New figures have revealed that Scotland is attracting an impressive amount of Foreign direct investment (FDI).

A 14% increase in FDI projects was recorded in 2021, according to Ernst & Young’s (EY) latest Annual Attractiveness Survey results.

The stats showed this significant level of investment is compared to an increase in FDI of 1.8% across the UK and 5.4% across Europe.

EY’s survey results indicate that Scotland’s perceived attractiveness to investors now sits at a record high, with 15.8% rating it as the UK’s most attractive FDI location, up from 15% last year and more than doubling its rating from the pre-pandemic period (7% in 2019).

Outside of London, Edinburgh, Glasgow, and Aberdeen remain in the Top 10 locations for attracting inward investment projects. Edinburgh alongside Manchester is ranked equal first; Dundee and Livingston also make the Top 20.

Commenting on the data, Trade Minister Ivan McKee said: “It is great to see these latest results, which show Scotland leading the UK when it comes to securing Foreign Direct Investment, in spite of the significant challenges posed by Brexit and the pandemic. That is testament to our skills base, and our highly qualified workforce.

“We have been the most successful nation or region in the UK, outside of London, for nine of the last 11 years and for the 7th year running, in attracting FDI.”

Scotland performed strongly in high-value, high-growth industries like digital and utilities alongside a rebound in manufacturing FDI.

The four leading sectors were digital technology (33 projects), utility supply (18 projects), business and professional services (14 projects), and machinery and equipment (14 projects).

Digital projects in Scotland rose by 73.4%, in contrast to a 7% decline in Europe and 7% growth in the UK overall. Scotland is now firmly established as the UK’s number two location for digital projects behind London.

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McKee continued: “These results indicate that our values-led approach to investment, set out in our Inward Investment Plan, is delivering and underline the important ongoing contribution of inward investment to the recently published National Strategy for Economic Transformation.

“It is critically important that we continue to work closely with inward investors by offering our unique Team Scotland approach to support an inclusive and wellbeing economy, as we strive to meet our goal of being net zero by 2045.”

Research from earlier this month revealed that an economy boost is expected in Scotland after thousands of jobs had been secured through Scotland inward investment in the past financial year.

Scottish Development International (SDI) data revealed that more than 7,500 planned real living wage jobs had been generated by such investment over 2021 and 2022.

There were around 113 investment projects supported in Scotland, 39 of which were investors locating in the country for the first time.

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