Georgia has a strategic location in that it serves as an entry gate between the West and the East. Georgia is a reliable corridor for transit flows between the Europe and the Central Asia through the South Caucasus. This concept takes on historical Silk Road that gave Georgia a significant geopolitical role for centuries. In addition, Georgia by its favourable climate, pro-business economic environment, well-educated and diverse workforce, and excellent transportation hub, is a great place to own and grow a franchise. Georgia offers many forms of assistance to small businesses and entrepreneurs, including Small Business Tax Relief. Entrepreneur and small Business Loan programs and Work Ready reimbursements.
Georgia has more than 20 000 rivers and almost 300 of them provide excellent opportunity for hydropower generation. Georgia is one of the top countries in terms of water resources per capita and it’s logical that today 78% of total electricity is generated from Hydro Power Plants (8.5 TWH). According to estimates, only 25% of Georgia’s energy potential is exploited presently, meaning that there is huge untapped potential, mostly from hydro resources, but also from wind, solar, geothermal and biomass sources as well.
Georgia offers very attractive opportunity for investments in wind power plants, with estimated potential of 4 TWH. Wind power offers great addition to hydro power generations, as wind generation is higher during winter, when hydro generation is lower. It’s estimated that share of the wind power in total generation will reach 10% by year 2025.
Manufacturing accounts for 11% of GDP and around 5%of employment. The food and non-metallic mineral products industries provide the largest industrial base for Georgia, with the two also being two of the fastest growing industries in the country. With the establishment of the Free Industrial Zones in Georgia, there are new incentives and opportunities to produce and export goods with a minimal tax burden – in the FIZs, businesses are exempt from all tax charges except Personal Income Tax. Companies operating in Georgia can benefit from the growing regional market and various import substitution opportunities, specifically in the following industries: food processing, chemicals, plastics, construction materials, packaging, household goods, ceramic and glass products, etc.
Georgia is traditionally an agricultural country, which has 22 micro-climates varying from cool and dry to warm and humid. This diversity allows for a longer than normal harvesting season and a wide array of growing conditions. Soils are of volcanic origin located in the river valleys. They tend to be very fertile and reasonably easy to cultivate.
Georgia currently ranks 9th out of 185 countries in the World Bank’s Ease of Doing business rankings _ ahead of all but 3 members of the G20. This is indeed a remarkable achievement for a country that emerged from the state-run economy of the Soviet Union less than 28 years ago. What makes Georgia particularly attractive to foreign investors, however, is its high ranking of the criteria of “Protecting Investors” – well ahead of many of the success stories such as Chile, Saudi Arabia, and Taiwan. Perhaps even more surprisingly, it ranks above many major developed countries such as Japan, Norway, and Sweden in this category.
Georgia has Free Trade Agreement (FTA) with Turkey and post-soviet countries. The country has signed Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU on June 27, 2014. Additionally Georgia has GSP agreement with US, Canada, Japan, Norway and Switzerland.
Georgia is a regional centre located on the shortest route between Europe and Asia. International visitors enjoy easy access by three international airports (Tbilisi, Batumi and Kutaisi), modern railway and visa liberalization system. Georgia has Visa Free Regimme with Citizens of 94 countries.
Georgia offers significant potential to develop hotel and leisure, residential, retail and office premises. Additionally, investors can benefit from the growing demand on “A” class office building and entertainment facilities.
Real Estate and Hospitality are some of the fastest growing sectors of Georgian Economy. Over the recent years, Georgia has seen a dynamic growth of international visitors. In 2018 the number of international visitors is expected to exceed 7 million tourists, while the population of Georgia is 3.7 million people. Number of international tourists’ arrival is expected to grow by 8-10% during the next five years.
Georgia is developing a new deep-sea port, which is expected to have 100 mln tons capacity; Also, Baku-Tbilisi-Kars railway project with the 5-15 mln t/year capacity has been recently launched. This railway has a significant importance for the region, because it is connect Georgian and Azerbaijan railways to the Turkish one. These projects are aimed to increase the main geopolitical asset of Georgia-transit potential.
Every region of Georgia is unique and has a huge potential to develop its resources. Out of the three main roads from Europe to Asia, the road through Georgia is the most stable and secure. Due to the stable political and economic climate, Caucasian corridor is becoming more and more attractive for businesses. Additionally, the Suez channel has reached its maximum capacity. Thus, there is clearly an opportunity to open North-South land-transport.