The Legislative Assembly is currently reviewing the “Special Regime to Incentivize and Facilitate High-Value Investments in El Salvador,” a legislative framework that would grant tax incentives, administrative and legal advantages to multibillion-dollar investments.

Presented by the Ministry of Finance on July 22, 2025, the proposed special regime is part of the Government of El Salvador’s (GSE) strategy to attract and compete for foreign direct investment (FDI). The country has been a competitive player for a number of high-impact investment projects, and this framework is expected to help facilitate and advance negotiations with prospective investors.

A Vision to Grow the Economy

While growth in international investment has not met expectations during President Nayib Bukele’s term, economic diversification, modernization, and productivity have remained top priorities. Bukele’s government was proactive about passing legislative frameworks to improve the ease of doing business and push macroeconomic reforms that would make El Salvador more competitive and resilient.

The Special Regime to Incentivize and Facilitate High-Value Investments in El Salvador (hereinafter the “Special Regime”) is a natural progression of that approach. It is a proposal that incentivizes foreign investment in large-scale projects that can change El Salvador’s productive model and bring it to a new level of capital intensity and sophistication.

For the purpose of the Special Regime, high-value investments are defined as those with a commitment to invest directly in El Salvador or transfer capital or assets worth $2 billion or more. Presented by Finance Minister Jerson Rogelio Posada Molina, the Special Regime opens a window for foreign capital to access El Salvador on a preferential basis and receive financial and administrative incentives to pursue large-scale business.

Incentives Package for Large-Scale Investors

The Special Regime offers a package of targeted benefits for large-scale investors. The most notable of these are:

• Tax Incentives: Corporate income tax , import duties, and value-added tax (VAT) exemptions or discounts.
• Administrative Privileges: Expedited processing and approval of business permits, registrations, and other administrative requirements.
• Legal Certainty: Stability and predictability in terms of adherence to the law.

El Salvador is currently among the top recipients of FDI in Central America, which has helped make up for low national savings, domestic investment levels, and productivity rates in the economy. The Central America Free Trade Agreement (CAFTA-DR) is also advantageous for investors as it gives El Salvador preferential access to the US market.

However, neighboring countries are competing for the same slice of international capital, which has become highly price sensitive due to factors like geopolitical risks, higher interest rates, and the global economic slowdown.

By offering financial and administrative incentives, as well as legal certainty for foreign investments, the Special Regime aims to position El Salvador as an attractive and reliable destination for FDI for projects of a particular size and nature. In addition to the traditional financial sector, this initiative will likely focus on a select number of strategic sectors, including:

• Technology & Innovation: Data centers, R&D centers, software development companies
• Infrastructure: Public or private infrastructure projects, such as highways, ports, airports, water or power plants, etc.
• Energy: Solar power, geothermal, wind energy, hydrogen, etc.
• Manufacturing: High-tech or precision manufacturing companies to set up operations in the industrial parks.
• Logistics and Supply Chains: Given its geographic position, El Salvador could become a logistics hub in the region, offering services to landlocked countries.
• Services: Business process outsourcing (BPO), financial services, call centers, etc.

It should be noted that, regardless of whether the Special Regime becomes law, none of these sectors would be “off-limits” for foreign capital or large-scale domestic investment.

Towards a Comprehensive Legal Framework

El Salvador has made significant strides in recent years in reforming its economy and polity. Dollarization, a stable macroeconomic framework, and improvements in physical and digital infrastructure have all been positive developments.

With its Special Regime, the Government of El Salvador is seeking to push these reforms further by creating a highly predictable environment for very large-scale investments. Legislative support for the Special Regime seems high as President Bukele’s Nuevas Ideas party holds a majority in the Legislative Assembly. The Special Regime is likely to be approved and passed into law relatively soon after its approval by the Assembly.

If so, it will help change the investment narrative for El Salvador, which has traditionally been focused on apparel and other low-value and low-productivity sectors. A focus on high-value investments in El Salvador should serve to direct more capital into the economy and spur economic growth and development.

Transformative Investments with Large Impact

Projects of this magnitude do not come by very often, but when they do, the local economic impacts can be significant. Infrastructure projects, advanced manufacturing facilities, or high-tech platforms for technology development and innovation are long-term investments. They can have an extensive and long-lasting impact on the country’s economic activity. Attracting one of these projects is therefore always a game-changer.

