Investment in Scotland on the rise: survey

SCOTLAND won a record number of investments from overseas in 2016, although growth in the area was substantially lower than the previous year.

The high number is partially attributed to the success of Glasgow’s Commonwealth Games.

There were 122 foreign direct investment (FDI) deals done over the course of last year, up from 119 in 2015. For the fifth year in a row, the EY Scotland Attractiveness Survey showed Scotland was the second most popular part of the UK to invest in behind London.

However, Scotland won a smaller share of overseas investment in 2016 than previously.

FDI in Scotland grew by 2.5 per cent in 2016 – lower than the 7 per cent increase recorded across the UK for that year and significantly down from 2015 when investment in Scotland grew by 51 per cent.

Mark Harvey, EY’s senior partner in Scotland, said a “halo effect” from events such as the Commonwealth Games and the Ryder Cup may have resulted in “abnormally high” levels of investment in 2015.

Deals involving overseas firms created fewer jobs per project, with the average falling from 45 positions in 2015 to 24 the following year.

Three Scottish cities were in the UK’s top 10 for attracting FDI in 2016 with Glasgow fifth after an increase in the number of such projects in 2016.

Edinburgh fell three places in the list to sixth and Aberdeen went from 10th to seventh.

Economy Secretary Keith Brown said: “We enjoy resources few nations can match.”