Charting a new course with FDI

The government’s International Investment Summit, which is now less than three weeks away, could be a pivotal moment for our economy. 

Not only does it provide an opportunity for the UK to demonstrate to the rest of the world that it’s open for business, it offers a vital platform for businesses based here to showcase their innovation, resilience, and potential to a global audience. 

The summit will bring together investors, policymakers, and business leaders from around the world, fostering an environment where ideas can be exchanged, partnerships can be formed, and investments can be secured. For UK businesses, this is a chance to expand their horizons, access new markets, and drive forward their growth ambitions.

The importance of this summit is further underscored by the government announcement about the National Wealth Fund (NWF) and its integration with the UK Infrastructure Bank (UKIB). 

Announced around the same time after the General Election result, the NWF aims to inject an additional £7.3bn into the UKIB, which has already invested £4bn of the £22bn allocated to it since its inception in 2021. This move is expected to spur approximately £20bn in private investment, particularly in decarbonising projects.

A recent article in the Financial Times has shed light on the current state of the UKIB. Despite some criticisms regarding its pace and strategic vision, it is worth pointing out the bank has managed to attract £11bn in private capital, demonstrating its potential to leverage public funds effectively.

The government’s commitment to supporting private investment through initiatives like the National Wealth Fund has its critics but, in my opinion, this well-capitalised fund which has a strong track record working alongside private equity, and can go a long way to leveraging more Foreign Direct Investment.

As the country and the government prepares for the summit later next month, I hope the UK can take advantage of the opportunities offered from the National Wealth Fund and use this major event to start a new era for investment in the UK.

Irwin Mitchell's International team published its latest FDI Attractiveness Index in July 2024. The next edition is due in November 2024.