The U.S. Department of State’s Investment Climate Statements help U.S. companies make informed business decisions by providing up-to-date information on the investment climates of more than 170 countries and economies. They are prepared by our embassies and consulates around the world and analyze each economy’s openness to foreign investment. Topics include:
• Openness to, and Restrictions upon, Foreign Investment,
• Investment and Taxation Treaties,
• Legal Regime,
• Industrial Policies,
• Protection of Property Rights,
• Financial Sector,
• State-owned Enterprises,
• Corruption,
• Labor Policies and Practices,
• Political and Security Environment, and
• U.S. International Development Finance Corporation (DFC) and Other Investment Insurance or Development Finance Programs
Each statement provides a starting point for U.S. firms and offers a point of contact at the relevant U.S. embassy or consulate abroad.
These reports are also a resource for foreign governments to create business environments that ensure fair treatment for the United States and our companies and investors.
To access the full Investment Climate Statement, visit the U.S. Department of State Investment Climate Statements website.
Executive Summary - Dominican Republic
The Dominican Republic, an upper middle-income country, has been one of the fastest growing economies in Latin America over the past 50 years, with real GDP growth of 5 percent in 2024. Foreign direct investment (FDI) plays an important role in the Dominican economy, and the country has historically been among the top recipients of FDI in the Caribbean. The government actively courts FDI with generous tax exemptions and other incentives to attract businesses to the country. The tourism, real estate, telecommunications, free trade zone (FTZ), mining, and energy sectors have attracted the most FDI.
Besides financial incentives, the country’s membership in the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) is an advantage for foreign investors. Observers credit the agreement with increasing competition, strengthening the rule of law, and expanding access to quality products in the Dominican Republic. The United States remains the single largest investor in the Dominican Republic. CAFTA-DR includes protections for member state foreign investors, including mechanisms for dispute resolution.
The current government, led by President Luis Abinader, has made a concerted effort to address issues of corruption and transparency – which are core challenges for social, economic, and political prosperity – by promoting prosecutorial independence, appointing technically competent professionals in leadership positions, and enacting a civil asset forfeiture law. However, the current government has declined to prioritize important reforms supported by investors, including electricity sector reform and high levels of informality. Foreign investors continue to cite a lack of transparency and poor implementation of existing laws as key challenges in the investment climate. Complaints include perceptions of widespread corruption at both national and local levels of government; a lack of technical competency within the government; delays in government payments; bureaucratic hurdles; and non-standard procedures in customs valuation and classification of imports. Weak land tenure laws and interference with private property rights continue to be a problem. In addition, investors perceive administrative and judicial decision-making to be inconsistent, opaque, and overly time-consuming.