NEWS / Georgia - Regional Frontier of Opportunities and its Business Friendly Environment

Georgia, located on the crossroads of Europe and Asia, as a key note in “the Belt and Road” initiative, plays an important role in connecting the vibrant Asian economies with developed European economic circle. Georgia embraces the Belt and Road vision and considers the initiative to be the lasting driver for its economic development resulting in the sustainable increase of trade flows and foreign investments. 

During the last decade, Georgia has undergone significant transformation rapidly moving towards liberal, free market economy and becoming the aspiring economic center of the Caucasus. The country boasts years of economic growth and macroeconomic stability. Business friendly practices, flexible regulations, low corruption, low tax rates (there are only 6 taxes) and transparent taxation system, security and openness to FDI, has boosted Georgia’s transformation into a new investment destination not only in Caucasus, but much wider region.

Moreover, investors coming to Georgia can benefit from Georgia’s network of Free Trade Agreements (FTAs), which include EU, EFTA, CIS, Turkey and China. Georgia is the first country in the region to enjoy free trade with EU and China simultaneously. Furthermore, Georgia has concluded negotiations on FTA with Hong Kong and plans launching FTA negotiations with India. With current FTAs, Georgia already offers free access to 1/3 of the world market. 

Finally, Georgia has ambitious objective to be one of the best investment locations on the world map. This goal is reflected in number of different well-recognized international rankings, where Georgia maintains strong positions:

• According to the World Bank Doing Business Report 2018, Georgia is 9th easiest place in the World to do business;
• "Heritage Foundation" placed Georgia on the 13th position in terms of economic freedom;
• According to Transparency International Corruption Perception Index 2016, Georgia is ranked 44th globally, but 1st in a wider region in terms of fighting against corruption. 

Georgia, having already the position of one of the fast-growing economies, has ambitious plans towards elevating its economic status to a global level, which is impossible without further improvement through structured and sustainable reforms plan. In order to sustain and increase economic growth the Government introduced series of fundamental reforms, the so called Four Point Reform Agenda that covers education, governance, infrastructure and broader economic reforms. 

Acceleration of Georgia’s infrastructure projects is high on the agenda of the Government of Georgia and is part of the above mentioned Four Point Reform plan. Georgia already boasts three international airports in different parts of the country, major oil and gas pipelines, well-developed maritime, road and railway system. The Government of Georgia in close partnership with the private sector is actively developing the new deep sea port in Western part of the country, in Anaklia, to be able to host PANAMAX type vessels. Anaklia’s geography — both its depth and relative proximity to European markets — make it uniquely suited to serve large vessels. Other infrastructural projects of regional importance like Baku-Tbilisi-Kars Railway, Railway Modernization, East-West Highway as well as Logistics Centers Development are also among important projects. Development of these projects will boost country’s transit potential and increase cargo flows. 

Finally, the Government of Georgia is focused on development of knowledge and innovation based economy, capitalizing the knowledge, scientific and entrepreneurial resources into goods and services for export. Innovative projects and high skilled startups are rapidly increasing, especially in fintech, biotechnology, traveltech. Companies are enhancing R&D and innovation, developing higher value-added industries. Government of Georgia is aiming at establishing Georgia as a regional hub for ICT industries. 

All these reforms and initiatives will support Georgia’s transformation into new regional frontier for global investments.