Published by Global Banking & Finance Review®
Posted on January 15, 2026
2 min readLast updated: January 19, 2026
Add as preferred source on GoogleThe UK ranks third for new FDI projects, driven by AI and clean energy. McKinsey highlights the need for diverse investments.
LONDON, Jan 15 (Reuters) - Britain has moved up the rankings as a destination for new foreign direct investment, helped by growth in artificial intelligence and clean energy, but needs to do more to attract other types of investment, consultancy McKinsey said.
The United Kingdom was the world's third-largest destination for newly announced FDI projects between 2022 and 2025 - behind the United States and India, up from fourth place in 2015–19, McKinsey said in a report published on Thursday.
Inflation-adjusted inflows averaged about $85 billion a year, 40% higher than before the COVID-19 pandemic and stronger than a 20% increase in global announced FDI, it said. By comparison, France and Germany attracted averages of $45 billion and $43 billion.
Britain's government has said it wants to attract more foreign investment as part of its push to speed up the country's weak productivity and overall economic growth.
McKinsey also said:
* Much of Britain's new FDI is concentrated in clean energyand AI deals worth more than $1 billion each with relativelylittle flowing into advanced manufacturing in areas such asbatteries for electric vehicles and semiconductors; * Around 80% of announced inflows to Britain came fromEurope and the United States with Britain at risk of missing outon investment from the Gulf, South Korea, Taiwan and elsewhere; * Announced FDI in fossil fuels in Britain fell by around80%compared with a decline of around 30% globally, possiblyreflecting increased taxes on oil and gas companies.(Writing by William Schomberg; editing by David Milliken)
Foreign direct investment (FDI) refers to an investment made by a company or individual in one country in business interests in another country, typically by establishing business operations or acquiring assets.
Artificial intelligence (AI) is the simulation of human intelligence processes by machines, especially computer systems, which can perform tasks such as learning, reasoning, and problem-solving.
Clean energy is energy derived from renewable, zero-emissions sources, such as solar, wind, and hydroelectric power, which have a minimal impact on the environment.
Explore more articles in the Finance category
