Scotland Remains Top FDI Destination Outside London

What's happened

EY and Scottish authorities report Scotland as the UK’s top destination for foreign direct investment outside London for the 11th year in a row, despite a dip in total projects in 2025. Edinburgh leads cities for FDI, with strong talent, infrastructure and sector strengths underpinning investor confidence amid a slower global environment.

What's behind the headline?

The Context

• Scotland remains the UK’s most attractive destination outside London according to EY, holding 10-year average share above 11.6%. This is notable in a challenging global environment for investment.
• Edinburgh leads as the top Scottish city for FDI, with 30 projects in 2025, followed by Manchester at 31, Glasgow with 23, and Aberdeen at 5.

What it Means

• Investors cite Scotland’s skilled workforce and infrastructure as core strengths; however, a 20% drop in inward projects signals caution and a need to translate sentiment into higher flows.
• The government’s role and regional partnerships will be crucial to sustain long-term investment amid geopolitical and energy-cost pressures.

Forward Look

• As global investment slows, Scotland will compete by highlighting sector strengths (financial services, energy, data) and by advancing policy measures to attract high-value, capital-intensive projects.

How we got here

Scotland has consistently attracted foreign direct investment outside London, led by Edinburgh and supported by Glasgow and Aberdeen. EY’s 2025 survey shows 108 inward investment projects, down from 135 in 2024, reflecting a global slowdown in FDI. The data places Scotland above other UK regions, with a strong emphasis on skills, infrastructure and sector strengths.

Our analysis

The Scotsman; Independent; EY Scotland; EY UK Attractiveness Survey; local government briefings. Direct quotes show investor sentiment emphasizing Scotland’s talent base and infrastructure as drivers of ongoing investment interest.

Go deeper

• What sector strengths are most likely to drive higher investment this year?
• Will Edinburgh’s growth in FDI outpace Glasgow and Aberdeen this year?
• How might policy changes strengthen Scotland’s appeal outside London?

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