Costa Rica Emerges as a Prominent Destination for Foreign Direct Investment

Costa Rica is certainly becoming known as a great location for foreign direct investment (FDI). This expansion is driven by its ambitious plans in renewable energy, political stability and the robust regulatory environment. As of 2024, the Central American country earned a remarkable €4.02 billion in FDI. That’s great news, representing a record 14 percent increase over last year. This expansion further demonstrates Costa Rica’s attractiveness to foreign direct investment, especially in the advanced electronics and medical device industries.

Costa Rica produces almost 100 percent of its electricity from renewable sources. This commitment to sustainability makes it a great landing place for businesses looking to make an investment in greener operations. The country’s abundant political stability is personally enhanced by the absence of a standing army. This relative control of public investment creates a much more attractive landscape for international investment dollars.

A Commitment to Sustainability

Costa Rica’s focus and advocacy on sustainability has been central to developing its investment climate. The nation’s developed a powerful brand of being able to grow economies while protecting the environment. Adriana Acosta, Director of the ‘essential COSTA RICA’ brand, emphasized this vision by stating:

“Costa Rica’s sustainability vision has shown that it is possible to attract foreign direct investment while protecting the natural environment.”

By integrating sustainability into its economic framework, Costa Rica turns environmental responsibility into a competitive advantage, as highlighted by Acosta:

“We present a nation that turns sustainability into a concrete competitive advantage — integrating innovation, excellence and social well-being into every part of its value proposition.”

This focus on sustainability resonates with companies seeking to align their investments with responsible practices, contributing to Costa Rica’s growing appeal as an FDI destination.

Political Stability and Strategic Trade Agreements

Perhaps the most critical factor for foreign investors to Costa Rica is the political environment. Yet the country ranks first overall in the World Bank’s suite of governance indicators, attesting to the transparency of its regulatory framework and its stable democratic institutions. By attracting this reputation for good governance they help create a virtuous cycle attracting greater confidence from businesses to invest.

Furthermore, Costa Rica has been able to obtain free trade agreements with over 50 countries, making the incorporation into international markets even easier. These agreements increase its attractiveness as a stable and transparent trading partner, making it easier for foreign companies to do business there despite trade barriers.

Laura López, General Manager of PROCOMER, emphasized the advantages of investing in Costa Rica:

“Costa Rica is a smart choice for companies seeking impact, predictability and purpose. It’s a country where the institutional environment enables business, where talent meets the demands of advanced technologies, and where sustainability is not a slogan — it’s a daily practice.”

These endorsements from industry leaders only serve to add credibility to Costa Rica’s foreign investment ecosystem.

Growth in Free Trade Zones and Key Industries

Over the last several years, Costa Rica’s free trade zones have experienced incredible growth, even reporting a 24 percent year-on-year spike in 2024. These zones have proven to be key in attracting FDI, making up the majority—64 percent—of total foreign investments for the year. Through strong federal support, the government has created an incentive structure for businesses to set up shop in these designated Opportunity Zones.

As a result, the country has embedded itself as a regional base for precision manufacturing. It especially excels in highly specialized, high-tech electronics and medical devices. Intel is another company that has been rapidly increasing its presence in Costa Rica since 1997. Today, the technology behemoth has more than 3,400 employees in the area.

Costa Rica’s strategic emphasis on sustainability and trade has fostered a surprisingly diverse set of industries. This puts the country in a good place to compete in the global market. The nation hosted over 3,500 business meetings during its trade and investment summit in 2024, showcasing its commitment to fostering international business relationships.

Tags

Leave a Reply

Your email address will not be published. Required fields are marked *