Scotland outpaces UK with leap in inward investment project wins

Picture: Gordon Terris

By Ian McConnell

Business Editor

SCOTLAND recorded a much-sharper rise in the number of foreign direct investment projects secured than the UK as a whole in the year to March, figures from the Department for International Trade show.

The data, published yesterday, reveal that Scotland attracted 119 inward investment projects in the year to March 31, up 29 per cent from 92 in the prior 12 months.

Scottish Trade Minister Ivan McKee said: “These latest results are very encouraging and once again underline the strength of the inward investment offer in Scotland, in spite of the significant challenges posed by the pandemic and Brexit.”

In the UK as a whole, the number of FDI projects secured in the 12 months to March was up just 3% on the prior year at 1,589. This followed a 17% drop during the 2020/21 year, from 1,852 in 2019/20.

The number of FDI projects secured by Scotland in 2019/20 was 121. The 2021/22 figure is just two adrift of this number following the sharp rebound in the year to March.

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The latest Department for International Trade figures show 4,408 new jobs were attached to FDI projects won by Scotland in 2021/22. There were 3,245 new jobs associated with the 92 projects secured in the prior 12 months. In 2019/20, there were 2,946 new jobs associated with the 121 FDI projects secured.

The total number of new jobs associated with FDI projects secured by the UK as a whole in the year to March was 84,759, 53% higher than the 55,319 figure recorded for the prior 12 months. The new jobs figure for inward investment projects won by the UK in 2019/20 was 56,117. In the year to March 2015, it was 84,603.

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Mr McKee said: “Scotland is an attractive country for investors due to our highly skilled workforce [and] strong business networks, supported by regional economic advisory bodies.”

Scotland achieved a 14% rise in the number of FDI projects secured in calendar year 2021, to 122, way ahead of a 1.8% increase for the UK as a whole, a report published late last month by accountancy firm EY showed. Countries across Europe saw an overall 5.4% rise in the number of FDI projects attracted. The EY report also showed Scotland’s attractiveness rating from potential future investors had hit a record. It revealed 15.8% of potential future investors had rated Scotland as the most attractive location in the UK for FDI. Only London scored better on this front.