Foreign Direct Investment in Georgia
Large inflows of Foreign direct investment (FDI) have been a driving factor behind a rapid economic growth in Georgia since 2003.
The most attractive and liberal investment environment and equal approach to local and foreign investors makes country as an attractive destination for FDI.
Stable economic development, liberal and free market oriented economic policy, 6 taxes only and reduced tax rates, reduced number of licenses and permissions, dramatically simplified administrative procedures, preferential trade regimes with foreign countries, advantageous geographic location, well developed, integrated and multimodal transport infrastructure, educated, skilled and competitive workforce presents a solid ground for successful business in Georgia.
From 2003 to 2011, FDI in Georgia amounted to 8 511.5 million USD. The highest volume of FDI – 2,015.0 million USD was reached in 2007, with 69.3% yearly growth. High rate of investment was maintained until 2008. In 2009, FDI inflows were characterized by decreasing trend. The main reasons of decreasing were external shocks - Russian-Georgian war and the influences of global financial crisis.
• In 2009-2011 the largest share of FDI felt on Industry sector (31.2) amounted to 765 billion USD, Real Estate sector (15.8%) amounting to 389 billion USD.
The table below shows FDI stock as a percentage of GDP in selected FSU countries. For statistical purposes, FDI is defined as a foreign company owning 10% or more of the ordinary shares of an incorporated firm or its equivalent for an unincorporated firm.
| Rank | Country | FDI stock as a percentage of GDP (2010) |
|---|---|---|
| 1 | Estonia | 85,6 |
| 2 | Georgia | 67,1 |
| 3 | Kazakhstan | 61,1 |
| 4 | Ukraine | 42,5 |
| 5 | Russian Federation | 28,7 |
| 6 | Armenia | 18,5 |
| 7 | Belarus | 18,3 |
Read more about this topic: Economy Of Georgia (country)
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