Foreign Investment Projects in Chile Exceed $56 Billion in 2024

by | Jan 22, 2025 | FDI Latin America

Foreign investment projects in Chile reached a record-breaking $56.234 billion in 2024, marking a 68% increase compared to 2023, according to InvestChile, the nation’s foreign investment promotion agency. This milestone represents the highest figure since the agency’s establishment and underscores Chile’s growing appeal as a hub for international business. The portfolio includes 474 projects at various stages of development, with the potential to create over 21,000 direct jobs, reflecting a significant boost to the nation’s economy.

Investment in Development and Job Creation

Of the total investment, $14.46 billion corresponds to projects already underway in Chile. These 113 initiatives have generated 4,605 high-quality formal jobs. This accomplishment highlights the practical materialization of foreign investment projects in Chile and the nation’s capacity to support their implementation.

According to Karla Flores, Director of InvestChile, the growth in foreign investment is mainly driven by green hydrogen projects, which alone accounted for $25.617 billion by the end of the year. “Chile has positioned itself as a major player in green hydrogen on the global stage,” Flores said. The country’s strategic promotion in key international markets and favorable conditions for clean energy production have proven pivotal.

A Leading Nation in Green Hydrogen

Green hydrogen projects represent Chile’s commitment to addressing global climate change. The nation’s natural resources and unique geographical features make it ideal for producing sustainable fuels. “These numbers demonstrate the success of our strategy and Chile’s leadership in sectors like mining and technological infrastructure,” added Flores.

The substantial focus on green hydrogen reflects the global transition toward renewable energy sources. As international companies increasingly prioritize environmentally sustainable projects, Chile’s emphasis on green energy has enhanced its competitiveness in attracting foreign investors.

Geographic Distribution of Investments

A notable 88% of foreign investment projects in Chile, equivalent to $49.468 billion, are located outside the Metropolitan Region. This geographic diversification underscores the government’s efforts to drive economic development across the country, benefiting regions traditionally with lower access to capital and employment opportunities.

Sectors Driving Foreign Investment in Chile

Three key sectors accounted for the majority of foreign investment projects in Chile:

  • Energy: Investments reached $36.817 billion, marking an impressive 131% growth compared to 2023.
  • Mining: With $8.649 billion, this sector remains vital to Chile’s economy, registering a 6% increase.
  • Global Services: At $5.4 billion, this sector is critical for generating employment, contributing 8,325 potential jobs by the end of 2025.

The infrastructure sector also showed remarkable growth, with investments surging 130% to $3.39 billion. Meanwhile, the food industry attracted $1.265 billion, a 41% rise from 2023. These trends demonstrate the broad appeal of Chilean foreign investment projects, spanning traditional and emerging industries.

Employment Opportunities

Foreign investment projects in Chile have created significant employment potential, especially in key industries:

  • Global Services: 8,325 potential jobs, a 3% increase from 2023.
  • Mining: 5,882 potential jobs, representing a 22% rise.
  • Energy: 3,304 potential jobs, a remarkable 157% growth.

This surge in employment opportunities reflects Chile’s alignment of its investment strategies with global trends, emphasizing sustainability, innovation, and quality job creation.

United States: The Largest Investor

Among the countries contributing to foreign investment projects in Chile, the United States leads with $20.51 billion, reflecting a 107% increase from the previous year. Austria ranks second with $11.052 billion, a significant leap from just $52 million in 2023. This dramatic growth is primarily attributed to the $11 billion HNH project by Austria Energy and Ökowind, in collaboration with Copenhagen Infrastructure Partners from Denmark.

Canada is third with $6.275 billion, marking an 18% year-over-year increase. These figures highlight the confidence of major economies in Chile’s investment climate, particularly in sectors aligned with energy transition and technological advancements.

New Investment Sources

2024 also marked the entry of new players into Chile’s investment landscape. Saudi Arabia contributed to InvestChile’s portfolio for the first time with a potential investment of $1.4 billion. This development broadens the diversity of investment sources, reinforcing Chile’s position as a global destination for innovative and high-impact projects.

Transition to Renewable Energy

Chile’s transition to renewable energy has become a cornerstone of its foreign investment strategy. The country’s focus on green hydrogen and solar and wind power advancements aligns with global efforts to combat climate change. These initiatives have attracted significant foreign capital and set a benchmark for sustainable development in Latin America.

Government Support for Investment

Chile’s government, led by Minister of Economy Nicolás Grau, has fostered a favorable investment environment. “Chile continues to stand out as an attractive investment hub in Latin America,” Grau stated. Through partnerships with InvestChile, the government has actively promoted projects contributing to the nation’s economic growth and energy transition.

By prioritizing sustainability and innovation, Chile has solidified its reputation as a reliable partner for foreign investors. The country’s robust regulatory framework, skilled workforce, and strategic location further enhance its appeal.

Looking Ahead

The record-breaking $56.234 billion in foreign investment projects in Chile in 2024 underscores the nation’s resilience and adaptability. As the global economy increasingly prioritizes sustainability and innovation, Chile’s strategic investments in green hydrogen and renewable energy position it as a leader in transitioning to a low-carbon future.

Chilean foreign investment projects are driving economic growth, creating quality jobs, and fostering regional development. With its commitment to sustainability and innovation, Chile is set to remain a key destination for foreign capital in the years to come.