According to a study by a regional economic development agency, each new job created by a high-value FDI project can have a multiplier effect and generate additional employment both directly (through demand for additional capital and labor) and indirectly (demand for goods and services).

A $2 billion+ investment project would almost by definition require thousands of direct jobs, as well as several multiples of indirect jobs. The latter would depend on the nature of the investment (energy, manufacturing, etc.) but could reach or exceed tens of thousands, especially in the construction and infrastructure phase.

By extension, these new jobs will boost domestic demand and fuel growth in consumption, gross domestic product (GDP), and output. The more an FDI project requires local capital and labor, the higher its positive contribution to the economy.

No to Regulatory Arbitrage

Administrative bottlenecks and unpredictable business regulation are common obstacles to investment in developing markets. In this way, the Special Regime also serves as a signal to high-value investors that they can expect a very stable legal and business climate to develop their businesses.

The Special Regime offers legal stability clauses that protect investors from retroactive changes to tax and financial conditions, for example. They can also expect to work with a “one-stop shop” of government agencies to receive administrative support and guidance. Any disputes will be resolved in accordance with international best practices.

Predictable Regulatory Environment

Boosting El Salvador’s business climate ranking is yet another potential effect of this initiative. By eliminating what high-value investors see as impediments to business, El Salvador could receive a better rating in global ease-of-doing-business reports, as well as in investment climate surveys. This should also make it easier for the country to attract FDI in the long run, as El Salvador will no longer be seen as an outlier in terms of business regulation and related requirements.

In the medium term, one would also expect positive effects from large-scale, high-value investments on domestic education, vocational training, and human capital development. High-impact investments require a skilled workforce to carry out capital-intensive and high-value-added activities. In this way, these investments can benefit the country’s broader human development objectives.

El Salvador as an Investment Destination

While security, infrastructure, and institutional capacity have been long-standing issues for El Salvador, the Special Regime is an attempt to close the investment climate gap with its neighbors. El Salvador has other notable advantages, including preferential access to the US market, owing to CAFTA-DR. In that way, the Special Regime is both a necessary and complementary component of a comprehensive effort to draw large-scale FDI into the country.

To address and overcome existing barriers to foreign investment in El Salvador, the Special Regime is a crucial piece of that puzzle. It may well represent the difference between winning or losing the bid for foreign capital and therefore FDI for some of these large-scale projects.

Success for El Salvador

The proposal for a Special Regime to Incentivize and Facilitate High-Value Investments in El Salvador is a noteworthy development in the country’s efforts to attract foreign investment. It reflects the government’s proactive approach in creating an enabling environment for large-scale investments that can drive economic growth and diversification.

Although the Special Regime has the potential to increase FDI in El Salvador, its long-term success will likely depend on broader developments in the national economy and polity. Issues like security, crime, public administration capacity, and infrastructure may also have to be addressed to truly reap the full benefits of this framework.

In that way, the Special Regime can become a powerful instrument that will not only help El Salvador close the investment climate gap with its regional neighbors, but it can also become a tool to help overcome security, crime, and other structural barriers to investment and economic development.

Attracting a high-value investment in El Salvador has significant benefits for the country, from GDP growth to employment and exports. In this way, the Special Regime could become a key factor in opening El Salvador to transformative FDI and the transformative investments it brings with it.

The relationship between Uruguay and India has gained renewed momentum in recent years, driven by an increase in bilateral trade, investments in key sectors, and an active diplomatic agenda. According to a report published by Uruguay XXI in July 2025, the bond between the two countries is built on a foundation of shared history, technological cooperation, and a steadily expanding economic horizon.

In the context of global transformation, where geopolitics and trade flows are being reshaped, India is emerging as a key partner for Latin America. Uruguay, with its institutional stability and open trade policies, aims to establish itself as a reliable platform for Indian investment and as a strategic supplier of raw materials and agricultural goods.

During the recent BRICS Summit held in Rio de Janeiro, Uruguayan President Yamandú Orsi held a bilateral meeting with Indian Prime Minister Narendra Modi, reaffirming the mutual interest between Uruguay and India in strengthening political and economic ties.

