For investors interested in doing business in Latin America and the Caribbean, a number of business opportunities in the Dominican Republic present attractive options.
As the largest economy in the Caribbean and eighth-largest in Latin America, the Dominican Republic offers a sizable market, with several investment sectors ripe for greater development.
Since adopting a range of measures in the 1990s aimed at opening the economy up, the Dominican Republic has developed substantially, and over recent years has witnessed exponential growth, with gross domestic product (GDP) growing almost four-fold between 2004 and 2019 to reach $88.9 billion, according to World Bank data.
That has seen gross national income (GNI) — a key measure of prosperity — more than triple during the same period, to reach $8,100 per capita in 2019, which places the Dominican Republic as an upper-middle income nation by international standards.
The same period has also seen an increasing amount of capital flowing into the country, with foreign direct investment (FDI) hitting a peak of $3.6 billion in 2017, while the $2.8 billion that entered in 2019 still represented the third-highest annual total on record.
A big draw for investors is the country’s extensive network of 75 free trade zones (FTZs), which offer lucrative tax incentives, and today are home to more than 690 companies.
While, like most economies, the Dominican Republic has been adversely affected by the global coronavirus pandemic, the country is already seeing tourism numbers and exports bounce back — signs that the economy is bouncing back.
If you are considering expanding into this dynamic market, read on to learn about three of the biggest business opportunities in the Dominican Republic that are primed for investment. Or go ahead and contact us to discuss your business options.
3 business opportunities in The Dominican Republic that are ready for investment now
Buoyed by the incentives on offer in the country’s FTZs, and bolstered by the fact that the country has one of the highest levels of English proficiency in the region, the Dominican Republic is an ideal location to establish operations in the ever-growing call center sector.
With competitive labor costs and tax incentives on offer, costs associated with running a call center in the Caribbean nation can be up to 65% lower than in US or European locations, and the industry is expected to see a five-fold increase in the number of people it employs in the next five years, making call centers one of the most notable business opportunities in the Dominican Republic right now.
The Dominican Republic is famed for its tourism industry, which is already highly developed, and the sector has recently witnessed a rejuvenation, with numbers bouncing back to 80% of pre-pandemic levels, and the important Amber Cove cruise terminal reopening for the first time since the beginning of the health emergency.
During the Dominican government’s recent announcement of the country’s upcoming appearance at the Expo 2020 Dubai, investment in the tourism industry was highlighted as a key motivation for participation, highlighting how tourism represents another of the biggest business opportunities in the Dominican Republic right now.
While tourism is arguably the Dominican Republic’s most famous industry, mining is a major element of the economy and the largest source of export revenues. Among the major products mined in the country are gold, silver, nickel, and bauxite — the latter being a key ingredient for aluminum.
Recently, the country reported a near 80% increase in gold exports in the first three months of 2021, amid an overall growth of 16.2% for the entire mining sector. With Dominican President Luis Abinader making mining industry growth a key goal for his administration, it represents another of the best business opportunities in the Dominican Republic right now.
Biz Latin Hub can assist you doing business in The Dominican Republic
At Biz Latin Hub, our multilingual team of back-office specialists is equipped to help you take advantage of business opportunities in the Dominican Republic. With our comprehensive portfolio of corporate support solutions, including company formation, legal, accounting, and recruitment services, we can be your single point of contact to help you enter and do business in the Dominican Republic, or any of the other 17 markets around Latin America and the Caribbean where we have teams in place.
Reach out to us today to discuss how we can help you reach your commercial goals.
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