The North East Scotland Investment Zone is a 10-year, £160 million project to boost productivity, accelerate innovation-led business growth and provide more high-priority jobs in the region through targeted investment in the priority sectors of Green Energy and Digital Tech.Investment zones are a national government policy initiative to set up knowledge-intensive clusters to drive economic growth. They aim to support the development and growth of key sector clusters in order to increase local innovation capacity, attract investment and, above all, strengthen the private sector – which is the engine of economic growth.
In June 2023, the North East of Scotland was announced as one of Scotland’s first two investment zones.
The North East of Scotland and Glasgow City Region were each selected jointly by the UK Government and Scottish Government based on their research strengths, an assessment of economic need and potential, and a consideration of geographic spread.
The North East Scotland Investment Zone (NESIZ) will be supported with up to £160 million in targeted investment, tax reliefs and other incentives over 10 years. The funding envelope and timetable have increased from an initial £80 million over five years.
The investment zone will comprise a programme of targeted projects and investments within the region’s chosen priority sectors of Green Energy and Digital Technology, stimulating innovation-led business growth in key development areas and creating high-value jobs for the future.
It will support the development of high-growth key sector clusters in Green Energy and Digital Tech to increase local innovation capacity, attract investment and drive business growth. These aims align with the investment zone guidance provided by the UK and Scottish Governments and will help to boost regional productivity and support local communities.
The North East Scotland Regional Economic Partnership is currently developing detailed proposals for the investment zone and working through
the gateway process set out by the Scottish and UK Governments. An North East Scotland Investment Zone Working Group and Steering Group have been formed to oversee the completion of the gateway process and approval by the governments.
Ongoing work to establish the vision, scope and detail of investment zone includes:
- Confirming potential tax sites
- Identifying potential private sector investment
- Agreeing on governance structure and assurance for the investment zone's design, approval and delivery
The North East Scotland Investment Zone will continue to be shaped and developed according to the
Technical Guidance provided by the UK Government.
The goal is to have the vision, sector and economic geography, interventions and governance signed off by the governments in June 2024.
For all enquiries related to the North East Scotland Investment Zone, please contact: enquiriesIA@investaberdeen.co.ukSir Ian Wood, Chair of the North East Scotland Investment Zone Steering Group, said: “The awarding of an investment zone to the North East of Scotland is a significant boost to our region and we are grateful to both the Scottish and UK Governments for recognising the need to support us as we continue to transform our Regional economy.“Through the City-Region Deal we have a proven track record of working in partnership with government, local authorities and our world-class Universities to deliver transformational projects that aligns with our clear economic strengths to accelerate the diversification of key sectors across energy, food and drink, life sciences, digital and tourism.“It is important to move forward at pace so we have established an Investment Zone Steering Group, aligned with our recognised Regional Economic Partnership, to build on this work and identify the sectors and locations that will benefit from the incentives allowing us to secure sustainable economic growth and job creation whilst supporting a managed and just transition.“Our reputation as an innovative and productive region is both hard won and well deserved, and today’s announcement will help secure our position as one of most attractive locations anywhere in the UK, and indeed Europe, for investment in low carbon technologies across different sectors."
