EY Survey Finds Scotland Remains The UK's Top Inward Investment Location Outside London As Investor Sentiment Strengthens, With Edinburgh Advancing And Services And Manufacturing Providing Resilience.

Key points

- Scotland landed 108 inward investment projects in 2025, down from 135 in 2024 (a 20% decline)

- Share of UK projects was 14.8% in 2025, below 15.8% in 2024 but above the 10-year average of 11.6%

- One in three (33%) UK-bound investors are considering Scotland, up from 27% a year earlier

- 51 new projects were recorded (10.8% of all new UK projects), alongside 57 expansions

- Edinburgh secured 30 projects (second outside London, one behind Manchester's 31); Glasgow posted 23 (fourth); Aberdeen recorded five (11th, down from 12 the previous year)

- Business & Professional Services led with 22 projects; Software & IT Services delivered 14; Utility Supply 12; Machinery & Equipment nine

- Manufacturing made up 27.8% of Scottish projects and 22.9% of all UK manufacturing projects

- The US remained the top source (33 projects), followed by Ireland (12) and France (eight); Germany fell to two; India delivered one

- Financial services project count fell to five (from 11), but sentiment strengthened: 52% of FS investors expect to invest in Scotland, matching London

- Across Europe, project numbers fell 7%; the UK dropped 14%; excluding London, the UK fell 23% while London rose 5%

Scotland has again topped the UK rankings for foreign direct investment outside the capital, with EY's latest Scotland Attractiveness Survey reporting record investor interest even as annual project numbers slipped. The country captured 108 FDI projects in 2025, a fifth fewer than in 2024, yet still accounted for 14.8% of the UK total — comfortably ahead of its decade average of 11.6%.

The report places Scotland's performance in a weaker continental and national context. European projects declined by 7% and the UK as a whole fell 14%. London was the only part of England to see growth, up 5%, and when London is excluded, UK projects fell 23%.

Scotland recorded 51 new projects in 2025 — equating to 10.8% of all new UK investments — alongside 57 operational expansions. Over the last decade, inward investment has been associated with an estimated 52,144 jobs in Scotland, or 12.2% of the UK total, placing Scotland second in the UK for FDI employment. Six projects announced expected headcounts of 100 or more last year.

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City performance was a key driver. Edinburgh regained Scotland's top spot with 30 projects in 2025, up a quarter on the year, ranking second across the UK outside London and finishing just one behind Manchester on 31. Glasgow placed fourth with 23. Aberdeen slipped to 11th with five, down from 12 in 2024, reflecting ongoing uncertainty around the North Sea's future. Looking ahead, investors rank Edinburgh as the most attractive UK city outside London for future projects, with 27% selecting the capital; Glasgow (17%) also features prominently, ranking third outside London.

The sector mix points to a more sustainable, services-led profile. Business & Professional Services became Scotland's largest FDI sector with 22 projects, more than doubling from nine in 2024. Software & IT Services remained a strong area with 14 projects, while Utility Supply accounted for 12 and Machinery & Equipment nine. Manufacturing continued to prove robust, representing 27.8% of Scottish projects in 2025 and 22.9% of all UK manufacturing investments. Scotland also maintained notable positions in business services, R&D and logistics.

Internationally, the United States remained Scotland's biggest source of inward investment with 33 projects, slightly down on 37 in 2024. Ireland rose to second with 12 (from six), while France held third on eight. Germany declined sharply from 12 to two projects, and although India ranked second for the UK overall with 71 projects, Scotland attracted just one from India.

Financial services showed contrasting signals: project numbers fell from 11 to five in 2025, but sentiment rallied. In polling, 52% of financial services investors planning UK activity expect to establish or expand specifically in Scotland over the next 12 months — matching London's 52% and underlining the sector's relative strength. At city level, the top three UK destinations for prospective FS investment 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.

EY Scotland Country Managing Partner Sue Dawe OBE 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."