Economic Report: 2009 Good Year for Foreign Investment in the Dominican Republic

It is projected that direct foreign investment in the Dominican Republic will reach as high as $2.4 billion in 2009, according “Balance and Perspective of Foreign Investment and the Competitiveness Plan” a report presented by the Center for Foreign Investment, the National Council of Duty Free Zones and the National Competitiveness Council (CNC).

Eddy Martínez said that 2008 was an historic year in terms of foreign investment with more than $2 billion dollars having been invested.

The economic report was made public at a press conference in the Orlando Martinez hall on the second floor of the National Palace. Among those present were Eddy Martínez, Director of the Center for Foreign Investment (CEI-DR); Luisa Fernández, Director of the National Council of Duty Free Zones; Andrés Van der Horst, Director of the National Competitiveness Council and Rafael Núñez, Director of the President’s Office of Information, Press and Publicity. Mr. Núñez read the report.

Eddy Martínez said that 2008 was an historic year in terms of foreign investment with more than $2 billion dollars having been invested. He added that projected investment for 2009 will be based in the areas of tourism, mining, telecommunications, bio-fuels, agribusiness and low-income housing.

In addition, other sectors are expected to attract investments from companies in Spain, the United States and other European countries. These investments, which will help develop knowledge in the DR, include projects in the software industry and renewable and solar energy.

Martínez added that national investors are expected to get involved in the building of 5,000 low-income homes, a social project that will get underway immediately. The goal, currently in the form of a draft bill before Congress, is to build 100,000 such homes during the upcoming five years.

As such, health tourism and greenhouse farming are expected to draw foreign investment as well. To promote the greenhouse farming, a Technology Convention will be held in the DR with the idea of attracting more foreign investors from among attendees which will include the United States, Spain and India.

The report earmarks financing for greenhouse projects to enable them to produce along the same lines as the duty free zones for which $50 million dollars is being invested.

Other projects to be undertaken to stimulate foreign investment from Spanish and American entrepreneurs include renewable and solar energy, mining and limestone and cement production plants.

According to the report, an estimated foreign investment for 2009 in the tourism sector will be $2.411 billion dollars of which the largest amount, $878.6 million, is earmarked for the province of Alta Gracia in the Eastern region followed by $162.8 million for San Pedro de Macorís, Puerto Plata with $76.2 million followed by Samaná, La Romana and Barahona.

“As can be appreciated, the Dominican Republic, despite the negative global financial environment, continues to be an attractive area for Direct Foreign Investment in the tourism sector,” according to the report.

In terms of the duty free zones, there seems to be a rebirth of optimism among businesses in the face of the possible economic recovery of the United States which will bring about an increase in demand for goods on the part of the neighboring country. In addition, changes within the system that have brought down costs and a new reality within the country are auguring a period of continued economic growth, pointed out the report.

The report made public the eight 2009 initiatives of President Leonel Fernández’s government which focus on energizing the Dominican economy on a base of foreign investment. To that end, the First National Forum for Competitiveness in the Dominican Republic will be held on April 28-29, 2009. The Competitiveness Institute’s First Global Conference of Tourism Clusters is expected to be held soon.

Further indicators of the DR’s economic health include the formation and launching of the National Commission for the Defense of Competition and Anti-Monopoly Practices, the Network of Clusters in the Dominican Republic, approval of laws governing competitiveness and the country’s positive general business climate.