São Paulo is the international financial centre that has attracted the largest foreign direct investment (FDI) volumes to Latin America and the Caribbean in 2014, according to database fDi Markets. A total of $847.2m in capital expenditure reached the Brazilian hub last year. The largest individual projects came from operations set up by US investment firm StepStone, the Canada Pension Plan Investment Board and Italian boutique advisory firm U-Start. Each project was estimated to be worth about $280m and generated more than 50 jobs.
Although still the most attractive financial centre in the region, São Paulo’s total inward FDI last year was significantly lower than in 2013, when $1.4bn was poured into the city’s financial services sector. Brasilia, on the other hand, which occupies second place in the ranking, did not feature among the top 10 positions a year earlier. This is mainly explained by US-based claims management firm McLarens Aviation opening its second Brazilian office in the city. The investment is estimated at more than $250m.
Mexico City attracted $178m and climbed up one place to third position in the ranking. Santiago and Montevideo similarly gained ground in the ranking thanks to $134.5m and $96.9m worth of FDI projects, to occupy fourth and fifth place, respectively.
Caracas originated the largest outward FDI flows, with $397m invested by Banesco Banco Universal to expand its operations in Brazil, Mexico, Argentina, Panama and the US.
Hamilton is the second largest financial centre in the region by outward FDI, with $260.6m and the first of the two Caribbean centres to appear in the top 10 list. Grand Cayman occupies seventh place with $31.8m.
São Paulo scores well in the outflows table too. A total of $242.9m worth of investment from the Brazilian hub granted it third place in the outward FDI ranking.
