Around 10,000 jobs were created in Scotland by foreign investors last year, a survey from EY has found.
Foreign investment in Scotland outpaced the rest of the UK and Europe last year according to the professional services group's latest Scotland attractiveness research.
Five Scottish cities have also made it into the top 20 UK locations for investment outside of London.
Edinburgh was joint first, with Manchester with Glasgow coming in at fourth place. Aberdeen, Dundee and Livingston also featured.
Scotland attracted 122 inward investment projects, up 14% from 2020.
Scotland’s share of projects in the UK sits at 12.3%, its highest level in the last decade, while London remains the most popular location in the UK for direct investment.
EY pointed to Scotland’s strength in high-value, high-growth industries, like digital and utilities, as a sign for future optimism.
Ally Scott, Scotland managing partner at EY, said: “The past year has seen Scotland continue to make great strides as a destination for foreign direct investment, meaning it can look to the future with even greater confidence.
“Scotland’s record levels of attractiveness underline that our second-placed UK ranking for investment flow is matched and underpinned by investors’ rising perceptions.
“Our findings suggest the outlook for Scotland’s FDI is exceptionally bright - but having fared well through Brexit and the pandemic, keeping that momentum will require ongoing commitment and hard work in the face of historically high inflation, the rising cost of living and wider geopolitical risks.”
EY’s results, which cover the calendar year January to December 2021, aligned with Scottish Development International figures announced earlier this month, that showed more than 7,500 planned real living wage jobs had been generated by inward investment in 2021/22, with 113 investment projects in Scotland supported - 39 of which were investors locating in the country for the first time.
Trade Minister Ivan McKee commented: “These results indicate that our values-led approach to investment, set out in our Inward Investment Plan, is delivering and underline the important ongoing contribution of inward investment to the recently-published National Strategy for Economic Transformation.
“It is critically important that we continue to work closely with inward investors by offering our unique Team Scotland approach to support an inclusive and wellbeing economy, as we strive to meet our goal of being net zero by 2045.”
Adrian Gillespie, chief executive of Scottish Enterprise, said: “Businesses have told us that this joined-up approach is a key reason why they choose Scotland - and EY’s survey is testament to this - with Scotland’s perceived attractiveness to inward investors now at record levels.
“For Scotland’s performance to grow so markedly, and to yet again be the most attractive location in the UK for investment outside of London, is a fantastic achievement that will further enhance our global reputation.”
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