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Unveiling Georgia's business potential
Georgia is at the intersection of Europe and Asia and has a centuries-long history as a trade hub. Today, the country is a magnet for foreign direct investment. With its strategic location and business-friendly environment, Georgia offers unparalleled opportunities for global enterprises.
From Silk Road to global gateway: Discover more about investing in Georgia, here
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.
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Nestled at the crossroads of Europe and Asia, Georgia offers a wealth of business opportunities for foreign investors.
GATEWAY TO GROWTH
INFOGRAPHIC
GEORGIA'S
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Georgia surpassed $2 billion in foreign direct investment in 2022. If you’ve followed the country’s transformation over the past two decades that will come as no surprise.
Bridging east and west
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Georgia's rise as an investment hub
Georgia's remarkable economic transformation has positioned it as a prime destination for international investors. The country provides access to a vast market of 2.3 billion people through an extensive network of free trade agreements and from 2021–2024, Georgia attracted FDI of $6.7 billion. There is now a compelling case for investors seeking new opportunities to make Georgia their first choice.
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Nestled at the crossroads of Europe, Asia and the Middle East, Georgia is on a strong economic journey.
Georgia’s reforms are attracting global investors
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Mikheil Khidureli, Chairman of the Investment Agency of Georgia, sits down with Nadira Tudor from Reuters Plus to explain why the country is drawing international investment.
Georgia sits at the crossroads of Europe and Asia, with free trade access to both the EU and China and a growing role on the Middle Corridor. A wave of infrastructure megaprojects is reinforcing that position, from the construction of a deep sea port at Anaklia, improved transportation links, to a Black Sea energy cable. "We're literally at the crossroads of Europe and Asia, geographically, logistically, geopolitically and economically," says Khidureli.
In Kutaisi, Georgia's third-largest city, a remarkable transformation is taking place, Georgia's former Parliament building is being reimagined as the Kutaisi Technological Hub.
Georgia is building tomorrow's tech and green economy
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With re-exports surging from $900 million to $3.9 billion in just five years, Georgia has transformed into a vital hub for Eurasian trade.
Georgia’s infrastructure is
reshaping Eurasian trade
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Transcript
Nadia: Hello and welcome to Georgia, a vibrant country. Sitting at the confluence of East and West is a natural gateway linking trade routes across the Caucasus, offering a unique strategic position as a space for investment. There's a reason why Georgia is attracting attention from international investors, with average economic growth of 9.3% in the past four years, and the government forecasting at least 5% annual growth over the next five.
It is a country on the move.
With a young, educated workforce, a resilient banking sector and many exciting large scale infrastructure projects currently in development. Let's meet Mikheil Khidureli, Chairman of the Investment Agency of Georgia, to find out more about its ambitions and growth opportunities.
Let's start with the geography of Georgia. Can you explain why your location is so crucial.
Mikheil: Well, I think it's a famous thing we always say, that we are part of the ancient Silk Road. And I think it's more relevant now than it was before, because we really see the middle corridor evolving and Georgia plays a crucial role there. We're literally at the crossroads of Europe and Asia geographically, logistically, geopolitically and economically.
And I think this is something that we definitely try to utilize.
Nadia: You mentioned the middle corridor. Tell me more about the middle corridor and the opportunity for strategic business propositions and deals.
Mikheil: Every time we talk with investors, we always say, we always show them the map where we kind of map it out. What would be the timing of transporting goods through the Indian Ocean? Or alternatively, using the middle corridor which goes through Georgia. Actually, this is also strengthened with the fact that we have a free trade agreement reaching 2.3 billion market.
We are the only country in the region who has a free trade agreement, both with China and the European Union at the same time. So this is a great opportunity for both the Asian investors and European investors to use Georgia either as a logistical hub or warehousing hub, or manufacturing or manufacturing in Georgia.
And the product will be made in Georgia that can use free tariff regime with the European market and Chinese market.
Nadia: Georgia's transport links are modernizing and expanding. Can you tell me a little bit more about that?