Diplomatic relations between the two countries were formally established in 1948. Still, it was in the 2000s that the relationship took on a more strategic character—particularly after Tata Consultancy Services (TCS) established operations in Uruguay in 2002. Since then, Indian investments have extended to sectors such as information technology, pharmaceuticals, manufacturing, and logistics, consolidating India as one of Uruguay’s key Asian partners.

India: A Rising Economy and a Key Trade Partner

India has transformed into a major player in global trade. Despite the impacts of the 2020 pandemic, its economy rebounded strongly and reached historic highs in both exports and imports in 2022—evidence of its deepening integration into the global economy. This sustained expansion has made India a strategic source of industrial goods and an increasingly attractive destination for exporters worldwide.

For Uruguay, India represents a gateway to a market of over 1.45 billion consumers with increasingly diversified demand. In recent years, Uruguayan exports to India have grown significantly, reaching $93 million in 2024—more than six times the pre-pandemic level.

Approximately 79% of these exports consisted of forest products, primarily wood. The remainder included barley, wool, textiles, and, to a lesser extent, chemicals and leather. India’s growing demand for barley, linked to the post-pandemic development of its brewing industry, has created a new opportunity for Uruguay’s agricultural sector.

On the other hand, Uruguay imported goods worth $230 million from India in 2024. The majority of these imports were concentrated in mineral fuels (30%), vehicles and auto parts (17%), organic chemicals (11%), and industrial and electronic machinery. The textile sector also stood out, with over $7 million in imports of garments and fabrics.

Productive Complementarity and Growth in Trade

The trade landscape reveals a high degree of complementarity between the economies of Uruguay and India. India serves as a key supplier of industrialized goods, while Uruguay provides raw materials, agri-industrial products, and wood—essential components for India’s construction, energy, and food sectors.

However, the relationship still faces challenges. There is an asymmetry in the trade balance that could be addressed through greater export diversification by Uruguay, as well as through agreements that reduce tariff barriers and promote value-added trade.

Existing Agreements and the Path Toward a Trade Deal

• Currently, the legal framework governing bilateral relations includes three main agreements:
• The Bilateral Investment Agreement was signed in 2008 and is currently being updated.
• The Double Taxation Avoidance Agreement has been in force since 2011.
• The Preferential Trade Agreement between Mercosur and India, implemented in 2009, provides for tariff reductions ranging from 10% to 100% on select products, including pharmaceuticals, machinery, processed foods, and textiles.

Despite these advances, the agreements remain limited in scope. Both Montevideo and New Delhi have expressed interest in moving toward a Free Trade Agreement (FTA). According to the Uruguay XXI report, India does not require prior approval from Mercosur to negotiate a bilateral FTA—creating a real opportunity for Uruguay to expand its international integration independently.

Indian Investment in Uruguay: Technology, Services, and Energy

Indian investment in Uruguay has made a significant impact, especially in Zonamerica, where TCS established one of its main regional technology service centers. Other notable companies such as Infogain Latam, Deciral, and Oliva Garden have also expanded India’s presence in areas like IT services, pharmaceuticals, and textile manufacturing.

There has also been investment in renewable energy, through Suzlon Wind Energy, and in maritime transport, with the Avvashya Group. These investments align with the global expansion strategies of Indian multinationals, which in 2024 increased their foreign direct investment stock to $260 billion—10% more than the previous year.

Uruguay’s selection as a gateway to Latin America is no coincidence. Its reliable legal framework, investment incentives, and political stability make it an ideal destination for companies looking to establish regional operations.

Tariffs: A Structural Barrier Limiting Potential

One of the main obstacles to expanding Uruguayan exports to India is the varying level of tariffs applied, which differ significantly depending on the product. While some sectors face moderate rates, others are hindered by peak tariffs that reach up to 300%—particularly on agricultural goods.

For example:

• Pepper and rice face tariffs ranging from 70% to 100%;
• Powdered milk, corn, and nuts: 50% to 70%;
• Fruits such as grapes, apples, oranges, and pears: 30-40%.

In 2023, Uruguay paid $3.9 million in tariffs on exports to India—mostly on wood ($3.2 million) and seafood ($252,000). These figures contrast with the more than $387 million Uruguay paid in global tariffs that year, indicating that while India represents a relatively small portion, there is strong growth potential if preferential agreements can be secured.

