# The Top 6 UK Sectors for Foreign Direct Investment 2016-17
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2018-03-20
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: UK FDI Projects Rise by 2% in 2016-17
Meta Description: Discover the latest trends in FDI projects and job numbers in the UK. Software and Computer Services lead the way with 418 projects in 2016-17.
URL: https://financedigest.com/the-top-6-uk-sectors-for-foreign-direct-investment-2016-17html

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- 2,265 FDI projects secured in 2016-17, a rise of 2%.
- Total FDI jobs down by -7%, falling from 115,974 to 107,898 in 2016-17.
- Software and Computer Services is number one for FDI, with 418 projects 2016-17.
- The [South East](https://www.financedigest.com/the-south-east-asia-residential-water-treatment-equipment-market-to-be-on-the-mobility-move.html "The South East Asia Residential Water Treatment Equipment Market To Be On The Mobility Move"), West Midlands and North West hold the highest number of FDI projects.
- America [remains the UK’s largest source of inward investment](https://www.financedigest.com/unregulated-investment-schemes-remain-a-threat-to-investors.html "Unregulated Investment Schemes Remain a Threat to Investors"), providing 557 FDI projects.
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It has been reported by GOV as per the report _UK FDI Investment, [Trends and Analysis:](https://www.financedigest.com/outside-door-handle-market-analysis-trends-top-manufacturers-share-growth-statistics-opportunities-and-forecast-to-2027.html "Outside Door Handle Market Analysis, Trends, Top Manufacturers, Share, Growth, Statistics, Opportunities and Forecast to 2027") 2018_ that growth in the value of the foreign direct investment (FDI) positions held in the UK by overseas investors (FDI liabilities) exceeded that of UK FDI positions held abroad (FDI assets) in 2016.

This resulted in the **UK’s net FDI position falling from £50.8 billion in 2015 to £12.5 billion by 2016**, the [lowest net position since](https://www.financedigest.com/britains-cost-of-living-crisis-sends-sterling-to-lowest-since-mid-july.html "Britain’s cost of living crisis sends sterling to lowest since mid-July") comparable records began in 1997.

**Inspired,** [Turnerlittle.com](http://Turnerlittle.com) **took time to consider the projects and jobs created by FDI in the UK, identifying the 6 sectors benefitting from this type of investment the most.**

Figures from the _Inward_ [Investment Results 2016-17 report released by the Department for International Trade](https://www.financedigest.com/investment-banks-trading-revenue-likely-to-shrink-barclays-boss-says.html "Investment banks’ trading revenue likely to shrink, Barclays boss says"), declare total **FDI projects in the UK rose by 2%** in 2016-17, from 2,213 (2015-16) to **2,265**. This comprises projects by “existing investors” in the UK (1,212) and projects by “new to the UK” investors (1,053.)

Types of foreign direct investment taking place include **New Investments** – up by 9%, **Expansions** – down by – 5% and **Mergers and Acquisitions** (including [Joint Ventures](https://www.financedigest.com/bp-solar-joint-venture-expanding-in-australia-with-two-new-projects.html "BP solar joint venture expanding in Australia with two new projects")) – down by -6% in 2016-17. Further, the **USA** remains the UK’s largest source of inward investment; providing 557 projects, followed by the rest of **Europe, Middle East and Africa**(261) and **China and [Hong Kong](https://www.financedigest.com/luxury-yacht-owned-by-sanctioned-russian-oligarch-docked-in-hong-kong.html "Luxury yacht owned by sanctioned Russian oligarch docked in Hong Kong")**–with 160.

However, the increase in total FDI [projects](https://www.financedigest.com/automotive-variable-oil-pump-market-expanding-at-a-healthy-2-9-cagr-the-market-size-is-projected-to-total-us-10-6-bn-by-2030.html "Automotive Variable Oil Pump Market Expanding at a healthy 2.9% CAGR, the market size is projected to total US$ 10.6 Bn by 2030") is not mirrored in total jobs, **with roles suffering a -7% fall** from **115,974**(2015-16) to **107,898** in 2016-17. New roles decreasing from 82,650 (2015-16) to 75,226 in 2016-17.

In a table created by Turner Little, it is evident where projects are feeding a [healthy](https://www.financedigest.com/automotive-light-bars-market-expanding-at-a-healthy-5-3-cagr-the-market-size-is-projected-to-total-us-1-3-bn-by-2029.html "Automotive Light Bars Market expanding at a healthy 5.3% CAGR, the market size is projected to total US$ 1.3 Bn by 2029") workforce by comparing total projects and total new jobs in regions across the UK.

Turnerlittle.com found that excluding London, the **South East** (217), **West Midlands** (151) and the **North West** (147) hold the [highest number of foreign direct investment projects](https://www.financedigest.com/vegan-pasta-market-projected-to-record-highest-cagr-9-by-2021-to-2029.html "Vegan Pasta Market Projected to Record Highest CAGR 9% by 2021 to 2029"). This equates to **5,432** new jobs in the South East, **6,570** new jobs in the West Midlands and **6,501** new roles in the North West, 2016-17. Proving FDI to be a real asset in the UK.

In terms of industry, [Turnerlittle.com](http://Turnerlittle.com) found the UK’s **Software and Computer Services** sector to be number one for FDI, with 418 projects in 2016-17. This total is followed by the **Financial** [Services industry](https://www.financedigest.com/three-blockchain-application-scenarios-for-the-financial-services-industry.html "Three blockchain application scenarios for the financial services industry") (217) and **Business and Consumer Services (211.)**

Closing the [top six sectors benefitting from foreign direct investment](https://www.financedigest.com/top-5-investment-trends-to-watch-this-summer.html "Top 5 Investment Trends to Watch this Summer") the most are **Environment, Infrastructure and Transportation**, with 184 FDI projects in the UK, **Creative Media**(151) and **Advanced Engineering and Supply Chain**–with a total 146.

The top three sectors with the least FDI projects are **Chemicals and Agriculture** (50), **Extraction Industries** [and **Aerospace**](https://www.financedigest.com/aerospace-filter-market-surveys-opportunity-growth-and-forecast-by-end-use-industry-2021-2031.html "Aerospace Filter Market Surveys, Opportunity, Growth and Forecast by End-use Industry 2021-2031") (47).

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