SCOTLAND has been the top destination for foreign direct investment in the UK outside of London for a decade, new research has found.
Figures from EY – one of the “big four” accounting firms – showed that in 2024 Scotland attracted 15.8% of the UK projects targeted for foreign direct investment (FDI), up from 14.4% in 2023 and above its decade average of 11.5%.
EY further reported that 25% of the global investors planning to establish operations in the UK next year expect to choose Scotland. This was second to London, which polled at 62%.
This increase in Scotland’s share comes against a “backdrop of a marked decline in project numbers” across Europe, EY said.
The firm said that Scotland is ranked sixth among the top ten FDI locations in Europe.
In 2024, the country attracted 135 FDI projects, the second highest ever recorded after 2023’s 142. The UK as a whole recorded 853 FDI projects in 2024, a 13% decline from 2023.
Glasgow (27 projects) became Scotland’s leading city for FDI for the first time in five years – a position that Edinburgh held between 2020 and 2023 – and the second most popular UK city outside London, after Manchester (44 projects).
Three Scottish cities are in the UK top 10, with Edinburgh having secured 24 projects and Aberdeen 12 projects.
Scotland’s top two FDI sectors were machinery and equipment (19 projects), and software and IT (15 projects). Agri-food and utility supply came joint third on 14 projects each.
Scotland was the UK leader in oil and gas FDI (seven projects), as well as inward investment in the utility supply, electronics, and the machinery and equipment sectors.
The US was the single biggest country of origin for Scotland’s FDI projects, with US projects rising by 37% to 37 projects, accounting for 27.4% of Scotland’s total during the year — above the 23.7% of UK projects originating from the US.
EY Scotland managing partner Ally Scott said: “Put simply, Scotland continues to punch above its weight with inward investment.
“While project numbers slipped back slightly in 2024 from their record high the previous year, a much sharper fall in projects into the UK overall saw Scotland’s share increase for the sixth year running.
“In doing so, Scotland consolidated its decade-long position in second place for UK FDI.
“While FDI is only one part of the Scottish economy, the challenge is ensuring the policy landscape continues to react to changing business and demographic needs.
“Many priorities of international investors considering Scotland are very similar to those of our homegrown business community – future-proofed infrastructure, an efficient planning system, a skilled workforce, simplified tax structure – improve these levers and you’re activating broader economic growth.
“Far from relaxing after a job well done, it’s time for Scotland to take some confidence from these findings and to double-down and cement its hard-won position.”
She went on: “A huge amount of work, across both the private and public sectors, goes into securing these projects, which are vital for economic growth, job creation and bringing benefits across our towns and cities.
“From the likes of green aircraft engine ZeroAvia to ticketing hub Humanatix, 2025 is bringing further significant investment and exciting projects to Scotland.
“The Scottish Government will continue to work with businesses and our ‘Team Scotland’ partners to continue building the country’s reputation as a world class location for foreign investment.”
