Businesses are continuing to choose Newcastle and Gateshead as preferred locations for establishing and expanding operations, according to Invest Newcastle, the agency responsible for promoting economic growth in the area. The organisation’s latest report covering the 2025/26 period shows sustained investment despite broader economic challenges, including global conflicts and cautious corporate expansion strategies.
Over the past year, 31 companies either set up new bases or relocated to Newcastle and Gateshead, with an additional 12 firms increasing their presence in the region. This activity has contributed to the creation of 1,619 new jobs and helped safeguard 611 existing roles. These figures mirror last year’s performance, which also saw 31 companies entering the market and nine expanding their operations.
Among the recent notable investments is German industrial services provider Kaefer, which moved into the Live Works building on Newcastle Quayside earlier this year, bringing 200 jobs. Fintech firm Modern World Business Solutions, headquartered in Hoults Yard since last summer, plans to create around 100 positions as it grows its footprint. Further developments include the opening of Arden University’s new campus on Newcastle Helix, aimed at increasing access to higher education, and the establishment of LMA Newcastle, a creative campus focused on nurturing skills and employment pathways within music, performance, and screen-based industries. Late last year, Pneuma Games Group launched Last Arrow Games in Gateshead, reflecting growth in the local digital sector.
Councillor Owen Burrbridge, Newcastle City Council’s cabinet member for economy, jobs, and skills, highlighted the city’s resilience amid cautious business environments worldwide. He emphasized Newcastle’s role as a key driver in the North East’s economy, attracting firms due to its innovation capacity, talent pool, connectivity, and supportive business climate. Burrbridge reiterated the city’s aim to become a central hub within the UK’s innovation economy, fostering investment that will sustain long-term job creation and productivity gains.
From Gateshead’s perspective, Councillor Steve Campion, cabinet member for economic development, credited the strong partnership with Newcastle for the region’s rising business confidence. He pointed to Gateshead’s growing digital and creative industries, alongside advanced manufacturing and engineering sectors, as key assets. Campion drew attention to the expanding gaming and digital cluster anchored by companies like Pneuma Games Group, noting that investments, regeneration projects, and accessible commercial spaces, combined with robust transport connections, are creating an environment conducive to business growth and innovation.