With a double-digit increase in terms of market share for UK projects, Scotland recorded its highest ever level of the past decade — far outpacing the growth and recovery of the rest of the UK and Europe following COVID-19. With Scotland expanding its share from 11% in 2020 to 12.3% in 2021, UK and Europe trail behind with an increase in projects at 5.4% for Europe and only 1.8% for UK. Scotland’s FDI performance has been impressive for some time now, as it recorded more than 100 projects in six of the last seven years — a statistic that only one other UK region outside London has ever surpassed, the North West, and even then, it only happened once in 2017.
Scotland remains second as the UK favoured destination for FDI, beaten only by London once again, with new projects reaching an all-time high of 122. This performance also cements the fact that Scotland has recorded an increase in projects for four years running, which was achieved during very turbulent conditions — given the geopolitical uncertainty and COVID-19. It is clearly tenacious and able to respond to the ever-changing environment due to being a very well-established location for FDI.
Scotland had five cities in the UK’s top 20 FDI cities outside London in 2021, with Edinburgh in joint-1st place with Manchester, Glasgow in 4th, Aberdeen in 8th, and Dundee and Livingston in joint-15th. Two clear sector performances were from Edinburgh, as it secured 17 digital projects and Glasgow, which secured six business services projects — with both results being only second to London.
- First place: Edinburgh (31 projects)
- Fourth place: Glasgow (23 projects)
- Eighth place: Aberdeen (14 projects)
Data on employment is not as comprehensive as the data recorded for FDI projects, but the 2021 figures show an equally positive picture for Scotland. Scotland regained second place behind London as the number of new Scottish jobs generated by FDI projects rose from 4,500 to 10,000 in 2021. This marked an increase of 125% and is Scotland’s highest ever annual total for employment gained from inward investment.