INVESTING IN IRELAND ISSUE 37, JANUARY 2019 - PWC
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www.pwc.ie/fdi
Investing in Ireland
Issue 37, January 2019
Happy New Year and welcome to the January 2019 This issue also notes Ireland’s success in the recent
edition of PwC’s quarterly newsletter on Foreign FDI Cities of the Future report which saw Dublin
Direct Investment (“FDI”) in Ireland. receive a top global ranking (see page 5).
The pipeline of FDI projects has continued in Q4 2018 Please do not hesitate to contact myself, any member
with a significant number of job and investment of our team, or your usual PwC Ireland contact to
announcements (see page 2) made over the last few discuss your FDI questions. We would be happy to tell
months. you more about the topics raised in this issue and how
they relate to your business. We would also be
We will have further details on the positive 2018 FDI
delighted to include anyone you feel would benefit
results just recently published by IDA Ireland in our
from receiving this newsletter on our mailing list.
next issue.
Remember to visit our FDI website for more updates
In recent years, Ireland’s relationship with Asia has
and detailed information (http://www.pwc.ie/fdi),
grown stronger, with many Asian companies now
including a range of recent publications.
choosing Ireland as an investment location (see page
4). This increase in investment from Asia has created
many new opportunities for Ireland, particularly in the
area of financial services.
Liam Diamond
+353 1 792 6579
+353 86 405 6965
liam.diamond@pwc.com
1
Recent FDI investment
announcements
Accela, a provider of cloud-based productivity MathWorks, an American company specialising in
solutions for Government, announced the opening of mathematical computing software, announced plans
its Dublin office and the expansion of its research and to accelerate growth in Ireland with the creation of 85
development team which will see the creation of 30 new jobs in 2019
new jobs
MSD, an American pharmaceutical company, is to
AXA XL, a subsidiary of the global insurance and construct a second manufacturing facility at its existing
reinsurance company AXA, has announced plans to site in Carlow, which will lead to the creation of 170
move XL Insurance Company to Ireland from the UK new jobs
Barclays, the British multinational investment bank, Overstock, an American internet retailer, announced
which has recently received approval from the Central plans to expand its European base in Sligo creating
Bank of Ireland to enlarge their Irish operations, is 100 new jobs
expected to create 300 new jobs by the end of 2019
Park Place Technologies, one of the world’s largest
Bausch Health, one of the world’s most respected post-warranty data centre maintenance organisations,
eye health brands, announced it will expand contact announced plans to open its new EMEA Operations
lens manufacturing capacity at its site in Waterford, Centre in Cork with the creation of 70 new jobs
creating 100 new jobs
ReliaQuest, an American cyber-security company,
Central Pharma, a leading outsource partner to the announced the opening of their new office in Dublin
world’s top pharmaceutical and nutraceutical along with the creation of 100 new jobs over the next 3
companies, announced plan to establish an EMEA years
accredited contract packaging and supply centre in
Shire, a global biotechnology leader in rare diseases,
Tralee, creating 100 jobs over 5 years
opened a new state of the art biologics facility in
Citrix, an American multinational software company, Dunboyne, creating 400 jobs when the facility is at full
announced the opening of a new office in Dublin with capacity
the creation of 30 new jobs
Simmons & Simmons, a legal services firm,
Coinbase, a digital currency exchange headquartered announced the opening of a new office in Dublin,
in San Francisco, announced plans to expand their creating 50 jobs over the next 3 years
European presence with a new Dublin office
Swedencare, a provider of nutraceutical products,
Entekra, an American based design, engineering and announced plans to move to a larger premises in
manufacturing company, plans to create 100 new Waterford signalling the company’s plans to develop a
highly skilled jobs in Monaghan, with a 46 million euro flagship facility in Ireland
investment
ThousandEyes, a network intelligence company that
Genesys, a global leader in omnichannel customer provides visibility into the internet, cloud and company
experience and contact centre solutions, announced it networks, announced their planned expansion into
will create 200 new highly-skilled technology jobs at Ireland with the opening of a sales and services office
the company’s new Galway office over the next 3 years in Dublin
ILC Dover, a global leader in flexible containment World Nomads Group, an Australian travel insurer,
solutions for the pharmaceutical and announced plans to launch its European operations
biopharmaceutical industry, announced it is expanding and headquarters in Cork to support its international
its Irish operations by opening a new production facility expansion
in Blarney, Co. Cork, creating up to 70 jobs over 2
VoxPro, a corporate multinational provider of
years
outsourced multilingual customer service and
INIT, a supplier of intelligent transport systems, technical support services, announced it will expand
opened a new software development centre in its existing facility in Cork, which will lead to the
Maynooth, Co. Kildare, which will lead to the creation creation of 400 new jobs
of 20 new highly skilled jobs
2
“We chose Dublin for
several reasons, including
its strong talent, the ease
of travel back and forth
from our headquarters in
the US and around the
rest of Europe, and the
openness and focus on
collaboration fostered by
“The growing job opportunities in our Ireland. All of these things
Ireland office are a testament to the make Dublin a great
success of our new staff in delivering place to be.”
