Edinburgh has climbed above Greater Manchester in the latest foreign direct investment attractiveness league table of UK city locations, a study shows.
The Scottish capital climbed two places to secure sixth position, also moving above Birmingham, the study produced by law firms Wright, Johnston & Mackenzie, and Irwin Mitchell shows.
Glasgow meanwhile climbed four places to 11th spot.
The law firms’ investment attractiveness index has been compiled by the Centre for Economics and Business Research (Cebr). It is focused on the largest cities and ranks a top 50 according to “eight indicators related to growth potential, local infrastructure, and local skills”.
London commands the top three spots.
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The study places “inner London” first, “London” second, and “outer London” third.
In fourth place is Brighton, and in fifth spot is Oxford.
Wright, Johnston & Mackenzie, and Irwin Mitchell noted Edinburgh was tied in first place with Oxford on the “qualification levels indicator”.
Aberdeen climbed three places to 39th spot in terms of the overall FDI attractiveness rankings.
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The law firms noted improvements for Aberdeen “in the local skills pillar”, a segment in which the Granite City rose two places to rank 12th.
They said of Edinburgh: “Its overall attractiveness score is 5.7 points lower than the previous year. This decline aligns with the trend observed in most of the other cities analysed. The reduction in the overall score is primarily attributed to a decrease in growth potential, driven by lower predicted GVA (gross value added) growth in 2024 compared to 2023.”
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The law firms added: “The report reveals Edinburgh performed impressively in the local skills pillar, having the highest score out of all 50 locations for qualification levels.”
Bryan Bletso, partner and head of international at Irwin Mitchell, said: “The results in our report point to challenging conditions and mirror the sentiment amongst both businesses and overseas investors that we are speaking to.
“Edinburgh excels in the pillars of local skills and local infrastructure, ranking fifth in each. On an indicator level, the Scottish capital ties with Oxford for first place in the qualification levels indicator and boasts a large economically active population, ranking in the top 10.
“It has also seen significant improvement in online connectivity over the year, which, combined with high public transport usage, makes it an attractive investment destination based on the education levels of locals and the presence of reliable digital and physical infrastructure.”
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