Ireland is facing a more “turbulent” landscape for foreign direct investment, the State’s main industrial agency has warned.
In its latest performance update, IDA Ireland said the agency had secured 234 “investment wins” in 2024 which are projected to create 13,500 jobs over the coming years.
It said the results were achieved “in the face of ongoing global competition and a changing trade and investment landscape”.
Without mentioning the possibility of a major disruption to global trade and investment from US tariffs, which US president-elect Donald Trump is threatening to adopt once in office, IDA Ireland said “continued FDI (foreign direct investment) success” would be reliant on competitiveness policies, including the rollout of national infrastructure.
The IDA said there were 302,566 people directly employed by over 1,800 FDI-related companies in the Irish economy this year, accounting for almost 11 per cent of the Irish employment.
This demonstrated “a solidified employment base that strategically positions the economy for future growth,” the agency said.
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Some 69 investments secured in 2024 were from new name or first-time investors, including “cutting edge companies” such as Calypso AI, Evernorth, Sirius XM, and UKG, it said.
It also noted that a record level of R&D (research and development) investment valued at €1.9 billion across 64 projects was approved by IDA Ireland during the year.
The agency insisted the inward investment was regionally “balanced” with 59 per cent of FDI investments in locations outside of Dublin.
On a sector by sector basis, it said job growth was recorded in both the modern and traditional manufacturing sectors, up 0.8 per cent and 0.4 per cent respectively.
Business, financial and other services also reported an increase (1.7 per cent) while the ICT sector saw numbers decline (1.2 per cent).
“The stability in employment levels by FDI clients highlights the sector’s resilience and consistent growth, ensuring job security and economic impact,” IDA Ireland chief Michael Lohan said.
The latest investments “signal strong confidence in Ireland’s economic environment, underpinning a positive business climate and emphasising the nation’s attractiveness as a prime location for global investment,” he said.
Minister for Enterprise, Trade and Employment Peter Burke said: “Despite many challenging global issues such as the impacts of Brexit, the Covid-19 pandemic and the war in Ukraine, Ireland continues to be seen as a location of choice for new investors as well as long-established companies who choose to further invest in substantial expansions of their operations here”.
However, he noted there were domestic challenges “that we must address as highlighted during the September Competitiveness Summit chaired by Taoiseach Simon Harris”.
At the time, Mr Harris said he recognised the international context for business was rapidly changing and that many businesses, whether indigenous or FDI, were facing increased challenges, including on the cost of doing business.
Mr Burke said that in recognition of the increasing competition internationally for FDI, IDA Ireland would receive an additional €15.5 million in capital funding next year.
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