Interview with Mr. Johannes Kelner, Executive Director of the Consejo Nacional de Zonas Francas de Exportación (CNZFE)

October 13, 2026
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1. How would you describe the current evolution and role of the free zones in the Dominican Republic, and what importance does the sector have for productive transformation, employment generation and export growth?

I think it is extremely important for the free zones to generate quality employment and motivate young people. In fact, one of the things that parks and the public sector are doing is taking young people from schools to free-zone parks to motivate them to study STEM disciplines.

This is definitely an issue not only in the Dominican Republic, but across our region. Sometimes young people do not want to pursue STEM or engineering, even though these skills are very necessary. Free zones can serve as an inspiring source because when you enter one of these facilities, you see that the business environment is very different from what is generated in the local market.

The sector has also evolved significantly. It began with a strong focus on more traditional manufacturing, but the Dominican Republic has developed a sophisticated mix of American, Dominican and a growing range of other international investment, alongside increasing diversification into more technologically advanced and higher-value manufacturing.

Today, we have medical products, electronics, furniture, construction materials and assembly, as well as our iconic tobacco and cigar industry, which is a source of great pride and part of the Dominican Republic’s heritage.

Today, FDA-registered medical device plants, electronic components, pharmaceuticals and premium tobacco can operate side by side within the same industrial park. This diversification has not only added value to our exports, but has also made our economy much stronger and more resilient to international shocks.

Another area that has had a major impact is services and the export of services. Technology services, call centres and back-office operations continue to grow. We increasingly see demand for people who speak English well, have dynamism and can provide quality services, and the Dominican Republic has the human resources to meet that demand.

Free zones are no longer a promise; they are a consolidated success story. More than 30 years of stability under Law 8-90 offer investors something as valuable as tax incentives: legal certainty and clear rules. That certainty has attracted more than US$8 billion in accumulated foreign direct investment. By the end of 2025, the sector accounted for more than 200,000 direct jobs and more than 50% of the country’s exports, exceeding US$8.5 billion. This growth is no coincidence. It is the result of a long-term national strategy built on a strong public-private partnership.

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2. The Dominican Republic has positioned itself as an attractive destination for nearshoring, particularly because of its proximity to the United States, stability and preferential access to international markets. What advantages does the country currently offer companies seeking to bring their manufacturing operations closer to their main markets?

I believe that not only proximity, but also the close relationship with the United States, is extremely important today.

When an investor comes to the Dominican Republic, they come to a country that is economically, socially and politically stable. The country has maintained strong economic growth over the past decades and stands out in the region. At the same time, we have an excellent relationship with the United States.

We are a small country, but we are close, and that is key.

For an investor, this means coming to a location where markets can be served efficiently and where human resources are available, which is sometimes difficult to find elsewhere.

All these factors combine to make the Dominican Republic attractive for companies looking to relocate or establish manufacturing operations, whether they require labour-intensive production, advanced manufacturing or efficient logistics.

The world has changed, with geopolitical tensions, new tariffs, transport disruptions and higher shipping costs, but the nearshoring that the Dominican Republic has developed organically over decades continues to deliver results. It is not a new idea or a passing trend; it is a solid foundation built over many years. Today, many countries face greater difficulty, cost or uncertainty in selling to the United States. In that context, our access to the US market has become an even greater competitive advantage. For companies seeking shorter, more predictable and more secure supply chains, the Dominican Republic is a stable and competitive option.

The country has also matched the industrial growth of the free zones with a decisive commitment to infrastructure. The expansion of port terminals, including the Caucedo logistics hub, and the development of new logistics assets allow goods to move at the pace that global nearshoring demands. Companies no longer simply want inventory close by as a buffer; they look for a combination of tariff optimisation, speed of delivery, risk mitigation, product quality and labour productivity. The Dominican Republic offers that complete equation.

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3. The diversification towards activities with greater added value is transforming the profile of the Dominican free-zone sector. What opportunities do you see in areas such as medical devices, pharmaceuticals, electronics, advanced manufacturing, services and biotechnology?

Those are precisely the sectors driving the diversification of the Dominican Republic, and they are areas on which the government and the Council are particularly focused.

For example, we are preparing a major investment-promotion initiative in Boston around The MedTech Conference, hosted by AdvaMed, from October 17 to 23, with a Dominican delegation of more than 30 people, focused on attracting investment in medical products.

There is a major opportunity because we already have an established ecosystem in medical products: 34,000 jobs, 42 companies and US$2.9 billion in exports. It is already a reality and is our leading export product.

With that foundation, we now have to take the sector to the next level: move further up the value chain, both in terms of products and human capital.

We have people who can be trained and human resources that are already available. At the same time, attracting foreign investment is essential to continue expanding the ecosystem across all these sectors.

But the potential is even greater. The next step is to move into frontier sectors such as semiconductors, next-generation medical devices and digital services; to train the specialised talent that this new manufacturing requires; and to keep modernising the rules of the game so that we do not fall behind. We also need to tell our story better. Being good is not enough: we want to be the first choice for any investor considering advanced manufacturing in the Americas. The challenge is to move from being a great alternative to being the obvious choice.

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4. What elements of the Dominican free-zone regime make the country attractive to new international investors, and what type of projects are you currently looking to attract?

I have already touched on some of those advantages, but I would add something particularly interesting about the Dominican free-zone regime: companies can create a profit centre, rather than simply a cost centre.

Why? Because the regime provides important tax advantages. Under Law 8-90, companies benefit from exemptions on income tax, import duties and the tax on the transfer of industrialised goods and services (ITBIS, the Dominican equivalent of VAT).

