The South East of England has been ranked as the fourth top-performing region outside Greater London for attracting foreign direct investment (FDI) in 2024, according to EY’s latest UK Attractiveness survey.
The region secured 59 FDI projects last year. This represents a slight decrease from 65 projects in 2023, but it’s a less sharp decline than the 13% national average. Reading led the region for investment, attracting six FDI projects in 2024 and ranking joint-13th nationwide. Milton Keynes also featured in the top 20, securing four projects.
Technology remained the South East’s leading sector for FDI, with 12 projects in 2024 related to the software and IT services sector. Transportation manufacturers and suppliers also performed strongly, being the only sector to see year-on-year growth, with a 50% increase.
The nationwide decline in FDI projects is partly attributed to modest economic growth across Europe, prompting investors to seek more competitive global destinations like Asia and the US.
Gareth Anderson, managing partner for EY in the South, commented: “The South East continues to demonstrate its dynamic potential in attracting FDI. The diverse range of sectors, including transportation, manufacturing and pharmaceuticals, showcases the region’s ability to create opportunities across industries.”
He added that while the South East saw fewer projects, there are reasons for optimism, citing access to a skilled workforce, the availability of partners and suppliers, and strong local transport infrastructure as key criteria for global investors. “The South East’s proximity to the capital and its population density means the region benefits from a fantastic mix of high-growth companies, as well as excellent transport links and a highly skilled labour market.”
An EY survey of 400 international decision-makers revealed that the top criteria for investing outside London were the availability of regional grants and incentives (37%), followed by the availability and skills of the local workforce (30%), and the availability of business partners and suppliers (28%).
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