The headline numbers on British inward investment this year have not been flattering. Foreign direct investment projects into the UK fell 14% in 2025. FDI value dropped by a fifth, to £54bn. Britain’s share of global sovereign capital slipped from 13% to 9%.
Read only that, and you might conclude the door is closing.
Look more closely and London tells a different story. It was the only English region to grow its FDI last year. Its share of all UK projects rose from 31% to 38%. It remains Europe’s leading city for tech investment, with more than twice as many projects as Paris. And when 360 international decision-makers were asked which global city would be most attractive over the next three years, they put London first, ahead of New York.
In my conversations with families and businesses looking at Britain, I see the same pattern. Capital is becoming more selective, not more timid. It goes where talent, law, finance and time zone sit together, and London still offers that combination better than almost anywhere.
I would add two notes of caution. Investors expect Paris to edge ahead in Europe this year, so there is no room for complacency. And when the capital wins while the regions stall, that is good news for London but an open question for Britain.
For anyone weighing a UK entry, my view is simple. London is still the front door. The more interesting conversation is what you build behind it.
Over the coming year I’ll be writing twice a week on where capital is moving, from Texas and Miami to Malta, Zurich and Tokyo, and on the relationships that move it.
#ForeignDirectInvestment #London #InternationalBusiness