• West Midlands is UK’s leading regional location for FDI, performing strongly despite a challenging national backdrop
  • During the 2024/25 financial year, the West Midlands represented the top-performing UK location outside of London for inward investment
  • The West Midlands attracted more investment projects than Northern Ireland and Wales combined, and more FDI jobs than the South East and the South West combined

The West Midlands has reinforced its position as the UK’s leading regional destination for Foreign Direct Investment (FDI), performing strongly against a challenging national backdrop.

According to official data from the Department for Business and Trade (DBT), 130 FDI projects landed in the region during the 2024/25 financial year – more projects than Northern Ireland and Wales combined. This represents 9.4% of the UK’s total FDI wins (1,345) - the largest share of all UK regions outside the capital.

With 5,821 jobs created by overseas investors during the same period - more FDI jobs than the South East and South West combined – the West Midlands was also the second highest performing region for job creation, after the North West.

 

Richard Parker, Mayor of the West Midlands and WMCA chair, said:

"These results are further evidence of how the West Midlands’ unique strengths – including unrivalled connectivity, an impressive specialist talent pool and world-beating R&D assets - are helping the region to edge ahead of global competition in the race to secure inward investment. Hosting the first ever Regional Investment Summit this October will help us to keep up momentum when it comes to securing inward investment and we look forward to taking centre stage to demonstrate everything that makes the West Midlands a premier destination for the world’s biggest businesses."

 

Neil Rami, Chief Executive at West Midlands Growth Company (WMGC), said:

“These latest FDI figures reaffirm the West Midlands’ standing as the UK’s strongest regional performer outside the capital. This resilience, in the face of challenging macroeconomic headwinds, underscores the value of our targeted investment strategy, sectoral strengths, and sustained commitment to infrastructure and skills.

 

"However, it would be remiss not to acknowledge the broader national picture. The UK’s share of European FDI has declined to a record low of 15%, furthermore, the 12% drop in UK project volumes is the steepest since the Covid-19 period.  Global investors are becoming increasingly cautious amid geopolitical uncertainty – and the effects are compounded by a significant shift in capital flows towards Eastern Europe.

 

“As a nation, we must urgently refocus on enhancing our international competitiveness by addressing structural challenges, enabling regulatory certainty, and doubling down on innovation, clean growth, and skills to ensure the UK remains a leading destination for high-value investment in the decade ahead."

 

Inward investment projects secured into the region in 2024/25 include multinational retailer Harvey Norman, which announced Birmingham as the home of its new store and UK headquarters, Canadian cybersecurity company, Goldilock, which expanded its manufacturing and testing facilities at University of Wolverhampton Science Park and specialist defence manufacturing firm, NMS UK, which will create 150 jobs at its Leamington Spa production facility. The WMGC-led West Midlands Global Growth Programme, which provides bespoke support to streamline the UK investment process for international businesses, helped 17 innovation-led, high-growth international companies create over 300 jobs in the region last year.

 

Katie Page, CEO at Harvey Norman, said:

“When Harvey Norman invests in a location, it’s for the long term. This makes it essential to choose an area with clear growth potential, including high-grade retail space, a supportive economic environment, exceptional connectivity and the right talent on our doorstep. 


“Combining all these strengths and more, the West Midlands stood out as the ideal entry point to the English marketplace. Following on from the launch of our flagship store at Merry Hill, Dudley last year, we recently announced Birmingham’s Sutton Coldfield as the home of our next store and new UK headquarters and see the region continuing to be a vital component of our global expansion plans.”

 

Stephen Kines, co-CEO at Goldilock, said:

“With AI-led attacks on the rise and ransomware becoming ever-more sophisticated, it’s vital that cybersecurity solutions are able to keep one step ahead. The recent expansion of our manufacturing and testing facilities at University of Wolverhampton Science Park will enable us to keep up with growing global demand for our unique network isolation controller, FireBreak, across a range of sectors and areas – from organisations responsible for critical national infrastructure to financial services, healthcare and manufacturing.

 

“Since landing in Wolverhampton, the West Midlands’ collaborative £15bn tech community, world-class STEM talent and joined-up manufacturing supply chain have played an important role in our success and we remain committed to the region as we move into the next chapter of our growth story.”

 

David Zevulun, UK Country Director at NMS UK, said:

“NMS UK’s growth strategy is focused on becoming a valued supplier of UK-made protected 4x4 military vehicles, boosting the resilience of the British defence industry’s supply chain. From our new manufacturing facility in Leamington Spa, we’re ideally placed to achieve this goal.

 

“As well as being positioned at the centre of the largest manufacturing cluster of any UK city region, being in close proximity to the West Midlands’ world-class R&D assets will support us in pioneering the next generation of protected 4x4 military vehicles, ensuring that valuable intellectual property is retained in the UK. We look forward to continuing our expansion here while supporting local people to develop skilled careers in manufacturing.”

 

The news of the region’s FDI performance follows the government’s publication of its Modern Industrial Strategy earlier this week, where the West Midlands was explicitly mentioned due to its strong concentration of businesses and significant potential across several of the critical sectors identified in the Strategy. These include Advanced Manufacturing, Professional and Business Services, Life Sciences, Financial Services, Clean Energy Industries and Digital and Technologies.

 

Read the Department for Business and Trade inward investment results for 2024 to 2025 here.