International FDI Investors positive on Ireland outlook as R&D surge confirms shift to knowledge economy – EY Ireland Attractiveness Survey 2026

• 66% of investors surveyed intend to establish or expand operations in Ireland over the next 12 months, compared to 54% across Europe
• Just under two thirds (62%) of respondents expect Ireland’s attractiveness to improve over the next three years
• One third (31%) intend to direct Irish investment towards R&D
• Enhanced R&D tax credit identified by over half (51%) as a key lever 
• Northern Ireland recorded 28 Foreign Direct Investment projects in 2025, up from 17 in 2024, representing a 65% increase 

Investor confidence in Ireland as a location for FDI remains strong in spite of global volatility, according to new findings from EY Ireland's Attractiveness Survey 2026 released today, with two thirds of investors (66%) surveyed intending to establish or expand operations in Ireland over the next 12 months - well ahead of the 54% who expressed equivalent intentions across Europe as a whole. 

The research tracked cross-border investment projects resulting in new facilities and job creation across 47 countries. The data, which captures global investor sentiment to Ireland and forward-looking intentions from 150 international FDI decision-makers, builds on project figures published last month* which found that Ireland attracted 75 FDI investments last year and points to sustained momentum for Ireland as an FDI destination.

Investors point to a range of factors underpinning this confidence: Ireland's location within the EU and access to new markets, competitive tax policy and innovation incentives - most notably the R&D tax credit - the quality and availability of its workforce, and strong cultural and linguistic ties to North America.

Looking further ahead, the research points to sustained confidence in Ireland's investment proposition. Just under two thirds of respondents (62%) expect Ireland's attractiveness to improve over the next three years, marginally ahead of the 61% who held that view in EY's 2025 survey.  

Ireland's R&D position strengthens markedly

The sentiment data is underpinned by a marked shift in the character of investment flowing into Ireland. R&D projects accounted for 25% of all FDI into Ireland in 2025, more than double the 12% share recorded in 2022. 

No other European country achieved such a high proportion of R&D investment, and only five countries attracted more R&D projects than Ireland in absolute terms - this at a time when R&D projects across Europe as a whole declined by 30%.

This trajectory confirms Ireland's position as a leading knowledge economy, supported by a competitive R&D tax credit regime, including the 35% rate introduced in Budget 2026. 

Almost one third (31%) of organisations planning to invest in Ireland in the coming year intend to direct that investment towards R&D, with over half (51%) identifying enhanced tax credits as a key lever in sustaining this momentum. However, investors are also clear on the challenges facing Ireland’s competitiveness, with infrastructure identified as the most significant risk to its future attractiveness (33%), followed closely by the cost of energy and labour (31%). When asked 'where should Ireland concentrate its efforts?' investment in transport, energy, water and housing were identified by 42% of respondents as a ‘top policy priority', a sharp increase from just 15% two years ago.  

Feargal de Freine EY Ireland Head of FDI, said: “Ireland’s key strengths as an investment destination remain our high-quality talent pool, competitive tax regime and deep cultural and social ties with North America, none of which should ever be taken for granted. 

It is very positive to see that R&D projects were both a significant success for Ireland in 2025 and an area that investors remain positive about for the coming years. Innovation incentives are becoming a defining factor in attracting FDI and, as AI accelerates innovation, the countries that offer competitive incentives for investing in R&D, and connect research to real-world impact most effectively, will be better positioned to capture the next waves of investment.

However, investors are also pointing to the challenges associated with the country’s infrastructure deficit, and sustained momentum on the delivery of the National Development Plan to address these will be key.” 

Carol Murphy, EY Ireland Head of Markets said: “Talent remains central to Ireland's FDI story. As AI reshapes every sector and skills grow scarcer worldwide, the countries that invest fastest in AI capability will win the race for investment. Ireland already has a strong collaborative ecosystem between education, government and business. The job now is to continue to build faster and responsibly on this, because the future won't wait.”

Northern Ireland outlook 

Northern Ireland recorded a strong increase in Foreign Direct Investment (FDI) activity, securing 28 projects in 2025, up from 17 the previous year. This marks a 65% rise in project numbers and highlights the region’s growing appeal to international investors, even as overall investment activity across Europe continues to soften.  

Against a backdrop of reduced FDI investment across the continent, Northern Ireland’s performance stands out, reflecting its ability to attract investment in a more selective and increasingly competitive global environment.   

Growth in Northern Ireland has been driven by strong activity in key sectors, particularly software and IT services, which accounted for nine projects in 2025, followed by business services with eight projects. This reflects the region’s continued strength in digital, technology and services-led investment, aligning with wider global trends toward innovation-driven projects.  

Andrew Dolliver, EY UK & Ireland Strategy and Transactions Partner, said:  
“Northern Ireland’s performance this year stands out in what is an increasingly competitive and selective global investment environment. While overall FDI levels have softened across Europe, the projects that are coming through are more focused, more strategic, and increasingly concentrated in areas such as technology and business services, where Northern Ireland is proving it can compete.  

“What is particularly encouraging is how closely private investment aligns with the region’s overall direction. Ongoing investment through City and Growth Deals, together with a focus on innovation, skills and high-growth sectors, is helping to strengthen Northern Ireland’s long-term appeal and create the conditions for more high-value investment, with almost half of all projects last year coming from US investors.”

ENDS

Notes to Editors:

Methodology 
EY’s Investor Sentiment Survey analyses Ireland’s appeal as an investment destination using a two-step approach. 

• Our evaluation of FDI projects is based on the EY European Investment Monitor (EIM). This EY proprietary database enables us to track projects announced in 2025 across 47 countries, including Ireland. 
• The Northern Ireland data is based on information from the EY EIM.

• We also explore investor sentiment via an online survey of international decision-makers. Field research for this was conducted by FT Longitude between 16 March and 27 March 2026 based on a representative panel of 150 respondents. 

About EY

EY is building a better working world by creating new value for clients, people, society, and the planet, while building trust in capital markets.

Enabled by data, AI and advanced technology, EY teams help clients shape the future with confidence and develop answers for the most pressing issues of today and tomorrow.

EY teams work across a full spectrum of services in assurance, consulting, tax, strategy and transactions. Fuelled by sector insights, a globally connected, multi-disciplinary network and diverse ecosystem partners, EY teams can provide services in more than 150 countries and territories.