Mexico Seeks Foreign Investment in Strategic Sectors

10 Mar 2010

by: By Ricardo Vázquez

Monday, March 8, 2010

 

 

The Mexican government seeks to encourage foreign participation in key sectors of the domestic economy, such as energy, infrastructure, housing and tourism. These sectors represent an estimated investment of US$56 billion.

 

During the recent Mexico 2010 Infrastructure Conference, held in Madrid, Spain, there were some 100 infrastructure projects that the Mexican government will offer for bid this year.

 

The energy sector stands out, with an amount of US$19.1 billion, corresponding to an ambitious Petroleos Mexicanos (Pemex), the state-owned oil company, investment program.

 

Tourism is expected to now surge, following the sharp drop this sector suffered due to the global economic crisis that has affected Mexico, with a reduction of 15% in foreign exchange earnings, which amounted to US$11.275 billion in 2009 compared to US$13.3 billion in 2008.

 

Faced with this drop, the Mexican government is trying to boost tourism investment through its different Integrally Planned Resorts (IPC), developed by the National Fund for Tourism Development (Fonatur). The tourism sector has a high potential to attract investors due to the country's need for infrastructure, and tourism developments that are planned by private firms and the government.

 

The federal government resources available for these tourism projects amount to US$9.588 billion, and they are likely to be augmented by the private sector, the Secretariat of Finance and Public Credit (SHCP) reported.

 

Housing is another area of interest. During meetings with investors, which were organized by the Mexican government in Madrid as well as New York and London, the investment opportunities in Mexico's housing industry were presented.

 

This sector requires both funding for infrastructure, such as water treatment plants, electricity, and health clinics, plus a range of investment instruments such as mortgage-backed securities, certificates of housing, and options for capital to make investment more attractive.

 

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e-mid (Mexico Investor Digest), Mar. 4, 2010; Mexico Investor Digest is a reference for the business market, which offers integral products and services that help and promote the development of highly competitive businesses in Mexico; Universidad de las Americas, Mexico City; translation e-mid (edited).

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