The West Midlands has reinforced its position as the UK’s leading regional location for foreign direct investment (FDI), according to the Department for Business and Trade (DBT).
The region performed strongly despite a challenging national backdrop. As per official DBT data, 130 FDI projects landed in the West Midlands 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) and the largest share of all UK regions outside London.
DBT’s 2024/25 inward investment results also placed the West Midlands as the second highest performing region for job creation, after the North West. 5,821 jobs were created by FDI during the same period – more than the South East and South West combined.
Richard Parker, West Midlands mayor and WMCA chair, said: “This momentum builds towards the investment summit we are hosting with government later this year where we will showcase our strengths to attract even more global investment and new growth.
“With my Regional Growth Plan and support from the government’s Industrial Strategy, we’re demonstrating to the world how our talent, ambition and innovative spirit is making the West Midlands one of the best places in the UK to do business.”
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.
“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.
“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 the University of Wolverhampton, and specialist defence manufacturing firm NMS UK, which will create 150 jobs at its Leamington Spa production facility.
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 England 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.”
News of the region’s FDI performance follows the government’s publication of its Modern Industrial Strategy last 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.