London ranks because the UK’s best area relating to inward funding attraction. Its rating of 1.69 positioned it simply forward of Northern Eire (1.64). London’s rating signifies that it’s attracting 1.69 occasions its justifiable share of nationwide greenfield overseas direct funding (FDI) tasks given the scale of its financial system.
London accounts for just below one-quarter (23.3%) of UK GDP, whereas it receives 39.4% of the nation’s inward greenfield FDI.
The UK’s capital and enterprise hub was residence to 411 worldwide firm expansions in 2022. It ranks because the third-largest FDI recipient metropolis globally behind Dubai and Singapore.
Kadans Science Companion and Canary Wharf Group shaped a three way partnership to announce the constructing of a brand new $552m GIA life science-focused, moist lab-enabled constructing at Canary Wharf. In the meantime Mphasis, an India-based supplier of IT options specialising in cloud and cognitive providers, introduced plans to take a position $6.5m (Rs5.35bn) to open a brand new workplace, which is able to create 700 new jobs.
Northern Eire punching above its weight
The UK’s smallest area by inhabitants, Northern Eire, attracted 39 greenfield FDI tasks in 2022. Southern neighbour Eire and the US have been key supply markets for FDI into Northern Eire. Mixed, these two international locations accounted for greater than half (56%) of inbound investments within the area.
US-based digital firm Insider Inc introduced plans to arrange a brand new know-how and product hub in Belfast, producing 50 jobs. One other US firm, Harness, opened a brand new engineering centre that can create 80 jobs over three years.
Entry essentially the most complete Firm Profiles
available on the market, powered by GlobalData. Save hours of analysis. Achieve aggressive edge.
Firm Profile – free
pattern
Your obtain e-mail will arrive shortly
We’re assured concerning the
distinctive
high quality of our Firm Profiles. Nevertheless, we wish you to take advantage of
helpful
determination for what you are promoting, so we provide a free pattern that you may obtain by
submitting the beneath kind
By GlobalData
Though the variety of tasks into Northern Eire is decrease than 9 of the 11 different UK areas, its GDP is the bottom of any UK area.
Solely three UK areas ‘in revenue’ on FDI
Scotland was the one different UK area to attain multiple within the index. Scotland’s rating of 1.23 mirrored that it accounts for 9.2% of the UK’s inward funding tasks, whereas accounting for under 7.5% of the nation’s GDP. All different UK areas scored beneath one, which means they obtain a decrease proportion of UK inward funding than one would count on given the scale of their economies.
Scores change over time
There may be little variation within the proportion of nationwide GDP accounted for by every UK area between 2019 and 2022. Nevertheless, there are notable adjustments in volumes of inward funding tasks by area, by 12 months. Larger London and Northern Eire are the one areas to have an inward funding regional competitiveness index rating above one in every of the previous 4 years. Scotland scores above one in three of the previous 4 years.
Some areas are extra unstable. The North East, the East Midlands and the West Midlands have skilled regional competitiveness scores above and beneath one throughout the interval, whereas the East of England and Wales have additionally been unstable; nonetheless, in every year their scores have been beneath one.
Different areas additionally had scores constantly beneath one, such because the North West, Yorkshire and the Humber, the South East and the South West, however every of those was much less unstable of their yearly distribution.
Methodology
A regional competitiveness index (RCI) rating is calculated for every area. The calculation relies on the variety of inward greenfield FDI tasks a area receives as a share of the nation complete. This worth is then divided by the area’s proportion of financial output (GDP). A rating above one signifies that the area is receiving extra FDI than could be anticipated given the scale of its financial system (it’s overperforming). On the contrary, a rating of lower than one signifies a area is underperforming by way of the quantity of inward funding it receives given the scale of its financial output.
The RCI is the place FDI is the variety of inbound greenfield FDI tasks, GDP is gross home product, r is the area and c is the nation.