UK secures 25% of region’s foreign direct investment despite drop in projects
The UK has retained its status as the leading European destination for foreign direct investment (FDI) in financial services, according to EY’s latest Attractiveness Survey for Financial Services. However, the volume of FDI projects has fallen significantly across the region.
The UK attracted 73 financial services FDI projects in 2024 — a 32% drop from the 108 projects recorded in 2023. Nonetheless, it remained ahead of Germany and France, which hosted 32 and 30 projects respectively. Germany’s total was down 16%, while France experienced a 23% decline.
With these figures, the UK accounted for 25% of all financial services FDI projects in Europe in 2024, down from 33% the year before. Germany and France each held steady at 11% and 10% respectively.
While major markets saw declines, Switzerland, Spain, Italy and Luxembourg posted gains. Switzerland saw a 60% increase in projects, rising from 15 to 24. Spain’s projects rose 29% to 22. Italy saw a 113% increase from 8 to 17, and Luxembourg posted a 20% gain, rising from 10 to 12.
The number of newly launched financial services projects in Europe saw only a slight increase — rising from 233 in 2023 to 234 in 2024. In the UK, the number of new projects dropped from 85 to 53. Germany recorded 28 new projects (down from 32), and France recorded 17 (down from 22). Spain increased from 14 to 21 new projects, while Switzerland rose from 11 to 21.
Job creation tied to financial services FDI declined across Europe for the first time in three years. In the UK, disclosed job figures dropped by more than half — from 5,019 in 2023 to 2,408 in 2024. Across the EU, employment figures also declined by 33% year over year.
London remained the top European city for financial services FDI, despite its project count falling from 81 in 2023 to 39 last year. Paris followed with 23 projects, while Madrid and Zurich shared third place, each with 14. London also led in new project counts with 34, ahead of Madrid (14), Milan (13), Zurich (12), Munich (11), and Paris (11).
The US remained the dominant source of European financial services investment, backing 72 projects in 2024 — a 21% decline from 2023. The UK continued to attract the largest share of US-backed projects in Europe, though its total dropped from 38 to 28. The UK still received 38% of all US financial services FDI into Europe, above its 10-year average of 34%.
“While geopolitical and macroeconomic uncertainty has weighed on investor sentiment and business confidence this past year, cross-border investment remains key for global financial services firms as they look for growth and competitive advantage,” said Omar Ali (pictured), EY Global Financial Services Leader.
“Global investors are undoubtedly still committed to Europe’s deep capital markets and highly skilled workforce, and although investment fell both overall and in the region’s biggest markets in 2024, a number of financial centres bucked this trend. Switzerland, Spain, Italy and Luxembourg all recorded a rise in foreign investment, in part due to the progressive policy environment and specialist sector expertise they offer.
“Outside of Europe’s borders – notably in New York, Singapore and Hong Kong – competition is strong. With FDI levels down on previous years, it is more important than ever that Europe’s major markets find ways to outwardly demonstrate the pull factors that investors are looking for and collaborate where needed to keep investment within the region.”
Meanwhile, a separate global investor survey conducted in May 2025 found that 86% believe the UK will maintain or increase its attractiveness over the next three years, up from 75% in 2024. London was named the most attractive European city for financial services investment by 54% of respondents.
Despite market uncertainty following new trade tariffs, investors still favoured the UK over the EU and US as an FDI destination, with 44% more likely to invest in the UK.
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