Foreign Investment: The Safest Cities in Mexico to Do Business

Mexico, with its vibrant economy and strategic position in international trade, offers numerous business opportunities. However, security is a crucial factor when deciding where to invest and establish operations.

Although foreign private capital demands greater compliance with the rules, transparency and effectiveness from the authorities, the truth is that its investment only grows: in the first quarter of 2024, foreign direct investment in Mexico was 20,313 million dollars , an increase of 9% compared to the same period in 2023, indicating that, despite the security problems, Mexico remains a very attractive destination for foreign investment.

Of course, it is important to note that these investments are usually concentrated in the same areas of the country: it is no coincidence that the safest cities in the country are at the top of the list of cities with the highest foreign investment.

To help you understand which places are involved, below is a list of the safest cities in Mexico to do business, based on factors such as public safety, infrastructure, economic development and quality of life.

Querétaro

According to figures from the Secretariat of Sustainable Development of the municipality of Querétaro, there are 597 companies with foreign investment throughout the state, of which 400 are established in the capital of the municipality; among these companies, more than 200 have German capital behind them.

Querétaro's main industries are automotive manufacturing, aerospace, transportation equipment manufacturing, computer equipment and food; companies such as Samsung, Autoliv - manufacturers of seat belts, steering wheels, airbags and other automotive components - or the Canadian aeronautical company Bombardier have their headquarters in "mini Mexico."

Foreign investment abounds in Querétaro, with capital from North America, Germany and the Netherlands at the forefront

This is no coincidence: the city has modern infrastructure, well-equipped industrial parks and a strategic location in the centre of the country. Moreover, its crime rate is significantly lower than in other large cities.

Advantages of investing in Querétaro:
- Excellent infrastructure and connectivity.
- High quality of life and efficient public services.
- Proximity to Mexico City without its security problems.

Merida

Mérida, the capital of the state of Yucatán, is known to be one of the safest cities in Mexico. The tranquility and security that the city offers have attracted both national and international investors. Mérida has a diversified economy that includes tourism, manufacturing and the service sector.

Merida, with its great natural appeal and very high security rate, constantly attracts foreign investment.

Among the largest employers in Mérida, with an impact on the economy of the entire Yucatán, are Lee, Pollos Bachoco, and the textile company Montly Industries.

Advantages of investing in Merida:
- High quality of life and vibrant cultural environment.
- Low crime rate.
- Government support for investment and entrepreneurship.

Aguascalientes

Even though this may mean that it is considered a "boring" city, Aguascalientes stands out for its safety, stability and a favorable environment for business. The city has attracted investments in sectors such as manufacturing, automotive and technology. Its infrastructure and strategic location make it an attractive point for companies, so much so that foreign companies such as the Japanese Nissan have no less than three plants in this city, which employ almost 7,000 people.

Advantages of investing in Aguascalientes:
- Low crime rates.
- Solid industrial infrastructure.
- Government support and incentive programs for investors.

Puebla

Puebla is a city with a rich history and significant economic growth, historically associated with prosperity. In addition to its cultural appeal, Puebla has developed a safe and business-friendly environment; the city is a major industrial and service center, with a focus on the automotive, manufacturing and food industries that constantly attracts new foreign capital: in 2023 alone, Puebla received more than $3 billion of new foreign investment , coming from 104 companies from 19 different countries.

Advantages for foreign investment in Puebla:
- Steady economic growth.
- Good safety and living conditions.
- Proximity to Mexico City and other large cities.

Monterrey

Monterrey, in the state of Nuevo León, is one of the most developed and industrialized cities in Mexico. Although it has faced challenges in terms of security in the past, authorities have implemented effective strategies to improve the situation. Today, Monterrey is a solid choice for doing business due to its infrastructure, human capital, and economic dynamism.

Due to its proximity to the US, Monterrey leads the list of international automotive investment with 63 new projects in two years, with Tesla's Gigafactory being the emblem of this wave of development and investment.

Monterrey attracts multimillion-dollar foreign investments

Just as Tesla's factory brought with it the installation of numerous supplier factories in the area for Elon Musk's company, Kia Mexico will soon begin developing its electric vehicle, while BYD and Marcopolo have formed an alliance to produce electric buses in the capital of Nuevo León.

Advantages of investing in Monterrey:
- Industrial and financial center of northern Mexico.
- High quality of life and services.
- Innovation and active entrepreneurship.

Final Considerations

Choosing the right location to do business in Mexico involves considering not only security, but also other factors such as infrastructure, market access, available talent, and government incentives. The cities mentioned above not only stand out for their safety, but also for offering an environment conducive to business growth and development.

As Mexico continues to evolve and improve its security conditions, these cities will continue to be bastions of stability and opportunity for investors and entrepreneurs.