for our customers throughout EMEA
Brian Murphy, CEO, ReliaQuest
in our first two years.”
Richard Haxby, Managing Director, MathWorks
Ireland
“Post Brexit, Ireland offers a stable environment from which to service our
European customer base. We are very excited to establish a best in class
operation here as a part of IT Tralee.”
Alwyn Smit, CEO, Central Pharma
3
Asian investment in Ireland
Asia currently accounts for 40% of global GDP and Ireland’s connection with Asia has been deepened by
60% of the global population. It is estimated that by the establishment of a number of Chinese financial
2020 these figures will increase to 50% and 75% service institutions in Ireland and the new direct flights
respectively. from Ireland to Hong Kong SAR and Beijing by Cathay
Pacific and Hainan Airlines respectively. 2019 marks
By 2050 it is anticipated that China will be the largest
the 40th anniversary of diplomatic relations between
economy in the world, followed by India in second
China and Ireland and should result in closer
place. Further projections have placed Vietnam, India,
co-operation.
and Bangladesh as the fastest growing economies
over this period. As Asian companies look to expand their operations
abroad and into Europe, Ireland’s proven track record
The EU has developed close ties with the Asian
and depth of expertise has made it a popular choice as
market, with an EU-China Investment Agreement
an investment hub.
currently in the process of being developed, an
Economic Partnership Agreement in place with Japan, In particular, Ireland holds a dominant global position
and free trade agreements with Korea, Singapore, and in the financial services industry, with 80% of the
Vietnam. world’s top 25 financial services companies operating
in Ireland. Lifesciences and Technology are also two
Ireland has succeeded in fostering a strong
other sectors attracting Asian investment. More
relationship with Asia, with some of China and Japan’s
recently, Korean funds have also made significant
largest financial groups having already established
investments in the Irish commercial property sector.
operations in Ireland.
Ireland remains fully committed to the EU, ensuring
This strong relationship is further demonstrated by
access to the single market and making it an attractive
Ireland’s approval as one of the 13 new members to
location for companies wishing to remain in the EU
join the Asian Infrastructure Investment Bank, an
post Brexit.
institution that was developed by the Chinese
government to fund infrastructure projects in Asia.
China and India are Ireland is home to
expected to be the
two largest global 20 out of 25 of the top financial
economies by 2050 services companies
14 out of 15 of the top medical
By 2020, Asia is technology companies
forecast to account for
17 of the top 20 global
software companies
50% of global GDP and 10 out of 10 of the top
pharma companies
8 out of 10 of the top industrial
75% of global population automation companies
4
Dublin leads the way for FDI
Dublin has been ranked as the top city in the world for The report also outlined that of all the locations
FDI in a recent report published by FDi Intelligence as included within the study, Dublin had the highest levels
part of the Financial Times portfolio. of FDI on a per capita basis.
The report, titled “Global Cities of the Future Dublin has managed to establish an international
2018/2019”, ranked Dublin City as number one in the reputation as a software and IT hub, receiving large
world in both the “Large City” and “Economic scale investments in recent years from software giants
Potential” categories. such as Google and Facebook. Within the five year
period analysed by the report, nearly half of the
In addition to these top rankings, Dublin maintained its
investment into Dublin came from technology based
third place position as overall Global City of the Future,
firms.
behind Singapore and London, and ranked in the top
ten in the “Large Cities for Human Capital” and
“Lifestyle” categories.
