Foreign Direct Investment
What is Foreign Direct Investment?
Foreign direct investment (FDI) refers to cross-border flows where an investor establishes a lasting interest in a foreign subsidiary. For this to reflect a long-term interest, typically 10% or more of the organisation’s voting power must be under the control of the foreign investor.
Examples of FDI include Greenfield FDI, where a new establishment is formed, and Mergers & Acquisitions (M&A), which refers to the take over of an existing business.
Inward FDI is widely considered to be a key factor in promoting the domestic economy, having the potential to raise productivity, facilitate the transfer of technology and open doors for collaboration, innovation and sustainability.
Investing in the UK: A quick guide
The UK is a major attraction for FDI, with an estimated stock value of over £2 trillion, according to the Office of National Statistics. With London as its prime destination, the UK has been historically attractive to overseas investors due to:
- Its speed of doing business
- Its robust legal framework
- An open and business friendly environment for foreign direct investment (FDI).
UK Attractiveness Index: Autumn/Winter 2025
In 2025, the global trading order faces unprecedented challenges. Rising protectionism, growing geopolitical tensions, and uncertainty around future US trade policy have created a more fractured and complex environment for foreign direct investment (FDI).
Global reach, national coverage, local knowledge and industry expertise
At Irwin Mitchell, we see first-hand the opportunities and potential that exist for international investors in the UK.
Our approach is fully aligned with the UK government’s FDI strategy. We enjoy a close relationship with the Department of Business and Trade, which – when paired with our legal expertise, cultural understanding, language capabilities and global connections – can help you invest, grow and succeed in the UK.
As one of the UK’s largest full-service law firms, Irwin Mitchell combines local knowledge with global reach. Our network of over 21 UK offices, combined with industry understanding, positions us perfectly to advise on investment into the top-rated UK cities and sectors in our report.
With access to a global network of best-friend law firms, we can assist organisations and individuals in our 100 countries across the world.
We have established (and often dual national/dual qualified) international desk heads covering all of the UK’s key trading relationships inc. The US and North America, France, Germany, Spain and Latin America, Central & Eastern Europe, Israel, the Middle East, India, Asia Pacific and Greater China.
Our legal experts are ready to help you turn opportunity into action – whether you’re investing, expanding, or seeking strategic advice.
Our global network
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