UK FDI stock trend
The UK’s inward stock of FDI of £1.2 trillion in 2016 came mainly from the UK’s top trading partners – the EU £552 billion (46% of total), the US £294 billion (25%) and non-EU Europe £133 billion (11%) see Figure 7.7.
Note that the ONS changed its method for collecting FDI statistics from 2020 onwards and advise caution in comparing FDI data pre- and post- 2020.
By 2024, the inward FDI stock was £2.1 trillion, which included EU stock of £762 billion (36%), USA £640 billion (30%) and non-EU Europe £204 billion (10%).
Please note that FDI stock figures change due to exchange rate movements as well as flows.
Figure 7.7: UK inward FDI positions by partner region, 2016 to 2024
Source: ONS, Inward foreign direct investment (FDI) involving UK companies (directional): inward, January 2026
UK inward FDI stock by sector
Inward FDI stock in 2024 was concentrated in seven principal industry categories accounting for 90% of stock:
- financial services £592 billion (28%)
- manufacturing £389 billion (18%)
- other services £229 billion (11%)
- professional scientific and technical services £195 billion (9%)
- retail and transport £190 billion (9%)
- administrative and support service activities £175 billion (8%)
- information and communication £147 billion (7%)
Some observations from Figure 7.8:
- largest contributor to the UK’s inward FDI position in 2024 was financial services with 28%:
- its inward FDI position increased 2020 to 2023 by £70 billion, but then dipped by £30 billion in 2024;
- manufacturing is still an important area of investment with 18% of stock;
- professional, scientific and technical services have declined each year since 2021 by a total of £120 billion:
- there has been an increase in admin and support services of £43 billion in the same period;
- information and communications industries also fell by £57 billion in 2024.
Figure 7.8: UK inward FDI stock by sector 2020-2024
Source: ONS, Inward foreign direct investment (FDI) involving UK companies (directional): inward, January 2026
Brexit impact on FDI inflows
The 2023 value of UK inward FDI flows relative to GDP experienced the sixth year of decline since 2016 (see Figure 7.9). However, there was a slight increase in 2021. Note that 2016 was a record year for inflows due to a few high-value mergers and acquisitions.
Brexit and the associated political and economic uncertainties have delayed investment decisions and reduced annual domestic business investment. The same is likely to have applied to FDI. Nevertheless, the EU remained a significant source of inward FDI in 2023 (see Figure 7.10).
UK FDI inward flows tends to mirror global trends, which showed a decline for developed economies in 2023 over 2022, as well as in 2024 over 2023.
Figure 7.9: Trend in net FDI inflows to the UK 2014 – 2023
Figure 7.10: Sources of UK inward FDI in 2023
