{"id":8781,"date":"2022-12-13T14:34:57","date_gmt":"2022-12-13T14:34:57","guid":{"rendered":"https:\/\/dmklawyers.com\/?p=8781"},"modified":"2022-12-14T15:29:18","modified_gmt":"2022-12-14T15:29:18","slug":"2022-another-year-of-record-jobs-and-investment-for-dominican-free-trade-zones","status":"publish","type":"post","link":"https:\/\/dmklawyers.com\/en\/2022-another-year-of-record-jobs-and-investment-for-dominican-free-trade-zones\/","title":{"rendered":"2022 another year of record jobs and investment for Dominican Free Trade Zones"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

PUNTA CANA. \u2013 With 15 parks and 204 new companies approved in the Dominican Republic between August 2020 and November 2022, the Free Zones sector is constantly expanding, forecasting an investment amounting to more than 500 million dollars and the creation of some 32,500 direct jobs for next year.<\/p>\n\n\n\n

All through 2022, the sector has registered historical results and an excellent performance in terms of job creation, exports, number of companies operating, accumulated investment and local purchases.<\/p>\n\n\n\n

This was reported during the XXV Conference of Free Zones of Ibero-America of the Association of Free Zones of the Americas (AZFA), held on December 2 in Punta Cana and inaugurated by President Luis Abinader. The data was provided by the Ministry of Industry, Trade and MSMEs (MICM), the Dominican Association of Free Zones (ADOZONA) and the National Council of Free Export Zones (CNZFE).<\/p>\n\n\n\n

This dynamic sector will continue to grow, attracting new investments and promoting the expansion of existing ones. A total of 3.4 million square feet of new construction are under construction across the country to support that growth.<\/p>\n\n\n\n

Currently, 84 free zone parks operate in the country, where 778 companies are located, mostly managed by the private sector or under public-private modality, with a total accumulated investment of US $ 5,903 million by 2021, 80% of which was of foreign origin.<\/p>\n\n\n\n

“This sector has played a decisive role and is an essential pillar in the economic and social growth of our country, it is possible to grow in adversity, great challenges generate great opportunities.” Luis Abinader, President of the Republic.<\/p>\n\n\n\n

More technicians and jobs held by women<\/strong><\/strong><\/p>\n\n\n\n

V\u00edctor -Ito- Bison\u00f3, Minister of Industry, Commerce and MSMEs, who also serves as president of the National Council of Free Zones, said that undoubtedly, the sector represents one of the main generators of jobs in the economy, and that, unlike other productive sectors, 100% is formal employment.<\/p>\n\n\n\n

He added that, at the end of October, the free zones registered about 192,000 jobs. \u201cIt is not only about more jobs, but about better jobs, more technified, where more than 32% corresponds to technical and professional level positions, and more than 50% corresponds to female employment,” said the minister.<\/p>\n\n\n\n

According to official figures, the export sector maintains an extraordinary rate of growth. For the period January \u2013 October 2022, exports from free zones totaled 6,529 million dollars, representing a growth of 10% compared to 2021. In addition, they maintain global and regional leadership in certain areas. The country is the world leader in the export of factory-made cigars and cigarillos, with 36% of exports. At the regional level, free zones lead in several areas, within the medical devices, electrical, textiles and footwear categories.<\/p>\n\n\n\n

For his part, the president of ADOZONA, Luis Jos\u00e9 Bonilla Bojos, said that the free zones have strong roots in the country, making history for more than half a century, generating direct jobs, professionalizing the Dominican workforce and promoting the productive chain and the growth of exports.<\/p>\n\n\n\n

“In general, the sector\u2019s value chains, and their total impact generate a total of 379,900 jobs for our economy, for a 2.19 multiplier compared to direct employment, i.e. for every 100 direct jobs, 119 jobs are generated in other productive sectors,” said Bonilla Bojos.<\/p>\n\n\n\n

The executive director of the CNZFE, Daniel Liranzo, said that free zones have the highest incidence in the total exports of the Dominican Republic, accounting for 60% of the country’s total exports of goods.<\/p>\n\n\n\n

“In 2021 alone, exports of goods from free zones exceeded the threshold of 7,000 million dollars, with a growth of 22% compared to 2020. And if we consider exports of services, total exports rise to 8,879 million dollars, which represented 43% of exports of goods and services (including tourism),” said Liranzo.<\/p>\n\n\n\n

The increase in local purchases was another of the major issues addressed at the AZFA Conference. Last year alone, these purchases totaled more than 110,000 million pesos and at the end of September of this year they have already reached 104,187 million pesos.<\/p>\n\n\n\n

While free zones represented 3.6% of GDP in 2021 directly, when considering the impact of their purchases and the demand generated by the chain’s employees, the total impact on GDP increased to 7.6%.<\/p>\n\n\n\n

A thriving sector in Latin America<\/strong><\/strong><\/p>\n\n\n\n

The Ibero-American countries grouped in AZFA register more than 700 free zones, with 10,200 companies installed, which generate more than one million direct jobs.<\/p>\n\n\n\n

For the fourth time, the Dominican Republic hosted the XXV Conference of Free Zones of Ibero-America, where senior executives from the regions represented in the AZFA gathered, as well as public officials and special guests.<\/p>\n\n\n\n

The main topics analyzed were technology and innovation, integration in the current international context, sustainability, and resilience.<\/p>\n\n\n\n

Speakers included Mohammed Al Muallem, Executive Vice President of DP World; James Zhan, Senior Director of Investment and Enterprise, United Nations Trade and Development Organization (UNCTAD); David Greenstein, co-founder and CEO of Wonder Brands, and Antonio Novas, partner and manager of McKinsey & Company in the Dominican Republic for the Caribbean.<\/p>\n\n\n\n

“This sector has played a decisive role and is an essential pillar in the economic and social growth of our country, it is possible to grow in adversity, great challenges generate great opportunities.”\u00a0Luis Abinader, President of the Republic.<\/p>\n\n\n\n

In the photos:<\/p>\n\n\n\n

1. Luis Abinader, President of the Dominican Republic<\/p>\n\n\n\n

2. Federico Dominguez from Zona Franca de Pisano, Enrique De Marchena Kaluche, Managing Partner of DMK Abogados, Jose Tomas Contreras, CEO of PIISA, and Fernando Flaquer of Palliser Dom.<\/p>\n\n\n\n

3. Daniel Liranzo, Executive Director of the National Council of Free Zones, V\u00edctor Bisono, Minister of Industry and Commerce and Luis Jos\u00e9 Bonilla, President of ADOZONA<\/p>\n","protected":false},"excerpt":{"rendered":"

PUNTA CANA. \u2013 With 15 parks and 204 new companies approved in the Dominican Republic between August 2020 and November 2022, the Free Zones sector is constantly expanding, forecasting an investment amounting to more than 500 million dollars and 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