The Uruguay XXI report also identifies untapped export potential in products like scoured wool, semiprecious stones, and soybeans—sectors that could scale up if more aggressive commercial strategies are pursued and improved access conditions are negotiated.

A Bilateral Trade Relationship with Room to Grow

Bilateral trade between Uruguay and India already exceeds $320 million annually, but analysts agree this is just the beginning. There are numerous opportunities to deepen the relationship in areas such as:

• Export of value-added food products;
• Attraction of investment in technology and logistics;
• Integration into pharmaceutical value chains;

Tapping into opportunities in the education and scientific sectors, where India also has a strong offering.

The main challenge is to diversify Uruguay’s export portfolio, which is currently heavily reliant on wood, and to move toward a more balanced and sustainable partnership. Diplomatic cooperation, investment agreements, and an active trade policy will be essential for both countries to capitalize on their economic complementarity.

A 75-Year Relationship with a Forward-Looking Vision

Seventy-five years after establishing diplomatic relations, Uruguay and India now share a mature agenda that includes historical, commercial, and strategic components. The interest of both governments in deepening bilateral ties reflects a commitment to a development model based on openness, innovation, and market integration.

In an era of geopolitical transformation, strengthening relationships like this enables countries such as Uruguay to diversify their trade partners and reduce reliance on traditional markets. For India, establishing stable alliances in Latin America is crucial to its global outreach strategy.

In recent years, there has been a notable trend in Panama, one of the world’s leading countries for global wealth migration. The country has gained increasing popularity among the high-net-worth individual (HNWI) community, as more and more millionaires are migrating to Panama. In fact, Panama has emerged as a leading destination for global capital, not only in the Latin American region but worldwide. The new wave of capital inflow into Panama is driven by the wealthiest individuals from other countries, with the United States of America, Canada, China, and European countries making up the largest share.

This blog post will discuss the top reasons millionaires are migrating to Panama and the benefits of Panama as a global wealth destination. The analysis will be based on data from the latest Millionaire Migration Report from Henley & Partners and New World Wealth.

Record Capital Inflow to Panama

It is no surprise that Panama is one of the world’s leading destinations for global wealth migration. The recent Millionaire Migration Report from Henley & Partners, a global citizenship by investment company, in partnership with New World Wealth, an expert on world wealth data, found that Panama is among the 10 fastest-growing markets for attracting millionaires’ wealth in the world.

According to the report, it is expected that the number of millionaires who relocated to Panama by the end of 2025 will reach around 300. On the other hand, countries like Brazil, Mexico, Colombia, and Argentina are losing the most millionaires, with around 1,200 millionaires leaving Brazil only this year.

What are the Millionaires Moving to Panama?

Millionaires migrating to Panama are mainly from the highest-income countries, including the U.S. and Canada. The largest part of HNWI relocating to Panama each year is over 60%. The other share comes mainly from Asian countries like China and Japan, and from European countries. A relatively small proportion comes from the countries that are now in a state of social and political instability and sometimes economic unpredictability.

The main reason that many of the wealthy from other countries choose Panama is the safety of their assets. The other significant factor is the ability to choose where and when to move, which means that the relocation option is not immediate but instead taken by people who are more likely to plan their finances for the long term.

The other considerations include the fear of fiscal overreach or even expropriation and the need for peace of mind for their wealth and its intergenerational transfer. For the wealthy from other countries,  migrating to Panama is especially attractive due to:

Tax Considerations

The main consideration for millionaires when it comes to their relocation decision is the tax situation in the destination country. In this respect, Panama stands out as it has no inheritance or estate taxes, as opposed to many other jurisdictions around the world.

The lack of these taxes is especially important for older millionaires who want to leave their wealth to their children. In addition to these tax advantages, Panama also has one of the lowest rates of capital gains taxes in the world, which is another factor to consider in terms of optimizing and preserving wealth.

Financial Sector Sophistication

Panama is also a country with a well-developed financial services sector, which includes:

– a well-developed banking system;

– services in trust and estate planning;

– legal services for international clients;

– a mature and stable insurance sector.

For these reasons, the country is an especially attractive destination for the relocation of HNWIs as well as their intergenerational transfer of wealth.

