Latin America and the Caribbean is a large, heterogeneous region that has been open to foreign direct investment (FDI) and is home to two of the top FDI recipient economies in the world: Brazil and Mexico. The trade and investment relationship between the region and the member States of the Gulf Cooperation Council (GCC) (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates) has been concentrated on infrastructure and energy, and to a lesser extent commercial and financial services, agriculture and tourism. Both regions could exploit synergies to benefit more from bilateral relations. In addition, in a changing global scenario, small and medium-sized enterprises have the potential to attract investment to develop the digital economy; venture capital for digital start-ups in Latin America and the Caribbean has risen steeply in recent years. Meanwhile, in a region where more than 80% of the population lives in urban areas, the development of clean, livable, inclusive and smart cities is of growing importance. Lastly, the extension of the Belt and Road Initiative into Latin America and the Caribbean is attracting Chinese companies into the region. The main focus of the Initiative is infrastructure development, which is crucial for fostering sustainable and inclusive development in Latin America and the Caribbean.