Global Investors Positive on Ireland’s Attractiveness as a Location for Foreign Direct Investment

• Eight in ten (79%) FDI decision makers planning to establish or expand operations in Ireland over next 12 months
• Two in three (66%) FDI investors expect Ireland’s attractiveness will increase in the coming three years
• Dublin ranked 7th in the European league table of cities attractive to overseas investors
• Skills (36%), Geographic Balance (32%) and Transport Infrastructure (29%) top policy priorities identified to improve Ireland’s FDI attractiveness
• Opportunity for Ireland to develop as a global centre of AI excellence – with the right collaboration clusters, workforce skills and R&D incentives

Dublin, 29 July 2024: Ireland’s attractiveness as a location for Foreign Direct Investment (FDI) remains strong according to the latest EY Attractiveness Survey Ireland. Almost eight in ten (79%) key investment decision makers expect to establish or expand operations here in the next 12 months, and two in three (66%) expect that Ireland’s attractiveness as an FDI location will improve in the coming three years. Investors have highlighted that the right mix of skills in our workforce, together with continued focus on improving geographic balance and infrastructure are important areas for Ireland to bolster its appeal as a location for FDI. They also recommended supporting high-tech industries and innovation.

These are some of the key findings of the latest EY Attractiveness Survey Ireland published today, which surveyed FDI decision-makers globally in Q1 2024 to understand their sentiment towards Ireland and their view of the drivers to ensure continued attractiveness. This research builds on the wider EY European Attractiveness Survey which was published in May.

Following a challenging 2023 for FDI across Europe, a large majority of business leaders (79%) surveyed said they plan to expand or establish their operations in Ireland in the next 12 months, up significantly from just over half (53%) in 2023. Two-thirds (66%) say they expect Ireland to become more attractive to FDI over the next three years – up from 46% in the previous survey. Positive investment intentions were particularly strong amongst Financial Services (95%), Pharmaceuticals and Chemicals (90%) and very large company (89%) investors.

On a geographic basis, the survey showed a broad regional spread with some investors considering more than one location as an attractive location for future investment. Dublin ranked highest (47%), with the Southeast (41%) and Mid-East (38%) also performing strongly.

Feargal de Freine, Assurance Partner and Head of FDI at EY Ireland says “While 2023 was a subpar year for FDI projects across Europe and in Ireland, investor sentiment remains positive.  Ireland’s FDI model has been highly successful for decades, centred on talent, business-friendly policies, stability and access to Europe’s single market. However, the global FDI landscape is changing and becoming more challenging. It is therefore important to understand investor perspectives and competitor offerings to ensure the continued relevance and attractiveness of the Irish proposition.”

Focusing Policy on Skills, Regions and Infrastructure

Many factors investors consider when choosing where they should invest – such as financial market conditions and interest rates – are external and outside of Ireland’s control. Our survey respondents said that domestic policy should focus on improving the skills of the workforce (36%), geographically rebalancing the economy (32%) and investing in transport (29%), energy (27%) and connectivity (23%). 

Dr. Loretta O’Sullivan, EY Ireland Partner and Chief Economist, says “The turning interest rate cycle bodes well for an uplift in international investment. While geopolitical and electoral uncertainty is a headwind, businesses are undertaking digital and sustainable transformation programmes and exploring AI technology. To attract the drivers of next-generation economic growth, Ireland should leverage its traditional strengths, hone its new capabilities and stay agile.”

A digital front-runner, Ireland should capitalise on its AI credentials

Ireland is well regarded when it comes to technology and is seen as having strong AI credentials, including opportunities to invest in start-ups, a supportive policy framework, a strong ecosystem, and an AI-ready workforce. Positively, the vast majority of multinational companies currently located here rate their Irish workforce better or as well as other countries in areas such as innovativeness, autonomy, problem solving and proactiveness meaning there is a real ‘AI-opportunity’ for Ireland to seize. 

Feargal de Freine says “Ireland is a hub for organisations that specialise in technology, cyber, digital and AI, with our ability to communicate, collaborate and be creative differentiating us from other locations for AI. Strong leadership and focus at the highest levels of policymaking is also essential for the realisation of Ireland’s AI strategy.”

Media Contact: Barry Dunning, Head of External Communications at EY Ireland on 083 167 4871 | barry.dunning@ie.ey.com

For more key insights about EY Europe Attractiveness Survey 2024, visit ey.com/ie/FDI.

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About the EY Europe Attractiveness Survey 2024

EY’s Attractiveness Survey analyses Ireland’s appeal as an investment destination using a two-step approach:

Our evaluation of FDI projects is based on the EY European Investment Monitor (EIM). This EY proprietary database enables us to track projects announced in 2023 across 44 countries including Ireland.

We explore investor sentiment via an online survey of international decision-makers. Field research for this was conducted by FT Longitude in February and March 2024 based on a representative panel of 150 respondents.

About EY

EY exists to build a better working world, helping to create long-term value for clients, people and society and build trust in the capital markets. Powered by data, technology and an extensive partner ecosystem, our diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate. Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.