Why Northern Ireland is the perfect investment location for firms targeting the UK and EU markets
Companies looking for a foothold in both the United Kingdom (UK) and European Union (EU) markets should take a close look at Northern Ireland, which has unfettered tariff-free access to both.
Northern Ireland is the only region that straddles both the UK and EU economies offering a location where businesses can operate free from customs declarations, rules of origin certificates and non-tariff barriers on the sale of goods to both Great Britain (GB) and the EU.
Richard Ennis, Regional Director, Australia and New Zealand at Invest Northern Ireland, the region’s economic development agency, explains: “Northern Ireland is part of the UK but it also shares a land border with Ireland (in the EU). Under special agreements drawn up after the UK’s exit from the EU, Northern Ireland continues to have tariff-free access to GB and the European single market for goods.
“Northern Ireland is the only region in the world that has this access, and this presents a unique proposition for companies in Australia and New Zealand seeking a location from which to service both markets, recalibrate supply chains, or develop and sell products across key industries.”
In addition, Northern Ireland maintains regulatory alignment with EU on goods and remains in the UK Customs Territory, therefore accessing UK trade agreements such as those concluded with Australia (A-UK FTA) and New Zealand (NZ-UK FTA).
Northern Ireland’s multi-dimensional appeal
The UK is the second largest economy for Australian investment after the US, reaching $836 billion in 2022. Choosing Northern Ireland as the UK region in which to invest brings multiple benefits.
Although small, the region has attracted over 1,200 international companies to set up there and some 70% of new investors re-invest. Its success goes beyond its unique trading position.
“We’ve a young, well-educated and highly skilled workforce, a business-friendly environment, and an excellent digital infrastructure,” says Ennis. “Companies will also find the cost of operating in Northern Ireland incredibly competitive with operating costs are around 33% less than Dublin, 57% less than London, 61% less than New York and 69% less than San Francisco.
“Moreover, our two world-leading universities, Queen’s University Belfast and Ulster University, can provide investors with research and innovation partners of the highest calibre.”
With an enviable supply of talented software engineers, the region has developed a range of tech clusters including telecom, mobile and data networks; AI and data analytics; IT and cloud services; fintech, govtech, and sports tech. As a result, several global technology leaders, including Fujitsu, SAP, Microsoft, Nvidia and Australian fintech company Lightyear have established operations there.
Lightyear chose Northern Ireland for its global headquarters because of the region's credentials as a leading innovation hub for fintech and because it offers a great entry point to the European and US markets.
In Life and Health Sciences, Northern Ireland has over 250 businesses working at the forefront of precision medicine, pharma, diagnostics and clinical trials. And its success in the Advanced Manufacturing and Engineering sector stretches from aerospace and defence to materials handling, composites, electronics and renewables.
This capability attracted Tribe Tech, a Perth-headquartered drill rig manufacturer, which set up a manufacturing facility near Belfast in 2021. It cited the wealth of heavy manufacturing industrial expertise in Northern Ireland as a reason for locating there.
And recently, Ionic Technologies, a Belfast-born company that was acquired last year by Australian multinational Ionic Rare Earths Ltd, has been chosen as the recipient of significant government funds aiming to scale up production through development of a commercial-scale plant.
Unparalleled support for investors
Northern Ireland’s inward investment success also owes much to the comprehensive support offered by Invest NI. The agency’s Asia Pacific presence includes offices in Sydney, Tokyo, Seoul, Singapore, Beijing, Shanghai and Guangzhou.
Nick Caldwell, Head of Asia Pacific Territory, Invest NI, says: “We can help investors get to the heart of what Northern Ireland has to offer. That ranges from providing information on financial support and help with finding premises, to connecting them with business networks and research centers, and supporting their training and recruitment processes.”
“Northern Ireland has a great deal to offer investors from Australia and New Zealand. It represents a huge opportunity for investors wanting to enter or expand in the UK or EU markets. I’d encourage Australian and New Zealand businesses to reach out to us through email to: anz@investni.com and discover more about why Northern Ireland could be the deal location for their next international expansion.”
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