Dominican Republic Strengthens Its Regional Leadership in the Free Zones Regime
The Dominican Republic continues to strengthen its position as one of the leading free zone jurisdictions in Latin America and the Caribbean, standing out both for the value of its exports and the number of companies operating under this regime. This is according to the report Free Zones: The Ecosystem Redefining Investment in the Region 2026, prepared by EY Central America, Panama and the Dominican Republic.
In terms of international trade, the report ranks the Dominican Republic as the second-largest exporter of goods produced in free zones in the region, with exports totaling US$7.833 billion, surpassed only by Costa Rica (US$9.509 billion). Honduras, Puerto Rico and El Salvador complete the top five. Collectively, free zones across Latin America generate more than US$61 billion in exports, underscoring the growing importance of this regime as a driver of international trade and regional economic integration.
The report attributes this performance largely to the rise of nearshoring, a strategy through which companies relocate operations closer to key consumer markets such as the United States in order to reduce logistics risks, strengthen supply chains and enhance competitiveness. In this context, Central America, Panama and the Dominican Republic account for 77% of all free zones in Latin America, positioning the subregion as a strategic destination for foreign direct investment.
In addition to its export performance, the Dominican Republic leads the region in the number of companies operating under the free zones regime, with 286 active businesses. It is followed by Honduras with 151 companies, Colombia with 112, and Costa Rica with 85, while the remaining countries in the region report significantly lower figures. This leadership reflects the country’s well-established ecosystem for manufacturing, export services, logistics and other high value-added activities.
The report also highlights that free zones have evolved beyond their traditional role as tax incentive regimes. Today, their competitiveness increasingly depends on factors such as infrastructure, the digitalization of customs procedures, the availability of specialized talent, the integration of productive clusters and the adoption of sustainable practices. Together, these factors enhance countries’ ability to attract investment and participate in global value chains.
Source: elDinero