Chile enhanced by strong interest from foreign investorsPublished: October 2, 2009
The real estate, hotel and energy sectors would receive the largest amount of foreign capital for further development in Chile. Investors consider the country to be politically and economically stable.
The US$2.7 billion of foreign investment that Chile received in the first semester of 2009 (76% more than the same period in 2008) indicates that despite the global financial crisis, foreign economic groups have formed a positive evaluation of Chile.
Consequently, over the coming months, major companies are expected to invest in a range of areas, including real estate, hotels and energy.
"In addition to the mining sector, which is always attractive, today there are others that receive important foreign investment - such as the areas of infrastructure, energy and services. Although we have also witnessed that there is strong interest in agribusiness - because of the conditions in Chile - where they see opportunities," emphasizes Liliana Macchiavello, Executive Vice-President of the Foreign Investment Committee.
According to Macchiavello, one of the big reasons for the increase in foreign investment is that, "Chile has many factors, but abroad it is regarded as being politically and economically stable and as being well-positioned at a time of crisis. The other thing that has been favorable is the opening of the country economically; it has signed 20 international agreements." Among the countries that have invested, Macchiavello highlights Spain as being "in infrastructure, concessions, health and renewable energy."
Investment SectorsThe real estate sector is one of the most dynamic in terms of investment. There are several funds interested in developing new projects, including the Spanish Mondragon fund. Considered the seventh largest business group in Spain, Mondragon has investments in various sectors and had sales of over US$20 billion in 2008.
Marcos Kaplún, partner and director of Kayco International Group, indicated that, "the American tycoon Donald Trump wants to come to develop an office tower, but hasn?t found a location yet. Undeniably, it is a very powerful brand. They have casinos and property on Fifth Avenue in New York and are very eager to come to the country, but they?re looking for a partner."
In the energy sector, Spanish company Guascor is very interested in investing in Chile. They have experience in the generation of wind, solar and mini-hydro energy, and want to take advantage of the Non-Conventional Renewable Energy (NCRE) law which requires that 5% is derived from these energy sources.
It is estimated that their investment could exceed US$50 million, depending on feasibility. Another company hoping to come to Chile is the power and distribution company, Energía de Portugal (EDP), which is present in Spain and Brazil.
Finally, the Dutch pharmaceutical company, Annephil Netherlands, will arrive in the Chilean market with an outlay of US$20 million, as well as the Swedish beauty product company Alberto Culver, with an initial investment of US$ 7.5 million.
Source:www.estrategia.cl