Foreign Direct Investment has been increasing across all sectors of the UK economy – including in construction and infrastructure. What impact will this have on these sectors and why is the UK an attractive place for foreign investors?
The growing influence of overseas investors and contractors in UK construction and infrastructure has been a hot topic in recent years. The emerging influence is part of a wider trend of increasing Foreign Direct Investment (FDI) across all sectors of the UK economy. This trend prompted the Prime Minister to boast in June last year that "the scale of foreign investment is a huge success story, which shows that Britain is the place to do business".
The numbers certainly appear impressive. The most recent UKTI report on inward investment confirmed the UK's ongoing status as the leading destination for FDI in Europe, after attracting nearly 2,000 projects in 2014/15 (12% higher than in the previous year). But this is measured across the full spectrum of the economy, and the concept of 'projects' for these purposes carries a wide definition. A large proportion of these simply comprise the establishment by foreign businesses of outlets to market their own goods and services. So does the hype reflect the real situation on the ground?
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FDI: Where Next For Global Investment In The UK Construction Industry?
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