• The foreign companies receiving support from the agency primarily concentrated investments in three industries: energy, mining and global services. Most companies were from the United States, though the portfolio also included a Saudi Arabian project for the first time.

InvestChile, the Foreign Investment Promotion Agency, closed the first half of 2024 with US$ 34.5 billion in its project portfolio, comprised of 405 initiatives at different stages of development. The figure is 24% higher than that recorded for the first half of 2023 (US$ 27.8 billion).

Of the total amount, US$ 13.9 billion corresponds to projects currently underway (initiatives installed and under development in Chile). These 107 projects have created 4,640 jobs.

Economy Minister Nicolás Grau notes that these results reflect InvestChile’s excellent work in conjunction with different ministries, the opportunities available in Chile and the country’s global image as a reliable partner. “As a ministry and at President Boric’s request, we are working hard to accelerate investment. We have traveled throughout the country to speed up project materialization, and we are processing a structural reform of sectoral permits to shorten timelines without sacrificing regulatory quality,” said the minister.

InvestChile Director Karla Flores agreed, noting that the agency’s higher portfolio figures reflect foreign companies’ ongoing interest in Chile and InvestChile’s efforts. “We have put together an investment promotion support system that reaches from the regions to the InvestChile investment commissioners abroad. It includes the different ministries’ portfolios and agendas as well as Chile’s entire foreign network. The figures reflect this capacity, the key opportunities Chile offers in areas like critical minerals, digital infrastructure and clean energy, as well as efforts in business intelligence and digital marketing,” Flores added.

She noted, “There is also less visible but essential work related to working with the ministries to improve our enabling conditions to optimize the positive impact of investment. Much of our effort focuses on providing better conditions for companies to set up, but we also have programs and plans to ensure the benefits of these investments reach more people.”

Energy projects up 41%, leading investments

The foreign companies receiving support from the agency primarily concentrated investments in three industries: Energy, with US$ 17.5 billion; Mining, with US$ 6.4 billion; and Global Services, with US$ 5.5 billion. In energy and mining, the project amounts increased by 41% and 25%, respectively, compared to June 2023. Also noteworthy was the increase in infrastructure projects, up 72% to US$ 3.6 billion.

It is important to highlight that these positive results coincide with the industries where Chile has implemented strategies to consolidate its position as an international leader, e.g., clean energy, green hydrogen and critical minerals.

Hydrogen and derivatives projects lead the energy sector in InvestChile’s portfolio, with 29 initiatives for US$ 4.7 billion, surpassing solar and wind generation projects for the first time. Similarly, the portfolio already has seven projects for US$ 1.2 billion associated with lithium, a critical mineral in energy storage batteries. However, exploration and exploitation projects still lead the mining sector portion of the portfolio.

U.S. investment nearly doubles, and Saudi Arabia invests for the first time

Regarding the origin of the foreign investment that comprises InvestChile’s portfolio, US companies accounted for the largest amount (US$ 12.5 billion), almost doubling their investment in the first half of 2023 (US$ 6.7 billion, up 88%). This was followed by projects from China, with US$ 4.6 billion. Canadian companies came in third with investments of US$ 3.8 billion.

Importantly, the InvestChile portfolio now includes Saudi Arabia’s first-ever investment project for US$ 1.4 billion in the infrastructure sector.

In terms of growth by country, the noteworthy increase in projects from US companies was fueled by the 181% growth in energy sector initiatives. For Chinese and Canadian investments, the greatest growth was in mining projects.

Karla Flores commented that Chile is experiencing a special moment in terms of foreign investment, with record-setting FDI figures in the last two years and positive signals from the agency’s portfolio. “This is in addition to the latest large-scale operations announced for Chile, including the US$ 7.5 billion expansion of El Abra by Freeport McMoran and the request for environmental assessment for HNH Energy’s US$ 11 billion green ammonia production project. These are clear signs of the attractiveness of Chile’s opportunities, the country’s positioning and continued investor confidence,” she concluded.