UK Cities Shine in European Cities and Regions of the Future 2025

The European Cities and Regions of the Future 2025 report, which was recently published by fDi Intelligence, provides some interesting insights into the current trends in overseas investment. 

In addition to highlighting how European locations, including the UK, have adjusted their investment promotion strategies in response to shifting geopolitical, technological, and corporate dynamics, it maps this out with a ranking of almost 90 European locations.

This year’s edition reveals significant achievements by several UK cities, showcasing their strategic efforts to attract FDI. Here are the key trends and standout performers from the UK:

London: Leading the Charge

London continues to dominate as a top destination for FDI in Europe. The city’s robust infrastructure, diverse talent pool, and innovative business environment make it a magnet for investors. London’s strategic initiatives in technology and finance have solidified its position as a global investment hub.

Manchester: Rising Star

Manchester has emerged as a significant player in the FDI landscape. The city’s focus on digital innovation, coupled with its strong educational institutions, has attracted numerous tech companies and startups. Manchester’s proactive investment promotion strategies have paid off, positioning it as a key destination for investors.

Birmingham: Industrial Powerhouse

Birmingham’s industrial heritage and strategic location have made it a preferred choice for manufacturing and logistics investments. The city’s efforts to modernise its infrastructure and support advanced manufacturing have been recognised, boosting its attractiveness for FDI.

Edinburgh: Financial Hub

Edinburgh’s reputation as a financial centre continues to grow. The city’s strong financial services sector, combined with its focus on fintech innovation, has drawn significant investment. Edinburgh’s strategic initiatives to foster a business-friendly environment have been instrumental in its success.

Bristol: Innovation and Sustainability

Bristol stands out for its commitment to sustainability and innovation. The city’s focus on green technologies and sustainable development has attracted investors looking for environmentally conscious opportunities. Bristol’s vibrant tech scene and collaborative ecosystem have further enhanced its appeal.

Glasgow: Cultural and Economic Growth

Glasgow’s cultural vibrancy and economic growth have made it an attractive destination for FDI. The city’s investments in creative industries and its strategic location have contributed to its rising profile. Glasgow’s efforts to create a supportive environment for businesses have been key to its success.

Derby: Strategic Investment

Derby has been recognised for its strong manufacturing sector, particularly in aerospace and rail industries. The city's strategic location and focus on innovation have made it a hub for high-tech industries. Derby's proactive investment promotion strategies have been instrumental in attracting FDI, with recent investments from major companies like Vaillant, Getinge, and Kia.

How it compares to our FDI ranking

Although both studies have different criteria for judging FDI, our recently published report on FDI has many similarities with this one, particularly in terms of the league table ranking of cities. London is in first place in our Attractiveness Index and in fDi’s Intelligence’s study, the UK’s capital takes the top spot in the ‘Major Cities category, due to attracting more than twice as many inward FDI projects than the second-highest European city.

Manchester, Birmingham and Edinburgh also all score strongly in our report. Edinburgh, for example, ranks fifth overall due to its strong public transport and digital infrastructure, improved employment growth forecasts, and the presence of institutions like the University of Edinburgh. Local skills, high economic activity and high-quality universities result in top 10 positions for Birmingham and Greater Manchester. Bristol and Glasgow have secured positions just outside of our top 10, whilst Derby moved up four places from the previous edition to 20^th.

Notably, there were also strong showings from Aberdeen, which was the biggest riser from our July 2024 edition, jumping 18 places to become the 21st most attractive city. Liverpool, was another significant climber, finishing 15 places higher in 12, benefitting from its status as a Freeport and Investment Zone.

It is also with mentioning Oxford and Cambridge. These two locations appear in our top 10 of FDI attractiveness and following Rachel Reeves announcement about further investment in the Cambridge / Oxford Growth Corridor, I think their future look bright in terms of driving significant FDI in the coming years.

What is clear for both studies is that all these cities, as well as many others in the UK, demonstrate resilience and adaptability in the face of changing global dynamics. 

They also all foster a business-friendly environment which not only positions them as leading destination for foreign direct investment in Europe now, but also in the future.

You can hear more about how the UK is attracting FDI in the new season of our Business But Better podcast. We’re joined by industry experts to explore the unique advantages available to overseas investors, how the government is prioritising FDI, and the help available when entering the UK market.