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Bridging east and west
Georgia surpassed $6.7 billion in foreign direct investment from 2021 to 2024. If you’ve followed the country’s transformation over the past two decades that will come as no surprise.
With one of the fastest-growing GDPs globally and a reputation as one of the most investor-friendly countries, Georgia has many thriving sectors such as manufacturing, energy, IT, hospitality, Business Process Outsourcing (BPO) and logistics. The country has re-established itself as a critical commercial link between Europe and Asia, echoing its historic role on the ancient Silk Road.
A major driver of this success is the simplicity and cost-effectiveness of doing business in Georgia. Reflecting this streamlined approach to business processes whilst maintaining robust standards, the World Bank’s Business Ready Index ranks Georgia second for Operational Efficiency and third in the Regulatory Framework category. Companies can be registered in a single day, and Georgia offers foreign investors grants of up to 15% for capital and workforce training expenses.
The country is rightly proud of these positive steps. “Over the past decade, the Georgian government has implemented numerous reforms to create a favorable investment climate,” says Levan Davitashvili, the First Vice Prime Minister and Minister of Economy and Sustainable Development of Georgia. “We have rightly received international acclaim for these efforts.”
Government agencies like Enterprise Georgia provide additional financial support, offering grants and loans to offset workforce and infrastructure costs, including significant cashback on foreign investment projects.
A business-friendly environment
Strategic location and infrastructure development
Georgia is also solidifying its role as a key East-West trade corridor. The country is investing in infrastructure that strengthens its position in Eurasian trade routes, such as the Middle Corridor linking China and Europe. Key projects include the Anaklia deep-sea port on the Black Sea and the expansion of Poti Port, which will enable Georgia to handle larger vessels and increase its capacity for trade. The Baku-Tbilisi-Kars (BTK) railway, linking Turkey with the Caspian Sea, is expected to increase annual cargo traffic from 500,000 tons to 5 million tons. In addition, the newly launched Xi’an-Europe rail route, connecting China’s Xi’an Dry Port to Europe via Poti, further enhances Georgia’s significance as a trade gateway.
These infrastructure advancements are having a direct impact on key sectors of the economy. Manufacturing, particularly in electronics, automotive and logistics, is growing rapidly. Groupe Atlantic, a leading European water heater manufacturer, exemplifies the advantages of operating in Georgia. The company produces goods for the EU market at competitive costs, taking full advantage of Georgia’s strategic location and transport links to distribute products globally.
The energy sector is another area of significant growth. Georgia is rich in water resources, with more than 26,000 rivers, making it one of the top countries for freshwater resources per capita, with hydropower accounting for 77% of its energy production. However, only 25% of the country's hydropower potential has been tapped, presenting significant opportunities for investors.
Thriving sectors and future prospects
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Georgia’s trade policies also bolster its appeal. Its 2014 Association Agreement with the EU, including the Deep and Comprehensive Free Trade Area (DCFTA), grants preferential access to EU markets. Alongside access to one of the world’s largest trading zones, Georgia also has free trade agreements with the UK, China, Turkey and all CIS countries.
“Georgia's strategic location at the crossroads of Europe and Asia is a significant asset that we leverage to attract international businesses. Moreover, Georgia's participation in major regional initiatives, such as the Belt and Road Initiative, further enhances our role as a vital link in global trade routes,” says Mr. Davitashvili.
"Georgia's strategic location at the crossroads of Europe, and Asia is a significant asset that we leverage to attract international businesses."
Georgia’s tax burden is one of the lowest in the world, with retained and reinvested profit taxed at 0% and only distributed profits taxed at 15%. The country also has no capital gains, inheritance, or wealth taxes. Furthermore, the Free Industrial Zones (FIZs) in Poti, Kutaisi and Tbilisi offer tax exemptions on profit tax, property tax and VAT for imports and transactions within these zones, generating substantial cost savings for companies in logistics, warehousing and manufacturing.
Levan Davitashvili First Vice Prime Minister and Minister of Economy and Sustainable Development of Georgia
The government is actively courting international investment in renewable energy, with firms like Clean Energy Invest (Norway) and Masdar (UAE) already involved. The Black Sea Electricity Cable, scheduled for completion in 2029, will connect Georgia’s power grid to Europe, enhancing the country’s prospects as an electricity exporter. “We are committed to advancing new renewable energy projects, including providing financial support through mechanisms like Contracts for Difference (CFD),” says Mr. Davitashvili. “This approach helps ensure financial stability and predictability for investors.”
Georgia's rise as an investment hub
of Georgia’s electricity is generated by hydropower
26,000 rivers
Georgia is one of the top countries for freshwater resources per capita
77%
Georgia sits in a key position for Eurasian trade routes
From Silk Road to global gateway: Discover more about investing in Georgia, here
Georgia’s IT and business process outsourcing sectors are expanding rapidly, fueled by a well-educated and multilingual workforce; over the past five years, more than 120,000 students have graduated from tertiary institutions. The government provides a raft of attractive tax incentives for IT companies: 5% corporate tax rate, 5% on personal income tax, VAT exemptions, 0% on retained and reinvested profit, and no property tax. With a large proportion of the workforce fluent in English, Russian, German and other European languages, Georgia’s multilingual capabilities further increase its appeal for international businesses.
The real estate and tourism sectors are also thriving. Tourism revenues reached $4.5 billion in 2024, driven by visitors from Europe, Asia and beyond. With 600 miles of diverse walking trails, Georgia has become a trending destination for hiking enthusiasts. Foodies flock to experience the country's 8,000-year-old winemaking tradition, while Tbilisi, already known for its incredible array of both historical and modernist architecture, has become a hotspot for design lovers, drawing comparisons to Berlin's vibrant cultural scene. The city’s panoramic bars, techno clubs, and thriving art community have made it a cultural hub attracting both visitors and investors.
The new airport in Tbilisi is expected to draw global visitors and boost tourism even further. The Georgian National Tourism Administration’s strategy emphasizes sustainable tourism development, focusing on high-income growth and job creation, particularly in sectors like eco-tourism, including projects like the recently held 2025 Winter Youth Olympic Festival.
"We are planning several initiatives, including expanding our network of free trade agreements, developing special economic zones and increasing infrastructure investments."
Levan Davitashvili First Vice Prime Minister and Minister of Economy and Sustainable Development of Georgia
Georgia is immensely attractive for potential investors. The country’s growth prospects are promising, it has particularly favorable demographics, and its infrastructure is improving.
“To elevate Georgia's global business standing, we are planning several initiatives, including expanding our network of free trade agreements, developing special economic zones, and increasing infrastructure investments. Through continued innovation and persistent investments, Georgia is dedicated to remaining an attractive and competitive destination for global businesses,” says Mr. Davitashvili.
Looking ahead, Georgia’s favorable business climate, continued infrastructure investments and strategic position at the crossroads of Europe and Asia make it an increasingly attractive destination for foreign investment. As the country strengthens its ties with Europe and Asia, the potential for continued growth remains strong.
Road to the future
The Reuters news staff had no role in the production of this content. It was created by Reuters Plus, the brand marketing studio of Reuters.
Produced by Reuters Plus for
Disclaimer: The Reuters news staff had no role in the production of this content. It was created by Reuters Plus, the brand marketing studio of Reuters. To work with Reuters Plus, contact us here.
