Unlike many other sensory systems, the visual system – components from the eye to neural circuits – develops largely after birth, especially in the first few years of life. At birth, visual structures are fully present yet immature in their potentials. From the first moment of life, there are a few innate components of an infant's visual system. Newborns can detect changes in brightness, distinguish between stationary and kinetic objects, as well as follow kinetic objects in their visual fields. However, many of these areas are very poorly developed.

Source: http://en.wikipedia.org/wiki/Infant_vision

You most likely have lots of dreams, you just don't remember them.