The Midlands has emerged as a top regional location for Foreign Direct Investment (FDI) attraction and employment in the UK, according to the EY UK Attractiveness Survey 2026.
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%).
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 1 in 5 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% of projects. Germany, India and France were the next most significant contributors, each delivering 10 projects.
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.
– Richard Parker, Mayor of the West Midlands
The 16.4% decline in Midlands FDI reflects broader challenges across the UK and Europe. European FDI project numbers fell by 6.6% in 2025, while the UK recorded a sharper 14.4% 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%), Northern Ireland (up 65%) and Wales (up 56%) recorded growth in FDI projects in 2025. The South West remained flat, while all other regions experienced declines. The Midlands saw a 16.4% year-on-year decline in FDI projects and 29.3% year-on-year decline in FDI jobs (122 and 8,439 secured in 2024 respectively).
These figures underline the Midlands’ continued strength as a destination for international investment in a highly competitive global market, and demonstrates sustained investor confidence in our people, businesses and places.
By working together across the Midlands, we are more able to operate as our economy does, whilst bringing a scale and diversity that appeals to global investors.
For the East Midlands, international investment creates high-quality jobs, strengthens local supply chains, and expands opportunity in communities across our region. Our role is to ensure that people across the Midlands feel the benefits of these successes.
– Claire Ward, Mayor of the East Midlands
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, and Islamic property finance provider, Offa, which invested in new Solihull offices.
Published this week, the Department for Business and Trade’s official UK FDI figures for the 2025/26 financial year also reinforce the West Midlands’ consistently strong performance at attracting inward investment, showing that the region attracted more FDI jobs (18,036) over the last three years than any UK location outside of London. The region’s 25% year-on-year decline in FDI projects reflects a 26% UK decline, with 11 out of 12 of the UK’s regions experiencing a fall in FDI projects. The West Midlands secured 10% of total FDI projects into the UK (1,020) and 18% of all projects and jobs created outside the capital.
Our unmatched scale, connected innovation ecosystem and deep talent pool make the region a compelling proposition for international investors.
However, in an increasingly competitive global market, investment does not simply follow economic fundamentals. Sustaining growth will require continued targeted intervention, strong international partnerships and a clear, market-led proposition that aligns investor demand with local opportunities.
That is how we will secure the next generation of investment, jobs and productivity gains for the West Midlands, wider Midlands, and indeed the UK.
– Neil Rami, Chief Executive, West Midlands Growth Company