Ireland remain elite at attracting FDI
Ireland is bucking the trend as Europe continues to see a multi-year decline in inbound investment.
Ireland remains an attractive location for foreign direct investment (FDI) with investor sentiment positive and overall investment here holding steady.
That’s according to the EY European Attractiveness Survey, which tracks cross-border investment projects resulting in new facilities and job creation across the continent.
Ireland attracted 75 FDI projects in 2025, matching 2024 levels. This places it 15th overall in Europe, up two places from last year, and tenth on a per-population basis. United States investment made up more than half (53%) of inbound FDI to Ireland, consistent with historical levels and considerably higher than the 19% average held by US FDI across Europe.
The regional profile was balanced, with 41% of projects in locations outside of Dublin, including 23% of projects located in the south west.
Ireland is ranked tenth in Europe by investors in terms of FDI attractiveness for 2026, with investors pointing to a range of factors that make Ireland an attractive location. These include our EU location and the access to new markets and customers this brings, competitive tax policy, talent, language and cultural ties to North America in particular.
In contrast, inward investment for Europe fell to a ten-year low in 2025, with a 7% drop in projects when compared to 2024. Total projects across the continent in 2025 (5,023) were 22% lower than the 2019 pre-pandemic level (6,412).
While the number of projects from US investors in Europe stabilised during 2025, it remains 38% below its 2019 peak.
Software and IT services (33) was Ireland’s leading FDI sector during 2025, with the number of projects doubling versus 2024, and the sector accounted for more than 40% of the year’s total. Business services (14) and financial services (9) projects were the next two largest FDI sectors in Ireland.
A key highlight of the research is the strength of the Irish innovation economy. Research and development projects (R&D) accounted for 25% of Irish investments, far ahead of the total European share of 7%. This confirms Ireland’s position as a leading knowledge economy with a strong capacity to attract innovation-driven investment. Ireland was also rated highly as a location for AI investment, innovation and deployment.
However, the research also identified risks to Ireland’s future attractiveness. Ireland is perceived as having challenges in terms of infrastructure, and the cost of energy, labour and other inputs.
EY Ireland Partner and Head of FDI Feargal de Freine said: “In what was another challenging year for FDI in Europe, holding our own is a strong outcome for Ireland as is the continued strength of investor sentiment towards Ireland. Our performances in software and R&D in particular highlight our enduring advantage in these fields, while Ireland was also rated highly as a location for AI investment, innovation and deployment.”
Ronan Murray, EY Cork Office Managing Partner, said: “The regional spread of FDI across Ireland continues to be a positive story with two in five projects in 2025 located outside the capital and regional clusters of expertise in areas like life sciences, medtech, advanced manufacturing and technology.
“While Dublin continues to play a key role, we’re seeing investment reach communities right across the country, from cities to towns and regional hubs, with the south-west in particular having a very strong year with almost one in four projects in 2025 located here. Looking ahead, maintaining that momentum will depend on continued investment in infrastructure, skills and regional development, so every part of the country can continue to benefit from future FDI.”