A new report has mapped out the ‘transformational’ economic potential of Scotland’s Highlands and Islands, with the breadth of opportunities set to bring billions in investment and create thousands of jobs across the region.

The Regional Transformational Opportunities study, commissioned by Highlands and Islands Enterprise (HIE), highlights 251 planned development projects identified as regional transformational opportunities (RTOs) within the area’s economic pipeline.

Together, these represent a potential total investment value of up to £100.35bn, and could bring around 16,000 jobs at the peak of construction and development, as well as 18,000 operational jobs by 2040.

Describing the scale of opportunity as ‘unprecedented’ for the Highlands and Islands, and possibly even Scotland and much of the UK, the plans could outstrip previous transformational periods, including the post-war development of the Highlands’ hydro potential and even the oil and gas exploration era.

HIE said that he purpose of the study is to better understand which opportunities present the greatest potential to bring change to the region’s economy, and to inform planning and decision-making by Highlands and Islands Regional Economic Partnership and stakeholders to maximise these benefits.

“The skills, talent and natural resources running across the Highlands and Islands are well known, but this report sets out the true scale of the opportunities that lie ahead,” said deputy first minister, Kate Forbes. 

“The challenge now is to capitalise on this promise. I look forward to working alongside our public and private sector partners to deliver on this enormous potential, creating thousands of top-quality jobs for future generations.”

Around three-quarters of the total RTO investment value stems from renewable energy projects, including offshore and onshore wind, green hydrogen and marine energy, while others relate to space, marine biotech, life sciences, natural capital and critical infrastructure developments, such as electricity grid upgrades and the creation of innovation facilities.

Clusters of initiatives are spread across Northern Scotland, with the bulk of RTO projects centred in the Highland local authority area, representing a maximum investment value of £40.78bn and 11,454 operational jobs.

While other local authorities in the region are expected to see less of an impact, the RTO projects across areas like Argyll and Bute, Orkney, Moray, and Na h-Eileanan Siar will still account for billions in potential investment and thousands of new jobs.  

However, the report did not look at growth projects in other industries, such as tourism, food and drink and creative industries, many of which will have significant impact at local levels, and neither did it feature other public sector investment, such as roads, schools and hospitals, all of which is in addition to the RTOs.

The report’s findings will be used to inform policies and planning around population attraction and retention, skills, housing provision and transport, helping local authorities and private sector partners overcome barriers to growth in the Highlands and Islands. 

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“It would be difficult to overstate the importance of this research and its implications for the role that this region has in Scotland’s economic future,” said Stuart Black, HIE chief executive.

“We’ve certainly been aware for some time of projects at various stages of development across the region that could transform our economy and communities and significantly enhance Scotland’s economy. This report quantifies the impacts of those projects in a way we’ve not been able to do so far.

“Bringing these projects to fruition means addressing some serious challenges facing the region and a strong commitment to partnership. But the sheer scale of the potential prize from these efforts makes all that very worthwhile, and that’s where our focus should be.

“The Highlands and Islands will be the engine room for growth for the Scottish economy in the years ahead.”