UK still most attractive location for foreign investment, EY finds

The UK continues to be Europe’s most attractive location for foreign direct investment (FDI) into financial services, according to EY’s latest Attractiveness Survey for Financial Services.

This comes despite total project numbers across Europe falling 11% year-on-year from 329 projects in 2023 to 293 projects in 2024.

Although the UK recorded a 32% year-on-year decline in project numbers, from 108 in 2023, it attracted 73 financial services projects in 2024, which is more than double second-placed Germany, which recorded 32 projects, a 16% decline from 38 in 2023.

France fell to third position with 30 projects in 2024, a 23% decline from 39 projects in 2023.

As a result, the UK secured a quarter of all European financial services FDI projects in 2024, though this was down from 33% in 2023. By comparison, Germany secured 11% and France secured 10% of Europe’s financial services FDI projects, both unchanged from 2023.

Martina Keane, EY UK and Ireland financial services managing partner, said: “The UK has retained its position as Europe’s most attractive destination for financial services investment, despite investment falling across the region.

“The strength and depth of the UK’s financial services sector continues to capture global investor confidence, particularly as they navigate challenging market conditions. But competition is fierce, and while the UK industry is a clear leader, we cannot ignore the fact that investment levels have declined over the last year.”

She added: “Both industry and Government are taking positive action to prioritise growth and innovation in UK financial services, and this collaboration must continue. Future success rests on not just maintaining, but growing the attractiveness of the UK’s financial services sector on the global stage. To do this, we must build on our inherent strengths and prioritise progressive regulation, innovation and the continued establishment of key international trade relationships.”