Scotland remains the UK’s top destination outside of London for foreign investors for the eleventh consecutive year, though the number and share of projects fell on the previous 12 months.
However, this positive national picture is tempered by a notable decline in projects, particularly impacting Aberdeen, which has fallen out of the UK’s top 10 cities for inward investment.
According to EY’s latest UK Attractiveness Survey, Scotland continues its eleven-year streak as the most appealing UK destination for external investment, excluding London. This achievement comes even as the number of FDI projects across Scotland saw a 20% reduction. In contrast, London experienced a 5% increase in projects, while the overall UK, excluding the capital, witnessed a 23% fall.
In 2025, Scotland secured 108 inward investment projects, contributing 13.8% of all UK FDI projects. This represents a slight decrease from the previous year’s 15.8% share but remains above the decade-long average of 11.6%. Of these projects, 51 were new ventures, while 57 involved the expansion of existing operations.
Investor confidence in Scotland remains robust, with a third of those planning UK investments indicating Scotland as their preferred choice, marking an all-time high and an increase from 27% last year.
Edinburgh emerged as Scotland’s leading city for foreign investment in 2025, attracting 30 projects, a substantial 25% increase from 24 projects in 2024. The Scottish capital now ranks second nationally, behind Manchester, which secured 31 projects.
Glasgow also demonstrated a strong performance, drawing 23 projects and ranking fourth outside London.
Conversely, Aberdeen’s foreign investment declined significantly, recording only five projects compared to twelve in the previous year, leading to its exit from the UK’s top 10 cities outside London.
EY suggests that Aberdeen’s downturn reflects “continued challenges over the future of the North Sea” regarding the oil and gas industry.
First Minister John Swinney commented on the survey’s findings:
“The results that have come out from the EY Foreign Direct Investment Index demonstrate another really strong performance for Scotland,. It demonstrates the success of Scotland as an investment location and destination, and a place that attracts very significant interest from the international community.”
Sue Dawe, EY Scotland managing partner, also acknowledged the country’s robust position.
“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,” she noted.
In Case You Missed it:
Aberdeen’s drop from the top 10 for inward investment marks a significant moment for a city that has long positioned itself as Scotland’s energy capital. While the north-east’s economy has been navigating a prolonged transition away from North Sea oil and gas dependency, the latest figures suggest that diversification efforts have yet to translate into the kind of investor confidence that once made the city a standout destination for business.
For local firms, particularly those in the supply chain and professional services sectors built around the energy industry, the decline signals an increasingly competitive landscape where Aberdeen must work harder to articulate its value proposition to both domestic and international investors.
