More businesses invest in Scotland as confidence
continues to grow.
A record number of Foreign Direct Investment (FDI) projects were
secured in 2023 in Scotland.
According to EY's annual independent analysis of inward
investment, 142 FDI projects were secured last year, an increase
of 12.7% on 2022 and double the rate of growth experienced across
the UK.
Scotland's share of UK FDI projects increased for a fifth year in
a row to 14.4%. Investor perception of Scotland also increased,
with 26% of potential investors surveyed by EY saying they were
planning to invest in Scotland – up from 19.2% in 2022. Seizing
opportunities presented by new technology and accessing skills
were among the main reasons given for establishing or expanding
operations.
The performance underpins Scotland's position as the top
performing area of the UK outside of London – for a ninth
consecutive year.
Welcoming the results, Deputy First Minister and Economy
Secretary said:
“Attracting inward investment is critical to economic growth and
driving forward strategic objectives in key sectors.
“These results show a record performance, with Scotland once
again outpacing the UK as a whole and the European Union when it
comes to securing Foreign Direct Investment projects, delivering
on the actions and priorities we have set out in Government.
“From being at the forefront of the energy transition to the
rapidly emerging cutting-edge technologies, we have an enormous
opportunity to capitalise even further. We will continue to work
with our economic development agencies as part of a “Team
Scotland” approach to attracting foreign direct investment and
bringing more high quality jobs across Scotland.”
Background
The EY survey also highlighted:
- Scotland outpaced both the UK and Europe with FDI growth last
year. Europe recorded a 4% year-on-year decline.
- Scotland has three of the top 10 cities for FDI projects
outside London (Edinburgh 2nd, Glasgow 4th Aberdeen
8th)
- The US (responsible for 27 projects) remains the biggest
contributor of Scottish inward investment projects, with the
number of projects from Germany doubling to 20, a decade-high,
making it the second-biggest source of projects into Scotland,
followed by France with 10 projects.
- For the first time in six years, utility supply which
includes renewables (40 projects) has overtaken digital
technology projects (14 projects) in Scotland due to increasing
levels of low-carbon and ‘cleantech' investment with an
impressive decade high rise in manufacturing projects (45).
Managing Director of Energy Transition and International
Operations at Scottish Enterprise Reuben Aitken said:
“Today's fantastic EY results are testament to Scotland's
attractiveness to businesses from around the world.
“We've seen a fifth consecutive year of growth in FDI and we're
the top destination for FDI outside London with more global
businesses making Scotland their home and scaling up their
operations here. This growth is driven by the deep partnerships
that my team in Scotland and overseas build with investors
leveraging our Team Scotland approach.
“It's great to see utility supply as the top sector for FDI into
Scotland last year. This chimes with our focused strategy which
identifies the Energy Transition as one of three areas central to
transforming Scotland's economy, creating quality jobs and
accelerating our path to net zero.”
Chief Executive of South of Scotland Enterprise Jane
Morrison-Ross said:
“The latest EY survey results showcase again that Scotland is an
incredibly attractive country to invest in.
“In the South, we have our Net Zero Investment Guide, the new
Invest in South Scotland website, our just launched Chapelcross
Energy Transition Zone and we are Scotland's national Natural
Capital Innovation Zone.
“SOSE share the ambition of our Team Scotland partners to
make Scotland, and the South of Scotland, the place to
invest in, to innovate in and to live.
“We will achieve this by continued collaboration and by focusing
on our economy, environment and communities – people, prosperity
and place. Our natural economy, our innovative, skilled
people and our natural capital are unique and a fantastic asset
to any investor looking for the optimum place to be.”
