DR dominates in capturing foreign investments in the Caribbean

DR dominates in capturing foreign investments in the Caribbean

DR dominates in capturing foreign investments in the Caribbean
According to Cepal report, DR was main destination of capital investment in 2009-2010
SAN JUAN, Puerto Rico.- In spite of the deficient energy system and other problems related to competitiveness, the Dominican Republic found its way to become the largest receiver of foreign investment in the Caribbean region during 2009 and the first quarter of 2010. It also figures among the countries with the greatest individual increase in the region and in Central America, according to data published by the Economic Commission for Latin America and the Caribbean (CEPAL).

The agency"s study-titled "Foreign Investment in the Caribbean area 2009-2010"-says that the total flow of investment captured in the Caribbean region during this period reached US$5.783 billion, of which US$2.158 billion, or 37%, were concentrated in the Dominican Republic. In this order, second place went to Jamaica and third was the Bahamas.

Eddy Martinez, the director of the Center for Exports and Investment in the Dominican Republic (CEI-RD), in an interview for Diario Libre, said that the increase in investment that is shown for the country is a concrete result of the success that the offense by President Leonel Fernandez in seeking capital overseas.

"The accumulated foreign investment over the past five years is now at the record number of US$11 billion dollars, with a positive projection for 2011, and for this reason the attraction of new capital will continue to be one of the fundamental axis or our economy".

He said that the President has become the principal promoter of the country, thanks to the leadership that he enjoys on the international scene and to the success of the economic and financial policies which have kept the Dominican economy as one of the most stable and of the largest growth in the region.

He explained that in his many trips overseas and in meetings with investors, President Leonel Fernandez promotes the Dominican Republic as the "best place to invest in Latin America and the Caribbean", personally carrying the message of the advantages of the Dominican offer for developing businesses.

Strategic contribution

The strategy that the country is carrying out in order to promote investments, contributed to the entry of Chinese capital, through a financing that amounted to US$462 million in the Punta Perla tourist project in Punta Cana, and in the famous multinational corporation IKEA-with yearly sales of €20 billion in 24 countries around the world-selecting the Dominican Republic last year to locate its first store in Latin America.

Likewise, in the manufacturing area, operations were strengthened by businesses such as Corning Cable Systems, Eaton, Sara Lee and Lilly Pharmaceuticals.

Among the new investments captured by Quisqueya, the Gems Cap Cana by the United States company AM Resorts stands out with an initial investment of US$400 million for the construction of four luxury hotels in the East of the country.

The telecommunications sector has also grown, beginning with the installation of 60 new call centers and the entry of capital from France and Mexico, represented by France Telecom and Claro.

At the present time the United States investments in Quisqueya are around US$4.974 billion, followed by Spain (US$2.932 billion), Canada (US$2.699 billion), and Mexico (US$1.396 billion). The capital is concentrated in the tourism, manufacturing, telecommunications and energy sectors, according to the statistics of the Dominican Central Bank.

Very tempting offers

The Dominican government promotes investment packages internationally, which benefit companies that install operations in free zones with tax exemptions of up to 100% on earnings, customs duties, municipal taxes and import and export taxes for a period of 15 years. Also tax exempt -for ten years-are the projects for tourist developments in new tourist poles and there is a zero tax rate for farming projects. These incentives have significantly reduced the cost of doing business in the Dominican Republic.

The Dominican consul in Puerto Rico, Maximo Taveras, told Diario Libre that more and more Puerto Rican businessmen are approaching the business division of the consulate looking for information on the regulatory and fiscal incentives framework that the country offers investors.

"Manufacturers of doors, blinds, industrial awnings, food packers and businessmen from the construction sector have come in, interested in moving their businesses to Dominican territory in order to take advantage of a more economical labor pool and the tax advantages that they will have over there", he said.

He underscored the fact that the Dominican offers to businesses with foreign investment capital are very tempting: "There are nearly unbeatable tax incentives, low interest rates, and few export requirements. All of which can be added to the very attractive advantages of being able to repatriate earnings without paying taxes and which allow products that they processed with 45% of local labor to enter the United States duty free".

Puerto Rican investments

He said that over the last two years the Dominican Republic has received important investments of Puerto Rican capital, concentrated mostly in tourist projects in Bavaro and La Romana and that several businessmen have shown interest in taking part in new projects that are being developed in Samana.

The strategy the Quisqueya is developing in order to attract investors is simple, according to what Eddy Martinez, the CEI-RD director said: "We offer investors competitive tariffs, broad opportunities for businesses through five free trade agreements , a highly productive force and a dynamic and growing economy."

At the present time, the Investment Cabinet-created by President Leonel Fernandez to take care of the issues inherent to foreign investment-is analyzing several proposals from companies from India and the United States that are interested in investing in energy, tourism and software development projects in the Dominican Republic.

Among the proposed companies, with United States capital, are Greenhouse, Galt-Chairman, and CNN National Security, mostly from San Diego, California.
De Diario Libre