Ireland continues to excel for transatlantic FDI

Ireland placed 15th in Europe for number of FDIs but shows strength in US-originated investments

Ireland attracted 75 foreign direct investment (FDI) projects in 2025, matching 2024 levels, with the US responsible for more than half of those projects, new research published on Friday showed.

Ireland attracted 75 foreign direct investment (FDI) projects in 2025, matching 2024 levels, with the US responsible for more than half of those projects, new research published on Friday showed.

The EY European Attractiveness Survey 2026 shows Ireland placed at 15th overall in Europe for the number of FDIs, up two places from last year, and 10th on a per-population basis. Inward investment for Europe fell to a 10-year low in 2025, with a 7% drop in projects when compared to 2024.

The survey showed United States investment made up more than half (53%) of inbound FDI to Ireland, 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.

“It is encouraging to see Ireland continuing to secure a disproportionately strong share of investment from the United States, underscoring the depth and resilience of this strategically important transatlantic partnership even amid geopolitical uncertainty," said Carol Murphy, EY Ireland partner and head of markets.

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) led 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.

Research and development projects (R&D) accounted for 25% of Irish investments, far ahead of the total European share of 7% "confirming Ireland’s position as a leading knowledge economy with a strong capacity to attract innovation-driven investment and supported by an internationally competitive R&D tax credit regime". However, Ireland is perceived as having challenges in terms of infrastructure, and the cost of energy, labour, and other inputs. Infrastructure constraints was the top-rated risk affecting Ireland’s future attractiveness, rising from sixth in the previous year’s survey.

“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," said EY Ireland partner and head of FDI, Feargal de Freine.