FDI increases

[NewsWhore]

El Caribe, citing a report by the Central Bank, is reporting that foreign direct investment (FDI) to the DR increased significantly in 2007. The period in question represents the date after DR-CAFTA came into effect and according to the report, FDI reached US$1.7 billion in 2007. This figure represents a 16.3% increase from 2006 and an absolute value increase of US$238.7 million in comparison to 2006 when FDI was US$1.5 billion. FDI was directed specifically into the real estate sector (US$723.3 million) for a relative growth of 120% and absolute growth of US$394.8 million. Tourism experienced a growth of US$163.5 million, or 58.1% for a total FDI of US$445 million. Telecommunications also experienced an FDI boost of 22.2% or 75.8 million. Total FDI in telecommunications equaled US$417 million. Eddy Martinez, director of the DR Center for Exports and Investment (CEI-RD) says that this record level of FDI is due to the country's entrance of DR-CAFTA. Martinez says that this figure is expected to increase in 2008 due to the DR's new agreement with the European Union. He added that this places the DR in a unique position, as the country now has access to both the US and European markets. Speaking on the needs of the system, Martinez said that all the country needs now is the application of active policies aimed at attracting investment. This is the new challenge the country faces. According to Martinez, the strength of the euro and US dollar compared to the peso is attractive to investors. He added that these investments would help maintain the DR's economic stability.

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