The energy sector in the Dominican Republic maintained its lead in Foreign Direct Investment (FDI) flows for the third consecutive quarter of 2023, securing $826.9 million. This sector showcased the highest growth during this period, surpassing traditionally prominent sectors such as tourism, commerce, and industry, as per data from the Central Bank of the Dominican Republic.
Antonio Almonte, the Minister of Energy and Mines, highlighted that the energy sector received the highest FDI in the first nine months of 2023, constituting 24.46 percent of the total FDI during this period. In the January-September period, FDI in the energy sector continued its leadership from the first semester (January-June), representing 27 percent of total investments.
Almonte emphasised that the remarkable performance of the energy sector reflects foreign investors’ confidence in the government’s management. This surge in FDI in the energy sector, reaching $826.9 million, indicates the highest-ever amount entering the country for this sector. Almonte anticipates that the data for the last quarter of 2023, when released by the Central Bank, could potentially push the total FDI in the energy sector beyond $1 billion.
The Minister attributed the consistent leadership of the energy sector in FDI to institutional strengthening, transparency, and effective policies implemented by the government, particularly in conventional and renewable energy projects.
Looking at selected periods, Almonte pointed out that from 2021 to September 2023, the country accumulated an extraordinary sum of $1,858.5 million in FDI in the energy sector, nearly double the FDI received during the 2017-2020 period and almost triple that of 2013-2016 and 2010-2012.
The Dominican Republic’s dynamic and robust economy is on track for its growth projections for 2024, with a 5% GDP growth. Government initiatives, aimed at attracting investment and providing legal security, have contributed to the positive outlook. The energy sector’s role is pivotal, leading to the establishment of new free zones generating jobs and investments in various provinces. This growth and stability in the energy sector have also supported the tourism sector, a key driver of the Dominican economy. The Dominican Association of Exporters (Adoexpo) forecasts the creation of over 200,000 jobs in 2024, reflecting the overall confidence of foreign investors in the country’s economic prospects.