The Dominican Republic's most important trading partner is the United States (for nearly 60% of export). Other markets include Canada, Western Europe, and Japan. The country exports free-trade-zone manufactured products (garments, medical devices, etc.) The Dominican Republic has the second largest economy in the Caribbean and Central American region.

It is an upper middle-income a developing country primarily dependent on agriculture, trade, and services, especially tourism. Although the service sector has recently overtaken agriculture as the leading employer of Dominicans (due principally to growth in tourism and Free Trade Zones)

Remittances from the US amount to about a tenth of GDP, equivalent to almost half of exports and three-quarters of tourism receipts. The country suffers from marked income inequality; the poorest half of the population receives less than one-fifth of GDP, while the richest 10% enjoys nearly 40% of GDP. High unemployment and underemployment remains an important long-term challenge. The Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) came into force in March 2007, boosting investment and exports and reducing losses to the Asian garment industry. In the middle of 2008, however, the Dominican Republic's economy started slowing after several years of strong GDP growth, as the global recession had a significant negative impact on tourism and remittances. The financial crisis and the US recession caused GDP to dip in 2009, but a rebound is expected in 2010.

Source: CIA World Factbook – Unless otherwise noted, information in this page is accurate as of December 29, 2010

" I think the American people appreciate greatly the bonds between our two countries — bonds that express themselves obviously in our extraordinary Dominican population, Dominican American population that we have here in this country", said Obama during a press conference he held with President Fernandez.

The American president also expressed his confidence that the Dominican economy shows good growth, as Brazil has shown and for which he hopes to support bilateral opportunities for business.

Regarding Honduras, Obama thanked the Dominican president and his administration for the positive mediation that was carried out by Leonel Fernandez to resolve the conflict in that nation, after the overthrow of President Manuel Zelaya. For his part, the Dominican leader said that there was a need for a greater definition by the international community in relation to coups d' état and for compliance with the Democratic Letter of the OAS as ways to discourage these antidemocratic actions.

13 July 2010

Source De Diario Libre

recognized by the state for the contribution of economic growth and social development

What are the needs of the country in this stage of development?

What can the country do to attract the potential investor?

How easy is to start doing business in Dominican Republic

General Statistics at a Glance 2009

• Population: 9.5 million

• Extension: 48,442 km²

• Capital:  Santo Domingo

• Government: Representative Democracy

• GDP:  79,000 USD billions

• GDP /inhabitant: 8200 USD

• GDP Growth Rate: 5.5% (estimated 2010)

• Inflation rate: 4 52% (2008)

• Fiscal deficit: 3.7%

Foreign Currency Sources 2008 (in Mill USD)

• FDI:  2,884

• Remittances: 3,432

• Free Trade Zones: 4,000

• Tourism: 4,200

Needs of the country

President Fernández said on his State of theNation Speech on February the 27th, 2009

“.. regardless of the Global financial turbulences the country could  maintain a climate of social freedom, democratic governance and macroeconomic stability”

“..Only the success of the farming sector guarantees the right of the Dominican people to food supply and adequate nutrition”…Shall it become a national priority”

“..For the government the solution of the electricity problem is one of its  highest priorities”

Investment in

•Food industry and agriculture

•Energy (production, transmission, management)

•New technologies

•Infrastructure (roads and railways, housing)

•Tourism Infrastructure

•Fresh water supply

•Services

Food industry and agriculture

•Implementation of Greenhouse Farming projects 

•Promoting investment to increase Milk production

Energy

“For the government the solution of the electricity problem is one of its highest priorities”

• Investment in renewable electricity production

• 2,000 MW of installed Extra capacity needed

• Transmission lines must be enhanced

• 2 x 600 MW Coal Power Plants in planning

New Technologies  

“For the government the solution of the electricity problem is one of its highest priorities”

