Special Economic Zones in Latin America: How DP World’s Integrated Model Is Redefining Global Investment

The Rise of SEZs Across Latin America

Special Economic Zones (SEZs) have become key instruments for driving industrialization, job creation, and foreign direct investment (FDI) across Latin America. These designated areas – offering tax incentives, streamlined customs procedures, and world-class infrastructure – serve as engines for economic diversification. From Mexico’s border manufacturing zones to Colombia’s logistics clusters, SEZs are helping nations transition from raw material exports to high-value production and assembly.

For manufacturers and logistics providers navigating supply chain disruptions and shifting trade alliances, SEZs offer a compelling value proposition: proximity to North American markets and access to skilled labor, all within stable regulatory frameworks designed to attract global capital.

The Dominican Republic Advantage

Among Latin America’s many SEZs, the Dominican Republic stands out as a regional success story. The country’s free zone network – home to nearly 850 companies – has helped transform its economy into one of the most competitive manufacturing and logistics hubs in the Caribbean. Exports from Dominican SEZs now account for over 60% of total national exports, spanning electronics, pharmaceuticals, apparel, and advanced logistics services.

Several factors make the Dominican model unique. Its geographic location – less than three days by sea to Miami and five to New York – offers a strategic advantage for nearshoring production closer to U.S. consumers. Combined with the DR-CAFTA trade agreement, robust infrastructure, and political stability, the Dominican Republic has positioned itself as a natural bridge between North and South America.

DP World’s Integrated SEZ Model: A New Era of Connectivity

Building on this national strength, DP World is pioneering an ESG-driven model that integrates port operations, logistics, and industrial development into a single ecosystem at its Caucedo hub.

In 2025, DP World signed a landmark $760 million agreement with the Dominican government to expand both the Port of Caucedo and its adjacent Free Trade Zone, creating a 225-hectare SEZ with 120 new industrial buildings and multimodal transport connectivity. This development blends advanced infrastructure with environmental sustainability and workforce empowerment, forming one of the most sophisticated logistics-industrial ecosystems in the Americas.

The site’s integrated approach provides end-to-end efficiency for global manufacturers: goods can enter through the deepwater terminal, move seamlessly to bonded warehouses or production facilities within the SEZ, and re-export without ever leaving DP World’s secure logistics network. This vertical integration reduces dwell time, lowers carbon emissions, and offers investors a single point of contact for port, logistics, and industrial operations.

A Model Built on Sustainability and Skills 

DP World’s SEZ model goes beyond infrastructure. The company’s “Our World, Our Future” sustainability framework ensures that environmental and social considerations are embedded from the outset. In the Dominican Republic, DP World operates a 100% electric equipment fleet, utilizes renewable energy, and manages waste and natural resources under a risk prevention framework. The SEZ’s expansion is expected to generate up to 50,000 jobs, with dedicated workforce training through the DP World Academy – providing technical certifications and STEM programs in partnership with local institutions.

These initiatives align with broader regional trends toward sustainable industrialization. Across DP World’s Latin American portfolio – from renewable energy use in Chile to mangrove restoration in Ecuador – the company demonstrates that global trade growth and environmental responsibility can advance together.

Transforming the Investment Landscape

As global manufacturers rethink production networks in the wake of supply chain volatility, SEZs in Latin America – particularly those offering integrated, ESG-aligned solutions – are becoming central to new investment strategies. The Dominican Republic’s model, led by DP World, exemplifies how combining logistics efficiency, sustainability, and workforce development can redefine regional competitiveness.

With its integrated SEZ ecosystem, DP World is changing the calculus for global investors - offering a future where trade, technology, and sustainability converge to create shared prosperity across the Americas.

Learn more about the transformative value of DP World’s Dominican Republic SEZ here.