According to the ONS in 2025, the foreign direct investment into the UK was £1.3 billion in 2023, down from £22.9 billion in 2022. Although, due to numerous mergers and acquisitions, the UK’s inward FDI flows reached a high of £192.0 billion in 2016, they then fell year-on-year between 2016 and 2020. According to the Department of Business and Trade, the annual number of investments into the UK has also declined over the last decade, 31% lower in 2023-24 compared to 2016-17.

Top 5 UK FDI Industries

Financial services remain the largest source of foreign direct investment into the UK, growing over the years to the value of $641 billion. The information and communication industries grew the most over the last year, while mining and quarrying declined rapidly from 2020. According to the 2024 UK Attractiveness Survey Stability and Growth report by EY, the UK generally attracts more inward investment in areas where it has a “comparative advantage”, such as digital, financial services, and business services, though it has experienced falls in inward investment related to manufacturing projects and the logistics sector.

Top 5 UK FDI countries

The USA accounted for 34% of the UK’s foreign direct investment, above the EU, which accounted for only 31% of the stock. The EU’s share of the UK was around 50% in 2014. According to EY’s 2024 study, there has been a decline in the UK and Europe since 2017, following pandemic levels and the war in Ukraine. The UK’s Offshore islands of Jersey and the Isle of Man accounted for 10% of the UK’s FDI stock. In terms of inward FDI stocks, in 2021 (the earliest available data), London accounted for 45% and Southeast England for 17%. 

FAQ on UK’s FDI

What is the UK’s FDI?

Foreign Direct Investment (FDI) in the UK is capital investment by foreign investors in UK businesses, including the establishment of operations or the acquisition of assets. Over the years, FDI projects in the UK have contributed to job creation, innovation, and economic growth within industries such as finance, technology, and manufacturing.

What is the UK FDI’s performance?

In 2024–2025, the UK recorded 1,375 FDI projects, a 12% annual decline, creating over 69,000 new jobs and safeguarding 10,000. The value of foreign direct investment into the UK was £1.3 billion, down from £22.9 billion in 2022. Despite this drop, the UK remains the second-largest FDI destination in Europe, highlighting its continued global investment appeal.

Outlook on UK’s FDI

Although FDI projects fell by 12% in 2024-2025 to 1,375, the UK remains Europe’s second most attractive destination for foreign investors, especially in technology, digital, and financial services. The sustained dominance of financial services and the expansion of information and communication industries demonstrate ongoing investor confidence in high-value, innovation-driven sectors.

Interested in entering the UK market?

At GLOBAL ANGLE, we conduct market research in the United Kingdom for foreign companies. The insights obtained from our research and business services enables companies to make informed business decisions. Read out previous market research projects in the United Kingdom. Contact us today to take the next step into entering this market.