The importance to Ireland of US investment is difficult to exaggerate. Four of Ireland’s top five largest companies are American. The lion’s share of the Republic’s corporate tax receipts come from US companies, more than 970 of which directly employ more than 245,000 people in Ireland and indirectly support a further 169,000 jobs.
IDA Ireland chief executive Michael Lohan sums up the significance of US FDI in one word: “transformational”.
“When you look at the role of FDI in general and US FDI in particular, it has transformed the Irish economy,” he says. “And not just the cities – the regions as well. More than 200,000 of the 300,000 jobs in FDI companies are outside of Dublin.”
The benefits flow in both directions, he adds. “US companies choose Ireland to internationalise because it is a proven beachhead for international growth into Europe and beyond. Also, the supply-chain partnerships they have established with Irish companies have helped those companies with global market diversification and enabled them to bring their innovations to the world.”
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US FDI is not just an economic asset, according to Andrew McIntyre, head of corporate/M&A at William Fry. “It’s a strategic partnership that shapes Ireland’s competitiveness and innovation landscape. It has played a strategic role in Ireland’s growth and resilience over the past several decades.”
Beyond job creation, US multinationals have played a key role in driving knowledge exchange, bringing world-class standards and technologies that elevate Ireland’s workforce and spurring growth in technology, life sciences and professional services, he adds. “Their presence has helped foster a dynamic ecosystem where Irish SMEs and start-ups thrive as suppliers and collaborators, boosting productivity and research and development.”
The good news is that the investment pipeline from the US remains very strong. “In the first half of the year we had 179 investment announcements, a 37 per cent increase on the same period last year,” says Lohan. “The US continues to be significant player in that, accounting for 60 to 65 per cent of the investments. We see that trend continuing to the year end and beyond. The pipeline is robust and strong across all sectors including tech, fintech, life sciences and the emerging technology areas as well.”
Encouragingly, new entrants accounted for 52 of the investments. “The number of new and first-time investments underlines the continuing attractiveness of Ireland for FDI,” he says. “Also, recent announcements show how established companies continue to expand their operations here while new companies also see the benefits of locating in Ireland.”
While recent US trade and tax policy changes have introduced some uncertainty, there has not yet been a significant reduction in US investment in Ireland, says McIntyre. “However, the risks are real, especially for sectors like pharmaceuticals and technology which could be affected by future trade tensions or policy shifts. On the tax front, US reforms and the global minimum tax have prompted some US firms to reconsider where they hold intangible assets. However, Ireland’s proactive approach to implementing OECD tax reforms has helped maintain investor confidence.”
Looking ahead, McIntyre says Ireland can take proactive steps to strengthen its relationship with the US and ensure it remains a top destination for US FDI. “First, Ireland must continue to invest in its core strengths: talent, infrastructure, and innovation. This means expanding housing and transport capacity to support growing workforces, enhancing digital and energy infrastructure, and maintaining a robust pipeline of skilled graduates through education and training initiatives aligned with industry needs. The revised National Development Plan announced in July this year will aid the acceleration of Ireland’s infrastructure objectives.”
Ireland should continue to deepen its engagement with US stakeholders, both governmental and corporate, he adds. “Strengthening diplomatic ties, expanding trade missions and fostering transatlantic collaboration in areas like AI, green tech, and life sciences will help reinforce Ireland’s relevance.”
Policy stability and regulatory clarity are critical. “Ireland’s consistent legal and tax environment has long been a draw for US investors,” he points out. “As global tax reforms evolve, Ireland must continue to strike a balance between competitiveness and compliance, ensuring that our offering remains transparent, fair, and attractive.”
PwC Ireland tax partner Harry Harrison also emphasises the importance of policy stability. “Ireland’s attractiveness as a location for US investment has been based on many factors, but key to this investment has been a sustained and consistent government policy over decades to ensure Ireland has a competitive offering, particularly when compared to other countries across Europe. Regardless of what happens politically in the US, a laser-like focus on maintaining this competitiveness should be a key FDI policy.”
He also mentions “housing and infrastructure, the difficult planning process and the increasing administration burden across a number of areas of doing business in Ireland” as starting to impact competitiveness. “Where steps can be taken to deal with these issues, particularly for US multinational groups operating or seeking to operate in Ireland, in my view this will have a significant benefit for Ireland’s continued attractiveness. These are big challenges, but by focusing on what we as a country can control is key to maintaining US investment in Ireland.”
Lohan stresses the need to address what lies within our control. “That is very much the focus for Government in the Action Plan for Competitiveness and Productivity. We need to continue to invest in education and workforce development. Research and innovation investment is also critically important. From an FDI perspective, we have seen the scale and scope of R&D investment growing and we need to match that ambition.”
McIntyre also mentions skills and innovation. “To further strengthen Ireland’s position as a location for FDI, it is important to maintain a strong focus on developing talent and skills through ongoing investment in education, upskilling and attracting international expertise, ensuring the workforce remains robust and future ready,” he says. “Expanding support for research and development, digitalisation and sustainability initiatives can attract next-generation investment.”
