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Mexico’s Foreign Investment for Tourism

Mexico is looking towards the UAE in hopes of increasing the amount of foreign investment coming into the country. Investment opportunities currently include many sectors of the economy such as energy and infrastructure. However, one of the main areas Mexico is looking to attract foreign investment into is the tourism industry. The history of Mexico’s foreign investment is long and successful. And now, solidifying ties to the UAE may be the next big step for Mexico’s tourism industry.

The news of an active decision to attract investment from the UAE came from Mexico’s UAE ambassador, Francisca Elizabeth Mendez Escobar. She recently discussed plans in an interview with Gulf News.

Mexico’s Trade with UAE

Mexico's foreign investment

As well as encouraging UAE investment into Mexico, the Mexican government is also looking to increase bilateral trade.

“Trade is increasing a lot since the visit of our president Enrique Pena Nieto in January 2016. In almost five years, there has been a 100 per cent increase in bilateral trade between the two countries,” Escobar said. “We have signed thirteen agreements to boost trade between the two countries since last year. We are working hard in the regulatory framework and mechanism to attract investment in our country.”

Trade between Mexico and the UAE equates to $500 million. Mexico also hopes to break a trade record this year with $50 million in Mexican exports of food and beverages.

Mexico’s Foreign Investment

Structural reforms and macroeconomic stability have greatly increased foreign investment in Mexico. Mexico has accepted surplus of $156 billion in foreign direct investment in the last four-and-a-half years alone, coming from all over the world.  “Only in the first seven months of 2017, $15.6 billion (FDI), 8.8 per cent more than the same period of the previous year, an average of $35 billion per year.”

Mexico’s Foreign Investment with UAE

“We want more investments and we want to work very hard with the authorities in the UAE on this. Energy sector in Mexico among others could be ideal for investment especially after reforms to open the industry for foreign investment.”

The reforms she mentions include the end of Pemex’s monopoly of the oil and natural gas sector. This has opened the industry up to foreign investment like never before.  Escobar goes on to say that “After energy reforms, [the] market is open. Now there are investments in Mexico from foreign companies in the upstream, downstream sectors. Pemex, which is our national company of oil is in contact with Mubadala and Abu Dhabi National Oil Company (Adnoc) for possibilities of investment.”

And while there are new opportunities for UAE investors, there are existing investments in hotels, services, real estate and food. These currently amount to $15 million and are expected to increase with improved relations. The Mexican government recently announced 16 huge new tourism projects throughout the country and is actively seeking investment to bring the projects to fruition.