The North East attracted 42 foreign direct investment projects in 2024, marking the region’s highest total since 2017. The figure represented a 10.5 per cent increase on its 2025 total, according to EY’s latest UK Attractiveness Survey.
The North East’s annual rise in projects contrasted with a national decline of 13 per cent as the majority of UK regions attracted fewer FDI projects in 2024 than they did the year before.
During the year, Newcastle was the UK’s seventh best performing city for securing FDI, up from 11th in 2023.
Assessing FDI projects by sector reveals that the North East welcomed a diverse range of inward investment projects last year. Transportation manufacturing and supply, which includes automotive and aerospace companies, Utility Supply, which includes renewable energy companies, professional services and financial services were all equally prevalent, with the region attracting five projects from each sector in 2024.
While software and IT services has been the leading sector for driving FDI in the North East over the last decade, this was not the case last year, with the region attracting just two tech-related FDI projects in 2024.
In the North East, the UK remains the leading origin of FDI, while the top five was rounded out by France, Ireland, Belgium and Germany.
Michael Scoular, EY’s Newcastle office managing partner, said: “The North East’s performance in attracting FDI was encouraging in 2024, with the region displaying its ability to secure projects in strategically important areas such as manufacturing and business services. With the UK’s overall project numbers down, the fact that the North East total saw year-on-year growth is testament to the region’s resilience and versatility. Looking beyond this year, our latest investor sentiment survey results also bode well for future prospects, with 11 per cent of those looking to invest in the UK over the next 12 months planning to establish or expand operations in the North East.
“However, FDI-related employment figures, which can be volatile from year to year, were down quite significantly in 2024 – an area to build and improve on going forward to support prosperity and opportunities across the region. UK FDI projects, including in the North East, could be impacted by the current complex global trade landscape, so continuing to promote our great region and our distinct strengths – particularly in manufacturing – to global investors will be a top priority amid a volatile business landscape.
“Our survey highlights that access to a skilled workforce, the availability of partners and suppliers and the strength of local transport infrastructure are key criteria for global investors when considering locations outside London, so collaboration between local and national policymakers to support these priority areas in the North East will be pivotal going forward.”
