Wales has recorded a rise in inward investment projects for 2025-26, though the number of promised new jobs has declined compared to the previous year. According to figures from the UK Government's Department for Business and Trade, Wales attracted 75 inward investment projects in 2025-26, up from 65 in 2024-25. These projects include both first-time investments by overseas firms and expansions by companies already operating in Wales.
Job Creation Figures Decline
The new projects are expected to create 1,617 jobs, a significant drop from the 2,470 jobs promised by foreign direct investment in the previous financial year. This decline mirrors a broader UK trend, where total inward investment projects fell to 1,020 from 1,375 a year earlier, with promised jobs decreasing to 69,166 from 69,355.
Origins of Investment
US firms and investors led the UK inward investment with 239 projects, followed by India with 93, France with 64, Germany with 62, and Ireland with 45. London attracted the highest number of projects, accounting for around a third of the UK total with 326, followed by the North West with 115. Scotland attracted 94 projects, Northern Ireland 33, and the North East of England had the lowest number with 23.
Welsh Government's Role
While the Welsh Government has devolved powers to support foreign direct investment, the UK Government also plays a role. The new Plaid Cymru administration in Cardiff Bay plans to establish an arm's length development agency to handle inward investment. This agency aims to strengthen links between investors and local supply chains to boost Welsh productivity.
Official Reactions
Secretary of State for Wales, Jo Steven, said: "These latest figures show that Wales is punching above its weight. The UK Government is backing the industries of the future in Wales and creating the right conditions to attract yet more investment. This has been a driving motivation behind our new initiative, Brand Wales, which is designed to attract inward investment and promote Wales as a brilliant place to do business. We want to ensure that the economic opportunities offered by Wales sit at the forefront of the minds of global investors."
Cabinet Minister for Enterprise, Connectivity and Energy, Adam Price, commented: "Inward investment can play a crucial part in our goal to half the productivity gap with the rest of the UK. It's encouraging to see Wales bucking the trend as the only part of the UK to see an increase in inward investment projects. But to meet our productivity goal we need to ensure that investment creates resilient and well-paid jobs and contributes to the long-term competitiveness and performance of the Welsh economy. Inward investment should strengthen Welsh firms, deepen supply chains, support priority economic platforms, increase exports, bring technology or management capability into Wales, and help retain more value in the Welsh economy. A new Welsh innovation and development agency will lead our approach to inward investment and make Wales the easiest place in the UK for investors to say yes. Above all, investment must deliver for the people of Wales and lead to higher productivity and shared prosperity."
The foreign direct investment figures also include projects resulting from mergers and acquisitions.
