How can Ireland successfully adapt as the FDI landscape evolves?

In an evolving FDI landscape, international investors have identified policy areas for Ireland to focus on, including supporting high-tech industries and innovation.

Ireland won 100 Foreign Direct Investment (FDI) projects in 2023, placing it 11th on the league table of most desirable investment destinations in Europe, down from 10th position in 2022. Encouragingly, optimism about the future rose with 66% of respondents expecting Ireland’s attractiveness to improve over the coming three years (up from 46%). According to the EY Attractiveness Survey, 79% of international investors are planning to establish new or expand existing operations in Ireland over the next 12 months, up from 53% last year.

The slippage in 2023 comes after a strong performance in 2022. It reflects a softening in FDI at European level, particularly investment from the US. Ireland did comparatively well in Medical Devices, Finance, Software & IT Services, and Pharmaceuticals, ranking in the top 10.

Centred on talent, business-friendly policies, stability and access to Europe’s single market, Ireland’s FDI model has been highly successful for decades. The global landscape is changing, however. Trade and investment policies have become more inward-orientated and competition among jurisdictions has intensified, making for an increasingly challenging environment. Concurrently, sustainability and digitalisation are reshaping economies the world over, with the promise of Artificial Intelligence (AI) standing at the forefront of this transformative wave.