The UK has once again secured its position as Europe’s leading destination for Foreign Direct Investment (FDI) in financial and professional services (FPS).
According to new figures released by the City of London Corporation, the UK attracted £1.7 billion in FDI. This performance places the UK comfortably ahead of Spain (£1.3 billion) and France (£1.1 billion).
Driving Growth Across the Whole UK
While London remains a massive draw for overseas capital, the benefits of this investment are being felt nationwide. Specifically, 53% of all jobs created by foreign investment were outside the capital. This geographic spread highlights the sector’s vital role in driving economic growth across the country.
Key regional hubs leading the growth include:
- Belfast: Attracted £290 million in investment.
- Birmingham: Secured £127 million.
- Cardiff: Brought in £75 million.
- Glasgow: Captured £67 million.
In total, 164 overseas firms from 34 different countries launched 226 projects. Consequently, this activity created more than 12,200 skilled jobs nationwide.
Global Sources of Capital
The United States remains the single largest backer of the UK’s financial landscape, accounting for 53% of the total investment value.
Other significant contributors include:
- The European Union: Contributed a collective 18%.
- India: Accounted for 9%.
- Switzerland: Comprised 4%.
Globally, these figures position the UK as the third most popular destination by number of projects, trailing only the UAE and the US.
A Strong Ecosystem for Scale
The UK’s continued appeal relies on its deep capital markets and its globally respected regulatory environment. Furthermore, the country stands out as Europe’s premier tech and fintech hub, supporting over 3,500 fintech firms and 1.4 million tech jobs. It also remains the largest asset management centre in Europe, overseeing £12.1 trillion in assets under management.
To maintain this competitive edge, the City of London Corporation, in partnership with the Government, has launched the Office for Investment: Financial Services.
“Competition for investment is intensifying,” said Chris Hayward, Policy Chairman at the City of London Corporation. “It’s critical that the UK continues to be attractive. The new office will serve as a strategic one-stop shop for international financial services investors, offering joined-up, tailored support from market entry to expansion.”
