Page 34 - GEORptAug21

FDI flowing to Georgia drops to 15-year low in 2020
ownership over local assets from offshore vehicles (counted as foreign investors) to local vehicles - such moves from him were estimated at $300mn last year.
The UK with $88.4mn of FDI in Georgia in Q1 (70.5% ) was the major foreign direct investor country, followed by Russia ($31.9mn, 25.4%) and Turkey with $24.5mn (19.5%).
The largest share of FDI was registered in the financial sector, with the share reaching $93.9mn (74.9%) in Q1. Second was the energy sector with $35.5mn (28.3%), and third was the manufacturing sector with $27.9mn (22.2%).
The foreign direct investment (FDI) flow to Georgia amounted to $616.9mn in 2020, down 52.9% from 2019, according to the preliminary data announced by statistics office Geostat. The figure was the lowest recorded in 15 years. Georgia did not have such a small level of FDI even in 2008-2009, a post-war period for the country.
Geostat head Gogita Todradze explained that the main reason for the decrease in FDI was the transfer of the ownership of several large enterprises to Georgian residents from non-residents, which reduced the value of foreign direct investment by $340.5mn.
34 GEORGIA Country Report August 2021 www.intellinews.com