Firms Continue to Invest in Newcastle and Gateshead Despite Challenging Market
Newcastle and Gateshead have continued to cultivate significant inward investment and business growth during the financial year 2025/26, with more than 30 businesses choosing to establish operations in the area. Figures from Invest Newcastle found 31 companies set up in the area, with 12 businesses expanding their presence.
Insider Media reported that the latest results show investment activity remained broadly consistent with historical averages, generating 1,619 new jobs and safeguarding 611 existing roles.
The figures include a mix of businesses investing in the region for the first time, alongside relocations from elsewhere in the region and wider UK.
Moreover, the latest EY UK Attractiveness Survey ranked Newcastle sixth in areas outside of London for Foreign Direct Investment (FDI) in 2025; however, Greater London was the only English region to see FDI growth in 2025.
Against this backdrop of falling overall FDI across the UK, Newcastle has maintained a steady flow of FDI projects, underpinned by its strong talent pipeline, competitive operating environment and established sector strengths.
Major investments during the year included German-owned industrial services business KAEFER, which relocated its UK and Ireland headquarters to Newcastle’s Quayside, bringing 200 jobs, and fintech scale-up Modern World Business Solutions (MWBS), which is creating 100 roles at Hoults Yard.
Building on this momentum, Invest Newcastle, led by Newcastle City Council and Gateshead Council in collaboration with Experience North East England, will continue to strategically position Newcastle and Gateshead’s offer to potential investors, inspiring more businesses to grow, invest and experience the region.
Cllr Owen Burbridge, cabinet member for economy, jobs and skills at Newcastle City Council, said: “While businesses around the world are becoming more cautious about expansion, Newcastle has delivered another year of strong and consistent performance, helping to create jobs, safeguard employment and generate significant economic value for the city. These results highlight Newcastle’s strategic position as the commercial engine of the North East’s economy.
“We are increasingly seeing businesses recognise our strengths as a leading centre for innovation, technology, professional services and talent. Whether companies are entering the market for the first time or consolidating activity from elsewhere in the UK, they are choosing Newcastle because it offers the skills, connectivity and business environment they need to grow.”
Councillor Steve Campion, cabinet member for economic development at Gateshead Council, added: “These investment figures highlight the value of the strong partnership between Gateshead and Newcastle, and also reflect the growing confidence businesses have in Gateshead as a destination in its own right. From our thriving digital and creative sector to our advanced manufacturing and engineering industries, Gateshead offers the talent, connectivity and business support that companies need to succeed.”
He added: “We’re particularly pleased to see continued growth in our gaming and digital cluster, with businesses such as Pneuma Games Group choosing Gateshead for their development studio. Alongside major regeneration projects, high-quality commercial space and excellent transport links, this demonstrates how Gateshead is creating the right conditions for innovative businesses to start, invest and grow.”