Gulf investors deepen ties with Latin America as new investment corridor takes shape

A new wave of investment from the Middle East into Latin America is reshaping cross-regional capital flows and creating openings across several strategic sectors, according to a new analysis by White & Case.

The firm reports that sovereign wealth funds, conglomerates and family offices from Gulf states are accelerating activity in the region as trade links strengthen and governments seek to diversify into new markets.

The White & Case report notes that trade between Mexico and Gulf Cooperation Council states rose more than 33 per cent between 2021 and 2022, while non-oil trade between the UAE and Argentina increased more than 70 per cent in 2024. Similar momentum has been recorded with Colombia and Chile.

Business sentiment also reflects a shift, with 64 per cent of Latin American executives planning to expand engagement with the Gulf in sectors such as agriculture, renewable energy and digital services.

Agritech has become a focus for Gulf investors seeking food security as regional populations grow and water scarcity intensifies. According to White & Case, investors have increased their stakes in Latin American protein producers and agribusiness groups, while also backing companies using AI, data analytics and blockchain to modernise food supply chains.

Partnerships are also emerging to test precision irrigation and climate-smart farming in desert environments.

GCC trade with Latin America

Renewable energy is another priority. The report states that Gulf sovereign wealth funds, which hold nearly $5 trillion in assets, are turning to Latin America’s strong clean-energy and critical-minerals sectors. Investors are securing minority stakes in metals producers, increasing exposure to biofuels projects in Brazil and evaluating opportunities in lithium extraction. Long-term supply arrangements for lower-carbon fuels, including LNG, are also gaining traction.

White & Case highlights that fintech investment is rising as Middle Eastern governments push financial-services innovation at home. Gulf investors have taken positions in digital-only banks and integrated financial-services platforms across Latin America.

Infrastructure remains a major draw, with the region requiring more than $2.2 trillion in investment by 2030. The report cites large commitments from Gulf logistics, transport and energy companies in Peru, Ecuador, Brazil, Mexico and the Caribbean.

White & Case warns that the scale of these investments comes with political and regulatory risks, pointing to policy shifts in Argentina, Brazil, Colombia, Chile and Mexico that may affect foreign ownership, taxation or operational stability. The firm notes that investors can mitigate exposure through bilateral investment treaties, arbitration provisions and careful corporate structuring.

According to White & Case, the most successful investors will combine long-term appetite for opportunity with robust legal protections that allow them to navigate an increasingly complex cross-regional landscape.