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An investment haven that keeps on growing
The Dominican Republic’s great socioeconomic indicators and market resilience have made it the first investment destination in the region.
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JOSÉ IGNACIO PALIZA MINISTER OF PRESIDENCY
“O ur economic growth, strategic geographical position and the trust the government has forged are crucial
aspects when it comes to foreign direct investment”, states Minister of Presidency José Ignacio Paliza, signaling some of the country’s excellent conditions for private and public
investments. Indeed, the Dominican Republic is today the first country for foreign direct investment in the Caribbean, with a FDI increase of 35% from January to September, reaching US $2,484.9 billion. Undoubtedly, the new administration and their philosophy have contributed significantly to this growth. As Minister Paliza says, “our government is very open for business and wants to keep on generating new jobs, eliminating bureaucracy, fighting against corruption and working on institutional strengthening and transparency. These are all good indicators for the international markets.”
In terms of the manufacturing industry, there are many reasons to be hopeful. According to Central Bank data, this sector grew 14.3% during the first half of 2021, overcoming the challenges of the pandemic and managing to reinstate pre-COVID employment rates, or surpass them all together, by becoming more efficient and/or innovating their offer. The free-trade zones are the perfect example. Thanks to their tax incentives, the diversification into the textile and pharmaceutical industry, as well as technological and procedural improvements, they grew over 30% and now hold over 180,000 direct jobs. “The Dominican Republic has become a leading example in the region when it comes to exports.
The tourism sector has also shown great resilience in the face of recent global challenges. It has recovered significantly and continues to grow because of its good reputation and the timely measures taken by the government, like providing subsidies and exemptions to businesses or COVID medical insurance and zero-tax financing to visitors. As an example, last year Grupo Melia, one of the world’s biggest hotel chains,
«The Dominican Republic has become a leading example in the region when it comes to exports» announced an investment of over US $400 million in Punta Cana to build an amusement park and other projects that will help consolidate this area. But growth is not only limited to Punta Cana. Other destinations like Miches, Puerto Plata and Pedernales are also expected to receive important investments in the coming years. Like Minister Paliza says, “the tourism sector has demonstrated it has everything in its power to get through any challenging scenario.” To continue increasing the country’s competitiveness and boosting investments, the government recently launched the “Zero Bureaucracy” project. This aims to create «Our growth a simple system in which permits can be granted in just one place and within a rate allows us fixed period, to speed the process of busito be optimistic ness structuring and help investors use regarding future their resources more efficiently. “Our curchallenges we rent administration is breaking old bumight face» reaucratic standards and offering a more transparent government that goes along the lines of the international markets”, explains Minister Paliza. Moreover, in a public-private synergy, they started promoting their “country brand” to showcase what the country can offer to both visitors and investors as well as the meaning of being Dominican. Throughout the challenges of the last couple of years, the Dominican Republic has demonstrated it has a diverse, resilient and stable market ready to welcome a wide range of investments. In fact, as Minister Paliza highlights, “the pandemic has made us more efficient. Our growth rate allows us to be optimistic regarding future challenges we might face”.
Internationally experienced firm provides the best value-added legal advice and representation
For more than 40 years they have been offering first-rate legal, regulatory and consulting services to multinationals and local clients.
“From the very moment you step into our office you realize what our motto is, we are in the business of adding «As lawyers, we can be excellent strategic partners to our clients»
value”, says Luis Rafael Pellerano, Managing Partner at Pellerano Nadal Law & Consulting.
Working along with clients in the development of their business ventures, Pellerano Nadal offers them solutions in all aspects and stages of the process, from providing legal and advisory services when investing in existing businesses, setting up local operations or launching startups; to offering representation to negotiate the best contractual terms and secure governmental authorizations and permits. Their lawyers have consistently been ranked among the most prominent in the Dominican Republic, and through their innovative approach have managed to solve complex cases and become one of the leading firms in the country. “What makes us stand out in the industry is to be able to achieve what no one else can, always within the legal framework”, assures Pellerano.
They have a vast experience advising foreign and multinational companies that enter the Dominican market, which last year represented 92% of their total client base. Their international and domestic customers work in specialized industries such as mining, energy, emerging technologies, aviation, tourism, financial services and telecommunications, among many others. “These are industries that are filled with challenges, so we have established good relationships with the respective authorities to match the speed that the business requires”, says Pellerano, explaining that part of their success resides precisely on having a clear knowledge of how these industries operate. “We care a lot about understanding the industries in which our clients work and listening to what they think they might need in the future”, states Pellerano.