This allows companies to establish operations that are not simply cost centres, but genuine profit centres.

I believe this represents a major opportunity for small, medium-sized and large companies to consider the Dominican Republic as an advanced manufacturing centre and, at the same time, a profit centre.

Today, however, international capital looks for more than exemptions. It looks for social peace, political stability and sound macroeconomic fundamentals, and that is exactly what the Dominican Republic offers: an environment in which multinationals can plan investments with a horizon of 15 years or more. What truly sets our model apart are the non-fiscal incentives that come from close coordination between the public and private sectors: simplified procedures, single windows for investors, technical training programmes tailored to the talent each plant requires, and continuous support from day one. Here, investors find not only a favourable tax regime, but an institutional partner across their entire value chain.

The projects we are looking to attract are in medical technologies, pharmaceuticals, electronics, advanced manufacturing, logistics and high-value services: operations that strengthen our industrial ecosystem and move it further up the value chain.

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5. Beyond North America, there are new opportunities to deepen economic relations with the United Arab Emirates and other Gulf countries. What potential do you see for attracting Gulf investors to the Dominican free zones and strengthening commercial connections between the two regions?

I believe the important and highly respected investment of DP World in the Dominican Republic, which operates the Port of Caucedo, is key to strengthening this relationship.

What we need now is to create the link that allows us to capitalise on companies that are already operating in Dubai and could establish a parallel plant or logistics operation in the Dominican Republic, with manufacturing focused on serving the United States.

The Dominican Republic can offer another market, another door and another gateway.

We should therefore find ways to open that door for companies in the United Arab Emirates. We also invite Emirati companies to make initial investments here, prepare human resources and make use of the resources that are available.

We have excellent engineers who are willing to work on specialised projects. Even a relatively small investment in a specialised service centre incorporating advanced technology could be a starting point for developing what companies have already built in Dubai.

This fits naturally with the strategy of the UAE and other Gulf countries, which are diversifying their economies and investing in factories, ports and logistics centres close to major consumer markets, through their sovereign wealth funds and global operators such as DP World. The Dominican Republic offers a strategic location at the heart of the Caribbean, direct access to the US market, a consolidated free-zone sector, expanding port and logistics infrastructure, political stability, legal certainty and skilled talent at competitive costs. It is an ideal platform to serve North and Latin America from a reliable jurisdiction, with tariff advantages and short transit times. We want to take part in concrete projects with Emirati and Gulf companies seeking to expand westward.

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6. Technology is rapidly raising the standards of productivity and competitiveness across global supply chains. How is the modernisation of the Dominican free zones advancing in terms of automation, digitisation and innovation, and what role does talent development play in this transformation?

Automation is becoming increasingly evident in the types of companies and projects that we approve.

We see companies initially projecting 80, 100 or 150 jobs, for example. Sometimes those projects ultimately generate many more jobs, but increasingly the investment is linked to automation and the integration of machinery.

Today, machinery is more intelligent and is being integrated into factories. The transformation is not happening as quickly as we have sometimes anticipated, because there is always a difference between what is projected and the speed at which technology can actually be integrated.

But we definitely see this transformation taking place. We have robots operating in the free zones, and we even have factories producing machinery for other local factories.

These are increasingly interconnected ecosystems. At the same time, we know that we need human talent prepared for what is coming next.

That is why talent development is central to this transformation. Bringing students into the parks to encourage STEM and engineering careers, and designing technical training around what each plant actually needs, are part of the same effort: automation and digitisation only raise productivity when people are prepared to operate, maintain and improve these systems.

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7. International companies are seeking supply chains that are not only efficient but also sustainable and resilient. What steps is the free-zone sector taking to move towards more environmentally sustainable and resource-efficient production models?

Together with the Ministry of Industry, Commerce and MSMEs and the World Bank, we are piloting the International Eco-Industrial Park Framework in selected free zones, as the basis for a national eco-industrial parks programme.

The goal is to make our free zones more competitive and resilient through better social, environmental and economic performance, including decarbonisation and circular-economy practices.

We are advancing in several areas. Parks are increasingly adopting clean energy, and many already have solar panels or are integrating renewable energy into their operations. They are also implementing more efficient water processes, including water treatment, reuse and circulation.

We are increasingly seeing parks paying greater attention to their surrounding environment and landscaping as well.

The major international companies, including Fortune 500 companies, are also aligned with these objectives. They are increasingly interested in sustainable parks and are willing to pay more for them.

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8. Finally, what message would you like to convey to the readers ofulf News about the Dominican Republic?

Invest in the Dominican Republic.

Bring advanced manufacturing and service companies here. First of all, we are close to your markets. We are well connected with Europe. We are also extremely well connected to the United States, with maritime connections of just a few days and direct air connectivity.

We have exceptional logistics, and investing here is straightforward.

Come to the Council for medical products, pharmaceuticals, electronics, advanced manufacturing and any other project. We will support you in establishing manufacturing operations and exporting to your nearest markets.

We have consolidated our position as a true industrial and logistics hub in the heart of the Caribbean. The opportunity is on the table. The Dominican Republic is not a promise for the future, but a platform that is already working: preferential access to the markets of the United States, Europe and the Caribbean, a free-zone regime with proven incentives, a location that connects the north and south of the continent, and one of the most dynamic economies in the region. We offer what every company is looking for: predictability, connectivity and profitability. We invite you to see for yourselves what this country offers, and to produce, export and grow from here into the Americas. The time to invest in the Dominican Republic is now.