• Manchester is the best performing city outside London with 44 FDI Projects, a 22% year-on-year increase.
• The North West overall share of FDI projects in the UK increased to 10.1% in 2024.
Manchester has overtaken Birmingham to once again become the UK’s most successful city outside the capital in attracting foreign direct investment (FDI).
The city attracted 44 inward investment projects in 2024, representing a 22% increase from the previous year, according to the EY UK Attractiveness Survey 2025. This marks the third time in five years that Manchester has secured the top spot for FDI outside London, demonstrating the city’s consistent appeal to international investors.
Manchester’s 44 FDI projects in 2024 placed it ahead of Glasgow (27 projects), Birmingham (24), and Edinburgh (24). Only London, with 265 projects, surpassed Manchester’s total. The city’s performance reflects its evolution into a globally recognised business hub with established strengths in high-value sectors.
In Manchester specifically, the Software and IT Services and Finance sectors were the biggest drivers of FDI, each attracting six projects. Business services was the most prominent activity for driving FDI in the city with 19 projects, followed by sales and marketing with nine projects and manufacturing with six projects.
Manchester’s success contributed to the broader North West region’s strong performance, which attracted 86 FDI projects in 2024 – a 27% increase on 2023. This helped rank the North West as Europe’s joint-14th best performing region, placing it above major global cities such as Istanbul and Berlin. The region’s performance was particularly impressive given that overall UK FDI projects declined by 13% year-on-year.
When considering locations outside London, international investors highlighted key factors that make Manchester and the wider region attractive. More than a third of respondents said that the availability of regional grants and incentives for investment was a key consideration, followed by the availability and skills of the local workforce and the availability of business partners and suppliers.
The United States remained the leading source of FDI into the North West, accounting for 20.9% of projects in 2024, followed by Germany at 12.8%, and France, Sweden, India and Poland.
Peter Arnold, EY UK Chief Economist, said:
“Manchester’s consistent performance in attracting investment highlights the city’s evolution into a globally recognised business hub. Its strength in high-value sectors and manufacturing, as well as connectivity across the North, positions it well to benefit from renewed interest in regional UK opportunities.”
Anna Anthony, EY UK & Ireland Regional Managing Partner, noted:
“The North of England is demonstrating how regions can unlock growth by aligning local strengths with national priorities. While London continues to dominate overall, the rise of Manchester and the broader North shows the UK can deliver a more balanced, high-value investment landscape.”
“To capitalise on this momentum, policymakers must focus on supporting the North’s manufacturing renaissance, boosting energy resilience, and investing in skills and infrastructure that attract long-term, strategic investment.”
The success positions Manchester strongly as the UK develops its upcoming Industrial Strategy. With 37% of surveyed investors planning to invest in the North of England over the next 12 months, Manchester is well-placed to continue its FDI growth trajectory.
