Scotland continues to secure above average levels of inward investment from overseas financial services companies, despite a sharp fall in the overall UK figure.
Strength in areas such as artificial intelligence, data, and green finance is contributing to Scotland’s success in attracting investment.
New figures for 2024 show Scotland up two projects to a decade-high 11, making it the top location outside London with 39. Edinburgh secured six, the joint top city with Manchester, outside the UK capital.
Scotland’s rise contrasted with a fall in the UK total to 73 from 108 in the previoius year. However, the UK continues to outpace Europe which saw an 11% fall to 293 from 329.
Also, the UK’s total is more than double second-placed Germany, which recorded 32 – a 16% decline from 38. France fell to third position with a 23% slump to 30 from 39.
These results, which come ahead of this year’s EY Scotland Attractiveness Survey on 17 June, follow the Global Financial Centres Index which showed Scotland’s two biggest cities rising up the rankings. Edinburgh came in at 29th and Glasgow 32nd.
The US continues to be Scotland’s top inbound country of origin for financial services, with five projects last year and 38 over the last decade.
EY Scotland managing partner for financial services Sue Dawe said: “We continue to see Scotland perform well in attracting financial services FDI [foreign direct investment] projects.
“In 2024, we saw almost as many projects expanding existing operations as we did brand new projects – which is a great indication that these companies view Scotland as a viable proposition to continue investing in.
“While the UK continues to be Europe’s top financial service FDI location, the fall in overall investment that was recorded at both those levels tell us that we cannot take the foot off the pedal.
“If Scotland is to remain an attractive place for companies within an increasingly competitive market then we need to dial-up what we do well – working together across sector, government and education – and not shy away from challenges on the horizon.
“Financial services isn’t simply one of Scotland’s growth sectors – it’s the growth sector that enables other growth sectors; so, if we get this right and continue to be the most attractive place to establish financial services operations outside London, the Scottish economy as a whole will benefit.”
Sandy Begbie, CEO of Scottish Financial Enterprise, said the survey demonstrates the “depth, breadth and maturity of our ecosystem, the quality of our universities and skills pipeline, and the leadership we are showing in priority areas like data, AI and green finance.”
He said FDI was important in achieving in grow the sector’s economic contribution by £4-7bn over the coming five years.
“We believe there is even greater potential for progress – particularly by taking advantage of global trends around near-shoring and the establishment of large regional hubs.”
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