The Midlands outpaced all other parts of Britain as the capital for foreign direct investment (FDI), creating almost 6,000 jobs last year as investment in the UK fell to a ten-year low.
According to the EY 2026 UK Attractiveness Survey, the region has generated 5,970 FDI-related jobs by 2025, more than Scotland and Wales combined and equivalent to almost one in five such jobs created across the UK. That makes it the leading destination for foreign-funded projects outside of London, a remarkable result in a year when global investors have turned cautious.
The region also received 102 FDI projects, placing it behind only Greater London and Scotland in terms of investment achieved. This figure represents 14 per cent of all UK projects, the Midlands’ third largest share in ten years.
Investor sentiment, on the other hand, is bullish. Among companies planning to invest, the West Midlands is now rated as the third most attractive region in the UK, with Birmingham ranked as the second most sought-after city outside the capital, despite the city’s disappointing performance last year.
The numbers of subjects are quite impressive given the broad background. Project numbers across Europe fell by 6.6 per cent by 2025, while the UK recorded a sharp drop of 14.4 per cent, with 730 projects nationwide, the lowest figure in a decade.
Only three parts of the UK achieved a trend in the project’s numbers: Greater London, up 5 percent, Northern Ireland, up 65 percent, and Wales, up 56 percent. The South West held flat, and all other regions fell back. The Midlands itself was not immune, with projects down 16.4 percent year-on-year and FDI jobs down 29.3 percent, from 122 projects and 8,439 jobs it bankrolled in 2024.
Nevertheless, holding on to the region’s top jobs and project platform position, while the national market is shrinking, underlines the region’s goal of receiving international funding. As some recent analysis of regional investment trends has noted, competition between UK regions for overseas capital is intense, making the potential to stay in the Midlands more meaningful than the downside might suggest.
Business and professional services emerged as the dominant sector in the Midlands, drawing 18 projects, a sharp jump from just five in 2024. Transportation manufacturers and suppliers came second with 16 projects, while software and IT services rose to third place with 14, up from nine last year.
The United States remained the single largest source of investment, accounting for 14.7 percent of projects. Germany, India and France followed, each delivering 10 projects.
That momentum builds on the long form. The region was recently named the UK’s best region for foreign investment, and has previously been recognized as one of Europe’s most powerful companies for inward investment strategy, coming second on the continent in Europe’s biggest investment awards.
Mr. Richard Parker, the Mayor of West Midlands, said that his economic strategy is beginning to bear good fruit. “My Growth Plan is clear on targeting international markets to get our economy firing on all cylinders. And it’s the way to go. Now more jobs are being created by global companies in the region than anywhere else in the UK outside of London,” he said.
“My recent trade work in India and China, alongside the Prime Minister, has opened more doors for our businesses, universities and other investors. Finding more deals between the world’s biggest players will help deliver what is important to me as Mayor, a strong economy with quality jobs for local people and more money in their pockets.”
Claire Ward, Mayor of the East Midlands, said the figures reflected confidence in the wider region. “These figures underline the continued strength of the Midlands as an international investment destination in a highly competitive global market, and reflect the continued confidence investors have in our people, businesses and places,” he said. “In the East Midlands, international investment creates quality jobs, strengthens the local supply chain, and increases opportunities for communities across our region.”
Neil Rami, chief executive of the West Midlands Growth Company, has warned of what it will take to keep the momentum going. “Our unmatched scale, innovative ecosystem and deep talent pool make the region a strong proposition for international investors,” he said. “However, in increasingly competitive global markets, investment does not follow economic fundamentals alone. Sustained growth will require continued targeted interventions, strong international partnerships and a clear, market-led proposition that aligns investor demand with local opportunities.”
The image is reinforced by different official data. The Department of Business and Trade’s inward investment results for 2025/26 show that the West Midlands has attracted more FDI jobs, 18,036, over the past three years than any other UK area outside London. The region received 10 per cent of all UK projects and 18 per cent of projects and jobs created outside the capital, with its 25 per cent fall in projects mirroring a national decline of 26 per cent.
Behind the statistics sits a series of concrete wins. Networking and security giant Cisco has chosen the STEAMhouse in Birmingham’s Knowledge Quarter, part of the West Midlands Investment Zone, as the home of new office space.
Adele Every, managing director, public sector at Cisco UK and Ireland, said the city’s assets made the decision straightforward. “Top tech talent, world-class innovation infrastructure and a collaborative ecosystem are critical to our mission to power an inclusive future. Birmingham’s strengths in these areas are obvious, making it an obvious location for our new regional hub.”
Other entrants include fintech, fashion and software. Islamic property finance provider Offa has invested in new offices in Solihull, where executive chairman Sultan Choudhury said the firm’s team had doubled in size in the past year. Australian fashion company Hello Molly has opened an e-commerce warehouse in Dudley, with operations director Ena Eaton praising the region’s “transportation and logistics infrastructure”. Software provider Target Integration has launched in Coventry as part of the West Midlands Global Growth Programme, with chief executive Rohit Thakral talking about the city’s proximity to the West Midlands’ technology sector and the University of Warwick Science Park.
The Growth Programme, which offers support designed to help international businesses navigate the UK investment process, is now accepting applications for 2026.
