Scottish city behind only London in attractiveness to overseas investors

The study, which incorporates the latest analysis by the Centre for Economics and Business Research, examines recent changes to the foreign direct investment (FDI) attractiveness of 50 locations based on 10 economic indicators. These indicators cover three “pillars”: growth potential, skills and infrastructure.

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WJM and Irwin Mitchell said: “Scotland’s capital moved up to fourth position with an overall index score of 49.1. Edinburgh’s strong performance is founded on its consistent performance across all three pillars [of which the index comprises].

“Edinburgh demonstrates robust performance in the infrastructure category, attributed to its extensive public transport usage and the interconnectivity of its transport network, along with advanced digital infrastructure.”

They added: “Regarding its growth potential, Edinburgh’s overall score has risen from July 2024, driven by relatively strong employment growth forecasts for 2025. Although the city’s score in the skills category fell slightly, it remains strong due to institutions like the University of Edinburgh.”

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Fraser Gillies, managing partner at WJM, said: “Edinburgh’s strong performance in the previous report was already impressive, and it is particularly pleasing to see the city move even further up the league table.

“This consistent improvement highlights Edinburgh’s robust local infrastructure and growth potential, making it an increasingly attractive destination for foreign investment.”

WJM has five bases across Scotland, including an office on Edinburgh’s St Andrew Square.

Glasgow was in 11th position in the latest survey, unchanged from the previous quarter, with a score of 41.6.

Aberdeen moved up 18 places in the league table over the latest quarter, from 39th to 21st place. This was attributed to “comparatively strong employment growth forecasts” and the city’s “relative distance from the North East Scotland investment zone”.