The World Investment Report 2024 from this organization highlights the country’s regional leadership and emphasizes the implementation of one-stop shops for investment as a key element in attracting and retaining foreign investment.
The World Investment Report 2024 from the United Nations Conference on Trade and Development (UNCTAD) highlights the Dominican Republic’s leadership in attracting investments, surpassing other countries in Central America and the Caribbean.
UNCTAD specifically mentioned that the Dominican Republic maintained its growth trend, with foreign direct investment (FDI) inflows increasing by 7% compared to 2022, reaching US$4.39 billion.
Biviana Riveiro Disla, Executive Director of the Export and Investment Center of the Dominican Republic (ProDominicana), stated that the report demonstrates that “in the Caribbean and Central America regions, FDI increased in both 2022 and 2023, driven primarily by investments in the Dominican Republic, which exceeded US$4 billion for the second consecutive year, setting record after record and representing a 45% growth compared to 2019.”
This performance stands out amidst a global environment where global investment flows experienced a general decline of 2% from 2022, amidst increasing geopolitical tensions and economic slowdown, leading some multinational enterprises to adopt a cautious approach towards international expansion. A deeper breakdown of these data reveals that FDI flows to developing countries decreased by 7%.
Riveiro also emphasized that “these results support the dynamism and high level of resilience of the Dominican economy despite high levels of uncertainty prevailing in the international context, consolidating the nation as a benchmark for competitiveness in the region.” She attributed this success to President Luis Abinader’s leadership, which has provided firm support for foreign investment, boosting both initial investment and reinvestment, based on confidence in implemented public policies and an environment characterized by economic and political stability, legal certainty, and social peace.
Facilitation of investments and digital governance
As a central theme of its report, UNCTAD presented investment facilitation and digital governance as means to increase foreign investment.
In this context, ProDominicana’s director noted that “through this international body, it is evident that initiatives like our One-Stop Shop for Investment (VUI) contribute to good governance and institutional strengthening.” Online tools to facilitate business and investments have proven to be an excellent starting point for expanding digital governance. Such measures are valuable for businesses at all stages of development by simplifying procedures, enhancing transparency, and leveraging digital platforms like online one-stop shops.
UNCTAD asserts that these measures foster a more favorable investment climate, especially in developing countries. They highlight that digital facilitation of investments is a key step towards broader digital government services development and indirectly supports sustainable development goals. These tools lead to more efficient administration, thereby increasing the attractiveness of countries for foreign investors.
ProDominicana’s executive director affirmed that their institution aims to support investment projects through an institutional service ecosystem. The VUI aims to streamline and enhance transparency in procedures, facilitating investments across project lifecycles. Currently, the VUI integrates 21 institutions, covering over 33 procedures and 4 comprehensive investment sectors.
Riveiro concluded by stating that ProDominicana, through its investment promotion efforts, acknowledges that UNCTAD’s findings validate their strategies to strengthen the Dominican Republic’s position as a business destination, aligned with international best practices and recommendations. She highlighted ongoing efforts to attract investments in new niches with a vision of innovation and sustainability.
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