Opportunities for Luxury Living

The other key factor in choosing the best global wealth destination is the lifestyle, especially for those millionaires who are used to first-class living in urban environments. Panama City offers luxurious and modern residences and condominiums, upscale neighborhoods, including Punta Pacifica and Costa del Este, private golf courses, upscale shopping centers, and fine dining options. At the same time, there is a cosmopolitan feel to the city and country in general, as well as beautiful beaches.

The country is also rich in biodiversity, with a tropical climate and eco-tourism options. These aspects of Panama make it a very attractive destination for a variety of millionaires, including those with a lifestyle that has a connection to outdoor living.

Improved Legal and Regulatory Environment

The other notable factor that contributed to the favorable change in Panama’s reputation among global millionaires is the country’s recent efforts to improve its regulatory and legal environment, including, for example, the country being removed from multiple international gray lists related to money laundering and other financial irregularities. The reasons that this change in the perception of Panama can help the country attract and retain global capital include:

– increased confidence of international investors who are more sensitive to these issues, such as legitimacy, long-term stability, and the law;

– efforts by Panama’s government to increase the country’s transparency and improve its institutions, as evidenced by the judicial system’s increased aggressiveness in some high-profile corruption cases.

Another element that can help Panama attract more and retain global capital is the country’s strategic position in the Central American region. The country, and its capital Panama City in particular, offer direct and nonstop flights to most major cities in the U.S. as well as Europe and many other places in Latin America via Tocumen International Airport, often referred to as the “Hub of the Americas.”

The other factor, which, of course, is the Panama Canal, is one of the world’s busiest shipping lanes. The high degree of connectivity and transport infrastructure makes it much easier for the relocated millionaires to manage their other international interests and frequent travel. At the same time, other aspects of Panama’s infrastructure, such as telecommunications, time zone, and the power grid, are also very suitable for highly mobile entrepreneurs and investors, contributing to Panama’s status as one of the leading global wealth destinations for many high-net-worth individuals.

Stability of Panama’s Institutions

It is no secret that many countries in the Latin American region, including some of the wealthiest in the area, like Argentina, Colombia, Brazil, and Mexico, are currently facing challenges in their governance, rule of law, and macroeconomic policy. Panama has found a way to deal with that. While Panama’s government may not be perfect, the government and political system do not have to deal with the significant structural challenges that many other Latin American countries must deal with.

One of the most prominent illustrations of Panama’s institutional strength, at least when compared to its regional peers, is the fact that it does not have a standing army. While this fact often comes as a surprise to many foreigners and visitors to the country, the reality is that this has been one of the most notable factors of Panama’s ability to concentrate on building the capacity and efficiency of its civilian institutions, which now serve the millions of residents of the country, including the newly arrived millionaires and their families.

Panama Attracts $2.4 Billion in Global Wealth

As many high-net-worth individuals from other countries are migrating to Panama, this brings in about $2.4 billion of capital. The reasons that Panama is a global wealth destination include:

– a direct injection of money into the country’s real estate, finance, tourism, and luxury goods markets, which in turn supports local employment and demand for high-end products;

– the capital, tax, and regulatory environment, as well as the ability to facilitate international connections via the Panama Canal and its airports, are often reasons that the wealthiest individuals choose to relocate to Panama.

Panama is the Tenth Growing Destination for Global Millionaire Wealth in the World

There are two countries in Central America that Panama can now be mentioned alongside, including Costa Rica, as leading global wealth havens, which represent an opportunity not only for many local people but also for the region as a whole.

While Costa Rica has a comparative advantage in terms of ecological sustainability and higher quality of life, which works exceptionally well for retirees, Panama is a different type of country. Panama has a strong financial sector infrastructure, a tax environment that is especially beneficial for wealth optimization and its intergenerational transfer, as well as the advantage of great international connectivity. These aspects have already made Panama a global wealth destination for many high-net-worth individuals and is likely only to continue attracting global capital in the years to come.

This is a very strong position for any country to be in, and to have now become one of the world’s leading global wealth havens. Panama City is a magnet for attracting global wealth, and there is every reason to believe that this trend is going to continue in the foreseeable future. This means that the country is likely to remain among the most attractive global wealth havens as more and more HNWIs continue to migrate to Panama for an increased tax optimization potential, as well as for peace of mind for the safety of their wealth and the well-being of their families.

Key Takeaways

– Exports from the free trade zone sector in the Dominican Republic hit a record US$4.2799 billion in the first half of 2025 and represent the highest-performing source of foreign exchange.

