Scotland has demonstrated notable resilience in attracting financial services foreign direct investment (FDI) projects, even in a year when overall investment in the UK’s financial services sector saw a significant decline. EY’s report reveals that Edinburgh succeeded in securing six financial services FDI projects in 2024, making it one of the top cities outside London alongside Manchester. Meanwhile, London itself attracted 39 projects.
The US continues to play a crucial role in supporting Scotland’s financial services sector, contributing to five of the new projects in 2024. Over the past decade, the US has been a source of 38 FDI projects in Scotland, indicating a strong and ongoing relationship within the sector.
Despite the UK as a whole seeing a drop in financial services FDI projects—from 108 in 2023 to 73 last year—Scotland’s success stems from nearly equal parts of projects designed to expand existing operations and those that are brand new. This trend indicates a growing confidence that firms have in Scotland as a favorable place for investment.
Sue Dawe, EY’s managing partner for financial services in Scotland, emphasized the importance of sustained effort to maintain this momentum. She remarked that while Scotland remains a leading destination for FDI in financial services, concerted action across sectors, government, and education will be essential in ensuring the region retains its competitive edge.
In echoing this sentiment, Sandy Begbie, CEO of Scottish Financial Enterprise, pointed out that the success of Scotland’s financial services industry is rooted in its robust ecosystem, outstanding educational framework, and leadership in critical areas such as data, AI, and green finance. He noted the importance of collaboration between industry and government to enhance Scotland’s attractiveness, especially as global market dynamics shift.
With industry leaders acknowledging both the potential for further growth and the necessity for strategic cooperation, there is an optimistic outlook for Scotland’s financial services sector. Should collaborative efforts continue, it’s highly likely that Scotland’s reputation as a prime investment destination can not only be maintained but strengthened, ultimately boosting the nation’s economy as a whole.