Northern Ireland has recorded a strong increase in foreign direct investment (FDI) activity, securing 28 projects in 2025, up from 17 the previous year, according to the latest EY European Attractiveness Survey. This marks a 65% rise in project numbers and highlights the region’s growing appeal to international investors, even as overall investment activity across Europe continues to soften.
The report shows that while FDI projects across Europe declined by 7% in 2025, the continent remains a highly competitive destination globally, with more than 5,000 projects recorded across 47 countries. Against this backdrop, Northern Ireland’s performance stands out, reflecting its ability to attract investment in a more selective and increasingly competitive global environment.
Growth in Northern Ireland has been driven by strong activity in key sectors, particularly software and IT services, which accounted for nine projects in 2025, followed by business services with eight projects. This reflects the region’s continued strength in digital, technology and services-led investment, aligning with wider global trends toward innovation-driven projects.
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Belfast continues to play a central role in attracting international investment, ranking sixth among UK cities for FDI projects in 2025, with 16 projects secured during the year, behind London (1st), Manchester (2nd), Edinburgh (3rd), Birmingham (4th) and Glasgow (5th), all of which are larger, more established investment hubs, and significantly ahead of other regional cities such as Cardiff (7th, 9 projects).
At a UK level, the overall number of FDI projects declined by 14% in 2025, reflecting the broader shift in global investment patterns and increased competition between regions. Northern Ireland’s growth within this context highlights the strength of its regional proposition and its ability to stand out within a challenging environment.
The European Outlook
Across Europe, investment trends continue to evolve, with companies increasingly focusing on fewer, larger and more strategic projects, particularly in areas such as technology, advanced manufacturing and research and development. This shift is reshaping how and where investment is deployed, favouring locations that can offer a combination of talent, innovation capability and stable operating conditions.
Despite the recent decline in project numbers, underlying investor confidence in Europe remains resilient. A majority of international businesses continue to view Europe as a priority investment destination, supported by its large market, strong industrial base and role in global value chains. As companies navigate geopolitical uncertainty and changing supply chains, investment decisions are becoming more deliberate, with an increased focus on long-term strategic value.
Andrew Dolliver, EY UK & Ireland Strategy and Transactions Partner, said:
“Northern Ireland’s performance this year stands out in what is an increasingly competitive and selective global investment environment. While overall FDI levels have softened across Europe, the projects that are coming through are more focused, more strategic, and increasingly concentrated in areas such as technology and business services, where Northern Ireland is proving it can compete.
“What is particularly encouraging is how closely private investment aligns with the region’s overall direction. Ongoing investment through City and Growth Deals, together with a focus on innovation, skills and high-growth sectors, is helping to strengthen Northern Ireland’s long-term appeal and create the conditions for more high-value investment, with almost half of all projects last year coming from US investors.
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“As competition for investment intensifies globally, maintaining this momentum will depend on continued focus on skills, infrastructure and creating the conditions that support long-term, high-value investment into the region.”
Within this global context, Northern Ireland is well positioned to capture further investment. Its strong talent base, growing innovation ecosystem and connectivity to key international markets continue to support its attractiveness to foreign investors.
Looking ahead, maintaining this momentum will depend on continued investment in the factors that underpin long-term competitiveness, including skills, infrastructure and innovation capacity. As global investment becomes more targeted and competitive, regions that can offer clear strategic advantages will be best placed to succeed.
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