– In June, shipments abroad from the free trade sector reached $771.96 million, a 2.8% increase over the same month in 2024.

– The top export categories from the DR’s free trade zones are medical/pharmaceutical manufacturing, electronics/electrical equipment, and tobacco and cigar production.

Free Trade Zone Sector in the Dominican Republic Is National Export Leader

The free trade zone sector in the Dominican Republic is one of the country’s most productive, innovative, and globally integrated commercial sectors. During the first six months of 2025, exports under the free zone regime reached a record $4.2799 billion. This is further evidence of its growing importance in the country’s foreign exchange earnings. The free trade sector in the Dominican Republic is also a consistent national export leader. June 2025 exports from free trade zones were $771.96 million, 2.8% above the same month in 2024. The first half of 2025 represents one of the strongest export performances on record.

In recent years, government policies and incentives have also focused on improving the sector’s competitiveness, attracting investment, and diversifying access to international markets.

Dominican Republic’s Free Trade Zone Exports: Composition

The fastest-growing and highest-value export categories from the free trade sector in the Dominican Republic are medical and pharmaceutical products. These items represent a plurality of the total value of DR free zone exports. Other leading export categories from the Dominican Republic’s free trade sector include electrical and electronic equipment, textiles, and agribusiness products.

With a wide range of export products now meeting quality standards and production requirements from the U.S. and EU, DR free trade exports are among the most diversified of any nation in the Caribbean.

Main Countries of Destination for DR Free Trade Exports

In addition to a diversified basket of export products, the free trade zone sector in the Dominican Republic is also regionally and globally integrated. For decades, the United States has been the country’s leading trade partner for Dominican exports and a destination for foreign direct investment. This historical relationship has deepened with trade agreements such as the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR), which eliminated tariffs and simplified customs rules on a variety of goods.

Puerto Rico, the Netherlands, and Haiti are other leading destinations for exports from the free trade sector in the Dominican Republic.

Sector Impact and Government Programs

The Dominican government has invested heavily in creating an enabling environment for export growth in the free trade zone sector. Víctor “Ito” Bisonó, the country’s minister of industry, commerce, and MSMEs, called the DR’s free trade sector a “key generator of foreign exchange and employment.”

He noted that the high volume of exports during the first half of 2025 is “proof of the resilience and productivity of the Dominican manufacturing sector and the success of the public policies implemented to attract investment, enhance competitiveness, and increase access to new markets in the international arena.”

The government’s efforts to attract investment and expand free trade exports are not limited to new economic incentives. In addition to new or updated free trade parks near major ports, airports, and highways, the administration has also emphasized creating a modern infrastructure with the latest in green energy, smart manufacturing, and ESG-compliant operations.

Key Export-Driven Subsectors

Free trade zones in the Dominican Republic are now active in more than 750 companies and across all major export sectors. The most productive subsectors include apparel and textiles, agribusiness and food processing, electrical and electronic components, medical devices and pharmaceuticals, BPO, and information technology services.

Employment and Industrial Zones

Direct employment across the free trade sector in the Dominican Republic is also above 192,000 workers as of the second quarter of 2025. Free trade parks are spread across the entire country and account for over half of the country’s total number of licensed industrial parks.

Industrial and Logistics Hubs

The government’s focus on attracting logistics and manufacturing investment to the Dominican Republic continues with infrastructure upgrades. Industrial parks now in the initial stages of development are near ports, airports, and highways and have high connectivity with companies focused on nearshoring, just-in-time manufacturing, and frequent manufacturing or container shipments.

The Dominican Republic’s seaports, particularly Caucedo and Haina, are among the most modern in the Caribbean. Modernization of Las Américas International Airport and the Northern Corridor are also in progress, providing greater incentives for investors who value streamlined transportation and logistics networks.

Industrial Park Features and Technologies

Industrial park operators have also invested heavily in upgrades to existing sites and the construction of new zones. Sustainable energy sources, smart manufacturing technology, and certified clean-production operations are becoming standard in modern free trade parks to meet global ESG standards.

In addition, new facilities and updated programs in industrial parks are offering more space and resources for R&D, business incubators, vertical farming, and precision agriculture.

