Investments to Georgia – Top business industries
Investment climate in Georgia is very friendly, therefore, more and more investors tend to invest in this small eastern European country.
The World Bank ranks Georgia the 9th state in its Ease of Doing Business list. Countries whose economies were mostly run by the state for a long period rarely rank so high on this list, which only proves that Georgia is developing in a very fast manner.
One of the strongest features that keep foreign investors coming is Georgia’s protection of investors policy, which guarantees security to investors and their assets.
In this article, we will discuss the top business industries beneficially invested by the foreign investors:
Real estate investments
The real estate industry is considered to be one of the major contributors to the economy of Georgia and it is still growing.
Foreign investors can participate in real estate industry many different ways: you may invest in constructions, be a real estate agent or have a rental business.
The bottom line is that in whichever way you intend coming in to the industry, you stand the chance of making huge profits.
Lastly, it’s also need to be noted, that new liberal legislation is on the way, that will make it even more encouraging for entrepreneurs to setup their own businesses.
Georgia is a gateway to many countries and it has some UNESCO approved tourism sites, sea, mountains and modern cities all together mixed in attractive places for the foreign tourists.
If you are interested in the tourism industry in Georgia, then you should consider starting different touristic businesses, you can: Operate a 3 star hotel, create consultancy firm in tourism, offer different trips throughout the region and etc.
All you need to do is to get some certifications and training in tourism before establishing your own tourism consultancy company.
Hydropower is the cheapest and most environmentally friendly source of electricity in Georgia.
The hydroelectric sector has been privatized, but still, Georgia seems to lack adequate policies to maximize the utilization of hydroelectric plants.
New plants will help Georgia, which is already almost self-sufficient in energy, to meet its power needs in winter and allow it to export electricity through a transmission line; therefore, this is a very interesting sector to invest in Georgia.
Georgia’s Energy Sector
Georgia’s energy sector is one of the country’s most attractive investment opportunities. Georgia’s electricity generation has not kept up with growing consumption since 2012. Meanwhile, average electricity price are surging.
Georgia was once a top energy producer 20,000 barrels/day, but inappropriate leadership and lack of political will, especially during its Soviet days, Georgia decreased its production of oil tremendously.
Investors are also very interested in taking over parts of this sector, especially because they are now willing to deal with the complex geological formations in Georgia and are ready to conduct drill experiments.
Georgia’s agricultural industry plays a major role in the state’s economy, contributing millions of dollars annually.
Georgia hopes to make use of its vast agricultural potential since it is one of the strongest sectors Georgia has.
How serious they are is also indicated by incentives that investors will receive for agricultural investments.
The agriculture sector in Georgia is notable for the cultivation of crops like nuts, tea, fruits, apples, etc.
What ranks very high for increased export is wine production. Georgia also wants to increase meat production on its soil in order to launch it in international markets.
The Transportation Sector
Located at the crossroads of Europe and Central Asia, Georgia is a bridge connecting several important economic regions including the EU, Caucasus and Central Asia.
Georgia’s oil and gas pipelines, Black Sea ports, well-developed railway system, together with its airports are playing an increasingly important role in linking East and West.
At the same time, Georgia functions as the vertical North-South transportation link between Russia and Turkey and, via Armenia, to Iran.
Thanks to its geographical position, and an inherited modern transportation system from the Soviet days, Georgia shows great potential to be one of the main routes for Asian-European trades and exchange of goods.
Many investors see an opportunity for profit since the trade between Asia and Europe keeps growing.
Also have a look on our article about the reasons, why to invest in Georgia?