Investment Zones
We are working in partnership with the UK Government and Regional Economic Partnerships (REPs) to deliver Investment Zones in Scotland.
The programme aims to:
- support development and growth of clusters in key sectors
- increase regional innovation
- attract investment
- drive economic growth
What an Investment Zone is
An Investment Zone is a designated geographic area that receives government support to encourage investment, job creation and economic growth in specific high-potential sectors like advanced manufacturing and green industries.
This support includes flexible funding and time-limited tax reliefs. Flexible funding will be provided to REPs to support activities such as skills programmes and research and innovation.
Investment Zones in Scotland
Scotland has two Investment Zones:
-
Glasgow City Region
-
North East of Scotland
These regions were chosen following a rigorous process, looking at their business potential, wellbeing economy and industry strength. See: Investment Zones place selection in Scotland methodology.
Investment Zone funding
Each Investment Zone receives up to £160 million over ten years from the UK Government.
This package can be used by the REPs to fund reserved and devolved tax reliefs within designated ‘tax sites’ in the Investment Zones. Funds not used for reliefs will be available as ’flexible spend’ with a 40:60 split between resource and capital expenditure.
We also provide a package of Non-Domestic Rates Retention at the sites, which the REP can use to further invest in the zone.
Proposal development
The REPs are developing their Investment Zone proposals through a thematic gateway process. The process follows five themes:
- vision setting
- sector and economic geography
- governance
- interventions
- delivery
Read more about the criteria for Investment Zone proposals and programme objectives and incentives.
Focus for Investment Zones
The sectoral and geographical focus of the Scottish Investment Zones was confirmed in the UK Spending Review 2025.
Glasgow City Region’s Investment Zone will focus on advanced manufacturing – to encourage innovation in space, semi-conductors and maritime sectors.
The North East of Scotland’s Investment Zone will focus on green industries and digital technology, particularly floating offshore wind, green hydrogen, and green energy solutions.