ERNST and Young’s (EY’s) annual attractiveness survey shows Scotland is the most attractive location for inward investment in the UK outside of London.
The four leading sectors generating inward investments in Scotland in 2021 were digital technology (33 projects), utility supply (18 projects), business and professional services (14 projects), and machinery and equipment (14 projects).
In quite an outstanding year, Scotland secured 14% more foreign direct investment (FDI) projects in 2021 with 122 secured compared to 107 in 2020.
In comparison, there was a 1.8% increase in the number of FDI projects attracted to the UK, while the number of European inward investment projects increased by 5.4% over the same period.
This ensured Scotland increased its share of the total inward investment projects attracted by the UK, from 11% in 2020 to 12.35% in 2021.
Crucially Scotland’s investment destination attractiveness rose to its highest level, with 15.8% of investors rating the country the most attractive location in the UK for FDI, more than double the 2019 figure (7%).
According to figures available to EY, more than 10,000 Scottish jobs were generated by FDI projects in 2021, more than double the approximate 4,500 figure in 2020.
EY’s results, which cover the calendar year January-December 2021, aligned with Scottish Development International (SDI) figures announced earlier this month that showed more than 7,500 planned real living wage jobs had been generated by inward investment in FY21/22 (fiscal year).
113 investment projects in Scotland were supported, 39 of which were investors locating in the country for the first time.
Scottish enterprise agencies have hailed the publication of the survey.
Adrian Gillespie, Chief Executive of Scottish Enterprise, said: “Today’s EY Attractiveness Survey underlines the compelling strengths Scotland has to offer on the international stage.
“Scotland’s incredible workforce, world-renowned universities, competitive cost base, supportive business environment, magnificent natural resources and unparalleled quality of life on offer immediately put Scotland on the radar of investors.
“When combined with our ‘Team Scotland’ approach, which sees public bodies, academia and industry working together to promote the very best Scotland has to offer, this really makes us stand out from the crowd.
“Businesses have told us that this joined-up approach is a key reason why they choose Scotland – and EY’s survey is testament to this – with Scotland’s perceived attractiveness to inward investors now at record levels.
“For Scotland’s performance to grow so markedly, and to yet again be the most attractive location in the UK for FDI outside of London, is a fantastic achievement that will further enhance our global reputation.
“Scottish Enterprise and our partners will continue to promote Scotland as an ideal investment location, delivering economic and partnership opportunities for our communities and businesses alike.”
Marion Beattie, Head of Skills Growth and Inward Investment at Skills Development Scotland (SDS) added: “Businesses tell us that skills are one of the key considerations when making investment decisions, and these figures show that Scotland continues to perform strongly in this respect.
“Working as part of Team Scotland, SDS is committed to developing a dynamic, resilient, inclusive and intelligence-led skills system that supports employers to invest in their current and future workforce.
“That means working with our partners to ensure the skills, training and education needs of potential and existing investors are met with a comprehensive and co-ordinated package of support.”
