Spain: EU Investment Leader in MexicoBy Alessa Flores | Fri, 07/31/2020 - 12:43
Perhaps it is the years of history that Mexico and Spain share or the 130 years that the Spanish Chamber of Commerce has been in Mexico promoting the commercial relationship between both countries what makes this European country invest the greatest amount of resources in our country. Regardless of the reason, Spain is the second country worldwide that invests the most in Mexico with US$5.5 billion in FDI in 2019, only behind the US, according to figures from the Ministry of the Economy and CAMESCOM.
Also, according to data from the Ministry of Economy in a note by Milenio, Spain represents 12.1 percent of the total volume of investment in Mexico since 1999 with more than US$70.9 billion, below the US, which represents 42.2 percent of the accumulated FDI in the country totaling US$277.5 billion. CAMESCOM is a symbol of the commercial strength between both countries. "It is a clear sign of the commitment of Spanish investment in Mexico," explains CAMESCOM in a Milenio note. Spanish investments in Mexico include large international companies, SMEs, including family businesses, and public bodies. Of all foreign investment in Mexican infrastructure, 24 percent is of Spanish origin, said Antonio Basagoiti, President of CAMESCOM during Mexico Infrastructure & Sustainability Summit 2019.
In addition, Basagoiti stressed that despite the challenges and obstacles for investors, the commitment to Mexico and its opportunities are much greater. “There have been recent challenges to foreign investors. Large infrastructure projects have been subject of political battles. Yet, this government has also stated its intention to complete highways that remained unfinished under previous administrations, like the road between Oaxaca and Puerto Escondido. Together, these projects would mark the biggest infrastructure investment in 24 years,” he said.
It should be remembered that Mexico currently hosts almost 6,000 companies registered with Spanish capital according to data from the Ministry of Economy. Opportimes carried out an analysis of the Spanish companies that stand out the most in Mexico in various sectors, among which are BBVA Bancomer, which represents 21.5 percent of the sector's total assets, followed by Banco Santander with 14.26 percent of total assets.
Iberdrola and Gas Natural Fenosa generate over 20 percent of the country's electrical energy in the country. Multiple infrastructure companies exist in Mexico, such as OHL, FCC, Isolux, Abengoa, Alesa and many more. In the tourism sector, Spanish investments stand out for their presence in the Riviera Maya, where 65 percent of hotels belong to Spanish groups such as Sol Melia, Riu, Barceló and NH. Despite the pandemic, the commitment of Spanish companies in Mexico remains. "In the face of the global economic slowdown dramatically accentuated by COVID-19, Spanish investment in Mexico has managed to maintain constant investment flows for the last 20 years," CAMESCOM said on a statement.