Overview

Northern Ireland covers an area of about 14,000 square kilometres in the northeastern part of the island of Ireland. It is comprised of the six counties of Antrim, Armagh, Down, Fermanagh, Londonderry and Tyrone and according to the Northern Ireland Statistics and Research Agency (NISRA) in mid 2006, has a population of just over 1.7 million people. The capital, Belfast, is the largest city in the region, with other principle urban areas being Bangor and Londonderry.

Since its creation under the Government of Ireland Act in 1920, Northern Ireland has seen a great deal of political and social unrest between the Protestant-Unionist majority, who wish for Northern Ireland to remain part of the UK, and the Roman Catholic-Nationalist minority, who want the region to become part of a united Ireland. These differences have resulted in terrorist acts being carried out by paramilitary groups on both sides during much of the late 20th century.

In July 1997, the nationalist paramilitary group, the IRA called a cease-fire in order for their political wing, Sinn Fein, to be allowed to participate in all party talks. In April 1998 the Good Friday Agreement, which made provision for a power-sharing executive to be established in the region, was signed by the majority of political parties in Northern Ireland and then ratified in a referendum held in both the Republic of Ireland and Northern Ireland. The new Northern Ireland Assembly was then established following elections held at the end of June 1998. However, in October 2002 the assembly was suspended for the fourth time since its creation and responsibility for governing the region returned to Westminster. Finally in May 2007 the assembly was restored with Ian Paisley of the Democratic Unionist Party as First Minister and Martin McGuinness of Sinn Fein as Deputy First Minister.

Despite some setbacks, political and social stability in Northern Ireland is greatly improved and this has resulted in considerable benefits for the region's economy. Investment has also occurred in many sectors, with companies such as Abbey, Fujitsu, Liberty Mutual, National Australia Bank, Seagate and Nortel Networks setting up and developing operations in the region. Some of the primary advantages of choosing Northern Ireland as a business location, that have been identified by the companies operating there, include the region's excellent transport infrastructure and skilled workforce.

Economy

According to the region's development agency, throughout the 1990`s Northern Ireland had the fastest-growing regional economy in the UK, with GDP increasing 1 per cent per annum faster than the rest of the country.

As with any modern economy, the service sector is vital to Northern Ireland's development and is enjoying excellent growth. In particular, the region has a booming tourist industry with record levels of visitors and tourist revenues and has also established itself as a significant location for call centres. A variety of companies from all over the world have set up call centre operations in the region in recent years including Capita Business Services Ltd, GEM and HCL Technologies Ltd. The region's Life and Health Sciences industry is also expanding and, according to the regional development agency, has approximately 50 companies employing nearly 4,000 people. Some of the most prominent of the companies present in the region and operating in this sector include ABC Laboratories Inc, Bio Kinetic Europe Ltd, Galen Holdings plc, Meridian Medical Technologies Ltd, MDS Pharma Ltd, Perfecseal Ltd, Randox and Amtec Medical, TFX Medical and Tyco Healthcare.

Since the ending of the regions conflict, tourism has boomed in Northern Ireland, greatly aided by low cost airfares.

Infrastructure

Northern Ireland has a good transport infrastructure and the road network ensures all parts of the region are less than an hour away from an airport or seaport.

The region's main airport is Belfast International Airport. It handles approximately 4 million passengers a year and is the 5th largest regional air cargo centre in the UK with extensive warehouse and distribution facilities. The airport is home to 6 airlines offering scheduled services to many destinations and there are numerous onward destinations available through Amsterdam, Birmingham and London. George Best Belfast City Airport caters for over 2 million passengers a year and offers flights to several destinations throughout the UK. A new �21 million terminal was opened in 2001 to cope with increasing passenger numbers. The region's third airport, the City of Derry Airport, is situated seven miles Northeast of Londonderry and hosts flights to and from Dublin and cities throughout the UK.

The region has several ports located at Belfast, Coleraine, Carlingford, Londonderry and Warrenpoint that together offer excellent facilities for all kinds of cargo. The Port of Belfast is the largest of these, handling more than 60 per cent of Northern Ireland's sea-borne trade.

Workforce

According to the labour force historical supplement published by the DETI, there were 630,000 people employed as of spring 1995 however by spring 2005, 738,000 people were in employment. More dramatically was the fall in unemployment, in the same period the region saw a drop from 11.2% to 4,9%, although there is still a religious divide, with unemployment amongst Catholics being nearly twice as high as Protestants.

In Northern Ireland, Figures from the Office for National Statistics and DETI show that the majority of employment is in the service sector. The region benefits from an excellent academic record ensuring the availability of a well-educated and skilled workforce. Statistics for 2005-2006 from the Department of Education for Northern Ireland show that the level of attendance in full-time education and vocational training by 16 & 17 year olds was 86.6% compared to only 77.4 in England. 92 per cent of the region's pupils achieved pass grades in their final year of school compared with 90 per cent for the UK as a whole. Of these 24.6 per cent received �A` grades compared with 18.6 per cent in the UK. In addition, the University of Ulster and Queen's University of Belfast offer excellent access to graduates. According to the regional development authority approximately 3,500 students graduate with IT degrees each year along with 650 engineers with experience in digital signal processing, microelectronic and telecommunications. In general the region enjoys good industrial relations.

Business Costs

Operating costs in Northern Ireland are competitive when compared with the rest of the UK and Europe. According to the regional development agency, Invest Northern Ireland, wages and salaries in the manufacturing sector are approximately 25 per cent lower than the European Union average.

The cost of office space in the Northern Ireland is amongst the lowest in the UK. A report published in mid 2006 by CB Richard Ellis showed prime rents in Belfast to be €198.58 per square metre per year, compared with €763.16 for the city of London and €436.09 for Manchester.

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