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Georgia enjoys open and non-discriminatory trade practices with the rest of the world and no import duties on 90% of goods. Export and import procedures are also substantially simplified.
Bilateral treaties on investment promotion and protection have been concluded with 31 countries, and treaties with another 24 countries are in the process of negotiation.
Double taxation treaties with 26 countries, followed up by an additional nine countries, make the tax jurisdiction of our country truly competitive.
We absolutely realise the importance of these bilateral treaties for doing business in and across the borders of Georgia, and we are working enthusiastically to achieve such agreements with all interested partners.
Our Labour Code adopted in 2006 is one of the least hindering to labour flexibility worldwide.
We have made it substantially cheap, quick and easy to obtain a licence. Overall, the number of business-related licences and permits has been reduced by 85%.
latest initiative of the Government of Georgia submitted to the Parliament. Its main aim is to provide for the stability and irreversibility of reforms and to promote a free and liberal market economy in Georgia through democratic, transparent and predictable governance.
Just to name a couple of highlights from this initiative which our business community was particularly glad to hear about: • We constitutionally prohibit introduction of any new tax, or any tax-rate increase without a nationwide referendum
As for macroeconomic benchmarks:
• Budget expenditure is capped at 30% of the GDP
• Budget deficit is capped at 3% of the GDP
• Public debt is capped at 60% of the GDP
• Extrabudgetary funds are banned
• Budget earmarks are banned
• Price controls of any kind (including on interest rates) are prohibited
We invite all interested parties to involve in this exciting development process and to benefit from those opportunities that exist in Georgia.
We are sure that this novelty will boost investor confidence in the country and its future, and will be another reason for enhancing business activities in Georgia. It is also an evidence of our Government’s commitment to perpetual enhancement of the legislation and business environment in the country.
Reforming is a constant practice in Georgia, and all the public institutions are tasked with liberalising government processes. We fully understand that competition for FDI has never been as intense as today, and we are committed to further improving our business and legal framework to make Georgia one of the most business-friendly countries in the region.
It is true that since the Rose Revolution, the government has implemented an aggressive privatisation policy resulting in high budget revenues, and more importantly, the expansion of private ownership in the country.
During 2004-09, the state mobilised more than GEL2bn from privatisation deeds with an average half-a-billion proceeds per year, the latter being even higher than the total proceeds through the ’90s.
Investor interest in Georgia, which temporarily halted as a result of the global recession, is already rebounding. One of the latest and most vivid illustrations of this was the recent investor gathering initiated and organised by the Spanish authorities, when leading Spanish business people visited Georgia. Georgia was in fact the first out of three destinations where the Spanish government is organising such business-community trips in 2010, with the aim of identifying possible business partners and get better acquainted with the investment opportunities in the country.
And we regard this interest as natural.
We have been conducting major infrastructure rehabilitation and expansion projects for it to keep pace with the demands of the growing economy. Now, we invite all interested parties to involve in this exciting development process and to benefit from those opportunities that exist in Georgia.
In our view, the potential investment areas in Georgia include the fast-growing energy sector, particularly green and clean energy—for the first time, Georgia became net exporter of electricity to all neighbouring countries last year—and the real estate market, where return on investment is typically very high. Of course, many other sectors could be seen as being attractive to invest in from the viewpoint of the business community.
Today, Georgia offers tremendous possibilities for business activities, truly unrivalled far beyond the region. Our regulations, labour code, taxation policies and the overall business climate are designed to best fit the predilections of the business sector.
All this makes Georgia one of the best investment destinations for the GCC and a business gateway to wider Europe and Central Asia.
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