Highlands and Islands Enterprise (HIE) said it met or exceeded 18 of its 20 key targets during the 2024/25 financial year.
Overall, HIE said it approved up to £78.5 million investment in 611 projects with a combined total investment value of £177.5 million.
The agency said businesses across the Highlands and Islands are set to see combined annual turnover rise by £236.2 million as a result of HIE support, while international sales will grow by £62.8 million.
“Support for social enterprises, meanwhile is forecast to bring about a £13m uplift in the social economy,” said HIE.
“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 further88 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 July 31, 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.”
HIE chief executive Stuart Black said: “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.”