• 50 MW Biomass power plant projected

• 2 x 50 MW eolic energy parks projected

Infrastructure

• A second line for the Santo Domingo Metro

• Railway track Santo Domingo – Santiago

• Highway La Romana – Punta Cana

Tourism Infrastructure

• Tourism Real Estate Investments in the south

• Projects worth 5 billion approved in 2009

Fresh water supply

• Modernisation of the Santo Domingo Aqueduct

• aqueduct construction in 10 provinces

Services

•Promoting investment in Call Contact Center and Business Process Outsourcing industry

•First Call Center Academy at Parque Cibernetico in Santo Domingog

•Promoting investment in financial Services

•Buy FIXED-TERM INVESTMENT CERTIFICATES from the Dominican Central Bank

Advantages of Foreing Direct Investment in Dominican Republic

•Stable economic and political environment

•Legal framework for foreign investment up to international standards

•Preferential market access to the USA, Europe   Central America and the Caribbean

•Nearshore location

INVESTMENT INCENTIVES

•  Equal Treatment for local and foreign investors

•  100% repatriation of capital and profits

•  Free currency conversion at stable rates

•  Investment Protection through:

Multilateral Investment Guarantee Agency (MIGA)

Overseas Private Investment Corporation (OPIC)

Founding Member of the World Trade Organization (WTO)

Investors Residence Program

•   Objective:

     Provide benefits to foreign investors by granting them with special residency status.

•   Beneficiaries:

    Foreign Investors, family members, and project technicians.

•   Main Requirements:

    Foreign investment registered at CEI-RD Minimum investment of US$200,000 $

DR CAFTA Implemented on March 1st, 2007

• Increases and Guarantees permanent  preferential access for dominican goods and services to the U.S.A.

(EPA) – Economic Partnership Agreement with the European Union since 15 October 2008

• The CARIFORUM-EC EPA removes all tariffs and quotas on Caribbean exports to the EU immediately …

and opens up new markets for Caribbean ..and opens up new markets for Caribbean companies and professionals to offer services in the EU  

Free Trade Zones

• 62   Industrial Free Zones Parks

• 600  Companies

•125,000      Employees

•Products:  Clothing, Shoes, Jewelry, Tobacco, Electronic Products,

Free Trade Zones Incentives Law 8-90

100% Tax exemption

No Income taxes

No Sales taxes

No Export taxes

No Import duties on raw materials and equipment

Main Investors Company

•   Codetel (Mexico)

•   Central Romana (US)

•   Shell Company

•   Citibank (US)

•   Bank of Nova Scotia(Canada)

•   France Telecom

•   Colgate Palmolive g

•   Tricom

Main Investors in Dominican Republic by Country

•  USA      

•  Mexico

•  Spain

•  Canada

•  Holland

•  France

•  Great Britain

•  Switzerland

With the presence of President Leonel Fernandez, the agreement was signed in representation of the Dominican state by Celso Marranzini, the executive vice-president of the CDEEE and Shiv Vikram Khemka of the Sun Group Company.

Marranzini indicated that both parties promised to deliver the feasibility studies of the project within 120 days and he said that he expects that the installation work on the plants, which could be operated with coal or gas, will be advanced at least in the first cycle, by the middle of 2012.

He says that the DR must continue developing

During his participation in the "World Forum on Sustainable Development 2011", sponsored by the Energy and Resource Institute (TERI), President Leonel Fernandez said that the Dominican Republic must continue with high levels of economic development, which should be combined with the consolidation of green growth, important for the economy and good for nature.

He explained that advocating for green growth means to push for technological development, protecting the environment and fighting the effects of climate change.

Within this context, Fernandez announced that together with the government of Germany, the Dominican Republic will join with experts from the McKinsey & Company (the Coalition for Nations with Tropical Forests), as well as with local universities in order to work in the improvement and the sustainability of the economic growth.

In the Forum, the Prime Minister of India, Dr. Manmohan Singh; the President of the Islamic Republic of Afghanistan, Hamid Karzai, and the President of the Republic of Seychelles, James Alix Michel all took part.

Global opportunity

For the Dominican Chief of State, "the global crisis should become a global opportunity". He congratulated the United Nations and their work to create the Fund of a Green Climate, which has US$28 billion for 2012 and US$100 billion by 2020, with a viable financial opportunity for the emerging markets such as India and the DR that will permit them to fight climate change. He said that "we should all take part and accept our local responsibility with the aim of achieving sustainable development". He concluded by citing Mahatma Gandhi who said the following: "Be the change that you want to see in the world".
 

