Ireland attracts international fund promoters due to its open, transparent, and well-regulated investment environment, its strong emphasis on investor protection, its efficient tax structure, and dynamic and innovative business culture.
For over 30 years Ireland has been a leading domicile for internationally distributed investment funds, covering a broad range of fund types. Ireland attracts international fund promoters due to its open, transparent, and well-regulated investment environment, its strong emphasis on investor protection, its efficient tax structure, and dynamic and innovative business culture.
Fund managers in Ireland have access to the EU-wide marketing passport for UCITS and AIFs. Building on the ability to passport product on a cross-border basis, Ireland has developed highly skilled local expertise as a provider of innovative products and services for a full range of services for the funds industry – from asset management, depository, custody, legal, auditing and tax, to listing services and fund servicing.
Maeve McConnon: IDA Ireland continues to call out the imperative of safeguarding the competitiveness of its client base
Asset Management activity has grown substantially in the post Brexit environment, as firms continue to choose Ireland as their EU Hub to service their European customers. Trading and Market Infrastructure continues to grow, benefiting from the strong financial services technology capabilities that exist here. Ireland has also become a growth centre for alternative investments, across private equity, private debt, hedge, infrastructure and real estate funds, with 40% of the world’s hedge funds administered from Ireland today.
The rapid pace of digital advancements and new associated EU legislation is reinventing the way investment management companies embrace innovation and rethink strategies. This presents significant opportunities for international fund management companies in Ireland to leverage the strength of technology and innovation capabilities that exist here, to optimize operations and enhance client engagement.
IDA partners with companies in their drive to achieve global competitiveness, moving through the twin transitions of climate and digital to build a sustainable future.
Multiple companies in the funds industry are embarking on a broad range of technology projects from transformation to implementation to research and development, with the support of IDA Ireland. This includes activity across Data Analytics, Cybersecurity, Machine Learning, Generative AI, Blockchain, Quantum, Intelligent Automation and Cloud. Active companies in this space include Fidelity, Northern Trust, Susquehanna, BNY, Amundi and State Street.
The ability to attract high quality talent is one of Ireland’s key selling points and the sector consistently highlights the criticality of relevant multi-disciplinary STEM skills to their business. Ireland is a highly competitive location when it comes to talent. The country is recognised for its high-quality education system and skilled workforce making it an attractive destination for investors. Third level attainment among 25–34-year-olds in Ireland is 62%, which is significantly higher than the EU average of 42%. Ireland has the highest level of STEM graduates per capita in the EU among 20–29-year-olds and over the past decade there has been steady growth in the number of graduates from Maths, IT, Engineering and Science disciplines.
From an IDA perspective, we see substantial growth opportunities across the international funds sector and we continue to seek out opportunities in new and emerging growth areas, as the investment landscape evolves globally. The sector remains well aligned to the global economy of today and well positioned to succeed in the transformed economy of the future. In 2023, job growth was recorded in the International Financial Services sector, despite a slowdown in ICT services globally. This underscores the importance of having a diversified base of knowledge intensive and growth sectors, enabling continued enterprise and economic impact.
IDA Ireland continues to call out the imperative of safeguarding the competitiveness of its client base, and that of the country, as the global FDI landscape becomes increasingly challenging and complex.
At a fundamental level Ireland’s value proposition for FDI focusses on the strengths that make Ireland globally competitive including: the stable economic & political environment, over 75 years track record in attracting multinational corporations, a highly educated population which is amongst the youngest in Europe, consistent pro-business policies, unwavering commitment to EU membership, leading industry & innovation clusters, and an enhanced focus on the transformation of existing FDI operations, as global multinational corporations seek to achieve a competitive edge in response to the twin transitions of climate and digital.
Over the last two years alone, significant new investments across the international funds sector, supported by IDA Ireland include: State Street’s new state of the art building in Kilkenny with global cybersecurity centre; the global financial service provider Apex Group expanded its established presence in Ireland with the opening of a new Limerick office; International fund administrator, Aztec Group announced its expansion into Ireland, creating 30 new jobs in Kilkenny; leading asset manager, Mediolanum, pioneered a transformative learning and development program for its 170 strong workforce in Ireland; BNY established a new Global Digital Research and Development Hub in Dublin; SEI opened a new office in Dublin, reinforcing its commitment to the European market and focus on driving strategic growth globally; and Client Lifecycle Management solutions company FinTrU opened a new premises in Letterkenny focussed on global innovation and collaboration.
IDA Ireland continues to call out the imperative of safeguarding the competitiveness of its client base, and that of the country, as the global FDI landscape becomes increasingly challenging and complex. Ireland needs to remain agile as it evolves and adapts to emerging sectors and a more dynamic and highly competitive global landscape. The agency is committed to continuing to work with stakeholders to ensure ongoing investment and development in areas such as talent and infrastructure which are central to the country’s competitiveness and critical to continued FDI success in Ireland.