Dominican Republic: epicenter of foreign investment in Central America and the Caribbean in 2025

The growth of foreign investment in the Dominican Republic reflects its confidence as a strategic destination for foreign direct investment (FDI), driven by key sectors such as tourism, energy, mining, and real estate development.

In the first quarter of 2025, the country raised US$2.8 billion, a 15.3% increase over the same period last year . These figures reflect its investment strength and the growing confidence of investors in the nation, positioning the country as the region’s leading destination for foreign investment for the third consecutive year.

Advantages of the Dominican Republic

The Dominican Republic has become a magnet for investment thanks to attractions such as its strategic location , macroeconomic stability , tax incentives , and strong positioning in financial and credit risk indicators.

Thanks to its privileged location, the country enjoys logistical advantages such as its proximity to key markets, making it an important trade hub with Europe, the United States, and the rest of Latin America. It also offers multiple benefits to foreign companies thanks to its free trade agreements:

 

• Free Trade Agreement between the Dominican Republic, the United States and Central America (DR-CAFTA);
• European Union-CARIFORUM Economic Partnership Agreement (EPA);
• Free Trade Agreement between the Dominican Republic and the Caribbean Community (CARICOM);
• Free Trade Agreement between the Dominican Republic and Central America;
• Partial Scope Agreement between the Dominican Republic and Panama

It also has a modern port and airport system and a strategic road network that connects all the country’s strategic points.

Regarding its macroeconomic stability, the Caribbean republic has maintained robust and sustained growth, keeping its Gross Domestic Product (GDP) at an average of around 5% per year for the past 15 years. This stable outlook, according to the United Nations Conference on Trade and Development (UNCTAD), makes the Dominican Republic one of the most attractive destinations for foreign investment in Latin America and the Caribbean.

The country also offers attractive tax incentives through tax exemptions and special regimes to attract investment. Sectors such as tourism, free trade zones, renewable energy, and real estate development enjoy these tax benefits.

Another important factor that adds to the aforementioned competitive advantages for investment is its strong positioning in financial and credit risk indicators. In the case of the Emerging Market Bond Index (EMBI) risk indicator, the Dominican Republic closed July 2025 with a country risk of 196 points, placing it among the economies with the lowest risk index in Latin America. Within this same framework, the risk rating agency Moody’s Ratings raised the country’s credit rating to “Ba2,” highlighting its macroeconomic strength.

Sectors with the highest investment

These are the sectors attracting the most investment in the Dominican Republic, according to figures provided by the Central Bank of the Dominican Republic (BCRD) in its report for the first half of 2025.

One of the most notable examples is the energy sector , which received 25.7% of foreign direct investment . According to the BCRD, this result is due to state incentives aimed at developing renewable energy , which has made the country an attractive destination for capital seeking sustainable projects with long-term projections. This trend has been recognized in UNCTAD’s World Investment Report 2025 , which highlights the Dominican Republic as one of the main recipients of clean energy investment in Latin America and the Caribbean.

Tourism continues to be a key pillar, attracting major hotel and infrastructure projects that strengthen the country’s position as a world-class destination. In the first half of the year, this sector accounted for a significant portion of FDI thanks to stable visitor flows—6.1 million in six months—and diversification into niches such as luxury tourism, ecotourism, and health tourism.

For its part, the real estate sector, which generated 13.8% of FDI in the first half of the year , maintains solid momentum, closely linked to the growth of tourism and increased demand for residential, commercial, and vacation projects. The post-pandemic recovery and the interest of international investors have driven large-scale developments in strategic tourist and urban areas.

Other sectors that also attracted significant amounts were free trade zones , which received 6.9% of FDI and achieved exports of nearly US$4.25 billion ; transportation and logistics, driven by the country’s strategic geographic location and the modernization of its port and airport infrastructure; and emerging areas such as technology and telecommunications, which are beginning to position themselves on the foreign investment agenda.

Overall, this sectoral diversification not only increases the economy’s resilience but also broadens the range of opportunities for investors seeking to participate in a growing market with stable long-term prospects.

The Dominican Republic has not only demonstrated its ability to attract foreign capital, but also to transform it into sustainable growth and real opportunities. With a diversified economy, a favorable business environment, and public policies geared toward competitiveness, the country stands as a strategic partner for investors seeking stability, performance, and long-term growth . In a global context marked by uncertainty, the Caribbean nation reaffirms its role as the epicenter of foreign investment in Central America and the Caribbean , backed by concrete results and a clear vision for development.