Ireland's shares of FDI projects down by 5%

Global cross border foreign direct investment grew by 5% to $947 billion in 2007, according to the latest data from OCO Global.

A total of 11,574 new investment and expansion foreign direct investment projects were announced in 2007. These projects have the potential to create about 2.9 million jobs, OCO Global says.

But the figures show that Ireland experienced a 5% decline in project numbers for 2007. 98 investment projects from 87 companies were announced last year, down 5% from 2006. Capital expenditure by foreign investors here amounted to $2.06 billion.

Software and IT services continued to be the most popular source of FDI here, accounting for 26% of all projects. Key investors in Ireland included Royal Bank of Scotland, IBM and Wyeth. The most popular destinations for inward investment were Dublin, Cork and Shannon.

OCO Global said that while Irish jobs created as a result of FDI have fallen by 40% in the last year from 6,418 to 3,886, there has been a shift towards increased investment in higher value sectors.

Investment by foreign companies in Northern Ireland increased to 33 from 30 in 2006, OCO Global said.

China retains its 2006 ranking as the top global destination for multinational investment, attracting 1,171 projects last year. However the investment of $90 billion is down significantly from the $116 billion recorded the previous year.

The US was ranked second in 2007 with 783 projects, while India dropped one place to third with 676 projects. The UK was fourth, attracting 622 FDI projects.

'With the current financial instability likely to continue for much of 2008, FDI is almost certainly set to become an even more important component of capital investment and job creation in all regions of the world,' commented OCO Global's Henry Loewendahl.