Market Challenges and Opportunities

The free trade zone and export sector face several challenges on the national and global stage. International economic contraction, geopolitical risk, and supply chain challenges still have a high degree of uncertainty, and the Dominican Republic’s export-driven sectors must adjust and adapt to the new environment.

Nearshoring to and from the U.S., digital manufacturing, e-commerce fulfillment, and clean tech represent major emerging opportunities for which the Dominican Republic is well-positioned. Geographic proximity to the United States, a modern logistics infrastructure, and a commitment to economic diversification all provide incentives for investors to consider the country as they reassess production and supply chain footprints.

Dominican Republic’s Strategic Vision and Opportunities for Growth

The free trade sector in the Dominican Republic will be one of the cornerstones of the administration’s long-term economic vision. Bisonó has stated that it is part of the country’s industrial, manufacturing, and logistical transformation.

Beyond their current role in generating exports, these industrial parks are expected to become anchors for the country’s efforts to attract high-tech industries and strengthen regional supply chains. Programs like Zona Franca 4.0 are integrating digital technology into free trade operations to ensure competitiveness for the coming phase of global industrialization.

Conclusion: Opportunities in Dominican Republic Free Trade Zone Exports

The performance of the free trade sector in the Dominican Republic during the first half of 2025 and its continued success as the country’s highest-value source of foreign exchange is a reflection of several factors. Improvements in the investment climate, greater international and regional integration of export sectors, and targeted government programs to support this critical sector have contributed to high levels of sustained growth.

Exports from the DR’s free trade zones are also a bellwether for future economic development. The country is on track to strengthen its position as a regional logistics and industrial hub, attract new and existing investors, and drive the next phase of job creation.

Discover how Peru is leveraging its critical minerals to become a frontrunner in the clean energy transition while attracting foreign direct investment.

Peru is a frontrunner in the global race to support the clean and sustainable energy transition.

When the world transitions to clean and sustainable energy, it won’t be able to do so without the help of critical minerals. Peru happens to be rich in them. The country is endowed with strategic inputs for solar panels, batteries for electric vehicles, and wind turbines. This hidden potential of Peruvian raw materials was reported by the Economic Commission for Latin America and the Caribbean (ECLAC) in the recently released 2025 Foreign Direct Investment in Latin America and the Caribbean report, which made this mineral category a potential magnet for FDI in Peru.

Latin America attracts FDI despite a difficult global environment

The ECLAC report 2025 edition of Foreign Direct Investment in Latin America and the Caribbean shows the following trend: the global investment situation was stagnant or declining in 2024 in most regions due to inflation, high interest rates, and geopolitical tensions. By contrast, FDI in Latin America and the Caribbean increased by 7.1% to US$188.962 billion in 2024 from the previous year. In this regional overview, ECLAC pointed out that Peru outperformed with its positive growth: from US$4.339 billion in 2023 to US$6.799 billion in 2024, FDI increased by 57%.

Critical Minerals in Peru are a high priority

The ECLAC study shows that this fresh flow of foreign investment can provide countries in the region with opportunities to transform and place them on a more sustainable and productive growth path. In the case of Peru, the report directly points to critical minerals in Peru. The country has both rich reserves and a stable political and regulatory framework to benefit from rising demand. The fact that Peru has taken a clear position with this resource as the metal and non-metallic mineral most relevant to technological development and production globally is recognized as high priority by the United States.

Peru’s critical minerals are a treasure with global importance

The ECLAC study notes that the country has 10.2% of the world’s proven reserves of copper. In addition, large quantities of lithium, zinc, molybdenum, and graphite are found there, all of which are considered critical minerals (CM) for their essential role in modern technologies and energy systems. In Peru, critical minerals are not only abundant but also geographically well located for easy access to global markets. In addition, as the energy transition takes hold worldwide, demand for many of these minerals is expected to soar. For example, lithium demand is projected to increase as electric vehicles (EVs) flood global markets. Copper demand is needed to supply wire and other components for the green energy boom.

Peru and the United States signed an MoU to work together on Critical Minerals

In May 2024, Peru took an important step in a new era when it signed a memorandum of understanding with the US to strengthen cooperation in the development of critical minerals, previously a US government priority. Under Secretary José Fernández underscored the long-term importance of the agreement, citing a study showing that demand for some strategic minerals will need to grow 100 times by 2050 to meet global climate targets.

