How to attract high-quality foreign investment in an uncertain global environment
For the Dominican Republic, the key to attracting Foreign Investment is no longer just promotion, but building a relationship of trust with investors. This requires a commitment that goes beyond numbers and speeches, offering an environment where legal certainty is the rule, investment projects are viable and bankable, and post-investment support services operate as a solid safety net. In today’s global landscape of uncertainty and rapid change, the strategy must focus on attracting capital that not only drives economic growth but also aligns with sustainable development, strengthens value chains, and complies with environmental, social, and governance (ESG) standards—ensuring long-term, resilient growth.
Regulatory Predictability
The first differentiating factor is regulatory predictability. A clear and consistently applied legal framework lowers the risk premium and improves the cost of capital. Law No. 16-95 on Foreign Investment guarantees essential freedoms—entry, establishment, and repatriation of profits—while Law No. 126-02 on E-Commerce, Documents, and Digital Signatures grants legal validity to data messages and digital signatures, enabling secure contracts, audits, and evidentiary traceability. Turning those rules into operational processes—guidelines, schedules, and single-window mechanisms with defined timelines—is what transforms regulations into trust.
Bankability and Project Readiness
The quality of FDI also depends on presenting projects ready for execution. Law No. 47-20 on Public-Private Partnerships (PPPs) is an effective instrument when structured with rigor: robust pre-feasibility studies, value-for-money analyses, risk matrices assigned to the parties best equipped to manage them, and credible dispute-resolution mechanisms. For investors, a project is not assessed by intention but by solidity. The difference between an idea and an actual investment lies in bankability, which cannot be promised—it must be proven. The projects that reach closure are those with complete documentation, valid permits, clear guarantees, and realistic timelines. The rest fall by the wayside. Ultimately, success depends not on improvisation but on a solid plan that inspires confidence.
Incentives Linked to Results
Incentive design must move from a logic of general promises to one of measurable outcomes. Programs such as Law No. 158-01 for the Promotion of Tourism Development (CONFOTUR) and Law No. 392-07 on Industrial Competitiveness and Innovation have proven effective when benefits are tied to verifiable goals: formal employment, exports, innovation, and certified sustainability. Serious investors value frameworks where tax benefits are activated—and maintained—only if the company meets its milestones. Such architecture protects the country’s reputation and avoids a “race to the bottom.”
Environmental Compliance as a Competitive Advantage
Far from being an obstacle, environmental compliance is a hedge against risk. Law No. 64-00 on Environment and Natural Resources gains legitimacy when permitting, licensing, and impact-assessment processes are clear, digitized, and traceable. Technical consistency shortens timelines, opens access to green financing, and strengthens the country’s profile with institutional funds. The right message is not “fewer requirements” but “greater predictability”: stable criteria, inter-agency coordination, and effective monitoring.
Talent as the True Differentiator
Talent is the factor that sustains investment over time. Costs explain entry; productivity explains permanence. Attracting FDI in advanced manufacturing, global services, logistics, and technology requires curricula aligned with market demand—languages, mechatronics, electronics, data analytics, cybersecurity—plus dual training and internationally recognized certifications. A company-academia-state pact that sets measurable goals by cluster, with periodic evaluation, shortens the learning curve and raises local value added.
Physical and Digital Infrastructure
Physical and digital infrastructure define the geography of nearshoring. Reliable highways, efficient ports, stable energy, and specialized logistics parks reduce costs and operational volatility. In parallel, redundant fiber-optic networks, data centers, and effective data-protection frameworks support BPO, SaaS, and fintech operations. Addressing bottlenecks—customs clearance, electricity reliability, and network quality—turns the national platform into a tangible, measurable advantage.
Governance and Aftercare
Attracting quality investment also demands service-oriented governance. One-stop windows with service-level agreements, public performance dashboards, and early-resolution mechanisms build trust before problems escalate. Equally decisive is aftercare: retaining and expanding initial investments through facilitation of reinvestments, efficient permit renewals, and support in locating suppliers, talent, and complementary financing. Attraction is the beginning; retention is the test.
ESG and Credibility
In a market where environmental, social, and governance (ESG) criteria filter decisions, coherence matters more than rhetoric. Measuring and reporting emissions, upholding labor rights, ensuring integrity in supply chains, and strengthening corporate compliance are no longer about reputation—they determine eligibility. Integrating ESG from the design stage (not as an afterthought) mitigates risk, improves credit ratings, and opens doors to long-term investors. The social license to operate cannot be bought; it is built with evidence.
Targeted Promotion
Investment promotion narratives must move beyond generalities. Global capital follows specific theses: regional logistics, renewable energy, high-spending tourism, light manufacturing near markets, and Spanish-language digital services. Choosing a few strategic bets—and backing them with real advantages such as trade agreements, skilled talent, cost efficiency, and infrastructure—prevents dispersion. Every mission should revolve around concrete projects, credible local partners, and contracts ready to sign. The most effective message is simple: “There are rules, there are projects, and there is a team ready to execute them.”
Fair Competition and Public Integrity
Fair competition and public integrity complete the picture. Traceable procurement processes, clear conflict-of-interest rules, and independent technical bodies send powerful signals. In regulated sectors—energy, telecommunications, ports—stable methodologies and predictable adjustment procedures reduce disputes and give investors the long-term visibility capital-intensive projects require. Predictability is the new diplomacy of investment—foreign policy made of rules that are enforced.
Data-Driven Policy
None of this works without data. Measuring licensing times, approval rates, reinvestments, and jobs created enables evidence-based policy adjustments. An investment observatory with transparent methodologies professionalizes the conversation and strengthens credibility before markets and rating agencies. What is not measured cannot be managed; what is made transparent, improves.