Is El Salvador safer for investment now?

Recent reporting points to long stretches without gang‑related killings and actions against smuggling revenue. Safety gains can reduce operating costs and support tourism. Investors should still verify data quality, check neighborhood‑level conditions, and confirm court access and contract enforcement before deploying long‑dated capital.

What are the biggest risks from the Nayib Bukele crackdown?

Rights concerns include mass detentions, limited due process, and opaque oversight. These can raise ESG, litigation, and reputational risk. They may also complicate permits, asset recovery, or dispute resolution. Build stronger covenants, monitoring, and exit options to manage downside if policies face legal or political stress.

How should US firms assess foreign investment opportunities in El Salvador?

Run security and legal due diligence in parallel. Validate incident data with independent sources. Stress‑test supply chains, insurance, and financing terms. Stage capital to milestones and require clear government letters. Add sanctions, MAC, and audit clauses. Confirm access to counsel and courts where assets and staff are based.

What could change the outlook in 2026?

Sustained homicide declines, transparent court metrics, and credible audits would improve confidence. Rising wrongful detention claims, media access limits, or legal rollbacks would raise risk. Watch regulatory stability, procurement transparency, and independent reporting. Adjust exposure and insurance as these indicators move, not only on headlines.

Law and Government

January 04: El Salvador Security Gains vs Rights Risk for Investors

ByDanny Kontos January 4, 2026January 4, 2026

El Salvador security is drawing fresh attention from US investors. Recent reports cite record stretches without gang-related killings and strikes on smuggling revenues under President Nayib Bukele’s state of exception. Improved safety could support foreign investment and tourism sentiment. Yet widespread detentions and alleged rights abuses raise governance and legal risks. We explain how to weigh the security upside against rule‑of‑law uncertainty, what indicators to watch in early 2026, and practical steps to protect capital while staying aligned with compliance and ESG policies.