5
FDI news & events
European Financial Forum Business and Finance Awards
The 4th European Financial Forum will take place on 13 The Business and Finance Awards are the longest
February 2019 in Dublin Castle. The aim of the Forum running and most coveted business awards
is to bring together senior executives to explore the programme in Ireland and have been recognising
disruptive forces that are shaping the financial sector. excellence in Irish Business for over 40 years. The
Some of the speakers set to appear at this year’s awards took place at The Convention Centre Dublin,
forum are; the CEO of IDA Ireland Martin Shanahan, on 13 December 2018. Honourees at the 2018 awards
the Governor of the Central Bank of Ireland Philip Lane, were; the former President of Ireland Mary McAleese,
the Minister for Finance Paschal Donohoe, An the former President of the European Commission
Taoiseach Leo Varadkar, and The Northern Trust Chief José Manuel Barroso, and the Head Coach of the Irish
Economist Carl Tannenbaum. Rugby team Joe Schmidt.
Women in Finance Awards
The Women in Finance Awards, Europe’s largest
diversity initiative, came to Ireland on 22 November
2018. Already established in London, the Women in
Finance Awards is Europe’s largest diversity initiative
recognising the high-achievers, advocates, and role
models for women in the sector. This inaugural Irish
event, hosted at Clontarf Castle, rewarded the
exceptional achievement of women across a range of
finance sectors, from the world of venture capital and
banking to accountancy and corporate law.
6
Economic GDP increased by 0.9% in Q3 of 2018
update GNP increased by 5.2% in Q3 of 2018
Exports increased by 8% in Q3 of 2018
Unemployment fell to a rate of 5.3%, the lowest it has been in over 5 years
Irish Government bonds are trading at a rate of 0.96% as at December 2018
Leading the way
1st 1st
in the world for: in Europe for:
• Attracting high value investment • Real GDP Growth1
projects2 • Investment incentives that are attractive
• Tax attractiveness for digital to foreign investors1
business models3 • Productivity in Industry1
• Large city for FDI (Dublin)4
• Flexibility and adaptability1
• Economic potential (Dublin) 4
• Secondary school enrolments1
• Business friendliness (Dublin)4 • Literacy rates1
• FDI and technology transfer 5
• Science, technology, engineering, and
• Prevalence of training in firms5 mathematics (“STEM”) graduates6
• SMEs selling online, e-commerce
turnover, cross-border SMEs online and
open data6
1st • Innovators7
in Eurozone for:
• Relationship of pay to productivity5
• Prevalence of foreign ownership5
• Attracting talented people from
abroad5
1 IMD World Competitiveness yearbook 2018
2 IBM Global Trends 2018
3 Digital Tax Index 2017: Locational Tax Attractiveness for
Digital Business Models
4 Global Cities of the Future 2018/19 – FDI Intelligence
5 The Global Talent Competiveness Index 2018
6 The Digital Economy and Society Index (“DESI”) Report 2018
7 European Innovation Scoreboard 2018
7Would you like to know more? Should any of the topics covered in this newsletter be of particular interest to you, please do not hesitate to contact any member of the FDI team, or your usual PwC Ireland contact. If any of your colleagues would like to be included on our mailing list, please let us know. Please click on our website www.pwc/ie/fdi for additional information. Various topics of interest for foreign investors can be found in the publications link in the tax section, including: Budget 2019 Brexit CEO Survey Previous issue of Investing in Ireland Tax Facts 2018
Contacts
Jean Delaney Mary Honohan Terry O’Driscoll
+353 1 792 6280 +353 1 792 8609 +353 1 792 8617
jean.delaney@pwc.com mary.honohan@pwc.com terry.odriscoll@pwc.com
Liam Diamond Susan Kilty John O’Leary
+353 1 792 6579 +353 1 792 6740 +353 1 792 8659
liam.diamond@pwc.com susan.kilty@pwc.com john.oleary@pwc.com
Brian Leonard Ronan MacNioclais Feargal O’Rourke
+353 1 792 6179 +353 1 792 6006 +353 1 792 6480
brian.a.leonard@pwc.com ronan.macnioclais@pwc.com feargal.orourke@pwc.com
Denis Harrington Joe Tynan Garrett Cronin
+353 1 792 8629 +353 1 792 6399 +353 1 792 8807
denis.harrington@pwc.com joe.tynan@pwc.com garrett.cronin@pwc.com
Andy O’Callaghan James McNally
+353 1 792 6247 +353 1 792 6844
andy.ocallaghan@pwc.com james.o.mcnally@pwc.com
www.pwc.ie/fdi
This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
© 2019 PricewaterhouseCoopers. All rights reserved. PwC refers to the Irish member firm, and may sometimes refer to the PwC network.
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