EDINBURGH has been named the most attractive city for foreign investment outside of London in a new report.
According to the latest quarterly report by law firms Wright, Johnston & Mackenzie (WJM) and Irwin Mitchell, Edinburgh has replaced Brighton as the highest-ranking UK city outside of London for Foreign Direct Investment (FDI) attractiveness.
The study, which incorporates the latest analysis by the Centre for Economics and Business Research (Cebr), examines recent changes to the Foreign Direct Investment (FDI) attractiveness of 50 locations based on ten economic indicators.
It shows 11 of the top 20 FDI hotspots are currently in Scotland, the Midlands, and the north of England.
Scotland’s capital moved up to fourth position with an overall score of 49.1. The report says Edinburgh’s strong performance is founded on its consistent performance across all three pillars comprising the Index.
The report also found that Edinburgh demonstrates "robust performance in the infrastructure category, attributed to its extensive public transport usage and the interconnectivity of its transport network, along with advanced digital infrastructure".
Regarding its growth potential, Edinburgh’s overall score has risen from July 2024, driven by relatively strong employment growth forecasts for 2025. The report adds that, although the city’s score in the skills category fell slightly, it remains strong due to institutions like the University of Edinburgh.
Fraser Gillies, managing partner at Wright, Johnston & Mackenzie LLP, which has five bases across Scotland, commented on the findings: “Edinburgh’s strong performance in the previous report was already impressive, and it is particularly pleasing to see the city move even further up the league table.
“This consistent improvement highlights Edinburgh’s robust local infrastructure and growth potential, making it an increasingly attractive destination for foreign investment.”
Aberdeen is another Scottish city that is performing strongly, moving up 18 places in the league table. This was attributed to comparatively strong employment growth forecasts and its relative distance from the North East Scotland Investment Zone.
Pushpin Singh, Senior Economist at Cebr, said: “Our findings underscore the transformative potential of Freeports and Investment Zones in reshaping the UK’s investment landscape.
“Cities like Aberdeen, Liverpool, and Newcastle are emerging as significant beneficiaries, demonstrating how targeted infrastructure and skills development could potentially create hubs of economic opportunity.”
The Office for National Statistics recently published the latest FDI statistics, revealing that the value of the UK’s inward FDI position increased by £126.8 billion, reaching £2,068bn.
According to the latest statistics from the Department for Business and Trade, 1555 projects landed in the UK during the 2023/24 financial year as a result of FDI, resulting in 71,478 new jobs being created.
Out of these projects, 1023 represented new investment, with 357 involving an expansion of an existing investment, and the remainder accounted for by mergers and acquisitions including joint ventures.
