4,010.4 million, with an inter-annual growth of US$813.6 million (25.5 %) during that period. The figure is notable because it represented 35 % of Central America’s investment flows.
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Which sectors in the DR received the most FDI in 2022?
According to data from the Export and Investment Center of the Dominican Republic (ProDominicana), the sector that received the most Foreign Direct Investment was tourism, in the amount of US$1,011.1 million, with an inter-annual growth of 3.75 %.
The results are not minor. The Dominican Republic was a partner country and guest at the International Tourism Fair (FITUR) 2022 in Madrid, Spain. In addition, Ministry of Tourism figures indicate that 2022 was the best year for the sector with more than 7 million visitors; aspirations are to raise the figure to 9.8 million tourists.
The energy sector received US$753.4 million, representing a year-on-year growth of 170.81 %.
As for the real estate sector, US$483.9 million arrived; in 2021 the figure stood at US$535.9 million, so the interannual growth for 2022 was negative, with -9.69 %.
Mining attracted US$377.3 million, representing a year-on-year growth of -29.60%. In 2021, FDI for this sector was US$535.9 million.
Trade and Industry, one of the pillars of the Dominican economy, had an interannual growth of 95.02 %, attracting US$599.5 million; the previous year the figure was US$535.9 million.
The Free Zones sector received US$361.8 million, an interannual growth of 27.62%. During the event Transport, Logistics & Free Zones Summit 2023, organized by Mercado Events, Luis José Bonilla, president of the Dominican Association of Free Zones (ADOZONA) and featured in the Cover Story of the April issue of Mercado magazine, explained that the key to the success of this sector is based on public-private alliances, legal security, and logistics.
With a total of US$169.1 million raised, the financial sector had a year-on-year growth of 46.03%; in 2021, the figure stood at US$115.8 million.
Telecommunications in the Dominican Republic also benefited from Foreign Direct Investment. The sector attracted US$191.9 million, a year-on-year growth of 127.64 %, far exceeding the previous year’s figure of US$84.3 million.
The transportation sector reported figures in the order of US$62.4 million, representing an interannual growth of -23.25% when last year’s figure was US$81.3 million.
Country of origin of FDI in 2022
The United States, Canada, and Mexico are the main countries of origin of FDI received by the Dominican Republic in 2022.
Of the total of US$4,010.4 million in FDI, a total of US$1,520.9 million came from the United States. From Mexico, the figure was US$394.4 million, while from Canada the amount was US$366.2 million.
The rest of the FDI by country was as follows:
Spain: US$346.5 million.
Other countries: US$303.7 million.
British Virgin Islands: $224.4 million.
Venezuela: US$140.6 million.
Germany: $135.5 million.
Brazil: $109.5 million.
Denmark: $102.7 million.
France: US$97.7 million.
Panama: $84.5 million.
United Kingdom: $66.8 million.
Switzerland: $50.5 million.
Italy: $46.6 million.
Colombia: $10.3 million.
Cayman Islands: $8.9 million.
Netherlands: US$0.4 million.
Australia: US$0.3 million.
Recognition to ProDominicana
ProDominicana was recognized as one of the leading promotion agencies in Latin America and the Caribbean with the Global 2023 Investment Award at the Annual Investment Meeting (AIM) organized by the government of the United Arab Emirates.
Biviana Riveiro Disla, executive director of ProDominicana, indicated that they remain “committed to continue fostering a business-friendly environment, working with investors and stakeholders to ensure that the country remains an attractive and competitive destination for Foreign Direct Investment.”
Gabriel Rico Albarrán
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