Scotland popular for foreign investment projects

EY's Attractiveness Survey shows the country has retained its 'premier position' because of an FDI growth rate higher than the UK as a whole.

Analysis of FDI projects during 2017 shows it was the top performing location in the UK outside London.

Scotland secured 24% of R&D projects coming into the UK - a 70% year-on-year increase.

Paul Lewis, managing director of Scottish Development International (SDI), said: 'This survey illustrates that Scotland is now firmly established as a location of choice for global investors.

'To be the number one UK location for R&D investment and the number one UK FDI location behind London generally is a tremendous achievement.'

The report found there was a 104% increase in FDI job creation in Scotland, reflecting a shift towards larger projects

There was also a 56% increase in digital FDI projects, making this Scotland's second largest sector after business services.

A 25% increase in manufacturing FDI projects was also reported.

Scotland's attractiveness has held steady, according to the study while London's has decreased.

Edinburgh, Glasgow and Aberdeen took third, sixth and eighth place respectively.

The top five countries investing in Scotland were the US (36 projects), Norway (10), France (nine), Ireland (seven) and China (six).

Mr Lewis added: 'In recent years, our inward investment activity has become more focussed, targeting our resources on those areas of opportunity and companies where we see more likelihood of success.

'It's great to see that these efforts have paid off and we're starting to make inroads in areas like digital and high value R&D projects, and increasing investments from markets like China.'

Murdo Fraser, finance spokesman for the Scottish Conservatives said: 'As soon as the Brexit vote happened the SNP tried to create the impression it would be catastrophic for Scotland's economy.

'Instead, Scotland appears to have become more attractive after that result.

'The outcome of the 2017 general election, with a setback to the SNP making indyref2 much less likely, may well have been a factor too.'