The EY’s annual Scotland attractiveness survey, published on Thursday, revealed that Scotland secured 142 foreign direct investment (FDI) projects last year, marking a 12.7% increase from the previous record of 126 in 2022.

This achievement represents the fifth consecutive year of growth in Scotland’s FDI projects. In contrast, Europe experienced a 4% year-on-year decline, with its lowest number of projects since 2020, totaling 5,694. The UK saw a modest rise of just 6% in FDI projects.

The survey highlighted that utility supply was the leading sector in Scotland, securing 40 projects in 2023, an 81.8% increase from the 22 projects in the previous year. Digital technology, business services, and transport and logistics each secured 14 projects.

Among cities outside of London, Edinburgh ranked second with 32 projects, Glasgow placed fourth with 25, and Aberdeen secured eighth position with 13 wins.

The US was the largest source of FDI projects in Scotland, contributing 27 projects, or 19% of the total, in 2023. Projects from Germany doubled to a decade-high of 20, making it the second largest originator of FDI projects in Scotland.

Ally Scott, EY Scotland managing partner, remarked, “Scotland has once again shown a very strong performance in attracting FDI and maintaining investor confidence. The utilities sector, particularly renewable energy, plays a significant role in Scotland’s FDI growth, as the country leads in sustainability and low-carbon power generation.”

“This provides a substantial competitive advantage following the ScotWind leasing rounds, but will it generate the necessary momentum for continued impressive results in the future?”

Deputy First Minister and Economy Secretary Kate Forbes commented, “Attracting inward investment is crucial for economic growth and advancing strategic objectives in key sectors.”

These results demonstrate a record performance, with Scotland once again surpassing both the UK as a whole and the European Union in securing foreign direct investment projects. This success reflects the actions and priorities outlined by our government.

From leading the energy transition to rapidly advancing in cutting-edge technologies, we have significant opportunities for further growth.

We will continue collaborating with our economic development agencies as part of a Team Scotland approach to attract foreign direct investment and create more high-quality jobs across Scotland.