A new report has found that Scotland is the preferred choice for UK investment from foreign firms, for the second successive year.
The annual survey, carried out by professional service firm Ernst and Young, showed that nearly 6,000 jobs were created through foreign investment. This equates to an increase of 50% from 2010.
However, with a fall in foreign projects from 69 to 51, the decline has been sharper in Scotland. Foreign investment in the UK market is down by a total of 7%.
Such results have not surprised Ernst and Young. A senior partner at the firm, Jim Bishop said:
“Such a dip is not unusual given the volatility of annual project numbers.”
Bishop went on to say:
“As things stand, overseas companies looking to invest in jobs in the UK are more likely to choose Scotland than any other part of the country.”
The highest levels of investment from overseas is most likely to be directed into the service, software and equipment sectors. However, the most jobs are being created in retail, with Scotland a hot spot for online retailing.
Hard work put in by the Scottish government and Scottish Development International is said to be key to success. However, many companies are still struggling with finance internally.
As banks still struggle to apportion loans, many are finding success through the use of invoice factoring, however.
International investment is seen as a direction for Scotland to embrace though. With recent investments from the likes of Amazon, GlaxoSmithKline, Mitsubishi and Samsung, research and development are areas which are likely to maintain strong growth in the future.