FDI in the UK 2024–25: Top Sectors, Regions and Investor Trends

What’s this all about?

The Department for Business and Trade (DBT) tracks foreign direct investment (FDI), and the Department for Business and Trade Inward Investment Results 2024 to 2025 cover the financial year April 2024 to March 2025, showing where things stand. The UK Government have actually proposed a 10 year plan aiming to kickstart economic growth in key industries and regions. You can read more about that here.

With 853 FDI projects landed in 2024 alone, the UK remained Europe’s second most popular destination for foreign investment, behind France (1,025) and ahead of Germany (608). The UK led Europe in key sectors, securing 25% of all financial services FDI projects and topping the continent with 161 digital tech deals, including 96 in London, contributing to Greater London remaining Europe’s leading region for investment for the second year in a row. [Source]

📉 FDI headline results

• 1,375 FDI projects landed.
• DBT supported 836 of these, with economic impact rising slightly to £6.04 billion (+5%) from the previous year.
• These projects directly created 69,355 jobs and safeguarded 10,195 roles.

📍 Regional snapshots

• London remains top with 427 projects and almost 23,000 new jobs 
• But growth is happening outside major cities: Scotland (128), North West (127), West Midlands (130), and others are all gaining projects 

🌍 Top investor countries

1. 🇺🇸 USA: 329 projects, ~14,200 jobs
2. 🇮🇳 India: 106 projects, ~6,067 jobs
3. 🇩🇪 Germany: 83 projects, ~5,396 jobs
4. 🇫🇷 France: 68 projects, ~5,356 jobs
5. 🇸🇪 Sweden: 58 projects, ~1,680 jobs

🏭 Which sectors are investing?

• Data shows notable dips in green industrial projects:
  • Green projects were halved (205 → 106).
• R&D-linked projects slowed slightly (414 → 308), yet jobs in research rose 21% (18,527 → 22,394).
• In capital investment:
  • Venture capital patterns still emerging; however, current numbers indicate a significant increase (£860m → £4,355m).
  • Large projects skyrocketed from £7 bn to £23.8 bn in commitments.

🧭 Why is this good news for overseas businesses?

1. Quality over quantity
   • While total project numbers dropped, the total economic value is up. DBT says it’s focusing on “high-impact, job-creating wins” 
2. Lots of opportunity beyond London
   • Growing regional clusters offer new markets and potential incentives.
3. Big-dollar investments preferred
   • Large projects—especially in net-zero, infrastructure, R&D—dominate this pipeline.
4. Green energy projects need attention
   • Fresh opportunities, but note recent slowdowns.
5. R&D remains strong area
   • Job creation in research is up, showing growth in knowledge-intensive activities.

📝 Tips for overseas businesses planning to setup in the UK

1. Target high-value, big-ticket projects
   • DBT is more supportive of large-scale, strategic investments (e.g., £100m+).
2. Explore regional growth hubs
   • Scotland, North West, West Midlands—check local incentives and support.
3. Look into new R&D schemes
   • Investment in research is robust; ideal for tech, biotech, advanced manufacturing.
4. Be mindful of green energy shifts
   • Dive into policy updates—while green projects slowed, long-term zero-carbon strategy remains.
5. Track DBT-supported FDI eligibility
   • The £6bn impact shows they value support; connect with DBT early to be included.

💡 Final take

Despite a few FDI numbers dipping in 2024–25, the UK remains a strong magnet for quality investments. For overseas companies, the message is clear: aim for strategic, large-scale, high-impact projects, especially in R&D and green industrial sectors, and consider the growing appeal of regions beyond London. With the right strategy, alongside the right support, the opportunities for overseas businesses are countless.

If you are looking for the right support, then look no further. We can assist when is comes to scaling your business to the UK, get in touch today: hello@goodwille.com