Foreign Investment Trends in Mexico Toward 2026

Lately, Mexico has been increasingly on the radar of global investors, thanks to its geographic proximity to the United States, a growing manufacturing base, favorable trade agreements (such as USMCA), and rising interest in nearshoring has everyone interested. But as 2026 approaches, several key trends in foreign direct investment (FDI) appear to be shaping up.

Recent data shows Mexico achieving record foreign direct investment levels. In 2024, Mexico attracted between US$36.8 and US$45 billion in FDI, depending on calculation methods. In the manufacturing sector, particularly transportation equipment, beverages and tobacco, account for a large share of these numbers. But if this hasn’t caught your interest, let me share that federal government projections foresee this rising further: Mexico is expected to receive around US$48 billion in FDI by 2026. And all this trajectory makes the country one of the most attractive emerging markets for global capital.

One of the most significant trends that we all keep speaking about is nearshoring, because companies are relocating or expanding operations in Mexico to reduce supply-chain risk, lower transportation and logistics costs, and leverage USMCA treaty benefits.  The investment flows are strongest in the northern and central states of the Mexican republic, such as Nuevo Leon, Baja California, Chihuahua, and the Bajío region, where logistics infrastructure, labor force availability, and proximity to the US border provide very competitive advantages.

And let’s not forget about renewable energy and clean tech, which are also major focal points in the area. Solar and wind projects are advancing, and new financing is being channeled into distributed generation. But at the same time, large digital infrastructure projects are attracting foreign investment. For example, Microsoft committed over US$1.3 billion toward cloud and AI infrastructure in Mexico, signaling how the digital economy is becoming a complementary driver of FDI.

Yet, despite this strong momentum, concerns persist about legal, fiscal, and regulatory uncertainty in the country, especially regarding energy and electricity. Proposed reforms and shifts in Mexico’s government policy, particularly in prioritizing state-owned enterprises like CFE, have raised questions among international investors. This has resulted in some projects being stalled or abandoned, highlighting the delicate balance between opportunity and risk.

The manufacturing sector continues to dominate FDI. Automotive investments, especially in electric vehicles and related components, are among the strongest. Some companies are positioning factories for battery production, EV assembly, and parts supply to be sent to the US market. And not surprisingly the logistics and infrastructure sectors (ports, roads, warehouses) are also seeing rising investments due to nearshoring, reinforcing Mexico’s position as a critical hub for North American supply chains.

But realistically speaking, while many companies are expanding or starting new investments, others have scaled back, sold assets, or paused plans. These moves are sometimes driven by strategy (focusing on core markets), by cost/return profiles, or by perceptions of regulatory risk.

Companies like Iberdrola (Spain) focused on power generation exited the Mexican territory, sold 55% in 2024 (US$6.2B) and remaining assets in 2025 (US$4.2B) due to legal and regulatory uncertainty and government favoring state-owned utility (CFE).

BYD (China) in the automotive (EVs) sector halted plans for a Mexican EV factory due to US tariffs and geopolitical uncertainty as well as trade policy risks, tariffs, and U.S.-China tensions.

And let’s not forget to mention DSV (Denmark) on the logistics side, which paused investment near the US-Mexico border due to trade slowdown in cross-border logistics and tariff concerns.

So yes, there are great opportunities with the nearshoring boom, such as global and regional supply-chain reconfiguration, which continues to favor Mexico. As well as Energy transition, with rising global demand for renewable energy could favor Mexico’s solar, wind, and storage sectors.

The increment in the digital economy continues to generate investments in cloud, AI, and broadband infrastructure that are positioning Mexico further in the tech-driven arena. Proximity to the U.S. and a strong manufacturing base secure Mexico’s role as a regional hub.

But there are risk factors to keep in mind, the policy and regulatory shifts implemented by the government as well as sudden legal changes, especially in energy, may deter long-term investment.

Trade policy volatility related to tariffs or US election outcomes could impact this nearshoring momentum. And there are infrastructure bottlenecks like energy grid stability, water scarcity, and logistics challenges that could constrain such growth. It is imperative to mention the obvious security concerns: violence and insecurity remain significant risks in some regions of the country.

By 2026, Mexico is likely to remain one of the most attractive destinations for foreign direct investment in the American continent, especially in manufacturing, clean energy, and nearshoring-related industries. However, the investment climate is bifurcated: while many multinationals are expanding, others are retrenching due to regulatory or trade uncertainty.

The case of Iberdrola exemplifies how quickly the environment can shift, forcing companies to exit even after years of large commitments. Similarly, BYD and DSV show how global trade dynamics can alter local investment decisions. To fully realize its potential, Mexico must provide legal certainty, reliable infrastructure, and transparent policies. Doing so will ensure that the country not only attracts record levels of FDI in 2026 but also secures sustainable, long-term economic growth.