According to the financial firmâs latest European Attractiveness survey, the reputation of London as a centre for financial services and the strong relationship many corporates have with the US are the reasons behind the UKâs popularity.
The figures showed that the UK attracted 678 investment projects during 2009, which helped create more than 20,000 jobs.
London was deemed the most attractive city for investment with 263 projects secured, a figure which was two higher than 2008.
The US was the largest investor in the UK, having started 243 investment projects on British soil during 2009.
James Close, a partner at E&Y, said: âWhen seen in the context of 12 months during which the European economy suffered a deep
recession, the resilience of the UK in securing foreign direct investment is a remarkable economic success story."
âThe UK continues to achieve because of the strengths of London as a business and financial services centre, the underlying strengths of the UK in securing service sector investment and, crucially, our close corporate relationship with the US,â he added.
Further findings from the survey showed that France and Germany finished second and third respectively.
By Jim Ottewill