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Investment attractiveness of Georgia

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11/13/2020

Photo: Katya Ostrovskaya

Georgia is a real example of the fact that radical reforms can bear fruit. From year to year, this small country proves to the whole world that it is real to change the situation and reach the top of all world rankings. This year was no exception for Georgia, and traditionally the country has risen by a couple of lines. The investment attractiveness of Georgia is also determined by the fact that, unlike countries such as Singapore, the USA, New Zealand, Norway, Great Britain, South Korea, and other world business powers, Georgia is the only country where it is possible to stay for an almost unlimited amount of time without a visa - you only need once to cross the border a year.

Georgia is in high positions in many investment indicators. What is clearly seen from the table:

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What areas are the most promising for investment in Georgia?

The World Bank predicted that in 2017-2018. Georgia will become a country in Eastern Europe and Central Asia with one of the highest rates of economic growth, which we can observe right now. The International Monetary Fund predicted an increase in GDP in Georgia for 2019 to 5.5%, but according to Sakstat, Georgia's GDP grew by 5.8% over the past year.

A colossal increase in investment in 2019 was recorded in such areas as:

  • financial sector 20.6%;
  • energy 15.3%;
  • hotels and restaurants 12.4%;
  • construction 9.3%;
  • manufacturing industry 8.1%;
  • transport 5.6%;
  • mining industry 5.4%;
  • communication 3.6%;
  • the other 19.6%.

Why is Georgia suitable for your investment?

The investment attractiveness of Georgia is complemented by such important factors as:

  1. Safety. Georgia is the safest country in Europe and 6th in the world, which is ensured by highly professional police work.
  2. Investment capitalization reaches 200% per year.
  3. Low taxes. The Georgian taxation system is maximally simplified, there are only six types of taxes, with a reduced rate.

Let's dwell on taxes in more detail. Residents and non-residents of Georgia are given the opportunity to take so-called tax holidays, that is, a grace period during which you will have the opportunity to fully concentrate on developing your business. Thus, preferential tax rates and partial tax exemptions increase the attractiveness of Georgia for entrepreneurs from all over the world and make the country a competitive jurisdiction.

One should not lose sight of the fact that Georgia has a unique geographical position and is, in fact, a physical and political bridge for the European and Western markets with the huge potential of the Caspian and Mediterranean regions, through the continuous implementation of several large energy and transport projects. What contributes to the 2 operating seaports, the updated railway infrastructure, three international airports, and an international highway from the eastern border of Georgia to the Black Sea, represents the possibility of the fastest and highest quality transit of goods from Central Asia to Europe and vice versa.

Another plus of Georgia is its attractiveness for tourists, regardless of the season. Georgia has everything from the sea coast, snow-capped hills, and slopes, dense forests, and endless vineyards to deserts, crystal lakes, and endless steppes. Add to this the boundless hospitality of local residents, winemaking as a way of life, and an incredible amount of gastronomic entertainment in the form of original cuisine and as a result: the growth of tourism in the world is 4-5% annually, and in Georgia, in 2019 it was 15%.

It is difficult to underestimate all the numerous achievements of Georgia, only in the past couple of years, the government of the country has undertaken a huge amount of funds to simplify business, protect investors, simplify tax payments, improve the quality of land management, as well as simplify the execution of agreements on export and import of products, improve work in the sphere of business administration, global changes in all spheres of life and is not going to stop there. Taking into account all of the above, we can conclude that Georgia is one of the leading countries in the world for profitable investments in the long term.

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