The Midlands has emerged as the UK’s leading region outside London for foreign direct investment (FDI) employment, creating nearly 6,000 jobs in 2025 despite a sharp nationwide decline in overseas investment, according to the latest EY UK Attractiveness Survey.
The report found that the Midlands generated 5,970 jobs linked to foreign investment during the year, accounting for around one in five FDI-supported jobs created across the country. The figure exceeded the combined total for Scotland and Wales, highlighting the region’s resilience during a challenging period for international investment.
The Midlands also secured 102 foreign investment projects, ranking behind only Greater London and Scotland. Those projects represented 14% of all UK inward investment activity, marking the region’s third-highest share in the past decade.
The strong performance came despite a difficult environment for investment across Europe. The UK attracted just 730 foreign investment projects in 2025, a 14.4% decline from the previous year and the country’s lowest total in a decade. Across Europe, project numbers fell by 6.6%.
Although the Midlands experienced its own decline, with project numbers falling from 122 in 2024 to 102 in 2025 and FDI-related employment dropping from 8,439 to 5,970, it continued to outperform every other UK region outside the capital in job creation.
Business and professional services led investment activity in the Midlands, attracting 18 projects, up sharply from five a year earlier. Transport manufacturing followed with 16 projects, while software and IT services secured 14 projects, reflecting growing investor interest in the region’s technology sector.
The United States remained the largest overseas investor, accounting for 14.7% of all projects. Germany, India and France each contributed 10 investment projects.
West Midlands Mayor Richard Parker said the figures reflected the success of the region’s international investment strategy.
“My Growth Plan is focused on attracting investment from global markets to strengthen our economy, and these results show that approach is delivering,” Parker said. He added that recent trade missions to India and China had created new opportunities for businesses, universities and investors.
East Midlands Mayor Claire Ward said the report demonstrated continued international confidence in the region’s economy and its ability to create skilled jobs and strengthen local supply chains.
The report also highlighted several major investments made during the year. Technology company Cisco selected Birmingham’s STEAMhouse as the location for a new regional office, citing the city’s skilled workforce and innovation ecosystem. Other businesses expanding in the region include Islamic finance provider Offa in Solihull, Australian fashion retailer Hello Molly in Dudley and software company Target Integration in Coventry.
Separate figures from the Department for Business and Trade also showed the West Midlands attracted 18,036 foreign investment-related jobs over the past three years, the highest total of any UK region outside London.
Industry leaders said maintaining that momentum will require continued investment promotion, stronger international partnerships and policies that match investor demand with regional business opportunities as competition for global capital intensifies.
