Direct Foreign Investments UK


According to the World Bank, the UK is one of the most preferred destinations for foreign investment. At one point, the UK had overtaken the US in terms of both inwards and outwards FDI. On the average, the UK has had up to US$1 trillion in FDI. That makes it the best place to conduct business in Europe and the world in general. Ranked fifth by the World Bank, there are numerous investments in UK business opportunities both in the service and production industries for which an interested company can invest. Even at the height of the recession, the UK continued to perform relatively well. At the back of this good FDI attraction are aspects such as the UK’s Tax Policies. Competitive and flexible, a 28% rate is applicable for corporate and 21% for small companies.


The UK has been able to attract small FDI that has majorly formed the bulk of its earnings. When compared to the other G7 nations, it is one of the easiest places to start and run a business with a maximum of utmost 13 days to start and run your business. In addition, the UK comprises the biggest e-commerce market in the European continent that means foreign business access a far bigger market. In the year 2009, investment in UK generated about 35,000 new jobs with over 1500 foreign companies making inward investments in the UK, marking an 11% increase from the previous financial year.


The UK has over 1500 FDI projects per annum, when tallied from the 2009 figures. The significance of International trade to the UK economy is huge. Foreign investment in UK has over time advantaged from Investor confidence for its suitability as an FDI magnet. Most companies seeking to expand their businesses in Europe tap into the over 400 million consumers by locating their businesses in the UK.


The increased FDI in the UK has been in a number of sectors such as ICT, Engineering, Financial sector, Real Estate amongst a host of other small business opportunities for foreign investors interested in the UK. An increase in the manufacturing power of the UK as a result of FDI has seen it maintain position six as one of the world’s largest manufacturers. Therefore, investment in UK has been marked by an increase in inward FDI with the different sectors experiencing marked booms and percentile growth.