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SBG
ECONOMY
Uptown Tbilisi
FICNAPNICTAINLG ACFOUUTNUTRREY
With a highly liberalised regulatory President Saakashvili’s new government has
environment and an illustrious track record introduced tremendous reforms in policy
in attracting FDI, Georgia offers a unique mix and administration to make Georgia a great
of investment opportunities across sectors. investment destination.
Aliberal regulatory environment, low taxes, low corruption and easy access to the U.S., EU, CIS and Turkey markets are the prime factors attracting investors
advantages, the country managed to garner over USD2bn in foreign direct investments (FDI) in 2007 alone. With total FDI reserves of USD5.2bn or 51.1% of the GDP, Georgia had the second highest FDI-to-GDP ratio in the FSU region in the same year.
INVESTMENT OPPORTUNITIES
Real Estate and Construction: Real estate and construction represent one of the fastest growing sectors in
sector is evident from the government’s aggressive reforms, one of which has seen the total number of permits and licences involved with the construction industry fall by an astonishing 84%. According to the World Bank/IFC Doing Business Report 2010, Georgia ranks 7th in the world in the issuance of construction permits.
have increased more than fourfold since 2003, and demand is still on the upswing. Further, the influx of global entities and tourists has perked up the demand for office space and hotel accommodation. Corresponding to these developments, the Georgian capital Tbilisi has emerged as one of the most robust retail markets in
Europe, with affordable rentals and high demand relative to peer cities. With an increase in per capita GDP and disposable income, Tbilisi is expected to add at least 150,000 sq m of shopping space in the next three to four years.
With more and more Western companies showing interest in Eastern European markets, the country is also expected to become an increasingly important connector in the North- South and East-West transport
significant growth in another subsector that has a lot of latent potential, namely, warehousingfacilities.
Energy: Georgia’s energy sector offers significant investment opportunities, ranging from hydropower, wind and solar resources and oil and gas to the development of energy transmission and distribution infrastructure. For instance, to meet the rapidly growing domestic demand for electricity, the Ministry of Energy has announced a Greenfield hydro power development programme, soliciting interest from private parties on a build-and- operate basis.
As regards hydrocarbon resources, Georgia has 11 oilfields with confirmed reserves of 28m tonnes yet to be
Sea shelf alone is estimated at up to 1.3 billion barrels. Both domestic and foreign companies are present in the Georgian oil and gas sector.
On account of its highly liberalised market and strategic location, Georgia
Foreign Direct Investment in Georgia
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