The UK FDI Regime Compared

The UK vies consistently for the top spot on the annual global rankings for attracting foreign direct investment. It is a source of pride for every incumbent of 10 Downing Street: a tangible metric that supports the attestation that the UK economy is the most open and business-friendly country, globally.

It is therefore perhaps no surprise that the UK has for so long resisted calls to follow its allies such as the US, Australia and Germany in introducing legislation designed to weed out investors with potentially nefarious intentions from sensitive aspects of the economy.

Such governments have sought to both strengthen their powers to scrutinise and intervene in transactions where it is necessary to protect national security, while providing investors with both certainty and transparency. This is a delicate balance, especially when threats to national security manifest themselves in evolving and novel ways, which can soon make a mockery of any legislation designed