In this page: FDI in Figures | What to consider if you invest in Mexico | Protection of Foreign Investment | Procedures Relative to Foreign Investment | Office Real Estate and Land Ownership | Investment Aid | Investment Opportunities | Sectors Where Investment Opportunities Are Fewer | Finding Assistance For Further Information
Mexico is one of the emerging countries most open to foreign direct investment, ranking as the world's ninth-largest FDI recipient in 2023: according to UNCTAD's World Investment Report 2024, FDI stood at USD 36 billion, in line with the levels recorded in the previous year. At the end of the same period, the total stock of inward FDI stood at USD 778.3 billion. Automotive industry manufacturers, including Robert Bosch (Germany), Toyota Motor (Japan), and Volkswagen (Germany), have chosen to invest in Mexico due to its proximity to the United States and market access under the United States–Mexico–Canada Agreement (USMCA). Moreover, Mexico recently introduced incentives for nearshoring in the semiconductor, electromobility, and medical device sectors. According to the National Commission of Foreign Investments, investments mostly come from the United States (40.9%), Spain (9.5%), Canada (8.9%), Germany (5.9%), and Japan (5.7%). The manufacturing sector holds 49.7% of FDI stock, followed by financial services (13.3%), mining (7.9%), and trade (5.8% - data as of Q3 2024). Official governmental figures show that, in the first nine months of 2024, FDI inflows reached USD 35.7 billion, up by 9% compared to the corresponding period one year earlier, reaching the highest level on record.
As a member of USMCA, OECD, G20, and the Pacific Alliance, Mexico is very well integrated into the world economic order, making it an attractive country for FDI. Additionally, Mexico enjoys a strategic location, a big domestic market, a wide variety of natural resources, a relatively well-qualified workforce and a diversified economy. However, in recent years, Mexico's competitiveness has suffered from the rise of organised crime and a lack of reforms in the energy sector and in tax regulations. Corruption and administrative inefficiency have also been major issues and the business climate continues to suffer from safety risks in the country. Foreign investments are mostly concentrated in towns neighbouring the U.S. border (where many assembly factories are located), as well as in the capital. Thanks to its robust tourism industry, the Yucatan Peninsula also receives substantial foreign investment. FDI flows to the country fluctuate strongly depending on the arrival and departure of large international groups. The current Mexican FDI framework, primarily governed by La Ley de Inversion Extranjera and its regulations, mandates a pre-approval process for direct and indirect investments by foreign investors obtaining a majority share in Mexican companies engaged in "strategic activities" or holding assets valued around USD 1.1 billion. On December 7, 2023, the U.S. and Mexican governments signed a Memorandum of Intent ("MOI") to collaborate on enhancing foreign investment screening. Both nations have committed to forming a bilateral working group to share information and best practices, aiming to assist Mexico in establishing a CFIUS-like screening system and enhancing the collective security of the United States and Mexico. The country ranks 56th among the 133 economies on the Global Innovation Index 2024 and 68th out of 184 on the latest Index of Economic Freedom.
Foreign Direct Investment | 2020 | 2021 | 2022 |
---|---|---|---|
FDI Inward Flow (million USD) | 28,195 | 31,543 | 35,292 |
FDI Stock (million USD) | 544,430 | 592,221 | 649,287 |
Number of Greenfield Investments* | 306 | 378 | 482 |
Value of Greenfield Investments (million USD) | 13,941 | 17,167 | 41,042 |
Source: UNCTAD, Latest data available.
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
Main Investing Countries | 2023, in % |
---|---|
United States | 37.8 |
Spain | 10.5 |
Canada | 9.6 |
Japan | 8.1 |
Germany | 6.7 |
Main Invested Sectors | 2023, in % |
---|---|
Manufacturing | 50.1 |
Financial and insurance services | 20.0 |
Mining and quarrying | 9.7 |
Temporary accommodation | 6.8 |
Transport | 6.3 |
Trade | 3.8 |
Professional services | 1.4 |
Source: Centre for Public Finance Studies, Latest data available.
Mexico attracts the most FDI in Central and South America:
There are still many obstacles to investment in Mexico:
The Mexican government has created an open and secure environment for foreign investors. The ‘Invest in Mexico’ Business Center was established in 2022 to facilitate investments. Land grants or discounts, tax deductions, and technology, innovation, and workforce development funding are commonly used incentives.
Other incentives to encourage foreign investment include:
Country Comparison For the Protection of Investors | Mexico | Latin America & Caribbean | United States | Germany |
---|---|---|---|---|
Index of Transaction Transparency* | 8.0 | 4.1 | 7.0 | 5.0 |
Index of Manager’s Responsibility** | 5.0 | 5.2 | 9.0 | 5.0 |
Index of Shareholders’ Power*** | 5.0 | 6.7 | 9.0 | 5.0 |
Source: The World Bank - Doing Business, Latest data available.
For more information, see the text of the the Mexican foreign investment law governing such limitations.
The laws restricting or regulating certain takeovers and mergers are the following:
Special Economic Zones (Zonas Económicas Especiales or ZEEs) are now entirely under state jurisdiction. As of April 2020, there are only two federal ZEE-style projects being developed where fiscal incentives would apply. These are the Trans-Isthmic Interoceanic Corridor and the Chetumal State border area.
The following activities can only be carried out by the Mexican government:
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Latest Update: March 2025