SCOTLAND has outpaced both the UK and Europe on foreign investment – for the second year in a row, it emerged today.
The country secured a record 126 inward-investment projects last year – up 3.3% on 2021’s total of 122 – according to EY’s latest Scotland Attractiveness Survey.
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Scotland has also secured a record 13.6% share of UK foreign direct investment (FDI) projects, and is polling at record levels of attractiveness to investors as an FDI location outside London.
In 2022, Edinburgh notched up 38 investments, Glasgow 20 and Aberdeen 15.
The strong performance is Scotland’s fourth successive annual increase in FDI projects, and is set against the background of a 6% decline in total UK projects from 993 to 929 and growth of just 1% across Europe.
Scotland’s record share of all UK projects is up from 12.3% in 2021, and 11% in 2020.
While London remains the UK’s most attractive location to future investors, Scotland is in second place with 11% of investors rating the country as the most attractive place to establish operations in the UK.
This is down from the record high of 15.8% in 2022’s survey, but remains higher than 2019’s pre-pandemic score of 7%.
Meanwhile, a record high 19.2% of investors – again the highest figure for any UK location outside London – are planning to establish or expand operations in Scotland.
EY Scotland managing partner Ally Scott said: “Scotland put in another powerful performance on FDI in 2022, securing record inward-investment projects and UK market share.
“Against an unsettled UK and Europe economic backdrop, Scotland recorded its fourth successive annual increase and has now been second only to London in nine of the past 10 years.
“Our report underlines the rich dynamism, diversity and balance of the Scottish economy and FDI sector, qualities that we at EY Scotland see every day.
“For Scotland to have three cities in the UK’s top five for non-London FDI bears testament to Scotland’s enduring attractiveness, and all this adds up to an impressively resilient performance.
“While Scotland continues to build on its great reputation as a place to invest, there’s no room for complacency.
“To maintain and enhance its status, Scotland must engage, plan, and play to its strengths: engage with public and private sector bodies to create a vibrant ecosystem for growth; plan how to sustain market-leading levels of attractiveness in the medium and long term; and, build on its track record in prioritising high-value, high-potential areas like digital tech, renewable energy and R&D.”
