States use foreign direct investment (FDI) screening (investment screening for short) to prevent foreign investors from buying national assets at bargain prices or reducing competition, and to protect national security and critical infrastructure.[1] As of 2023, FDI screening mechanisms are employed by around 50 countries among those participating in OECD discussions on freedom of investment.[2] FDI screening methods include procedures to assess, investigate, authorise, condition, prohibit or unwind FDIs.[3]
The introduction of national FDI Screening regimes is a global trend, with many EU Member States now having FDI Screening regimes in place. In line with this trend, Ireland aims to introduce the State’s first FDI Screening regime via the Screening of Third Country Transactions Act 2023[4] (the FDI Act). This legislation is expected to come into force in September 2024. [5]