Committee publication · Report · 27 May 2026 · HC 136
1st Report - Crynodeb - Hyrwyddo Cymru fel cyrchfan ar gyfer Mewnfuddsoddi
From: Welsh Affairs Committee
Inquiry: Promoting Wales for inward investment
Government response deadline: 27 July 2026
Summary
The Welsh Affairs Committee's first report examines Wales's investment promotion strategy and identifies significant underperformance in attracting Foreign Direct Investment despite strong global reputation in advanced manufacturing and creative industries. The committee found Wales has lost investment opportunities due to fragmented governance structures, lack of a dedicated investment agency (dissolved in 2006), and weak inter-governmental coordination. It calls for establishing a dedicated investment promotion authority, improved UK-Wales ministerial engagement, leveraging the Welsh diaspora, and enhanced data transparency on investment outcomes.
Key findings
- Wales's share of total UK Foreign Direct Investment has declined over the past decade despite possessing competitive advantages in high-value sectors including advanced manufacturing, creative industries, and research.
- Fragmented investment promotion across UK, Welsh, and local government levels creates confusion for investors about whom to contact, with no clear single entry point ('front door') to Wales.
- The Welsh Development Authority (dissolved 2006) previously delivered strong investment performance; Wales currently lacks an equivalent dedicated investment agency focused on attracting investment.
- Effective inter-governmental cooperation between UK and Welsh governments is inconsistent, with insufficient ministerial engagement between the Office for Investment and Welsh Government despite examples of successful £1 billion investment transfers.
- Wales has an underutilized resource of 3-4 million Welsh diaspora globally who could support investment strategy; Wales is also failing to leverage competitive industrial clusters (e.g. compound semiconductors in South Wales) in international promotion.
Recommendations
- Establish a dedicated investment promotion agency/authority within Welsh Government focused on attracting and retaining high-value investment.
- Increase consistent use of inter-governmental mechanisms and enhance ministerial engagement between the UK Investment Minister and Welsh Government structures.
- Develop a Welsh diaspora strategy led by the Wales Office, focused on investment-generating opportunities and re-engagement with Welsh business communities abroad.
- Require the Wales Office to lead production of an annual report on Wales's investment outcomes and trends to enable evidence-based policy-making and trend identification.
- Increase transparency from the UK Government's overseas network regarding investment enquiries generated for Wales to demonstrate global reach effectiveness.
Tone
CriticalTopics
Key actors
Welsh Affairs Committee, Welsh Government, UK Government Office for Investment, Wales Office, Eren Holdings, Welsh Development Authority (historical)
Key Quotes
“Mae nifer y prosiectau Buddsoddi Uniongyrchol o Dramor y mae Cymru wedi'u denu wedi gostwng dros y degawd diwethaf, yn ogystal â'i chyfran o gyfanswm mewnfuddsoddiad newydd y DU.”
“Clywsom y gall fod yn anodd llywio'r sawl haen o lywodraeth— y DU, Cymru a lleol —sy'n hyrwyddo buddsoddi yng Nghymru”
“Fe wnaeth rhanddeiliaid dynnu sylw dro ar ôl tro at lwyddiannau'r hen Awdurdod Datblygu a pherfformiad cryf Cymru o ran mewnfuddsoddiad yn ystod y cyfnod hwnnw.”
“Cymru'n colli allan ar gyfleoedd pwysig oherwydd nad yw'n harneisio grym y 'Cymry ar wasgar'.”
“… diffyg data hygyrch a chymharol am Gymru yn golygu bod llunwyr polisi a rhanddeiliaid yn gweithio gydag un llaw wedi'i chlymu y tu ôl i'w cefnau.”
Source · parliament.uk record ↗