How £30 billion will help Aberdeen undergo an ‘economic renaissance’

More than £30 billion is set to flow into Aberdeen and the surrounding region over the coming decade, marking the highest level of investment since the oil boom of the 1970s and 80s, a report today suggests.

Releasing the latest edition of its annual Investment Tracker, Aberdeen & Grampian Chamber of Commerce said Aberdeen City Region is expected to undergo an “economic renaissance” as clean energy projects move from planning into reality. Up to £22.2bn of energy projects are detailed in the seventh edition of the Tracker, launched at an event in Aberdeen alongside report sponsors Balmoral Group and Invest Aberdeen. The North-east of Scotland is set to become home to Great British Energy, the new UK government-owned energy firm.

Alongside energy project investment, billions of expenditure is planned in Aberdeen and Aberdeenshire, on transport infrastructure, commercial and residential property, new health and education facilities and sport, leisure and culture venues.

Recent times have seen Aberdeen's fortunes fluctuate with the ups and downs of the global oil market.

Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce, said: “When we first launched the Investment Tracker in 2016, it was to challenge misconceptions that Aberdeen was in decline. The reality is far different; and over the past eight years, we have witnessed a breath-taking pace of change, with billions invested in transformational projects.

“Aberdeen remains one of the UK’s top regions for foreign direct investment and economic output per capita. As we look ahead, our vision is clear: to cement North-east Scotland as a powerhouse for energy transition, innovation, and growth. With an extensive pipeline of projects spanning clean energy, housing, commercial developments and infrastructure, the Investment Tracker demonstrates that North-east Scotland is a region with new energy and limitless potential.”

In addition to the £30bn of investment projected for the years ahead, more than £7bn worth of projects have been completed since 2017. The Aberdeen Western Peripheral Route, a £750 million investment, is said to have significantly improved connectivity, while the £54m Aberdeen International Airport upgrade has modernised transport links.

In a joint statement, Aberdeen City and Aberdeenshire council leaders Ian Yuill, Christian Allard and Gillian Owen said: “The North-east of Scotland’s economy is underpinned by a rich history of brave, innovative and entrepreneurial thinkers. As a region, we have always been focused on forging the path ahead, capitalising on opportunities to deliver growth and make our mark on an international scale.

“This tracker demonstrates how our regional heritage is shaping our present and paving the way for our next chapter.”

It follows a warning earlier this week that the North Sea’s transient workforce could be “lost for good” unless the energy transition can be accelerated. Accounting and business advisory firm MHA said it believes 2025 could be “pivotal” in terms of seeing real momentum in the shift from oil and gas to renewables.

Mark Brown, an Aberdeen-based partner at MHA, said: “It’s crucial that the transition starts to see real signs of tangible progress in 2025 as there is a high risk of losing experienced personnel if the jobs just aren’t there. If this does not happen quickly enough, we are in danger of losing what is already a very transient workforce.”