Foreign Investment in the Dominican Republic Holds Steady Amid Shifts in Caribbean Landscape

By Guzmán Ariza, Attorneys at Law

The Dominican Republic remained a key magnet for foreign direct investment (FDI) in 2024, according to the World Investment Report 2025 launched by UN Trade and Development (UNCTAD) on 19 June, 2025. While regional trends show a mixed picture, the Dominican Republic stood out both for the volume of inflows and its central role in shaping the investment profile of Small Island Developing States (SIDS), particularly in the Caribbean.

FDI inflows to the Caribbean increased by 21% in 2024, reaching USD3.9 billion. This growth was largely sustained by stable investment levels in the Dominican Republic, which alone accounted for nearly half of the USD9 billion in total FDI received by all SIDS. Despite this strong showing in aggregate terms, the country experienced a notable 37% decline in projected capital expenditures for greenfield projects, falling to USD1.2 billion. The contrast highlights a broader pattern observed across SIDS: while capital inflows remain concentrated in a few economies, including the Dominican Republic, the pipeline of new investment projects has begun to shrink.

Greenfield investment—the creation of new production facilities as opposed to mergers or acquisitions—has been a vital indicator of long-term economic commitment. The decline in such projects in the Dominican Republic contrasts with developments in other Caribbean nations, such as Jamaica, where the value of announced greenfield projects surged from USD10 million to $325 million in 2024.

Sectorally, the Dominican Republic continued to play a prominent role in energy-related investments. Over 70% of all energy-sector greenfield projects in SIDS in 2024 were concentrated in four countries: the Dominican Republic, Seychelles, Tonga, and Mauritius. Most of these projects focused on renewable energy, particularly solar and biomass. International investors such as Masdar (UAE), Lightsource BP (UK), ACCIONA Energía (Spain), and Inkia Energy (Singapore) led the way in funding these initiatives.

In parallel, the digital economy sustained a strong presence in the investment landscape, accounting for 12% of total greenfield project value and 16% of all announced projects in SIDS. Although country-specific breakdowns for digital investments were not provided in the report, the Dominican Republic's established infrastructure and market scale suggest it remains a relevant player in this domain.

Infrastructure project finance (IPF) values also saw a 14% increase across SIDS, reaching $5.3 billion, though these figures were concentrated in a small number of deals. The report highlights a $2 billion project in Jamaica backed by the International Finance Corporation, signaling the role of multilateral institutions in driving large-scale investments in the region.

Despite the challenges posed by a 37% drop in greenfield capital in the Dominican Republic, the country’s ability to attract stable levels of FDI overall positions it as a key investment hub in the Caribbean and among SIDS. Its continued role in renewable energy development and digital transformation will likely be central to regional economic resilience and diversification efforts in the years ahead.