Foreign Investments in the Dominican Republic in past year
Over the last few years the United States has been losing its position as the preeminent investor that the Dominican Republic had as far as foreign investments went. Now, two countries, Mexico and Canada are fighting for the leadership in that area, without stopping to mention that in the last two years capital from Venezuela and Colombia has been arriving.
The investments from Mexico, as of June 2011, were over US$4.6 billion in the country and occupy the fourth place in Latin America and the Caribbean, In the Dominican Republic there are more than twenty Mexican companies, some of the biggest and most famous in the country, and they provide more than 15,000 direct jobs and close to 30,000 indirect jobs.
The flow of direct foreign investment from Mexico in this country occupied the first place in 2010, with US$326,2 million, followed by Canada with US$329.2 million; the United States with US$306.8 million and Spain with US$299.2 million.
The principle sectors which received these investments have been tourism, telecommunications, commerce, services, transportation, mining, industry and the sector of the industrial free zones.
Some of the companies of Mexican investors in the country are Claro-America Movil, with an accumulated investment that is over US$3.8 billion and which has over 3000 direct employees.
Cemex Dominicana is also a standout Mexican company, with US$760 million in investments and over 2,000 direct employees. They have one of the most modern plants in the Caribbean with the capacity of producing 4,800 tons of clinker a day.
Then there is Aeropuertos Dominicanos Siglo XXI (Aerodom), with an investment of US$900 million. Other investments of Mexican capital are Sigma Foods, which became the second largest in processed meats in the Dominican market after acquiring Embutidos Checo and Productos Sosua in 2005.
Bepensa, the owner of Refrescos Nacionales, the Coca-Cola concessionaire, with over US$100 million in investments in the country and generates over 2,000 direct jobs and 10,000 indirect ones.
In the area of tourism, the Palace Resorts Group stands out, one of the most dynamic hotel businesses in Mexico, with investments of over US$800 million in the Moon Palace Casino, which is today called the Hard Rock Hotel and Casino Punta Cana, which provides 3,000 jobs.
The Mexican investments in the industrial free zones are in the area of textiles, confections, commerce, shoes, and services and represent about US$40 million and generate 1,600 direct jobs.
In the case of Canada, which was the largest investor in the Dominican Republic last year, they invested an amount that reached UC$1.67 billion. This was a sum that represented 45% of all Direct Foreign Investment captured by the country.
The investments are mostly in mining with Barrick Gold, banking, with Scotia Bank, and in the area of tourism and agribusiness.
Regarding the United States, the investments were barely US$455.3 million in 2009; US$306 million in 2010 and US$459 in 2011. They ended up in second place.
Category: DR News |