weighted score 2.6 · five dimensions
Geopolitical & Concentration Risk
Dominican Republic
Geopolitical conflict, supplier concentration, climate exposure, sanctions risk and policy continuity intelligence for Dominican Republic-origin supply chains.
Geopolitical conflict
2
Very stable Caribbean democracy with no active conflicts. Strong US alignment. No involvement in geopolitical disputes. One of the lowest geopolitical conflict scores in the region.
Supplier concentration
2
Not a globally dominant supplier in any category. FTZ medical device cluster is significant but not systemically concentrated. Diversified export base reduces concentration risk.
Climate & physical risk
5
Atlantic hurricane corridor exposure (June-November). Historical major hurricane damage. Coastal flooding and drought risks. Infrastructure resilience improving but remains a material concern.
Sanctions exposure
1
No sanctions from any major jurisdiction. No entity list designations. Clean sanctions profile across US, EU, and UN frameworks.
Policy continuity & property rights
3
Abinader re-elected 2024 with strong mandate. FTZ legal framework stable and well-established. Property rights generally respected. Institutional quality improving but governance gaps remain.
Political Stability & Regional Context
Political Stability & Regional Context
- Democratic continuity
- The Dominican Republic is one of the most stable democracies in the Caribbean and Central American region. President Luis Abinader was re-elected in 2024 with a strong mandate, providing policy continuity for trade and investment frameworks.
- Haiti border tension
- The shared border with Haiti is the primary regional tension point. Periodic border closures, migration pressures, and humanitarian crises in Haiti create localised disruption. The Dominican government has invested in border infrastructure and maintains strict border controls.
- US alignment
- Strong diplomatic and economic alignment with the United States. DR-CAFTA membership and significant diaspora connections reinforce stable bilateral relations. No sanctions exposure from any major jurisdiction.
Climate & Physical Risk
Climate & Physical Risk
- Hurricane exposure
- The Dominican Republic sits in the Atlantic hurricane corridor with annual exposure from June to November. Major hurricanes have caused significant infrastructure damage historically. This drives the Climate dimension score of 5 — moderate-to-elevated physical risk.
- Flood & drought
- Coastal flooding and seasonal drought affect agricultural production. Infrastructure resilience has improved with investment in tourism-related construction but rural areas remain vulnerable.
- Energy infrastructure
- Electricity supply reliability has historically been a concern, with grid outages affecting manufacturing operations. FTZ facilities typically operate backup power systems, partially mitigating this risk for export-oriented production.