Midlands remains among leading UK destinations for foreign investment
The Midlands remained one of the UK’s leading destinations for foreign direct investment (FDI) in 2025, holding onto its position as the country’s third-largest region for inward investment despite a wider slowdown across the market.
According to the EY 2026 UK Attractiveness Survey, the region secured 102 FDI projects in 2025, making it the UK’s top regional destination for FDI attraction, behind only Greater London and Scotland.
This represents the Midlands’ third-highest share of UK projects for the last decade (14 per cent).
The region also ranked as the leading location outside of London for FDI jobs, creating 5,970 jobs last year – more than Scotland and Wales combined. FDI employment in the region accounted for one in five of all UK FDI jobs.
The survey highlighted that the region has experienced an upswing in investor sentiment.
Looking forward, among those planning to invest, the West Midlands is positioned as the second most sought after regional destination for investment, and Birmingham ranks as the UK’s second most sought-after city outside the capital – despite recent challenged perceptions.
Business Services & Professional Services emerged as the leading sector for FDI in the Midlands, attracting 18 projects — a significant increase from five in 2024.
Transportation manufacturers and suppliers ranked second with 16 projects, while Software & IT Services rose to third place with 14 projects, up from nine the previous year.
The United States continued to be the largest source of FDI into the Midlands in 2025, accounting for 14.7 per cent of projects.
Germany, India and France were the next most significant contributors, each delivering 10 projects.
The 16.4 per cent decline in Midlands FDI reflects broader challenges across the UK and Europe.
European FDI project numbers fell by 6.6 per cent in 2025, while the UK recorded a sharper 14.4 per cent decline, with 730 projects secured nationally — the lowest level in a decade.
Against this backdrop, the Midlands’ continued strength in both project numbers and employment highlights its resilience and enduring appeal to international investors.
Across the UK, only Greater London (up 5 per cent), Northern Ireland (up 65 per cent) and Wales (up 56 per cent) recorded growth in FDI projects in 2025.
The Midlands saw a 16.4 per cent year-on-year decline in FDI projects and 29.3 per cent year-on-year decline in FDI jobs (122 and 8,439 secured in 2024 respectively).
West Midlands mayor Richard Parker said: “My Growth Plan is clear in targeting international markets to get our economy firing on all cylinders.
“And it’s an approach that’s working. More jobs are now being created by global companies in the West Midlands than in any English region outside of London.
“My recent trade missions to India and China, alongside the Prime Minister, have opened even more doors for our businesses, universities and other investors.
“Getting more deals over the line with some of the world’s biggest players will help deliver my number one priority as Mayor – a stronger economy with more high-quality jobs for local people and more money in their pockets.”
Inward investment projects secured into the region in 2025/26 include global leader in networking and security Cisco, which announced STEAMhouse Innovation Centre in Birmingham Knowledge Quarter, part of the flagship West Midlands Investment Zone, as the home of its new office space.
Other projects include Islamic property finance provider, Offa, which invested in new Solihull offices, Australian fashion brand Hello Molly, which invested in an E-commerce warehouse in Dudley and software provider Target Integration, which has invested in Coventry through the WMGC-led West Midlands Global Growth Programme.
