Highlands and Islands see record inward investment

The outturns for 2023/24 were achieved through a combination of financial and non-financial interventions by HIE. They included approved investment of up to £56.8 million in 339 projects with a combined total cost of £426.9m.

The figures, which are subject to review by Audit Scotland before publication of HIE’s annual report in December, show that businesses supported by the agency across the Highlands and Islands are set to see combined turnover rise by £619.7m as a result, while international sales will grow by £47.7m.

HIE’s support for social enterprises, meanwhile, is forecast to bring about a £9.8m uplift in the social economy, more than half (£5.5m) of which is linked to a project by the Cabrach Trust in Moray to create a new heritage distillery.

Over the course of the year, HIE recorded involvement in a record 13 inward investment projects in Argyll and the Islands, Highland, Moray, Shetland and Orkney. Together these are expected to create more than 400 new jobs.

Seven of these projects are from new investors to the region, including the Sumitomo Electric Industries subsea cable factory at Nigg that is expected to create more than 150 jobs in the Highlands.

Ten of HIE’s 14 targets were achieved or exceeded. Some were far in excess of the targets set, including £270.9m external investment secured against a target of £40m-£50m, which was mostly due to the Sumitomo inward investment project.

Those not achieved in full were the number of jobs supported in fragile areas, which was 82 against a target of 150, and the number of green jobs was 271 against 370. The numbers of businesses helped to reduce emissions and transition to net zero were also below target.

Stuart Black, HIE chief executive, said: “Given the wider economic context, the figures show a strong outturn for our investments across the Highlands and Islands last year. Colleagues across the organisation and across the region worked hard to support many excellent projects that capitalise on the region’s strengths.

“It was a particularly good year for inward investment, even when you exclude the Sumitomo project, and this really highlights the levels of interest in the many strengths and natural advantages the region has to offer.

“The fact that some targets could not be achieved underlines just how tough economic conditions were, both at regional and national levels. At the same time, it’s important that we stay ambitious and keep challenging ourselves to improve.

“That’s what our five-year strategy, launched last year, is all about. It details how we will continue to build on the progress of previous years and on our region’s contribution to Scotland’s economy. We look forward to continuing to work with our partners, businesses and communities across the region and beyond in making that happen.”

Deputy First Minister Kate Forbes said: “These latest results demonstrate the strong performance of Highlands and Islands Enterprise in supporting jobs and attracting new investment over the past year.

“With its natural resources, history of innovation and entrepreneurial talent pool, the region is a great place to do business and grow exports. HIE has been key to securing many opportunities associated with the transition to net zero, including the Sumitomo subsea cable manufacturing plant at the Port of Nigg.

“The Scottish Government invested £62.8 million to support HIE activity last year, and I look forward to discussing these results when I meet with the agency this week.”