Birmingham has emerged as the UK city with the greatest growth potential, ranking first in a recent assessment of locations most attractive to foreign investment. The city also secured the third-highest overall position in the Investment Confidence Index, which evaluates 48 UK cities based on factors influencing their appeal to international investors.
Achieving a Growth Potential score of 59.6, Birmingham stands more than six points ahead of London, which came in second place. Overall, the city ranks just behind London and Edinburgh, while placing ahead of Oxford and Manchester city. Notably, Birmingham ranks slightly behind the Greater Manchester region as a whole. The index was compiled by the Centre for Economics and Business Research (Cebr) on behalf of legal firm Irwin Mitchell.
This ranking provides a valuable boost to Birmingham as the regional government under Andy Burnham advances its devolution agenda, aiming to distribute economic growth more evenly across the UK. However, the report cautions that devolved powers alone will not guarantee investment success. Instead, it highlights the importance of regions leveraging autonomy to enhance skills development, infrastructure, and investment-ready opportunities to attract international capital.
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The findings further stress that local competitiveness will become increasingly critical, emphasising the need for Birmingham’s business leaders, politicians, and influencers to actively promote the city’s advantages and support initiatives that build skills and infrastructure.
Bryan Bletso, Head of International at Irwin Mitchell and a corporate lawyer advising international firms on UK investments, commented: “The personalities, partnerships and ambitions of individual cities and regions may become even more important in shaping how the UK presents itself to overseas investors. Birmingham’s position as the UK’s leading location for growth potential, alongside its fourth-place overall ranking, confirms that it remains one of the country’s strongest investment destinations.
“This is particularly significant as competition for international investment remains intense. The West Midlands’ new funding settlement gives regional leaders greater flexibility over areas that influence investment decisions, including transport, skills and economic development.
“The opportunity is to use that flexibility to improve the practical offer to investors, including access to skills, infrastructure and suitable locations.”
The index’s publication comes amid a challenging environment for foreign investment in the UK. The number of major foreign projects fell by 25.8%, declining from 1,375 in 2024/25 to 1,020 in 2025/26. Despite this, these projects still created 69,166 new jobs and safeguarded 16,407 existing roles nationwide.
Within this context, the West Midlands secured 98 foreign direct investment (FDI) projects in 2025/26, ranking second highest among English regions outside London. These projects were associated with 4,634 new jobs.
The consultancy’s analysis also highlighted that sectors such as software, financial services and professional services lead in attracting investment and are expected to drive future growth.
Birmingham benefits notably from its inclusion within the West Midlands Investment Zone and its economic zones, which provide tax incentives and flexible funding options to investors.
Other local cities included in the index include Coventry, ranked 23rd, Wolverhampton at 33rd, and Solihull at 36th.