Edinburgh has replaced Brighton as the highest-ranking UK city outside of London for foreign investment attractiveness, according to a quarterly report by law firms Wright, Johnston & Mackenzie (WJM).
Edinburgh is viewed as attractive from an infrastructure perspective owing to its extensive public transport usage, the interconnectivity of its transport network, along with advanced digital infrastructure.
The city also has strong employment growth forecasts for 2025, aided by institutions like the University of Edinburgh.
Fraser Gillies, managing partner at Wright, Johnston & Mackenzie LLP, which has five bases across Scotland including an office on Edinburgh’s St Andrew Square, said: “Edinburgh’s strong performance in the previous report was already impressive, and it is particularly pleasing to see the city move even further up the league table.
“This consistent improvement highlights Edinburgh’s robust local infrastructure and growth potential, making it an increasingly attractive destination for foreign investment.”
The study incorporates analysis by the Centre for Economics and Business Research (Cebr).
Some 11 of the top 20 FDI hotspots are currently in Scotland, the Midlands, and the North of England.
Aberdeen is another Scottish city that is performing strongly, due to strong employment growth forecasts and being relatively close to the North East Scotland Investment Zone.
Investment Zones in the UK aim to leverage local strengths and untapped potential by offering tax reliefs, planning support, and business assistance.
The North East Scotland Investment Zone was announced in 2023 as part of a collaborative effort between the Scottish and UK governments, with the aim of boosting the region’s economy through targeted investments, tax reliefs, and other incentives over a five-year period.
Pushpin Singh, senior economist at Cebr, said: “Our findings underscore the transformative potential of Freeports and Investment Zones in reshaping the UK’s investment landscape.
“Cities like Aberdeen, Liverpool, and Newcastle are emerging as significant beneficiaries, demonstrating how targeted infrastructure and skills development could potentially create hubs of economic opportunity.”
