×

UK FDI 2024–25: Investment Projects Down, But Job Creation Remains Strong

The UK remains one of the most attractive global destinations for foreign investment — but the latest data shows a shift that international founders and expansion-minded businesses should pay close attention to.

Key Headline: Fewer Projects, But Bigger Impact


The UK’s Department for Business and Trade (DBT) has reported that in 2024–25, the UK attracted 1,375 Foreign Direct Investment (FDI) projects — a 12% drop compared to the previous year.
Despite this decline, job creation remains strong:
– 69,355 new jobs created
– 10,195 jobs safeguarded

This tells us that while there are fewer overall projects, the scale, quality, and strategic value of investments is rising.

Why the Drop in Project Numbers?


A few key trends explain the shift:
– Cautious global investor sentiment due to inflation, war, and supply chain realignment
– Consolidation of expansion plans – fewer but larger, more focused investments
– Tighter regulatory reviews under the UK’s National Security and Investment Act
– Greater demand for high-skilled talent and innovation ecosystems

In short, global investors are still backing the UK — but with more precision and purpose.

Jobs Are Being Created in High-Growth Sectors


The new jobs tied to FDI are concentrated in future-facing industries:
– Technology & Digital Innovation
– Advanced Manufacturing
– Clean Energy & Net Zero Infrastructure
– Life Sciences & Healthtech
– Financial & Professional Services

These align with the UK’s global positioning as a hub for R&D, innovation, and business services — offering a stable base for companies looking to expand internationally.

What This Means for International Businesses


If you’re a founder, investor, or scale-up leader based overseas, these signals matter:
1. The UK remains a top-tier market — but strategic clarity is more important than ever.
2. Investment is shifting away from speculative entry and towards structured, scalable operations.
3. There is growing demand for localisation, partnerships, and implementation support.

How UK Advisory Services Can Support You

At UK Advisory Services, we help international businesses plan, structure, and execute their UK market entry. Our core services include:
– Conduct detailed go-to-market planning
– Identify your ideal UK customer and channel strategy
– Support with brand positioning and messaging tailored to the UK market
– Set up your UK company structure
– Hire and onboard local talent
– Access local government support and incentives

Whether you’re a tech innovator, a consumer brand, or a service provider, our UK Launchpad programme is designed to help you build with confidence and scale with purpose.

Thinking about entering the UK market?
Email us at info@ukadvisoryservices.com to schedule a no-obligation discovery call.

Disclaimer
The material contained on this website contains general information only and does not constitute legal or other professional advice and should not be relied upon as such. While every care has been taken in the preparation of the information on this site, readers are advised to seek specific advice in relation to any decision or course of action.

UK Advisory Services
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.