Scotland remains the UK’s top destination outside of London for foreign investors, though the number and share of projects fell last year on the previous 12 months.
The latest data from EY shows that Scotland secured 108 inward investment projects in 2025 – 51 new and 57 expansions – down 20% year-on-year.
Scotland’s 14.8% share of all UK foreign direct investment (FDI) projects was down from 15.8%. However, this was comfortably above its 10-year average share of 11.6%.
Edinburgh secured a 25% increase in projects but slipped behind Manchester among the city rankings. Glasgow came in fourth while Aberdeen has slipped out of the UK top ten.
Across Europe, projects fell by 7%, with the UK falling by 14%. Figures excluding London (which rose by 5%) show UK project numbers fell 23%.
Over the last decade, Scotland is estimated to have secured 52,144 jobs from FDI, representing 12.2% of the UK total and ranking second in the UK over that period for total FDI employment. Scotland secured six projects in 2025 that announced a projected 100+ jobs.
A third of those planning to invest in the UK said they will choose Scotland, up from 27% in 2024. Investors continue to cite Scotland’s highly skilled workforce, strong infrastructure and overall business environment as core strengths.
EY Scotland country managing partner Sue Dawe said: “Scotland’s performance highlights the strength and resilience of its investment proposition. While global investment flow has slowed, Scotland remains the clear destination of choice outside London.
“The powerful sentiment results, particularly within financial services, is a strong endorsement of how positively investors view Scotland – and a signal for policymakers to capitalise on these enduring strengths by translating perceptions into higher investment flows.
“While global macroeconomic pressures, geopolitical uncertainty and energy costs continue to weigh on investment decisions, the survey decisively concludes that Scotland’s fundamentals remain strong: a deep talent base, competitive cities, internationally recognised sector strengths and a proven ability to secure high-value investment.
“When investors are asked what could be done to improve competitiveness, they point to the same actions the Scottish business community has been calling on for years. There is a single unified voice across the spectrum.
“Rising to this challenge will demand sustained commitment backed by action. But with the new parliamentary term beginning, there’s arguably no better time to muster the political will to bolster Scotland’s attractiveness than now.”
EY UK chief economist Peter Arnold said: “Against a backdrop of more cautious global investment flows, the UK must sharpen its focus on where it can compete most effectively and deliver long-term value.
“Addressing structural barriers – including high energy and labour costs – will be critical to better insulating the economy from ongoing uncertainty. Strengths in sectors such as technology, professional services and financial services remain a clear advantage, but this needs to be complemented by stronger performance in high-value, productivity-enhancing areas such as advanced manufacturing and life sciences.
First Minister John Swinney said: “These findings are a testament to what Scotland has to offer – and the world is taking notice.
“Confidence in our investment proposition is at its strongest ever level, demonstrating Scotland’s resilience in what is an incredibly challenging global environment.”
Survey details
Strong city performance drives investment appeal
Scotland’s ‘big three’ cities continue to play a pivotal role in attracting international investment. In 2025, Edinburgh reclaimed its position as Scotland’s top city for FDI, securing 30 projects – a 25% increase on 24 in 2024 – and ranking second overall outside London, after Manchester secured only one more (31) to take top spot.
Glasgow is fourth outside London after securing 23 projects. Aberdeen has slipped out of the UK top ten cities outside London at 11th place, having recorded five projects, down from 12 the previous year, reflecting continued challenges over the future of the North Sea.
Investor appetite for Scotland’s cities remains strong. Edinburgh is ranked as the top UK city for future investment outside London, with 27% of investors choosing the Scottish capital, whilst Glasgow (17%) also features prominently in investor plans at third outside London.
Services strength and manufacturing resilience
The report highlights a more sustainable, services-led investment profile for Scotland in 2025. Business Services & Professional Services became Scotland’s leading sector with 22 projects, more than doubling from nine in 2024.
Software & IT Services remained a core strength with 14 projects, while Utility Supply accounted for 12 projects and Machinery & Equipment saw nine projects.
Scotland continued to attract high-value investment, particularly in manufacturing, technology and innovation-related activity. Manufacturing remained highly resilient. Manufacturing activity accounted for 27.8% of projects into Scotland in 2025, 22.9% of all UK manufacturing projects – above its decade average. Scotland also retained notable shares of UK projects in business services, R&D and logistics.
International investor confidence
The United States remained Scotland’s leading source of inward investment in 2025, accounting for 33 projects, down marginally from 37. Ireland rose to second place with 12 projects, doubling from six the year before, while France remained third with eight projects, unchanged from 2024.
Germany fell from 12 projects in 2024 to two projects in 2025, and while India was the second highest country of origin for the UK delivering 71 projects, Scotland only saw only one project from India.
Financial Services investor sentiment doubles
While Scotland has retained its ranking as the most attractive destination outside of London overall, financial services investors are even more bullish on Scotland and Edinburgh in particular.
In year-on-year terms, Scotland’s number of financial services FDI projects for 2025 dropped to five, from a high of 11 the year before.
However, in sentiment polling for financial services, more than half (52%) of investors expect to activate investment plans, which would establish or expand operations in the next 12 months, expect to do so specifically in Scotland.
This represents an impressive doubling of sentiment for financial services in Scotland and marks the sector out as a uniquely strong area of attraction for Scotland relative to the rest of the economy – and impressively shows a level result with London (52%).
When breaking this sentiment down at the city level, the top three most attractive cities for financial services investment in the next 12 months are London (52%), Edinburgh (44%) and Glasgow (23%). All respondents planning to invest in the UK expect to invest outside of, or in addition to, London.
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