Dáil Éireann Debate, Thursday - 7 April 2022
173. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which any changes in foreign direct investment have been affected by international issues; and if he will make a statement on the matter. [19107/22]
View answerThere have been a number of international issues over recent months and years which may potentially impact investors’ decision making, including the COVID-19 pandemic, the war in Ukraine and Brexit. Global supply chains, energy costs, infrastructure and constructions costs, commercial real estate, housing, and talent attraction and skills development have all been impacted by the pandemic and geopolitical events.
Despite the challenges which these international issues have created, IDA Ireland’s end of year results for 2021 show that the level of foreign direct investment into Ireland has remained resilient.
Overall, 249 investments were gained by IDA Ireland in 2021. Of this number, 104 were new name investment, while 54%, or 134 projects of the 249 investments won, went to regional locations. The number of people directly employed in multinational companies in Ireland grew to 275,384 in 2021, the highest level of foreign direct investment employment ever reached.
Furthermore, it must be noted that Ireland is now facing these challenges with a resilient economy that is already recovering from the pandemic and has grown very quickly in the last couple of months. Investors’ confidence in Ireland remains strong as evidenced by the flow of investment projects over recent months and years. In 2020, Ireland increased its market share of FDI into Europe in the face of global declines in FDI. Ireland’s focus on the sectors that underpin a modern economy has been key to this. The pipeline of investment in 2021 was extraordinarily strong considering the continued uncertainty in the global operating environment.
Although international competition for FDI is intense and investors have many attractive locations to choose from, IDA Ireland believes that the FDI opportunities for Ireland will be ongoing. To ensure we seize these opportunities, my Department, with the support of IDA Ireland, will continue to build on Ireland’s 70-plus year track record of attracting and maintaining FDI by strengthening our value proposition which includes our pro-enterprise policy environment, our highly educated workforce and our membership of the European Union.
