Island investment boosts outturns for HIE in 2024/25

29th July 2025

Figures compiled by Highlands and Islands Enterprise (HIE) show strong outturns against key targets for the agency during the 2024/25 financial year.

The figures, which are subject to review by Audit Scotland before publication of HIE's annual report in November, show that the agency met or exceeded 18 of its 20 key targets.

There was particularly good performance with innovation, green jobs and across Focus Areas (disadvantaged areas that require targeted support for inclusive growth).

The agency was involved in securing more than £81m in external investment to the region. This included around £24m in green investment, a similar amount in Focus Areas, and £28m external investment in community group projects and social enterprises.

Investment in some rural and island locations contributed significantly to meeting many of the key targets, notably in the Argyll and Islands, Orkney and the Outer Hebrides. These related largely to projects in energy, technology and advanced engineering, food and drink and heritage.

Examples include £5m investment in the Scapa Deep Water Quay in Orkney through additional Scottish Government funding. Navantia's acquisition of the Harland & Wolf facility at Arnish, Lewis safeguarded 141 jobs. Island investment also included community-led housing projects in Gigha and Papa Westray, and development of new business units on Tiree by the Tiree Community Development Trust.

Support provided to businesses and communities by HIE is forecast to create or retain around 765 jobs across the region. These include 242 green jobs and 293 jobs in inclusive growth focus areas, identified by HIE for targeted intervention.

The outturns were achieved through financial investment and other interventions such as advice, information and signposting to other sources of assistance. They included innovation support to 415 organisations, which led to the development of 263 new products, processes or services, and support for 79 organisations to develop or implement a net zero plan.

Overall, HIE approved up to £78.5m investment in 611 projects with a combined total investment value of £177.5m. Businesses across the Highlands and Islands are set to see combined annual turnover rise by £236.2m as a result of HIE support, while international sales will grow by £62.8m. Support for social enterprises, meanwhile is forecast to bring about a £13m uplift in the social economy.

The period saw HIE’s highest level of investment in community organisations in three years with £7.5m approved for 271 projects across the region. There was an emphasis on focus areas, where projects are expected to help strengthen rural and island populations.

Housing, business units, and projects relating to tourism infrastructure and net zero were progressed. They include a £2.1m grant for Cnoc Soilleir, which promotes and celebrates Gaelic language and culture and supports learning and research activity in South Uist.

HIE launched its Gaelic Digital Challenge Fund in February 2025 to develop creative approaches that bring authentic Gaelic stories to life on digital platforms. And 15 projects were awarded support from the Cycling Tourism Facilities Fund.

The organisation supported female and youth entrepreneurship through the Northern Innovation Hub (NIH) Impact30 programme under the Inverness and Highland City-Region Deal. This saw 70 young entrepreneurs complete the programme and a further 88 joining.

In addition to the Scapa Deep Water Quay in Orkney, HIE also approved £10m Scottish Government funding investment at Nigg Inner East Quay.

Over the course of the year, the agency helped to deliver a record 15 inward investment projects with combined total value of £6m in areas including Shetland, Caithness, Argyll, Lochaber, Wester Ross and the Outer Hebrides. Together they are expected to support 270 jobs in life sciences, technology and advanced engineering, energy, space and food and drink.

The second year of HIE’s business innovation programme supported more than 200 clients. Nine research and innovation grants were approved for projects with a total value of £1.4m.

There were also six successful external R&D grant applications, while 20 knowledge exchange activities were delivered. A third cohort of HIE’s New Product Development Programme benefited 13 participants, bringing the total to 33 over the past three years.

Forty organisations were supported to increase productivity, which was below the target of 60-70. However, the overall increase in productivity was 54%, well in excess of the 15% target.

The average salary of HIE-supported jobs was £31,105, also slightly lower than the £34,000 target. The average salary relating to inward investment jobs supported was higher at £34,988.

Alistair Dodds, who steps down as chair of HIE on 31 July, said:

"These figures show another strong year for HIE and testament to a lot of hard work by colleagues across the organisation. We’re now two years into our five-year strategy, which is all about achieving progress in all parts of the Highlands and Islands while building on the region’s contribution to Scotland’s economic transformation. We’re making great progress and, while challenges continue, our economy and communities are in a very positive place with huge potential for unprecedented investment and job creation."

Stuart Black, HIE chief executive, added:

"For the second year running, it was particularly good for inward investment. The many strengths and natural advantages the region offer, and scale of opportunity this presents, are attracting a lot of interest from overseas. This also enables us to attract millions of pounds of additional Scottish Government funding into the region.

“The recent report into regional transformational opportunities for investment here shows massive potential over the next ten to 15 years. HIE will have a key role in securing as much of that prize as possible.

Deputy First Minister Kate Forbes said:

“The focus of Highlands and Islands Enterprise on boosting our economy, helping businesses grow and supporting local communities is paying off with these results showing the level of opportunity in the region.

“Scotland is well-placed to attract investment and compete on the international stage, and I am particularly pleased to see that HIE secured over £81 million of external investment last year.

“Investment - both public and private - is vital to growing our economy and making everyone’s lives better. We need it to put more money in people's pockets, to reach net zero and to improve our public services."