Pellerano Nadal has an experienced team of lawyers who throughout their careers have assisted in securing some of the biggest landmark transactions in the country, such as the largest acquisition of a Dominican company at the time, a brewing company valued at over US$2 billion; the largest foreign investment in the country, a gold investment project in the mines of Pueblo Viejo for over US$6 billion; the only international IPO and listing of a Dominican company on the New York Stock Exchange, and the first ever issuance of debt in the international capital markets by the Dominican government. “These projects can be complex because of their dimension, but part of our success is to be able to guide these clients. I do not participate in these transactions just because it is part of my job, I do it because I want to add value to it”, assures Pellerano. During the pandemic, Pellerano Nadal invested on further improving their connectivity, adding another competitive advantage to «What makes us their already impressive portfolio, because as stand out in the Pellerano says, “the world has changed, and industry is to be businesses need to be prepared for that.” In able to achieve what no one the next years, they expect to have a higher demand of tax and environmental services, and above all to continue offering innovative else can, always solutions to the most complex and challengwithin the legal ing cases. Like Pellerano assures, “as lawyers, framework» we can be excellent strategic partners to our clients. Sometimes things are possible, other times they are impossible, but sometimes the problem can be that your project does not have the proper regulations. Those are the kind of challenges that we like to work on, the ones that seem impossible.” CONTACT US www.pellerano.com
Positioning the Dominican Republic as a regional export and investment’s hub
Through expert guidance, training and/or inter-institutional cooperation, ProDominicana helps national exporters and foreign investors find better ways to do business.
Behind the country’s current economic
resilience, diversification and growth, there is one institution that has played a key role: the Center for Export and Investment of the Dominican Republic, ProDomini-
cana. Certainly, ProDominicana’s comprehensive services to investors, exporters and buyers have actively contributed to the latest record numbers. From January to November 2021, the country’s exports reached historical levels, with an accumulated US $10,814 million, a growth of over 21.05% compared to the same period of 2020. Also, from January to September 2021, Foreign Direct Investment (FDI) increased 35%, going from US $1,835.9 million in 2020 to US $2,484.9 million in 2021, which confirms investors confidence in the Dominican Republic. “There has been a resilience of the country’s industrial and export sectors, and at the same time, the measures taken have reduced the impact of the pandemic, increased trust from investors, and opened doors to new business opportunities in the Dominican Republic”, assures Biviana Riveiro Disla, Executive Director of ProDominicana.
On the export front, some of these measures include new platforms and services that have improved access to international markets, like the Directory of Exporters, the Export Guide, the offer of the FDI markets service and the training of more than 2,000 people to create a digital ecosystem of services. As Riveiro explains, this digital platform integrates ProDominicana Capacita and Data Market, with all the information related to exports and access to international markets; as well as ProDominicana Connect, a B2B platform that connects international to local buyers. “We want to facilitate access to these platforms to micro, small and medium entrepreneurs as well”, says Riveiro.
Furthermore, the Free Zone sector, which comprises around 60% of exports, has been positively influenced by the new Customs Law’s significant tax exemptions of up
to 100% in installation and operation’s processes. Consequently, the sector grew 24% from January to November 2021 with US $6.6 billion of exports, there are now over 75 parks with more than 700 free zone companies installed in the country. They also have the opportunity to start selling to the domestic market without limitation. “Free zones are an essential sector that has undergone a very profitable revitalization process. We hope to grow to more than a thousand companies in the coming years, thanks to the facilities that are being granted to them”, assures Riveiro. Regarding investments, ProDominicana offers investors technical assistance, information and support in all the necessary steps and requirements for the installation, development and/or expansion of their projects in the country. In order to further facilitate this process «Our measures and favor investments, the government have reduced has implemented the zero bureaucracy the impact of program, including the “One-Stop Shop”, the pandemic, which as Riveiro explains, “has the purincreased trust from investors, pose of simplifying procedures and saving investors time and money by integrating all the necessary procedures in the same and opened doors platform.” Moreover, ProDominicana to new business aims to keep promoting the public-priopportunities in vate investment scheme to diversify into the Dominican sectors such as renewable energies or Republic» other types of tourism. Like Riveiro projects, “this will allow the development of major infrastructure projects with a high socioeconomic impact.” Given the country’s outstanding economic markers, beneficial legal framework and the excellent services and facilities offered to exporters and investors by ProDominicana and other governmental offices, ProDominicana’s Executive Director has no doubts regarding the country’s potential. “With one of the best telecommunications infrastructures in Latin America, more than 19,000 km2 of roads, eight international airports, twelve seaports, and three cruise ports, we already are the logistics hub of the Caribbean. Now, we intend to be the export and logistics hub in the region.”
Large gold, nickel and marble mines Powerful Communications Network
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Excellent air and maritime connections
Dominican Republic
Strategically located in the heart of the Caribbean
Main destination in the Caribbean for tourism and investments
