The UK’s undoubtedly experienced a period of turbulence over the last few years: Brexit, inflation and the cost of living crisis, COVID and war in Europe have all provoked uncertainty.
Despite this, FDI activity into the UK is proving resilient, with greater M&A activity and an improved stock of inbound FDI year-on-year. For investors, Britain remains a very attractive place to do business.
As well as the usual benefits that come with any good partnership – innovation, the transfer of knowledge, and having presence in a foreign jurisdiction – Britain is globally known for its financial expertise. Unsurprisingly, it remains by far the highest grossing sector for inbound FDI. It’s also no surprise that London remains the most attractive city for FDI. But investors are finding opportunities in rapidly expanding sectors, such as the IT and consumer sector, throughout the UK.
Where’s The Ideal City For Your Company To Invest?
Working in collaboration with Cebr, our new report reviews the latest trends for FDI in the UK economy. Together, we have devised a unique system to rank 50 of the largest city economies in the UK according to their attractiveness for investment.
If you’re looking to invest, you’ll also find four key steps you should take beforehand to make sure you’re set up to succeed.
Get the insight with our UK Attractiveness Index
Key Findings
- In 2021, the UK’s inward FDI position stood at £2,002 billion, up slightly compared to the £1,919 billion in 2020.
- The largest FDI position can be found in financial services, with £596 billion attributable to that industry. This is equal to around 30.1% of all inward FDI in the UK.
- London is the top city for investment attractiveness. Inner London ranks particularly highly for local skills, with an economically active population and many well-respected universities.
- Brighton is the top-scoring city outside of London for investment appeal. It’s forecast a 2.2% GVA growth in 2024.
- Greater Manchester is the most attractive city outside of London and the South East. It’s boosted by its local skills, excellent transport links, and growing tech sector.
Get the full picture in our new report
If you are looking to invest in the UK, our team of legal and financial experts can help. Find out more about our international investment support here.