Mikheil: We have already announced the construction, which will be done by the government, of the Deep Sea Anaklia Port. It is in a mega project that we have, which will be completed in 2029, where we will be able to receive the first vessel. Also, the east west highway, which is also completed, railway directly coming from China to Georgia.
So all routes, be it by truck, by train, by plane, Georgia is very, very well placed in terms of the infrastructure quality. And I think what we want to do with it, we see a lot of competition as well, but we want to stay above the competition, which we do right now.
Nadia: Georgia has proved to be very resilient, particularly in the banking sector. How are you building on that?
Mikheil: Considering what's happening around the world, Georgia maintained a stable economic growth almost 9.3% average growth in five years. I mean, this is remarkable if you consider the conflicts happening around us. And I think this is one of the reasons we see the other sectors also thriving. Banking sector is one of the strongest in the country.
We have two banks listed on London Stock Exchange. This is giving a lot of stability to the country, and financial sector is always one of the top in terms of the FDI, in terms of the economic value.
Nadia: It's important to understand that Georgia's in the green zone. Can you explain what that means?
Mikheil: What we show is unfortunately in today's world, and we always stress the word unfortunately because it's unfortunate to have so many conflicts around us. So I mean, you see a lot of red zones in terms of wars between the countries, trade wars. So Georgia has maintained the status of the green zone. If you see it, the map, there was a famous map that showed the conflicts around our region.
And you saw this green island of stability, which was Georgia, right? So this is one of the reasons why so many international financial companies came to Georgia, because what investors want is the predictability, stability, peace. And this is definitely something Georgia offers. And this is something that we always importantly stress.
Nadia: Tell me about some of the major projects that Georgia has underway.
Mikheil: Well we have some mega projects that is more interesting for the general public, internationally. This is deep sea Anaklia port, which as we said, the construction will start very soon and the first vessel will enter the port in 2029. Also, the Black Sea submarine cable. This is a very interesting project that we have, creating a new 4000 megawatt capacity to export energy from Georgia to Europe.
And also considering the fact that also the local consumption of energy is growing, obviously, because of the economic growth that we have paired with this new Black Sea submarine cable, I think energy megaprojects, hydropower, solar power, wind power, these are the things that we offer investors.
We have very specific investment catalog. So I think this is remarkable in terms of what is expected to come to Georgia. We have a young population, refreshing talent coming, new graduates coming up with great skills, foreign languages, interested in ICT and engineering. And this is one of the biggest sectors, by the way, that we have contributing 1.1 billion USD for the export.
We see that young population is interested in those areas. We have a lot of business process outsourcing companies like top five in Georgia, who are employing around 20,000 Georgians with a very high-paying jobs, and we're absolutely glad to see that.
Nadia: We can't come to Georgia without talking about hospitality. Tell me about the tourism industry.
Mikheil: Well, tourism being also the part of our DNA, because we definitely, we could say about our country, that we love guests, is one of the biggest contributor to our GDP and one of the fastest growing sectors. We see so many international brands coming into Georgia, five star hotels, other commercial, residential, retail brands.
What we see that this sector will continue to rise and the government has numerous incentives to support international investors specifically interested in tourism sector. Most recently, we have also agreed with one of the biggest developers in Middle East, Eagle Hills, the same owner who owns the Emaar Group, who will be investing in Georgia 6 billion in the mixed use residential, commercial and hospitality.
Two mega projects, one in Batumi, which is on the seaside, one in Tbilisi. So this will increase the level and the quality of the Georgia tourism offering.
Nadia: So we've heard Georgia offers real, tangible opportunities not just for business, but for the nation of people living and working here. It's a beautiful region favored by holidaymakers for good reason, but it's also an access point for investors seeking new opportunities and to tap into dynamic growth markets.
And for our last word, I'll leave you with Mikheil Khidureli.
Mikheil: So the message for investors would be simple. Georgia is a safe zone with one of the highest growth in terms of economy, with one of the highest GDP and one of the most favorable investment climates for international business people.
Georgia: Where investment grows