Peru’s mining sector continues to attract more foreign investment

The Peruvian Ministry of Energy and Mines (Minem) organizes and promotes the mining sector in Peru. It has a portfolio of 67 major mining projects valued at over US$64.071 billion in the country, with these assets being at different stages of development. These ongoing projects range from those that have completed feasibility studies and have already been approved to those that are currently under construction. Among them are both national and international players. The country also has 84 exploration projects valued at a total of US$1.039 billion that are working to discover new deposits and expand existing reserves.

In the first five months of 2025, Peru recorded mining investment of US$1.845 billion. This represents a growth of 4.7% over the same period in 2024, with investment growth of 39.7% in the category of mining exploration activities and infrastructure investment of 10.6%. The latest investment data for the country’s exploration activities in the mining sector appears to confirm that companies are increasingly interested in critical minerals in Peru to secure long-term supplies.

Peru is creating a pro-investment environment

Peru’s Minem is making a range of policy reforms to provide more predictability and transparency and help the mining sector increase foreign investment. Measures such as streamlined permitting procedures, fiscal incentives, and infrastructure development are all aimed at making the industry a more attractive destination for FDI.

What does ECLAC suggest to take advantage of this opportunity

ECLAC’s recent report doesn’t just point out Peru’s rich endowment of critical minerals and project this bodes well for attracting FDI. The regional agency also provides a series of recommendations to better take advantage of this opportunity. These are:

• Peru should develop a national strategy that views FDI as a development tool. A long-term vision should be developed with foreign investment serving as one of the engines aligned with the government’s broader national goals, such as job creation, technology transfer, and environmental sustainability.
• Promote synergies between public and private sectors. Collaboration between government ministries, investors, and local communities is key. It’s not enough to attract investment but to ensure it’s socially and environmentally responsible.
• Evaluate fiscal and financial incentives. Carefully targeted fiscal and financial incentives, such as tax incentives or reduced royalties, can be a way to attract responsible investors to key areas rich in critical minerals in Peru.
• Invest in human capital. Peru has a lot of potential to create more value added, so investing in training and skills development, especially technical education and vocational training, can help Peru benefit fully from mining activities.
• Leverage technology and pro-investment digital tools. Peru can utilize digital tools like blockchain, AI, etc., for supply chain tracking and compliance enforcement in environmental regulations.

IDB: The evidence of the multiplier effect of FDI in the region

The Inter-American Development Bank (IDB) has long studied the multiplier effect of foreign direct investment. Their research shows just how powerful and transformational this new capital can be for recipient economies. For each US dollar invested, as much as US$187 can be generated in additional economic activity across the broader economy. It can also help create one or two more jobs, generate US$2 in incremental exports, and another dollar in domestic investment.

The ECLAC research is the only thing between Peru and this missing US$ and its enormous potential benefits to the country. The think tank’s findings highlight the potential for investments in critical minerals in Peru to catalyze inclusive growth and regional integration. Tax revenues and local jobs come first when mining companies invest and open operations in the country. This includes the supply chains of nearby industries that are also encouraged to do business in the region, from transportation to construction to value-added processing of raw materials.

The energy transition: A geopolitical context for the value of the critical minerals in Peru

The planet’s transition to renewable energy is not only a technological and economic challenge but also a geopolitical one. Countries that sit on large and accessible reserves of critical minerals stand to gain significant influence in this new energy landscape. For Latin America and the Caribbean in general and for Peru in particular, the race to lead the international energy transition is already well underway. To this end, multilateral organizations like ECLAC and IDB can provide technical and financial support. Their research on the value of critical minerals in Peru provides multiple lines of evidence that these institutions will help ensure that this transformation is not only economically profitable but also environmentally sustainable and socially inclusive. In the words of ECLAC, a new model of development emerges: “The relative scarcity of critical minerals and global geopolitical competition present opportunities that, if well harnessed, can transform the economic development of Latin America and the Caribbean.”

Conclusions: Peru’s critical minerals in FDI’s global role

In conclusion, the unique blend of local raw materials, technical know-how, human talent, and fresh FDI flowing into the mining sector. These elements form a strategic mix that can drive long-term sustainable prosperity in Peru, increase regional influence in the global transition. provoke a more active participation in world events and create a green economy for future generations.