Dublin is a major global hub for fund administration, aircraft leasing, insurance and a range of wholesale banking activities.
Ireland is the 4th largest provider of wholesale financial services in the EU. It is a base for a wide variety of financial firms which are attracted by robust regulation and a strong skills base as well as excellent investment and tax incentives.
A combination of 12.5% tax and an exceptionally extensive and comprehensive set of double tax agreements with 62 countries makes Ireland a highly tax- efficient location. Such efficiency is particularly beneficial for international financial service operations. More information can be found from Enterprise Ireland and the IDA.
Nearly two-thirds of Irish CEOs expect their headcount to increase over the next 12 months (see graph below) and their intention to recruit is at an all-time high. However, given the challenges organisations are facing in finding skilled people and Ireland’s low unemployment rate, it remains to be seen if these recruitment plans are achievable.
This is an area in which Dublin is particularly successful. Ireland has a 65% share of the global leasing market and more than half of the world’s aircraft are now owned and managed in Ireland.
Irish Financial Services Centre
The centrality of the Irish Financial Services Centre (IFSC) to Dublin’s city landscape is a key reason for the concentration of financial institutions in Ireland’s capital. The IFSC was established by the government in 1987 in order to centralise a range of internationally traded financial services, such as banking, fund management and specialised insurance; it has expanded massively since.
Over time, the adjacent Docklands area of the city has developed as an expansion of the IFSC, extending on both north and south sides of the River Liffey and as far east as the 3Arena. Over 500 firms now operate within this area, including more than half the world’s top 50 banks and top 20 insurance companies.
Foreign Direct Investment
Since 2015, FDI investment in Financial Services in Dublin has risen dramatically. This trend is expected to continue as a result of UK-based financial services companies moving operations to Dublin in reaction to the prospect of Brexit.
source: fDi Markets
The Bank of America recently established its European Headquarters in Dublin and UK Banking giant Barclays has established its main EU Banking subsidiary in Dublin. Citibank and JP Morgan are also investing significantly in Dublin. (Source: Dublin Regional Enterprise plan 2020.)