flag Georgia Georgia: Investing

In this page: FDI in Figures | What to consider if you invest in Georgia | Procedures Relative to Foreign Investment | Investment Opportunities


FDI in Figures

According to UNCTAD's World Investment Report 2022, FDI flows to Georgia in 2021 increased to USD 1.15 billion, doubling the level recorded one year earlier. In the same year, the total stock of FDI was estimated at USD 19.3 billion, around 103.7% of the country’s GDP. FDI is largely supported by natural resources, as more than 30% of inflows are related to extractive industries. Trade and finance attract 20% and 11% of FDI inflows respectively. Georgia attracts investments from several countries: Azerbaijan is the largest investor due to the ongoing construction of the Shah-Denizpipeline (the country holds 18.8% of the total FDI stock in Georgia), followed by the UK (13.9%), the Netherlands (8%), Turkey (6.8%), and Cyprus (5.6% - data National Statistics of Georgia). However, the country is increasingly opening up to Asian investment. According to provisional data from the National Statistics Office of Georgia, in 2022 FDI inflows reached USD 1.67 billion. One of the largest investors was Spanish water management company Aqualia, who bought 80% of the shares of Georgian Water and Power, investing USD 180 million.

UNCTAD estimates that FDI flows into Georgia will grow moderately in the coming years, supported by rising commodity prices and stronger economic growth. To attract investors, the country offers many tax and legislative advantages. The Georgian economy has been almost fully liberalised and currently offers an attractive economic climate for investment. Georgia does not have specific mechanisms in place for FDI as governmental reviews of investment projects can be requested on an ad hoc basis. Furthermore, the national law guarantees the investors’ right to convert and repatriate income after payment of all due taxes. Overall, business and investment conditions are sound and open-market policies are maintained along with low tax rates; however, there is an increasing lack of confidence in the judicial sector. Corruption, historically very present in the intermediate levels, has been largely eradicated - a major obstacle to attracting FDI. According to Transparency International, Georgia currently ranks 41st out of 180 economies on the 2022 Corruption Perception Index and 35th out of 176 in the 2023 Index of Economic Freedom.

Foreign Direct Investment 202020212022
FDI Inward Flow (million USD) 5901,2422,000
FDI Stock (million USD) 18,65419,39922,329
Number of Greenfield Investments* 13832
Value of Greenfield Investments (million USD) 258297674

Source: UNCTAD - Latest available data.

Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.

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What to consider if you invest in Georgia

Strong Points
Georgia's competitive advantages in terms of attracting FDI include:
- Good resistance to the regional economic crisis (2014-2016);
- Agricultural, mineral, hydroelectric and tourism potential;
- International support, including from the EU and the IMF;
- Strategic geographical position (Caspian oil and gas crossing point);
- Democratic political system
- Business friendly environment (low corporate taxes, simplified registration procedures).
Weak Points
The country's main weaknesses in terms of attracting FDI include:
- Structural trade deficit, low diversification and export valuation;
- High poverty due to unemployment, underemployment and inadequate training;
- Low productivity of agriculture: half of assets, but less than 10% of value added;
- Insufficient transport infrastructure;
- Weaknesses of the education system and innovation policies;
- Relations with Russia weakened by the situation in Abkhazia and South Ossetia.
Government Measures to Motivate or Restrict FDI
According to the 2018 Doing Business Report of the World Bank, Georgia is ranking at the 9th place out of 190 economies in term of ease of doing business.

Since 2004, the Georgian government has established a range of measures in order to develop the country's economy:
- The privatization of public companies;
- The fight against corruption;
- Establishing a principle of non-discrimination between Georgian and foreign businessmen through the law "On promotion and Guarantees of Investment Activity" and "On State support on Investment";
- Drastically reducing the procedures for forming a company, which take on average two days;
- Reduction of corporate tax;
- Lifting of barrers for business operations;
- Liberalization of the labour market.

Bilateral Investment Conventions Signed By Georgia
Georgia have signed bilateral conventions on FDI with 38 countries.

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Procedures Relative to Foreign Investment

Freedom of Establishment
Freedom to take holdings is guaranteed.
Acquisition of Holdings
There are no restrictions on acquiring of a company by a foreign national or a foreign company in Georgia.

The property, investments and the rights of investors are protected and guaranteed by law in Georgia. Property rights are guaranteed by article 21 of the Georgian Constitution. The law defines simple and well defined mechanisms to make investments, to acquire (or transfer) properties and companies in the country.
According to the constitution of Georgia international treaties have direct legal force in Georgia, which ensures a liberal legislative environment for conducting business and making investments in the country.
Obligation to Declare
In order to establish an enterprise a number of documents must be submitted to the National Agency of Public Register of Georgia.Those documents depend on the legal form of the enterprise and may be found in the "Law on Entrepreneurs".

To learn more about the process of registration, please visit Invest in Georgia website.

Competent Organisation For the Declaration
Ministry of Finance
National Agency of Public Register (Georgian)
Requests For Specific Authorisations
Investing in certain sectors is restricted by law - manufacturing and distribution of nuclear, biological and chemical weapons, as well as building of testing ranges, implementation of scientific research related to human cloning, production of narcotics and other activities prohibited by international agreements. Investments in these sectors can only be made through special permits or licenses. Law on Promotion and Guarantees of Investment Activity protects foreign investors from subsequent legislation that may alter the condition of their investments for a period of ten years (grandfather clause). To learn more about the permit and licenses needed to start a business, please consult the Investor's Handbook by Invest Georgia.

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Investment Opportunities

Investment Aid Agency
Agency for the Promotion of Foreign Investment
Tenders, Projects and Public Procurement
Tenders Info, Tenders in Georgia
Globaltenders, Tenders & Projects from Georgia
DgMarket, Tenders Worldwide
Other Useful Resources
Ministry of Regional Development and Infrastructure
Ministry of Economy and Sustainable Development

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Latest Update: November 2023