Foreign direct investment (FDI) in Ireland remained strong in 2007, according to Ernst & Young's latest European Investment Monitor (EIM) published recently. The tenth annual survey revealed that in 2007 Ireland attracted 80 FDI projects, up from 74 in 2006.

This is the highest level of investment since 2000 when 113 projects were secured. Across Europe, a record number of foreign direct investments (FDI) took place for the fourth year in succession, with a total of 3,712 FDI projects recorded - a five per cent increase on 2006. However, the company found that this upward trend is unlikely to continue in 2008.

Although overall share of investment from the USA (down 9 per cent to 47 per cent) and United Kingdom (down 9 per cent to 12 per cent) declined, they still represent the top two FDI investors in to Ireland. Canada, Germany and Bermuda all increased their levels of investment in 2007 (Canada, (up 4.8 per cent to 7.5 per cent); Germany, (up 2 per cent to 5 per cent) and Bermuda (up 4 per cent to 5 per cent)). The 80 projects created a total of 4,052 FDI jobs in 2007, a decrease of 44 per cent on 2006. However, 17 per cent of these new FDI jobs were in research and development, far above the six per cent European average.

The majority of projects (34) in 2007 were in the Dublin area, with 11 in Cork followed by Clare with seven and both Galway and Limerick attracted four.

Software sector leads the way in Ireland & Europe

The software sector attracted the highest level of investment for the second year running, accounting for almost a quarter of the investment in Ireland (24 per cent). This was followed by pharmaceuticals (up 2 per cent to 14 per cent) in second place. Both financial intermediation (down 7 per cent to 11 per cent) and business services (down 2 per cent to 10 per cent) experienced drops in the level of investment. The electronics sector, which was ranked fifth, showed an increase from six per cent in 2006 to nine per cent in 2007. A total of 64 per cent (51) of the projects in Ireland were new and 29 per cent (23) of the projects were a result of expansion by companies who had already invested in Ireland.

In Europe, software was also the leading sector in generating investment with 474 projects attracted in 2007, followed by business services (467 or 30 per cent), financial services (235 or 15 per cent), machinery and equipment (205 or 13 per cent) and electronics (203 or 13 per cent).