Wales sees 23% year-on-year surge in foreign investment
Wales sees 23% year-on-year surge in foreign investment
Subscribe to the Businessin Wales daily newsletter for FREE here.
Wales has recorded a major increase in foreign direct investment (FDI) over the past year, with new figures showing strong growth in both the number of projects secured and jobs created.
According to the UK Department for Business and Trade’s latest annual report on FDI, Wales attracted 65 investment projects in 2024-25, representing a 23% year-on-year increase, the second highest growth rate among all UK nations and regions.
This wave of investment has led to the creation of 2,470 new jobs, a 30% rise on the previous year, also the second highest increase across the UK. In addition, 1,652 jobs were safeguarded by foreign-backed projects in Wales, the highest number recorded across all UK regions.
The Welsh Government credits its proactive approach to investment promotion, including targeted sector engagement, site selection support, and strong links with academia and skills pipelines, for the uptick in interest.
“Despite political and economic headwinds globally, Wales has once again seen a significant increase in foreign investment,” said Rebecca Evans, Cabinet Secretary for Economy, Energy and Planning.
“FDI-related job creation is at a nine-year high, and it reflects the strength of our pitch to international investors, from Delhi to San Diego, that Wales is a world-class place to do business.”
Key projects over the past year have spanned manufacturing, sustainability, and advanced engineering.
Among them is a £1 billion redevelopment of Shotton Mill Ltd, owned by Turkey’s Eren Holdings, which will become the UK’s largest paper manufacturing campus. Supported by £13 million in Welsh Government funding, the project has safeguarded 147 jobs and will create a further 220 once operational.
Elsewhere, Halton Flamgard, part of Finland’s Halton Group, has relocated to the new RYB1 low-carbon facility in Ebbw Vale, following an £8.9 million Welsh Government investment. The expansion will see headcount at the firm more than double from 70 to 168 by 2028.
First Minister Eluned Morgan welcomed the latest results, highlighting the government’s strategic focus on inward investment as a driver of quality job creation.
“Attracting overseas investment is a key pillar of our economic strategy,” she said.
“These figures demonstrate the confidence global investors have in the Welsh economy. Our upcoming International Investment Summit will offer another opportunity to showcase Wales to the world and secure further investment into key sectors.”
With momentum building and investment levels at their highest in nearly a decade, Wales is positioning itself as a competitive destination for global business looking to grow within the UK.
