Santiago Province

Local business leaders established the Santiago Free Trade Zone in 1973, and half a century later it earned recognition as Latin America and the Caribbean's 'Best Industrial Free Zone 2024' from Capital Finance International. The broader Cibao region—with Santiago as its capital—accounts for 35% of national economic activity, making it the country's manufacturing heartland and second city.

Textiles launched the free zone model: garment factories assembled clothing for global brands under tax-exempt conditions. Today the zones have diversified into medical devices, electrical components, and call centers, though apparel remains dominant. The Victor Espaillat Mera Industrial Park, Caribbean Industrial Park, and Tamboril Free Zone house the country's highest concentration of FTZ companies. Tax holidays (100% exemption for 15-20 years) attract foreign investment, but critics question whether the model creates enough skilled jobs or locks the economy into low-value assembly.

By 2026, Santiago will test whether free zone industrialization can climb the value chain. CFI awarded the zone for sustainability initiatives—renewable energy adoption, water conservation—suggesting evolution beyond pure cost arbitrage. If companies invest in automation and training while maintaining competitiveness, Santiago could model how Caribbean manufacturing survives in a post-cheap-labor era. If wages rise faster than productivity, the zones that built the Cibao's prosperity may relocate to cheaper competitors.