IDA reports 43% rise in foreign firms investing here

The first six months of this year saw a 43% annualised increase in the number of foreign-owned firms investing in Ireland.

Figures published yesterday by IDA Ireland show that over 100 investments were secured in the six months to the end of June, up from 70 for the corresponding period last year.

Of those investments secured since the turn of the year, as much as 40% have come from companies investing in Ireland for the first time; the remainder is represented by expansions and “transformations” by existing firms.

Projects approved in the first half will also result in 8,000 jobs, 1,000 more than were created by first-half investments last year.

Speaking at the publication of IDA Ireland’s annual report for 2013 and its first-half 2014 investment update, outgoing chief executive Barry O’Leary said foreign direct investment performance has been strong so far this year.

“Ireland is very much competing strongly in the global marketplace for inward investment,” he said.

“The IDA’s strategic concentration in recent years on emerging companies provided an additional boost to this performance.”

Mr O’Leary said the second half of 2014 looks equally encouraging, with the agency concentrating on attracting first-time investors.

“The value proposition Ireland offers global corporations — which rests on a complex blend of a strong talent pool, a proven track record, strong technology infrastructure, and a 12.5% corporate tax rate — continues to resonate strongly with investors,” he said, adding that sentiment towards Ireland, among US firms, in particular, is more positive than even before the onset of the economic crisis.

Mr O’Leary said foreign direct investment will not only remain a key part of Ireland’s economic growth story but will grow in importance.

He rejected suggestions that the IDA is becoming too reliant on technology companies and noted that the first half saw investment growth from all four main investor sectors of information and communications technology, life sciences, financial services, and digital media.

He added that a further positive sign of late has been the re-emergence in investment from big European multinationals in Ireland, meaning not all of the movement is coming from the US.