Ireland is one of Europe’s major financial centres, with over 300 companies in IDA Ireland’s International Financial Services portfolio, employing 47,000 people across investment management, banking, insurance, aviation, fintech and payments. IDA Ireland, the inward investment promotion and development agency of the Irish Government, markets Ireland as a global centre of excellence for international financial services companies, across its networks in the US, Europe, and Asia.

Ireland’s FDI proposition remains strong
IDA Ireland reported strong annual results across its entire client portfolio in 2023, showing an increased number of investments, steady levels of employment across the FDI sector and strong performance across key transformation areas of research development and innovation, sustainability, digitisation, and talent development.

Today, IDA has over 1,800 client companies within its portfolio, a testament to a mature, stable, and resilient foreign direct investment (FDI) sector. These companies directly employ more than 300,000 people, accounting for 11.3% of national employment, and showcasing the enduring strength of Ireland’s business environment.

The International Financial Services (IFS) sector has successfully expanded in Ireland for four decades now and it will continue to grow and evolve. Ireland’s underlying strength in international finance specialisms, together with the sectors convergence with technology, is positioning Ireland strongly for future success in international financial services. Ireland has unique strengths in both financial services and technology, with deep capabilities in both areas now located here.

The opportunity for digital transformation in large institutions, together with the emergence of niche providers, positions Ireland favourably as a strategic location for future investment. And a focus on innovation across business models including talent management, together with the broadening and deepening of operational mandates are key for the continued success of the industry in Ireland.

From an IDA perspective, we see substantial opportunities across the Irish based International Financial Services 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 and across other key subsectors, 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.

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 (MNC’s) seek to achieve a competitive edge in response to the twin transitions of climate and digital.

A turbulent global environment for FDI
Ireland has secured many positive investments over the last 12 months and the Irish economy continues to be resilient in a turbulent global environment. Against a backdrop of the global tech reset and severe global headwinds such as inflation, changing industrial policy, and ongoing geopolitical disruption across the world, Ireland has maintained its reputation as an excellent location for investment, with these investments delivering sustained levels of highly skilled employment across the country.

In the face of these challenges, Ireland offers international investors a strong platform for FDI growth. Expenditure within the Irish economy by FDI companies increased during 2022 despite the prevailing challenging conditions. Payroll was up 12% to €22.1bn, Irish services and materials spend increased by 15.7% to €13.8bn, and capital expenditure was up 49% to €15.5bn. Exports of €383.1bn represent an increase of 11.2% year on year.

IFS is one of the fastest growing sectors of FDI in Ireland
Ireland’s base of foreign direct investment is a core national asset that we must continue to nurture and develop. Today, Ireland hosts 20 of the top 25 Financial Institutions and the sector has become one of the largest and fastest growing sectors of FDI in Ireland, with employment up 38% in last 10 years.

Critical to delivering and sustaining the future economic impact of FDI in Ireland is transformation. IDA partners with companies in their drive to achieve global competitiveness and move through the twin transitions of climate and digital, to build a sustainable future. In 2023, over €1.4bn was committed by IDA clients on research and innovation projects and client spend of over €77m was committed to investment in talent development.

The ability to attract high quality talent is one of Ireland’s key selling points and the International Financial Services sector consistently highlights the criticality of skills to their business. Ireland is a competitive location when it comes to talent. The country has long been known 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.

In an extremely competitive FDI environment and at a time of rapid change and technological disruption, global corporations continue to evaluate their talent development needs to meet future requirements. IDA is supporting companies with skill needs assessments, future skill needs analysis and funding towards company-wide training/upskilling programmes, to enhance core competence and deliver a strategic platform for future investment in Ireland. An example here includes Mediolanum in Dublin who has pioneered an IDA backed skills and innovation initiative to nurture workforce talent.

International Financial Services companies not only look for a depth of subject matter skills, but also look for a broader skillset and mindset. This is being driven by the impact of digital transformation and decarbonisation across all areas of business, and with it the need to manage, analyse and action data to drive productivity and innovation. CEOs must champion a culture that not only embraces change but seeks out innovation and a broader mindset. IDA has worked with the Irish Management Institute (IMI) to create two output focused senior leadership programmes designed specifically for leaders in subsidiaries of multinational companies based in Ireland. “Leading with Strategic Intent” is targeted at country heads and executive leaders; and “Future Subsidiary Leaders” is designed to support succession planning and help develop the capabilities and mindset needed to successfully lead a subsidiary of a multinational firm in the future. Given the practical focus of these programmes, they give leaders the framework, focus and support to develop strategic transformation plans for their Irish site.

Digital transformation has become a survival strategy for the future and financial services companies are integrating digital technologies into every business area. The digital world demands a shift towards more agile, technology driven business strategies that align with new market dynamics and rapidly changing consumer behaviours. IDA can help companies as they move along their digital transformation journey: supporting companies to develop a brand-new R&D capability in Ireland, to supporting companies making significant expenditure in research and development activities in Ireland. In 2023, for example, BNY Mellon announced it is to open a new digital research and development hub in Dublin following an €8 million initial investment, creating 30 jobs; and payment and services software provider Ministry Brands announced it is launching a new software research and development centre in Galway, creating 50 new technology jobs. Technology areas of specific interest to financial services companies range from AI, Cloud and Data to Cyber Security and Quantum Computing.

All such initiatives are seeking to future proof our FDI base, within their global corporate network, as “best in class”. Of the FDI companies based in Ireland, over half of these companies have been here for 10 years or more and over a third has been in Ireland for 20 years or more. This resilience and longevity of the Irish based FDI sector, reflects its ability to adapt and transform in response to change.

Regional Impact
Balanced regional development is a key strategic priority for IDA and this was reflected in the level FDI investment into the regions, representing 54% of total FDI investments in Ireland during 2023. At the end of 2023, the number of people employed in IDA client companies in regional locations stood at 163,471, an all-time high.

In 2023, Ireland benefited from a series of regional investments by International Financial Services companies. Examples include global financial service provider Apex Group which announced that it has expanded its established presence in Ireland, with the opening of a new Limerick office. International fund administrator, the Aztec Group announced its expansion into Ireland, creating 30 new jobs in Kilkenny. Liberty Insurance announced plans to expand its presence in Ireland by establishing a new hub in Galway, creating 100 new jobs. Insurance data insights provider Ardonagh Analytics Lab celebrated moving into its new state-of-the-art office in Mullingar as part of its ambitious expansion strategy which will see it double its Irish workforce to 60. Signify Health celebrated the opening of its new state-of-the-art technology centre in Galway, and insurance technology platform Blink Parametric announced plans to double its workforce in Cork by the end of 2025 across all technical roles including presales, full stack developers, QA and data analytics.

Ireland continues to be agile, resourceful, and committed to the IFS Sector
Responding proactively to change has been the hallmark of Ireland and IDA’s success, and we will continue to be agile, resourceful, and committed in our aim to attract FDI to Ireland. IDA client companies remain positive about the business environment in Ireland and about Ireland’s attractiveness relative to key competitor locations for FDI. The outlook for Ireland remains broadly positive, driven by strong employment, growing real income, and the diverse nature of the economy. This is also borne out by the significant investments announced in 2023 across the International Financial Services sector, and others, and by a good pipeline of investments for 2024.