The foundations of Wesson's induced matter theory are analyzed. It is shown that the empty-without matter-5-dimensional bulk must be regarded as a Weylian space rather than as a Riemannian one. Revising the geometry of the bulk, we have assumed that a Weylian connection vector and a gauge function exist in addition to the metric tensor. The framework of a Weyl-Dirac version of Wesson's theory is elaborated and discussed. In the 4-dimensional hypersurface (brane), one obtains equations describing both fields, the gravitational and the electromagnetic. The result is a geometrically based unified theory of gravitation and electromagnetism with mass and current induced by the bulk. In special cases on obtains on the brane the equations of Einstein-Maxwell, or these of the original induced matter theory.