The Midlands has surpassed every other region outside of London for foreign direct investment (FDI) employment, creating nearly 6,000 jobs last year despite a record low in UK investment.
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. This makes it the leading location for overseas-backed employment outside of London, a notable result in a year when global investors turned cautious.
The Midlands 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 is pointing upwards, with the West Midlands now seen as the third most attractive UK region for companies planning to invest, and Birmingham ranking as the second most sought-after city outside of London.
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.
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.
The region's momentum builds on a longer run of form. The Midlands 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.
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.
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."
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. 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 over the past three years than any UK location outside London.
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. A fintech, fashion, and software have also made significant investments in the region, citing the area's strengths in innovation, infrastructure, and talent.
The West Midlands Growth Company's Global Growth Programme, which offers tailored support to help international businesses navigate the UK investment process, is now accepting applications for 2026.