Last year, of more than 500 projects that were filed in the offices of the Municipality of the National District for approval, 10% were approved for building of more than 9 stories. Of these towers, the great majority are going up in District One and a few in District Two. Of the total number of plans looked at by the municipal authorities in 2010, more than 200 are designed for between four and eight floors, giving rise to a more orderly growth and a modern city. Beginning this week, Diario Libre will begin to publish a series of articles on the vertical growth of the city.

Berlin 5.July 2010. – Chancellor Angela Merkel proposed an agreement to president Leonel Fernandez in Berlin today, to mutually protect investors from both countries, and given the recent complaints by European Union ambassadors who say the Caribbean nation lags behind in providing legal security to foreigners seeking to set up shop here.

Fernandez, who began an official three day visit in Germany’s Chancellery, immediately stated his willingness to develop the agreement, "which will open spaces to new investments."

The Latin American chief executive stressed the "historic character" of his official visit to Germany, since it’s the first by a Dominican Head of State to that country.

Merkel said the Dominican Republic "is a country very well known to Germans," because according to Fernandez thousands of them,, "as many a 300,000 per year" vacation there.

The chief executive’s official visit includes tours of other regions of Germany, slated to end Wednesday evening when he flies to Paris, from where he will continue his 11 day tour by flying to the United States on Saturday.

Upcoming Elections

• Presidential
  May 2012
• Legislative
  May 2016

Description of government structure:

• Chief of State: President Leonel FERNANDEZ Reyna
• Head of Government: President Leonel FERNANDEZ Reyna
• Assembly: Dominican Republic has a bicameral National Congress (Congreso Nacional)
• consisting of the Senate (Senado) with 32 seats and the Chamber of Deputies (Camara de Diputados) with 178 seats.

Remittances from the US amount to about a tenth of GDP, equivalent to almost half of exports and three-quarters of tourism receipts. The country suffers from marked income inequality; the poorest half of the population receives less than one-fifth of GDP, while the richest 10% enjoys nearly 40% of GDP. High unemployment and underemployment remains an important long-term challenge. The Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) came into force in March 2007, boosting investment and exports and reducing losses to the Asian garment industry. In the middle of 2008, however, the Dominican Republic’s economy started slowing after several years of strong GDP growth, as the global recession had a significant negative impact on tourism and remittances. The financial crisis and the US recession caused GDP to dip in 2009, but a rebound is expected in 2010.

* IMF sees “very positive results” of economic program

SANTO DOMINGO, Aug 20 (Reuters) – Dominican Republic’s economy will expand between 5.5 percent and 6 percent this year, the International Monetary Fund said on Friday, slightly raising its outlook for the Caribbean country.

The country’s economy grew 7.5 percent in the first half of 2010, the Washington-based lender said in a statement issued after an IMF mission visit to Santo Domingo. This followed a similar growth level registered in the first quarter.

The mission was part of a $1.66 billion stand-by program approved by the IMF in November.

“The first phase of the authorities’ economic program that envisaged supportive macroeconomic policies ended in June with very positive results,” the IMF said.

“Real gross domestic product recovered rapidly. Other indicators of economic activity have recovered and continue expanding at healthy rates.”

The IMF had previously forecast growth for this year of between 5 percent and 5.5 percent.

The economy is rebounding after the global recession spurred a sharp drop last year in Dominican Republic’s export earnings along with declines in tourism and remittances, forcing the country to seek a stand-by agreement with the IMF.

Under the program, President Leonel Fernandez has committed to tackling shortfalls in revenue and to implementing a comprehensive reform of the Dominican Republic’s crisis-ridden electricity sector.

Despite the progress, the IMF mission said the electrical reforms have failed to produce financial savings for the government. The country is also facing delays in government plans to improve tax collection, it said. (Reporting by Kevin Gray; Editing by Kenneth Barry)