Welcome to our latest report
Bryan Bletso
Director of International Strategic Growth
+44 (0)207 650 3820 +44 (0)7770 795 703 bryan.bletso@irwinmitchell.com
The past few years have been tough for the UK economy.
The uncertainty caused by Brexit, followed by COVID-19 and the cost of living crisis, has created a long period of turbulence for UK businesses.
Inbound foreign direct investment (FDI) is needed to help the UK economy recover, and to carry on creating new trade relationships in the wake of Brexit. It can also be a tool for mitigating climate change, with money being put into projects focused on lowering carbon emissions and reducing the environmental impact of doing business.
Last year, our analysis painted a hopeful picture, with the financial services sector remaining particularly attractive for overseas investors. Although there was a dip in activity in the last quarter of 2022, appetite was stronger overall than in both 2020 and 2021.
This latest study forms the second part of our look into the attractiveness of the UK to overseas investors. In this exclusive report, we focus on the jurisdictions investing into the UK, and look at the regions and sectors that appeal most.
I hope you find this report of interest. I certainly welcome your feedback and I will be delighted to speak to you about how you can prepare your organisation for investment.
What is FDI?
Foreign Direct Investment (FDI) refers to cross-border flows where an investor establishes a lasting interest in a foreign subsidiary. For this to reflect a long-term interest, typically 10% or more of the organisation’s voting power must be under the control of the foreign investor. Examples of FDI include Greenfield FDI, where a new establishment is formed, and Mergers & Acquisitions (M&A), which refers to the take over of an existing business. Inward FDI is widely considered to be a key factor in promoting the domestic economy, having the potential to raise productivity, facilitate the transfer of technology and open doors for collaboration, innovation and sustainability.
Disclaimer
Whilst every effort has been made to ensure the accuracy of the material in this document, neither Centre for Economics and Business Research Ltd nor the report’s authors will be liable for any loss or damages incurred through the use of the report.
Authorship and acknowledgements
This report has been produced by Cebr, an independent economics and business research consultancy established in 1992. The views expressed herein are those of the authors only and are based upon independent research by them.
The report does not necessarily reflect the views of Irwin Mitchell.
London, April 2023
