The border that attracts capital. The revival of foreign investment in Northern Mexico
- Editorial
- Jun 5
- 3 min read
On the new map of the global economy, the region along the Mexico–United States border is no longer just a transit corridor—it has become a strategic hub for investment. Throughout 2024, Mexico’s northern border states—Baja California, Sonora, Chihuahua, Coahuila, Nuevo León, and Tamaulipas—recorded a cumulative 18.6% increase in foreign direct investment (FDI), totaling more than $17.4 billion USD, according to data from Mexico’s Ministry of Economy. This figure significantly surpasses the national average and confirms the region’s growing appeal as a global capital destination, particularly in advanced manufacturing, green technology, and energy generation.
This phenomenon is far from accidental. Several forces have converged to create a favorable investment environment: the global restructuring of supply chains driven by nearshoring, the strength of the USMCA as an institutional framework, and the proactive public policies adopted by state and municipal governments to attract foreign capital. In 2024, over 50 new industrial parks were approved in the northern region, many with sustainability certifications and advanced logistical connectivity. Monterrey, Ciudad Juárez, and Mexicali stood out as tech hubs, receiving over $6 billion USD in investments related to semiconductors, automation, and solar energy.
U.S. energy policy has also played a key role. The Inflation Reduction Act (IRA) has incentivized American companies to relocate processes to allied countries like Mexico. This is evident in the growing number of joint ventures between Texan corporations and industrial developers in municipalities such as Piedras Negras, Reynosa, and Nogales, where competitive labor costs, a skilled technical workforce, and proximity to the U.S. market are highly valued strategic assets.
The energy sector, in turn, has become increasingly prominent in attracting FDI. New investment frameworks for solar, wind, and green hydrogen projects have turned the border region into a testing ground for energy transition. In 2024, FDI in energy projects grew by 25.3% compared to the previous year, particularly in Baja California and Sonora, where binational solar corridors are taking shape. The University of Arizona and the Technological Institute of Sonora signed cooperative agreements to train engineers together, strengthening the academic backbone of this emerging ecosystem.
However, this investment boom is not without challenges. In 2025, the key issue will be ensuring sufficient infrastructure and efficient governance to sustain the pace of investment. Bottlenecks at border crossings, water and electricity supply shortages in some cities, and legal uncertainty around land use and permitting could stall momentum. Furthermore, coordination among different levels of government remains inconsistent, preventing a comprehensive regional and cross-border investment strategy.
Another challenge will be ensuring inclusive labor development. Although foreign investment generates jobs, it's essential to ensure they are high-quality and come with continued training opportunities. As automation increases, the technical education model must evolve, expanding binational collaboration with academic institutions to guarantee a skilled, bilingual workforce.
Lastly, with elections looming in both Mexico and the United States, political stability and regulatory certainty will be decisive factors. The border region not only competes with other areas within Mexico but also with countries in Central America and Asia. A transparent legal framework, well-structured tax incentives, and decisive action against local corruption will be crucial to solidify what is now a historic window of opportunity.
Mexico’s northern border can cease being the periphery of two nations and become their shared economic core. But to achieve this, it must be envisioned not as a collection of states, but as a unified binational platform—with a distinct identity, the capacity for innovation, and coordinated governance.
Written by: Editorial
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