Scotland wins record number of foreign investment projects, beating UK and Europe

SCOTLAND won a record number of foreign direct investment projects in 2023, beating both the UK and Europe.

The EY’s annual Scotland attractiveness survey published on Thursday found that Scotland won 142 foreign direct investment (FDI) projects last year, a 12.7% rise from the previous record annual figure of 126 achieved in 2022.

This was the fifth consecutive year of increase in Scotland, compared to Europe which saw a 4% year-on-year decline – the continent’s lowest since 2020 with 5694 projects – and the UK, where projects rose by just 6%.

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The analysis showed that utility supply is the leading sector in Scotland with 40 projects secured in 2023 and a rise of 81.8% on the 22 secured in the previous year.

Digital technology, business services and transport and logistics each secured 14 projects.

In the top 10 cities table by number of FDI wins last year outside of London, Edinburgh is placed second with 32 projects, Glasgow is in fourth position with 25, and Aberdeen is in eighth spot with 13 wins.

The US remained the single biggest originator of FDI projects in Scotland, accounting for 27 (19%) of projects during 2023, the data showed.

Meanwhile, projects from Germany doubled to a decade-high of 20, making it the second largest source of projects into Scotland.

Ally Scott, EY Scotland managing partner, said: “Scotland has demonstrated yet another very strong performance, both in attracting FDI and retaining the confidence of investors. Utilities, including renewable energy, plays a strong role in Scotland’s FDI growth story, as the country leads in sustainability and low-carbon power generation.

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“This offers a real competitive advantage on the back of the ScotWind leasing rounds, but will it create the critical momentum required to see another impressive yield in the years ahead?”

Meanwhile, Deputy First Minister and Economy Secretary Kate Forbes (below) 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.”