Marlière says: “Many of the Caribbean markets are in transition. They generally are tax incentive jurisdictions which have been in the radar of the US, the UK and the European Union, their main customers. Whilst these markets reinvent themselves, ISFIN with its strong local partners are best positioned to direct new trade routes into the Caribbean.”
The Dominican Republic is among the main recipients of FDI in the Caribbean and Central America. FDI covers about 50% of the country’s current deficit. According to UNCTAD 2020 World Investment Report, FDI inflows increased by 19% to USD 3 billion in 2019 (compared to USD 2,5 billion in 2018), thanks to investments in the telecommunication and power industries! If the USA, Canada and Spain remain the largest investors, Chinese investments increase. Furthermore, the Dominican Republic has increased efforts to attract new investors in advanced manufacturing and services. “This is where we come into the picture” says Marlière, “the ecosystem and the investment market are in diversification. LatAm and the Caribbean are on the radar of South East Asian and Middle Eastern funds.”
Guzmán Ariza says: “the logistical support in establishing operations and providing a range of tax by government has a significant role in FDI. Manufacturing is tax-free in designated National Free Zones and this privilege led to the attraction of world-class brands to the country. What could be better than tax incentives for targeted industries? including textiles, tourism, film and renewable energy, as well as incentives for foreign nationals accompanying their businesses and residing in the country are covered by tax incentives. Furthermore, there is similar rights and obligations for foreign or national investors. This is a great advantage”.
FDI played an important role in making the Dominican Republic a leading economic and tourist destination. The free zones and the low labor costs. The country has become the largest and fastest growing economy in Central America and the Caribbean, and its most visited tourist destination!
About Guzmán Ariza
Recognized as a top-tier firm by Chambers and The Legal 500, Guzmán Ariza is best positioned to accompany Chinese, Asian and Middle Eastern investors find the business opportunities present in the Dominican Republic. The firm has been operating a China desk for many years and they synergy with ISFIN consolidates the practice towards the emerging markets. The lawyers and staff are oriented by training and practice toward international clients, which comprise more than 80% of the clientele. This firm communicate regularly with customers in different languages: English, Spanish, Dutch, French, German, Italian, Portuguese and Russian. The firm is full-service, meaning that we can assist you across a wide variety of practice areas.
ISFIN – Emerging Markets Advisors – is a global advisory active in 75 countries. It acts as a business facilitator between East and West and has a unique knowledge of the Middle East, African and Asian markets. The organization is supported by a platform composed of the most innovative and highly regarded independent law, audit & accounting firms. It has a deal room offering off market investment opportunities to clever investors.