1. Attracting International Investment - the Irish Experience Presentation to the 4 th GCC Conference, Abu Dhabi, May 5, 2004 Attracting International Investment - the Irish Experience Presentation to the 4 th GCC Conference, Abu Dhabi, May 5, 2004

2. Overview of Ireland Population 3.9 million Total at Work1.8 million (was 1.1 million in 1990) Area70,282 sq. km ClimateTemperate Exports / GDP 92% GDP per capita$30,000 ( ppp year 2001) Over the past seven years, Ireland’s economic performance has been spectacular (International Monetary Fund 2000). The average annual rate of increase in Irish GDP has been 8.5% over the 8 year period 1994 - 2001, the highest in the EU and in OECD.

3. Ireland’s Economic History 1922 - 1958 –a basic agricultural economy –self-sufficiency and protectionism 1958 - 1973 –opening up and joining Europe (EEC) 1973 - 1987 –some success, adjustments, but crises also 1987 to date –‘stunning’ development and growth

4. Ireland’s Economic Growth Average Annual % Real GDP Growth Source: OECD Economic Outlook

5. Irish Factor and Productivity Growth 1990 - 2000 Source: European Competitiveness Report 2001

6. Ireland in the 1990s Results from development decisions of earlier decades and from EU membership European Single Market Social partnership and economic stability Demographic gains - more young people Foreign Direct Investment (FDI) Global orientation and openness

7. Social Partnership 1987 – Major Challenge –rising unemployment (17%) and emigration –public finance deficits and debt (120% of GNP) –loss of jobs and of national confidence National Social Partnership Agreement –employers, trade unions, farmers & government –moderate wage increases and tax cuts –consensus on development priorities –shared efforts to achieve national goals

8. Education and Skills Youngest population in Europe –40% under 26 years; 30% elsewhere in EU 57% of graduates are in science, engineering, computer or business studies Government initiatives to meet future need

9. Ireland’s Advantages Young, vibrant and highly-skilled workforce Consistent public policies, including low tax Strong developmental focus nationally, with strong, informal network links Agility, creativity, flexibility and ‘can do’ Rapid responses e.g. skills development Successful development of high-technology, high-productivity, trade-based FDI

10. FDI in Ireland - Highlights Leading European location for electronics World’s largest exporter of software All top pharmaceutical and medical device companies have plants in Ireland Highest return on investment in Europe for US companies (U.S. Department of Commerce) >80% of manufactured exports >35% of Gross Domestic Product

11. Key Features of FDI No ownership restrictions in Ireland No discrimination in operating conditions Appropriate licensing and regulation Key sectors: –Information and Communications Technology –Pharmaceuticals and Healthcare –Internationally Traded Services –International Financial Services –e-business

13. Marketing Process Identify and access target companies Build relationships and understand needs Match our offering to their needs Provide ‘one stop shop’ service Deliver offering and perform to promises Provide top quality aftercare Continue and deepen relationships

14. IDA Worldwide San Jose New YorkAtlanta Chicago Boston United Kingdom Germany Netherlands Japan Korea Taiwan Australia

15. Dublin International Financial Services Centre Government decision – 1987 Implementation by committee chaired by Secretary General to the Prime Minister 10% Corporate Tax agreed with EU Local development incentives Local banks engaged positively to promote Marketing team engaged with global Instituutions – attracted role models

16. Key Background Factors Open, responsive business environment Welcome for, and success with FDI EU and OECD membership and policy continuity Free access (“passport”) for services throughout the EU Free capital movement Educated population with business orientation Professional Services with global outlook Low corporate taxes

17. Main Activities in Dublin Banking, asset financing and securitisation, leasing Corporate Treasury Management Fund and investment management/administration Insurance –Life and non-life/general –Reinsurance, captives and broking

18. IFSC Statistics € billion  Bank assets of international banks207  NAV* of domiciled investment funds375  NAV* of all funds 558  Cross-border life assurance premiums 5.6  Cross-border gross non-life premiums 10  Assets of international non-life insurers 30 Number of domiciled investment funds- 3394 Direct Employment – 12,000

22. The Future for FDI in Ireland High value knowledge-based activities Education, skills, research and innovation will be key competitive advantages New technologies and business models Better regional spread sought Better integration of FDI and Irish business FDI will continue to be of great value to us

23. Attracting International Investment – The Irish Experience Attracting International Investment – The Irish Experience