For the second year in a row, Scotland has outpaced both the UK and Europe with regards to foreign investment, maintaining its position as the top performing area in the UK outside of London for the eighth year in a row, according to EY’s most recent Scotland Attractiveness Survey.

Inward investment projects grew by 3.3% in 2022 (126 projects against 122 in 2021), compared to 1.4% growth across Europe and a 6.4% fall across the UK.

Scotland’s share of UK FDI projects reached a record high of 13.6% – up from 12.3% the previous year – while a record 19.2% of investors responding to the EY survey said they were planning to establish or expand operations in Scotland, indicating strong investor sentiment.

Digital tech has been the leading sector for Scottish FDI in each of the past three years. The number of digital tech projects recorded in Scotland in 2022 was 29, down by 12% from 33 in 2021 – although total UK digital tech projects were down by 32%.

Edinburgh and Glasgow were ranked as the first and second cities outside London for planned investment over the next year, with one third of investors aiming to back projects in Edinburgh, Glasgow, or Aberdeen.

Trade Minister Richard Lochhead said: “These results show Scotland once again outpacing the UK and Europe when it comes to the pace of growth in securing Foreign Direct Investment.

“This is in spite of the significant challenges in the economy caused by Brexit, Covid and the geopolitical instability which triggered the current cost of living crisis.”

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UK Minister for Investment, Lord Johnson, said: “Year after year we’re seeing growth in the number of FDI projects and Scotland’s major cities are still attracting a huge amount of planned investment.

“The UK Government will continue its work to promote Scotland around the world as a place to invest in order to sustain this growth in future years.”

EY Scotland managing partner, Ally Scott, said: “Against an unsettled UK and Europe economic backdrop, Scotland recorded its fourth successive annual increase and has now been second only to London in nine of the past ten years.”