Scotland favorite place in UK for overseas funding outdoors London
S
cotland stays essentially the most enticing place within the UK for overseas direct funding (FDI) outdoors London, in response to a survey.
The nation outpaced each the UK and Europe on overseas funding final yr, for the second yr in a row, by securing a report 126 inward funding initiatives, the survey states.
Scotland additionally secured a report 13.6% share of UK FDI initiatives and is polling at report ranges of attractiveness to buyers as an FDI location outdoors London, in response to EY’s newest Scotland Attractiveness Survey.
The robust efficiency is Scotland’s fourth successive annual improve in FDI initiatives and is about towards the background of a 6% decline in whole UK initiatives and progress of simply 1% throughout Europe.
Scotland’s report share of all UK initiatives is up from 12.3% in 2021, and 11% in 2020.
While Scotland continues to construct on its nice status as a spot to take a position, there’s no room for complacency
The nation is second solely to London by way of being the UK’s most engaging location to future buyers – with 11% of buyers score Scotland as essentially the most enticing place to determine operations within the UK.
This is down from the report excessive of 15.8% in 2022’s survey, however stays increased than 2019’s pre-pandemic rating of seven%.
Meanwhile, a report excessive 19.2% of buyers – once more the best determine for any UK location outdoors London – are planning to determine or develop operations in Scotland.
EY Scotland managing accomplice Ally Scott stated: “Scotland put in another powerful performance on FDI in 2022, securing record inward investment projects and UK market share.
“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.
“Our report underlines the rich dynamism, diversity and balance of the Scottish economy and FDI sector, qualities that we at EY Scotland see every day.
“For Scotland to have three cities in the UK’s top five for non-London FDI bears testament to Scotland’s enduring attractiveness, and all this adds up to an impressively resilient performance.
“While Scotland continues to build on its great reputation as a place to invest, there’s no room for complacency.
Scotland continues to consolidate its already well-established position as the most attractive UK location for FDI outside London
“To maintain and enhance its status, Scotland must engage, plan, and play to its strengths: engage with public and private sector bodies to create a vibrant ecosystem for growth; plan how to sustain market-leading levels of attractiveness in the medium and long term; and build on its existing track record in prioritising high-value, high-potential areas like digital tech, renewable energy and R&D.”
Similar to the UK and Europe, Scotland’s largest sector in 2022 was the digital tech trade which has been the main sector for Scottish FDI in every of the previous three years.
The variety of digital tech initiatives recorded in Scotland in 2022 was 29, down by 12% from 33 in 2021 – though whole UK digital tech initiatives had been down by 32%. Utility provide and enterprise providers had been the second and third largest sectors.
Finance initiatives in Scotland nearly tripled in 2022, rising to eight initiatives in contrast with simply three in 2021. This was the strongest displaying by the sector in Scotland since 2016, when Scotland secured 9 finance initiatives.
As with the remainder of the UK, gross sales and enterprise providers had been the commonest FDI exercise in Scotland in 2022 with 51 initiatives, down from 59 in 2021.
Scottish manufacturing continued its latest renaissance, with a joint decade-high 35 initiatives in 2022 matching final yr’s undertaking whole.
EY chief economist Peter Arnold stated: “Scotland continues to consolidate its already well-established position as the most attractive UK location for FDI outside London.
“What’s more, London’s lead narrowed significantly this year, as its projects declined by almost a quarter.
“And it was telling that most other UK regions recorded an increase in projects, suggesting that levelling up may increasingly be becoming a reality in FDI.
The factors influencing decisions to invest in regions outside London are changing with access to grants and incentives now leading the way, cited by 23% of investors.
In second place is the availability of business partners and suppliers at 18%, and the availability and skills of the local workforce is joint third on 17%, level with the strength of business networks locally.
These findings clearly demonstrate Scotland’s attractiveness as an investment destination and highlight the phenomenal progress being made to grow our international reputation as a dynamic, open nation with an outward-facing economy
Adrian Gillespie, chief executive of Scottish Enterprise, said: “These results are a terrific signal of Scotland’s continued success at attracting FDI.
“The findings of EY’s Attractiveness Survey are testament to the dynamic business environment that Scotland offers to investors, including our enviable skills base, world-class universities, vibrant innovation districts, ambitious entrepreneurial communities, and the outstanding quality of life on offer.”
Scotland’s commerce minister, Richard Lochhead, stated: “Attracting inward investment is critical to shaping and growing our economy and ensuring we thrive in the global marketplace.
“These findings clearly demonstrate Scotland’s attractiveness as an investment destination and highlight the phenomenal progress being made to grow our international reputation as a dynamic, open nation with an outward-facing economy.”
UK funding minister Lord Johnson stated: “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.”