Some 107 initiatives have generated 4,640 jobs.
The Chilean Foreign Investment Promotion Agency (InvestChile) has achieved a significant milestone by closing the first half of 2024 with a portfolio of projects valued at USD 34.5 billion, distributed across 405 initiatives in different stages of development. This amount represents an increase of 24% compared to the USD 27.8 billion registered in the same period of the previous year. According to the data provided by InvestChile, USD 13.9 billion corresponds to investments already in the materialization phase, that is, projects that have already been installed or are under development in the country. These 107 initiatives have generated 4,640 jobs.
The Chilean Minister of Economy, Nicolás Grau, highlighted that these results reflect the hard joint work between InvestChile and several ministries. In addition, he highlighted Chile’s positive image as a reliable partner worldwide. “As a ministry and at the request of President Gabriel Boric, we are working hard to accelerate investment: we have traveled throughout the country speeding up the materialization of projects, and we are processing a structural reform of sectoral permits that allows us to shorten deadlines without reducing regulatory quality,” declared Grau.
For her part, the director of InvestChile, Karla Flores, stated that the increase in the project portfolio reflects the continued interest of foreign companies in the country and the practical work of her agency. “We have managed to articulate a backbone for investment promotion from the regions to the InvestChile attachés abroad. This includes the portfolios and agendas of the different ministries and the country’s entire foreign network,” Flores explained. In addition, she mentioned the key opportunities that Chile offers in areas such as critical minerals, digital infrastructure, and clean energy and highlighted efforts in business intelligence and digital marketing. Flores added that “there is also less visible work, but that is fundamental, and that has to do with working with the ministries to improve our enabling conditions to enhance this investment’s positive effects. A large part of our efforts are in generating better conditions for companies to establish themselves, but also programs and plans so that the benefits of these investments reach more people.”
These achievements underline Chile’s ability to attract and materialize foreign investments in Chile, offering an adequate environment for developing projects that boost the economy and generate jobs.
The main projects
Foreign investments in Chile have concentrated mainly in three sectors: Energy, Mining, and Global Services. According to recent reports, the energy sector has raised USD 17.5 billion, while mining and global services have received USD 6.4 billion and USD 5.5 billion, respectively. The notable increase in energy and mining projects stands out compared to June 2023, with 41% and 25% increases in each sector. One of the most outstanding aspects is the growth in infrastructure projects, which have increased by 72%, reaching USD 3.6 billion. This progress reflects a national consolidation strategy in critical areas such as clean energy, green hydrogen, and critical minerals, where Chile seeks to position itself as an international leader.
In the energy field, hydrogen projects and their derivatives have emerged as pillars, with 29 initiatives totaling USD 4.6 billion, surpassing solar and wind generation projects for the first time. At the same time, in mining, InvestChile’s portfolio already includes seven projects associated with lithium, whose value reaches USD 1.2 billion. This mineral is essential for producing energy storage batteries, although mining exploration and exploitation projects continue to lead the sector. InvestChile highlighted that “the good results by sector coincide with Chile’s strategies to consolidate itself as an international leader in clean energy, green hydrogen, and critical minerals.” The relevance of these sectors is indisputable in the country’s current sustainable development agenda.
Unleash Your Growth Potential:
Attract Foreign Direct Investment (FDI)
Learn how our proven strategies bring international capital to your organization. Schedule a free consultation today to discuss your unique needs and discover how we can unlock your growth potential.
The origin of the foreign investments in Chile
The United States has emerged as the principal foreign investor in InvestChile’s portfolio, accumulating USD 12.5 billion. According to the figures, this amount almost doubled the investment registered at the end of the first half of 2023, which was USD 6.6 billion, reflecting an increase of 88 percent. In terms of the sector, initiatives linked to energy stand out, especially those that experienced a notable growth of 181 percent.
Chinese investment projects, with USD 4.6 billion, and Canadian initiatives, with USD 3.8 billion, are in second and third place, respectively. In both cases, the growth is primarily due to projects focused on the mining sector. A relevant fact is the inclusion, for the first time, of a USD 1.4 billion infrastructure project from Saudi Arabia.
For Flores, Chile is experiencing a “special moment” in terms of foreign investments, with record FDI figures in the last two years and large projects recently announced in the country. She concluded that McMoran’s $7.5 billion El Abra mine expansion and the environmental assessment of HNH Energy’s $11 billion green ammonia production project are clear signs of the attractiveness of our opportunities available in Chile for foreign investors.
In summary, Chile’s impressive 24% increase in foreign investments in Chile, reaching USD 34.5 billion in the first half of 2024, underscores the country’s robust appeal and strategic advancements in attracting global capital. This significant growth, driven by key sectors such as energy, mining, and infrastructure, highlights Chile’s commitment to becoming a leader in clean energy, green hydrogen, and critical minerals. The diverse influx of investments from major global players like the United States, China, and Canada, along with new contributions from Saudi Arabia, reflects the nation’s effective promotional strategies and its favorable investment climate. As Chile continues to refine its regulatory frameworks and enhance investment conditions, it stands poised to capitalize on its economic potential and strengthen its position as a premier destination for international investors.
Don't Miss Out: Limited Spots Available for Free FDI Strategy Sessions
Foreign Direct Investment can fuel your organization's success. But competition is fierce. Secure your spot today for a free, no-obligation consultation with our FDI experts. Learn how to attract global investment and take your business to the next level.