Northern Ireland records strong growth in foreign direct investment projects despite broader European slowdown

• Northern Ireland recorded 28 foreign direct investment projects in 2025, up from 17 in 2024, representing a 65% increase
• Growth comes despite a 7% decline in FDI projects across Europe in 2025
• The UK recorded 730 projects in 2025, reflecting a 14% decrease, as competition for global investment intensifies
• Belfast ranked 6th among UK cities in 2025
• Software & IT services (9 projects) and business services (8 projects) were the leading sectors for investment in NI

Northern Ireland has recorded a strong increase in foreign direct investment (FDI) activity, securing 28 projects in 2025, up from 17 the previous year, according to the latest EY European Attractiveness Survey. 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.

The report shows that while FDI projects across Europe declined by 7% in 2025, the continent remains a highly competitive destination globally, with more than 5,000 projects recorded across 47 countries. Against this backdrop, 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.

Belfast continues to play a central role in attracting international investment, ranking sixth among UK cities for FDI projects in 2025, with 16 projects secured during the year, behind London (1st), Manchester (2nd), Edinburgh (3rd), Birmingham (4th) and Glasgow (5th), all of which are larger, more established investment hubs, and significantly ahead of other regional cities such as Cardiff (7th, 9 projects).

At a UK level, the overall number of FDI projects declined by 14% in 2025, reflecting the broader shift in global investment patterns and increased competition between regions. Northern Ireland’s growth within this context highlights the strength of its regional proposition and its ability to stand out within a challenging environment.

The European Outlook

Across Europe, investment trends continue to evolve, with companies increasingly focusing on fewer, larger and more strategic projects, particularly in areas such as technology, advanced manufacturing and research and development. This shift is reshaping how and where investment is deployed, favouring locations that can offer a combination of talent, innovation capability and stable operating conditions.

Despite the recent decline in project numbers, underlying investor confidence in Europe remains resilient. A majority of international businesses continue to view Europe as a priority investment destination, supported by its large market, strong industrial base and role in global value chains. As companies navigate geopolitical uncertainty and changing supply chains, investment decisions are becoming more deliberate, with an increased focus on long-term strategic value.

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.

“As competition for investment intensifies globally, maintaining this momentum will depend on continued focus on skills, infrastructure and creating the conditions that support long-term, high-value investment into the region.”

Within this global context, Northern Ireland is well positioned to capture further investment. Its strong talent base, growing innovation ecosystem and connectivity to key international markets continue to support its attractiveness to foreign investors.

Looking ahead, maintaining this momentum will depend on continued investment in the factors that underpin long-term competitiveness, including skills, infrastructure and innovation capacity. As global investment becomes more targeted and competitive, regions that can offer clear strategic advantages will be best placed to succeed.

ENDS

Notes to editors:

The EY European Investment Monitor (EIM)

Our evaluation of FDI in Europe is based on the EY European Investment Monitor (EIM). This proprietary database helps us to track projects announced in 2025 across 47 countries, including Ireland and the UK. The database tracks the FDI projects that have resulted in the creation or the expansion of facilities and jobs.

The EY EIM database focuses on investment announcements, the number of new jobs created and, where identifiable, the associated capital investment. Projects are identified through the daily monitoring of more than 10,000 news sources. The EY EIM database shows the reality of investment in manufacturing and services by foreign companies across the continent.

The following categories of investment projects are excluded from the EY EIM: M&A and joint ventures (unless these result in new facilities or new jobs being created); license agreements; retail and leisure facilities; hotels and real estate; utilities; extraction activities; portfolio investments (pensions, insurance and financial funds); factory and other production replacement investments; and nonprofit organizations.

This perception study examined Europe’s perceived attractiveness via an anonymous online survey of international decision-makers. We define attractiveness of a location as a combination of image, investor confidence and the perception of a category or area’s ability to provide the most competitive benefits for FDI.