Investment summit brings global players to Edinburgh
There is a collective ambition to drive growth that policymakers must match, says Jason Windsor
As every savvy investor knows, past performance is no guarantee of future results. When it comes to Scotland’s financial services sector, the same rule applies.
For more than 300 years, Scotland has played a prominent role in shaping and growing the world’s financial services. Those origins remain the backbone of a financial and professional services industry that employs over 135,000 people in Scotland today.
But ensuring that Scotland continues to enjoy a seat at the top table of global finance requires a clear strategy and a plan of action. That’s why we welcome next week’s Global Investment Summit taking place in Edinburgh.
For Aberdeen Group, Scotland offers a home where the eco-system needed to support a large-scale investment business is well-established; a sufficiently deep talent base across front, middle and back-office roles and a pipeline of well-prepared graduates; suitably skilled lawyers, accountants and other adjacent services, strong transport links and a high quality of life.
These attributes are deep-rooted, but against an increasingly competitive international landscape, they offer no long-term guarantees. A focus at every level of government is needed to ensure Scotland remains the obvious choice for companies like ours for decades to come. And that requirement can also be applied to ensuring Scotland is an attractive place to invest.
As our home market, Aberdeen is a huge supporter of Scotland as somewhere that can offer attractive investment opportunities. In private markets like real estate, infrastructure and private credit, we manage assets worth well in excess of a billion pounds across Scotland. This includes projects like the recently announced Clyde Gateway East, clean energy investments from onshore wind in the South West to hydro power in the Highlands, financing for schools and hospitals, as well as offices, retail and logistics. In life sciences, another focus area for this week’s summit, we invest in a range of firms who operate in Scotland.
But we can’t stand still if we want Scotland to remain a great place to run a large business, nor can we afford to be complacent when it comes to attracting investors. Demand for capital to support rapidly developing areas like the energy transition, or life sciences, is growing across the world. Competition is intense and global investors are very happy to prioritise where they believe will offer the best returns.
So, how do we ensure Scotland – and the rest of the UK – can remain in front? There are some key areas where government action is required.
Creating a well-developed pipeline of prioritised investable projects is critical. There is no shortage of projects that would benefit from private finance, so it’s about getting them to a point where investors can get on board. This includes areas like planning approvals. It’s positive that both the UK and Scottish governments have committed to improvements here, although progress remains slow.
Strengthening supply chains now is also vital for ensuring investment-ready opportunities in future. That means expanding the skilled workforce who will be able to deliver in burgeoning areas like clean tech.
Perhaps even more important is the appetite from government to create a business-friendly operating environment. Business confidence has been knocked by policy changes in areas like taxation and rent controls, so it’s encouraging to hear a more positive narrative coming from the Scottish Government on private sector investment. As ever, actions will speak louder than words.
The presence next week of senior representatives from the UK and Scottish governments, the Bank of England and the FCA, as well as numerous business leaders, demonstrates the collective ambition to drive growth. What policymakers do over the next few years will determine whether Scotland does justice to its heritage. Businesses like Aberdeen are standing by to do all we can to support those efforts.
Jason Windsor, CEO, Aberdeen Group
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