Britain has climbed the global league table for foreign direct investment (FDI), becoming the third-largest destination worldwide for newly announced FDI projects between 2022 and 2025. This marks a significant jump from its fourth-place ranking in the period from 2015 to 2019, and shows the UK is increasingly viewed as a competitive, attractive place for global investors.
According to a new report by McKinsey published on 15 January 2026, much of this growth is being driven by booming investment in artificial intelligence (AI) and clean energy sectors. These thriving industries are drawing substantial capital into the UK economy, helping to boost the country’s profile on the world stage.
Over the three-year period, the UK attracted an inflation-adjusted average of around $85 billion a year in FDI, a 40 % increase on pre-COVID-19 levels and well above the global average increase of 20 %. That puts British investment appeal well ahead of major European peers such as France and Germany, which saw annual averages of about $45 billion and $43 billion respectively.
This surge in investment matters because FDI can bring jobs, innovation and economic growth. By drawing capital into cutting-edge technology and green industries, the UK is building strengths in areas likely to shape future global competitiveness. It also helps diversify the economy and support longer-term productivity improvements.
Alongside this progress, the McKinsey report underlines the UK’s potential to broaden its investment appeal even further. By drawing in FDI across a wider set of sectors, policymakers believe the country can boost productivity and build on the strong foundations already established in AI and clean energy.
Overall, the UK’s improved ranking highlights its ability to compete for global capital in dynamic, future-focused industries – a positive signal for the economy’s resilience and innovation potential.
