Scotland FDI ‘attractiveness’ at record level despite 20% drop in projects

• Scotland remains the UK’s top FDI destination outside London, securing 108 projects and 14.8% share despite a global slowdown.
• Investor sentiment reaches record levels, with 33% of investors targeting Scotland, underpinned by talent, infrastructure and sector strengths.
• Financial services momentum accelerates, with sentiment matching London at 52%, reinforcing Scotland’s competitiveness in high-value sectors.

Scotland has retained its position as the UK's leading destination for foreign direct investment (FDI) outside London, demonstrating resilience and continued investor confidence in a challenging global environment. That’s according to EY's latest Scotland Attractiveness Survey.  

Scotland secured 108 inward investment projects in 2025. While this was down 20% year-on-year, Scotland still maintained its long-standing leadership outside London and captured 14.8% of all UK FDI projects in 2025 – down from 15.8% the previous year but comfortably above its 10-year average share of 11.6%. Across Europe, projects fell by 7%, with the UK as a whole falling by 14%. However, figures excluding London (the only part of England to see project numbers increasing, by 5%) show UK project numbers fell 23%.

Scotland also secured 51 new projects in 2025, and 57 operation expansions. Over the last decade, Scotland is estimated to have secured 52,144 jobs from FDI, representing 12.2% of the UK total and ranking second in the UK over that period for total FDI employment. Scotland secured six projects in 2025 that announced a projected 100+ jobs.

Investor sentiment towards Scotland remains highly positive. Not only has Scotland secured the most projects outside London, but it is also considered the most attractive UK destination outside London by investors. One-third of those planning UK investment say they will choose Scotland, up from 27% last year. Investors continue to cite Scotland's highly skilled workforce, strong infrastructure and overall business environment as core strengths.

Strong city performance drives investment appeal

Scotland's ‘big three’ cities continue to play a pivotal role in attracting international investment. In 2025, Edinburgh reclaimed its position as Scotland's top city for FDI, securing 30 projects – a 25% increase on 24 in 2024 – and ranking second overall outside London, after Manchester secured only one more (31) to take top spot. Glasgow is fourth outside London after securing 23 projects, down from 27 the year before. Aberdeen has slipped out of the UK top ten cities outside London at 11th place, having recorded five projects, down from 12 the previous year, reflecting continued challenges over the future of the North Sea.

Investor appetite for Scotland's cities remains strong. Edinburgh is ranked as the top UK city for future investment outside London, with 27% of investors choosing the Scottish capital, whilst Glasgow (17%) also features prominently in investor plans at third outside London.

Services strength and manufacturing resilience

The report highlights a more sustainable, services-led investment profile for Scotland in 2025. Business Services & Professional Services became Scotland's leading sector with 22 projects, more than doubling from nine in 2024. Software & IT Services remained a core strength with 14 projects, while Utility Supply accounted for 12 projects and Machinery & Equipment saw nine projects.

International investor confidence

The United States remained Scotland's leading source of inward investment in 2025, accounting for 33 projects, down marginally from 37. Ireland rose to second place with 12 projects, doubling from six the year before, while France remained third with eight projects, unchanged from 2024. Germany fell from 12 projects in 2024 to two projects in 2025, and while India was the second highest country of origin for the UK delivering 71 projects, Scotland only saw only one project from India.

Financial Services investor sentiment doubles

While Scotland has retained it’s ranking as the most attractive destination outside of London overall, financial services investors are even more bullish on Scotland and Edinburgh in particular.

In year-on-year terms, Scotland’s number of financial services FDI project volumes for 2025 have dropped to five, from a high of 11 the year before. However, in sentiment polling for financial services, more than half (52%) of investors expect to activate investment plans which would establish or expand operations in the next 12 months, and expect to do so specifically in Scotland. This represents an impressive doubling of sentiment for financial services in Scotland and marks the sector out as a uniquely strong area of attraction for Scotland relative to the rest of the economy – and impressively shows a level result with London.

When breaking this sentiment down at the city level, the top three most attractive cities for Financial Services investment in the next 12 months are London (52%), Edinburgh (44%) and Glasgow (23%). All respondents planning to invest in the UK expect to invest outside of London.

EY Scotland Country Managing Partner Sue Dawe OBE said: “Scotland’s performance highlights the strength and resilience of its investment proposition. While global investment flow has slowed, Scotland remains the clear destination of choice outside London.

“The powerful sentiment results, particularly within financial services, is a strong endorsement of how positively investors view Scotland - and a signal for policymakers to capitalise on these enduring strengths by translating perceptions into higher investment flows.

“While global macroeconomic pressures, geopolitical uncertainty and energy costs continue to weigh on investment decisions, the survey decisively concludes that Scotland's fundamentals remain strong: a deep talent base, competitive cities, internationally recognised sector strengths and a proven ability to secure high-value investment.

“When investors are asked what could be done to improve competitiveness, they point to the same actions the Scottish business community has been calling on for years. There is a single unified voice across the spectrum. Rising to this challenge will demand sustained commitment backed by action. But with the new parliamentary term beginning, there’s arguably no better time to muster the political will to bolster Scotland’s attractiveness than now.”