Edinburgh is third most attractive city in UK for overseas investment

EDINBURGH has the most ­foreign direct investment ­outside of London and ­Manchester, new figures reveal.
Edinburgh is an attractive proposition for foreign investors.  Picture: Ian RutherfordEdinburgh is an attractive proposition for foreign investors.  Picture: Ian Rutherford
Edinburgh is an attractive proposition for foreign investors. Picture: Ian Rutherford

Scotland itself saw a 7 per cent rise in foreign direct ­investment (FDI) projects in 2017.

EY’s Attractiveness Survey shows the country has retained its “premier position” because of an FDI growth rate higher than the UK as a whole.

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Analysis of FDI projects ­during 2017 shows the city was the third top performing ­location in the UK outside the big two. Glasgow and Aberdeen took sixth and eighth place.

Scotland secured 24 per cent of research and development projects coming into the UK – a 70 per cent year-on-year increase.

Paul Lewis, managing ­director of Scottish Development ­International, said: “This ­survey illustrates that Scotland is now firmly established as a location of choice for global investors.

“To be the number one UK location for R&D ­investment and the number one UK FDI ­location behind London generally is a tremendous achievement.”

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The report found there was a 104 per cent increase in FDI job creation in Scotland, ­reflecting a shift towards larger projects. There was also a 56 per cent increase in digital FDI projects, making this ­Scotland’s second largest sector after ­business services.

A 25 per cent increase in manufacturing FDI projects was also reported.

Scotland’s attractiveness has held steady, according to the study, while London’s has ­decreased. The top five ­countries investing in Scotland were the US (36 projects), ­Norway (10), France (nine), Ireland (seven) and ­China (six).

Mr Lewis added: “In recent years, our inward investment activity has become more ­focussed, targeting our resources on those areas of opportunity and companies where we see more likelihood of success.

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“It’s great to see that these efforts have paid off and we’re starting to make inroads in ­areas like digital and high value R&D projects, and increasing investment from markets like China.” Murdo Fraser, Scottish ­Conservatives finance ­spokesman, said: “As soon as the Brexit vote ­happened the SNP tried to ­create the ­impression it would be catastrophic for Scotland’s economy. ­

“Instead, Scotland appears to have ­become more attractive.”