The Department for Business & Trade reported that there was a 12 per cent fall in Foreign Direct Investment (FDI) in the UK during 2024 to 2025.
Despite this, the UK continues to stand out as one of Europe’s most attractive destinations for international investors and remains the second-largest recipient of FDI in Europe.
The UK is driven by clean energy, technology and AI sectors, which together account for two-thirds of inward investment.
This resilience proves the UK’s long-term appeal as an innovative and globally connected economy for international investors.
The importance of greenfield Investment
While mergers and acquisitions often dominate FDI discussions, greenfield investments play an important role in supporting future growth.
Greenfield investment is where overseas companies establish new operations from the ground up and can help bring capital and develop a skilled workforce.
The UK performs strongly in this area and greenfield FDI has increased by around 40 per cent since 2022.
The UK is ranked as the world’s third-largest destination, behind the United States and on par with India.
This positions the UK as a leading choice for businesses seeking a destination for long-term expansion over short-term returns.
Investment in Wales
Wales, particularly North Wales, is benefiting from a surge in investment focused on advanced technology and industrial innovation.
The region has secured billions of pounds of investment, which has created thousands of high-quality jobs and strengthened its role within the UK’s future energy and manufacturing market.
A standout project is the confirmation of Anglesey as the site of the UK’s first small modular reactor nuclear power station.
This £2.5 billion partnership between the UK Government, Great British Energy-Nuclear and Rolls-Royce SMR is expected to create around 3,000 jobs. This will bring the most significant industrial investment to North Wales for a generation.
Scotland and the United Arab Emirates (UAE) investment
Scotland has also continued to build its global investment links.
On 30 January 2026, Scotland and the United Arab Emirates (UAE) signed a Memorandum of Understanding (MoU) to deepen bilateral investment cooperation.
The agreement is set to:
- Broaden economic ties
- Encourage cross-border investment
- Create new opportunities for businesses in both nations
This agreement highlights Scotland’s growing appeal to global investors and the UAE’s vision of strengthening international economic partnerships that support diversification and sustainable growth.
What does this mean for international businesses?
For overseas companies considering international expansion, the UK continues to offer compelling advantages.
Whether operating in advanced manufacturing, digital technology, energy or creative industries, the UK provides access to sustainable growth and a skilled workforce.
How can we support your UK investment?
Investing in a new country and expanding your operations is rarely without challenges, but the process can be simplified with the right guidance.
Our team can support international businesses entering the UK market by managing your tax, payroll, bookkeeping and auditing requirements.
Our tax specialists work alongside our international firm to help businesses remain compliant across jurisdictions.
If you need advice or support for investing in the UK, contact us today.