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.
Ireland FDI, transatlantic investment, US investment, software and IT services, research and development, R&D tax credit, infrastructure risk, AI investment, Dublin and outside Dublin, 2025 FDI projects