The Midlands has overtaken every other part of Britain outside the capital for foreign direct investment (FDI) employment, creating almost 6,000 jobs last year even as investment into the UK slumped to a ten-year low.
According to the EY 2026 UK Attractiveness Survey, the region generated 5,970 FDI-related jobs in 2025, more than Scotland and Wales combined and equivalent to roughly one in five of all such jobs created across the UK. That makes it the leading location for overseas-backed employment outside London, a notable result in a year when global investors turned cautious.
The region also landed 102 FDI projects, ranking it behind only Greater London and Scotland for the volume of inward investment won. The figure represents 14 per cent of all UK projects, the Midlands’ third-highest share in a decade.
Investor sentiment, meanwhile, is pointing upwards. Among companies planning to invest, the West Midlands is now seen as the third most attractive UK region, and Birmingham ranks as the second most sought-after city outside the capital, despite the reputational knocks the city has absorbed over the past year.
The headline numbers are all the more striking given the wider backdrop. Project numbers across Europe fell by 6.6 per cent in 2025, while the UK recorded a sharper 14.4 per cent decline, securing 730 projects nationally, the lowest tally in ten years.
Only three parts of the UK bucked the trend on project numbers: Greater London, up 5 per cent, Northern Ireland, up 65 per cent, and Wales, up 56 per cent. The South West held flat, and every other region went backwards. The Midlands itself was not immune, with projects down 16.4 per cent year on year and FDI jobs off 29.3 per cent, from the 122 projects and 8,439 jobs it banked in 2024.
Even so, holding on to the top regional spot for jobs and a podium position for projects, while the national market shrank, underlines the region’s pull for international capital. As one recent analysis of regional investment trends has noted, the competition between UK regions for overseas money has intensified, making the Midlands’ staying power more meaningful than the raw decline might suggest.
Business and professional services emerged as the standout sector for the Midlands, drawing 18 projects, a sharp jump from just five in 2024. Transportation manufacturers and suppliers came second with 16 projects, while software and IT services climbed to third with 14, up from nine the year before.
The United States remained the single largest source of investment, accounting for 14.7 per cent of projects. Germany, India and France followed, each delivering 10 projects apiece.
That momentum builds on a longer run of form. The region was recently named the UK’s top regional destination for foreign investment, and has previously been recognised as one of Europe’s strongest performers for inward investment strategy, finishing second in the continent at a major European investment awards.
Richard Parker, Mayor of the West Midlands, said his economic strategy was beginning to bear fruit. “My Growth Plan is clear in targeting international markets to get our economy firing on all cylinders. And it’s an approach that’s working. More jobs are now being created by global companies in the region than in any UK location outside of London,” he said.
“My recent trade missions to India and China, alongside the Prime Minister, have opened even more doors for our businesses, universities and other investors. Getting more deals over the line with some of the world’s biggest players will help deliver my number one priority as Mayor, a stronger economy with more high-quality jobs for local people and more money in their pockets.”
Claire Ward, Mayor of the East Midlands, said the figures reflected confidence in the wider region. “These figures underline the Midlands’ continued strength as a destination for international investment in a highly competitive global market, and demonstrates sustained investor confidence in our people, businesses and places,” she said. “For the East Midlands, international investment creates high-quality jobs, strengthens local supply chains, and expands opportunity in communities across our region.”
Neil Rami, chief executive of the West Midlands Growth Company, struck a more cautionary note on what it will take to keep the momentum going. “Our unmatched scale, connected innovation ecosystem and deep talent pool make the region a compelling proposition for international investors,” he said. “However, in an increasingly competitive global market, investment does not simply follow economic fundamentals. Sustaining growth will require continued targeted intervention, strong international partnerships and a clear, market-led proposition that aligns investor demand with local opportunities.”
The picture is reinforced by separate official data. The Department for Business and Trade’s inward investment results for 2025/26 show the West Midlands attracted more FDI jobs, 18,036, over the past three years than any UK location outside London. The region secured 10 per cent of all UK projects and 18 per cent of projects and jobs created outside the capital, with its 25 per cent fall in projects broadly mirroring a 26 per cent national decline.
Behind the statistics sit a string of concrete wins. Networking and security giant Cisco has chosen STEAMhouse in Birmingham’s Knowledge Quarter, part of the West Midlands Investment Zone, as the home of new office space.
Adele Every, managing director, public sector at Cisco UK and Ireland, said the city’s assets made the decision straightforward. “Top tech talent, world-class innovation infrastructure and a collaborative ecosystem are key to our mission of powering an inclusive future for all. Birmingham’s strengths in these areas were clear to see, making it the obvious location for our new regional hub.”
Other arrivals span fintech, fashion and software. Islamic property finance provider Offa has invested in new offices in Solihull, where executive chairman Sultan Choudhury said the firm’s team had doubled in size over the past year. Australian fashion brand Hello Molly has opened an e-commerce warehouse in Dudley, with operations director Ena Eaton praising the region’s “excellent transport and logistics infrastructure”. Software provider Target Integration has set up in Coventry through the West Midlands Global Growth Programme, with chief executive Rohit Thakral citing the city’s proximity to the West Midlands tech sector and the University of Warwick Science Park.
The Growth Programme, which offers tailored support to help international businesses navigate the UK investment process, is now accepting applications for 2026.