More than half (53.2%) of shares in listed UK firms are now owned by foreign investors for the first time on record.
The size of foreign investment has increased hugely over recent years, as foreign investors owned only 30.7% of shares in British businesses in 1998.
The value of shares held by non-UK companies has increased from £460.9bn to £935.1bn.
Nick Baird, chief executive for UK Trade & Investment said: “These figures show that the UK remains a world-leading business destination as well as the growing confidence and trust that foreign investors have in UK businesses.”
The British taxpayer remains one of the UK's biggest shareholders due to the government's bank bailout, leaving the taxpayer with a £42.6 billion shareholding in RBS and Lloyds.
A Confederation of British Industry spokesperson said: “These figures show that the UK has been successful in attracting foreign investment, which is critical to our economic success.”
Foreign investors own more than just most of the shares in UK companies, as the Qataris show with their investments in London property.
Qatar Ownings
The Shard(01 of08)
Open Image ModalConstruction of The Shard was on the verge of cancellation until the Qatar invested £150m for an 80% stake. (credit:PA)
Canary Wharf(02 of08)
Open Image ModalThey own a majority holding in Songbird Estates plc which has a very large investment in the Canary Wharf district. (credit:PA)
Olympic Village(03 of08)
Open Image ModalQIA took over control of the village after the end of the 2012 Games. (credit:PA)
One Hyde Park(04 of08)
Open Image ModalThe world's most expensive apartments are a joint venture between Sheikh Hamad bin Jassim bin Jaber Al Thani, the Qatari prime minister and minister of foreign affairs, and the Candy brothers. (credit:PA)
Harrods(05 of08)
Open Image ModalThe Qatari owners of the world's most renowned department store could afford to pay themselves a £100m last year. (credit:PA)
Sainsbury's (06 of08)
Open Image ModalQatari investors have steadily upped there stake in Sainsbury's from 25% in 2007 to 29.9% today. (credit:PA)
London Stock Exchange(07 of08)
Open Image ModalIn an indication of how Qatari money underpins the UK financial system, they own 20% of the LSE (credit:PA)
Camden Lock Market(08 of08)
Open Image ModalIn a swing from the glamour of skyscrapers and luxury apartments, Qataris also own 20% of one of London's most popular open-air markets. (credit:PA)