Sources of FDI into the UK
According to PwC’s CEO Survey, published at the start of the World Economic Forum (WEF), the UK is now the world’s second most attractive country for investment. It is only surpassed by the United States, and is ranked ahead of China, Germany and India.
According to an article in the Guardian, it’s the highest ranking the UK has ever achieved in this survey, moving up two spaces from fourth place in 2024.
The survey also found that 61% of UK CEOs are optimistic about economic growth over the next year. This is an improvement on the 39% who said the same at the end of 2023.
“These latest results show global CEOs are backing Britain and the UK is one of the most attractive destinations for international investment. And it’s this investment that will help drive economic growth and improve living standards across the UK.”
Rachel Reeves, Chancellor of the Exchequer
The US and UK relationship
There is no shortage of statistics reflecting the importance of the USA’s FDI to the UK’s economy. Recent ONS figures show that £35.2 billion of the UK’s total £97.9 billion of earnings from inward FDI came from the USA in 2022.
According to EY, the United States remained as Europe’s and the UK’s leading source of FDI projects in 2023, with their analysis suggesting that more than one-in-five of all UK FDI projects originated from the States.
The Department for Business & Trade's recently published figures paint a similar picture, with the United States generating 376 FDI projects in the UK during 23/24, creating 19,340 jobs. India is next with 108 projects, however Germany’s 90 projects created slightly more jobs than India.
Our own analysis of Experian’s MarketIQ corporate deal database also found that the US was the most active country in terms of M&A activity involving UK businesses, completing 1,620 deals since 2019. France has been the second most active country in terms of cross border M&A into the UK, engaging in 357 deals over the last five years. France is followed by Sweden, Ireland, and Canada, which completed 281 deals.
Strengthening ties with the EU
Six of the top 20 leading jurisdictions investing into the UK are based in the EU, and the EU remains the UK's largest trading partner by some distance. There are signs that the new government is keen to reset and foster its relationship with the bloc, with PM Sir Keir Starmer holding his first bilateral meeting with European Commission President Ursula von der Leyen. Whilst the strength of this relationship is built on the export and import of goods and services, rather than FDI specifically, an improved UK/EU relationship makes the UK a much more attractive destination for businesses to set up in and trade with the EU from.
Across the world, other countries – many with similarly long histories and relationships with the UK – are keen to invest. They bring with them chances for knowledge sharing and the development of a truly multicultural global market. We’ve summarised eight of the top 20 leading jurisdictions for FDI into the UK, based on data from the Office for National Statistics data from 2021.
Click on the markers on the map below to learn more about some of the leading countries investing in the UK.