Resilient Attraction: Ireland’s FDI Performance in 2025
Ireland maintained its robust performance in attracting foreign direct investment (FDI) in 2025, matching the previous year’s tally of 75 projects, according to the latest EY European Attractiveness Survey 2026. Notably, the United States played a prominent role, being responsible for more than half of all these investments.
Steady Ranking in European Context
The survey highlighted that Ireland has moved up in the European FDI ranking, placing 15th overall, and securing the 10th spot on a per-capita basis. This progress comes in a year when Europe witnessed a 10-year low in FDI, with a 7% decline in projects compared to 2024.
US Investments: A Significant Contributor
Over half (53%) of the FDI into Ireland came from the United States. This is a stark contrast to the 19% average of US FDI across Europe. Beyond Dublin, 41% of projects were located, suggesting a balanced regional profile. Carol Murphy, EY Ireland partner, commented on the strength of this transatlantic partnership, even amid global uncertainties.
Sector Highlights: Software, IT, and R&D
Software and IT services took the lead as Ireland’s top FDI sector in 2025, contributing to 33 projects, double the number of the previous year. Other significant sectors included business services and financial services, with 14 and 9 projects respectively. Remarkably, research and development (R&D) projects accounted for 25% of investments, far surpassing the 7% European average. This reinforces Ireland’s status as a leading knowledge economy.
Challenges in Infrastructure and Costs
Despite the positive numbers, Ireland faces challenges. The cost of energy, labour, and general infrastructure constraints emerged as key risks for future attractiveness. Infrastructure, in particular, rose to the top spot as the biggest concern compared to sixth place in the previous year’s survey.
Feargal de Freine, EY Ireland partner and head of FDI, noted that despite a tough year for European FDI, Ireland’s consistent performance is commendable. The country’s reputation in software, R&D, AI investment, and innovation remains strong.
For further reading, refer to the original source at Irishexaminer.com.
