Mexico energy reforms drove foreign direct investment

The 2013–2014 energy reforms in Mexico significantly altered the landscape for foreign direct investment (FDI) in the electricity and hydrocarbon sectors. By implementing the Hydrocarbons Law and the Electricity Industry Law, the constitutional changes modified the conditions for private capital participation.

Data from the Secretaría de Economía indicates that between 2006 and 2012, Mexico received $12,738 million in energy-related FDI. During this period, investment levels were highly volatile, ranging from a low of $466 million in 2010 to $3,635 million in 2012. The reforms acted as an enabling condition that expanded the scope and magnitude of potential foreign investment compared to the more limited private market available prior to 2013.