1-Investment Climate Opportunities in Georgia

7/28/2019 1-Investment Climate Opportunities in Georgia

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Georgian National Investment Agency 2013

INVESTMENT CLIMATE &INVESTMENT CLIMATE &OPPORTUNITIES IN GEORGIAOPPORTUNITIES IN GEORGIA

IVEST

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www.investngeorgia.org 1

ADVANTAGES OF GEORGIA

Business friendly environment with low levels of taxation, simple and fair tax administration

Efficient, pro-business and corruption-free government

Enlargement of market size by Free Trade Agreements

Solid sovereign balance sheet

Stable and conservatively managed banking sector

Multi-modal maritime, land and air access infrastructure for trade, logistics and manufacturing Stable and competitively priced energy supply

Flexible labor legislation

Very low crime rate

1 REFORMER IN THE WORLD OVER THE PAST 5 YEARS WORLD BANK

GEORGIA- SOVEREIGN CREDIT RATINGS

BB- Stable

(Upgraded from B+ Positve

in December 2011)

Ba3 Stable

(Affirmed in August

2012)

BB- Stable (Upgraded

from B+ Positve in

November 2011)


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DOING BUSINESS IN GEORGIA

Countrys impressive progress in improving business climate has

been well documented in a number of internatonal indices.

EASE OF DOING BUSINESSEASE OF DOING BUSINESS INDEX OF ECONOMIC FREEDOMINDEX OF ECONOMIC FREEDOM

Source: World Bank, 2013

(Rank out of 183 countries)

Source: The Heritage Foundaton, 2013

(Rank out of 183 countries)

Up from 112 in 2005 Up from 99 in 2005

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CORRUPTION FREE COUNTRY

Georgia today is essentally a corrupton-free investment

destnaton where rule of law have been given the right way

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Source: Transparency Internatonals Global Corrupton

Barometer , 2011 (Rank out of 176 countries)

GEORGIA SOUTHEAEST EUROPE+TURKEY EU

GLOBAL CORRUPTION BAROMETERGLOBAL CORRUPTION BAROMETER


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ECONOMIC STRUCTURE AND TRENDS

GDP: STRONG REBOUND IN 2010 AFTER

A RELATIVELY SMALL CONTRACTION IN

2009, ROBUST GROWTH POTENTIAL

RAPIDLY GROWING GDP

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BROAD-BASED AND DIVERSIFIED

NOMINAL GDP STRUCTURE 2011

STEEPER THAN EXPECTED

GROWTH TRAJECTORY

Initally planned at 6%, Georgias GDP real

growth in three quarters of 2012, equaled to

7.5%

2011 OUTCOMES:2011 OUTCOMES: Tax collecton increased 26% y-o-y

VAT turnover increased 26% y-o-y

Commercial bank lending to the real sectorincreased 24% y-o-y

Trade turnover increased 36% y-o-y


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PREFERENTIAL TRADE REGIMES:PREFERENTIAL TRADE REGIMES: FTA with CIS countries: Ukraine, Belarus, Azerbaijan, Armenia, Russia,

Moldova, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, Turkmenistan

FTA with Turkey

DCFTA with EU will be signed next year

Negotaton on FTA with USA is in progress

GSP+ with EU - 7200 products to the EU market duty free or with lower tariffs

GSP with USA, Norway, Switzerland, Canada, Japan - lower tariffs are applied on3400 goods exported from Georgia to these countries

Member of WTO

LIBERAL TRADE REGIMES

OPPORTUNITY - MARKET SIZE

Populaton of Georgia - 4,5 million

Existng FTA +350 million

DCFTA + 0,5billion

TOTAL ~ 0.9 BILLION

Georgia: 4,5 million population

Access to the 0,9 billion market

KET SIZE

ation

arket

CUSTOMSCUSTOMS Very simple and service

oriented customs policy and

administraton

Almost no custom duty - 90percent of goods free from

import tariffs

No quanttatve restrictons

Georgia


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TAXATION IS SIMPLE, LOW,EFFICIENT AND FAIR

No payroll tax or social insurance tax

No capital gains tax

No wealth tax and inheritance tax

Foreign-source income of individuals fully exempted

Accelerated depreciaton on capital assets

Loss carry forward for corporate profit tax purposes (10 years)

No restrictons on currency convertbility or repatriaton of capital & profit

Double taxaton avoidance treates with 40 countries

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LEADER IN FORBES RATING (TAX MISERY & REFORM INDEX)

According to 2009 Tax Misery & Reform Index, released by Forbes

Business & Financial News, Georgia is the fourth least tax burden

country afer Qatar, UAE and Hong Kong


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LABORAVAILABILITY

Young labor 50% of unemployed population are aged between 20-34

Average monthly salary in 2011 377 USD

Vocational Education Training Centers around Georgia provide professional courses in

different types of practical subjects and most of the courses fees are financed by the

Government of Georgia.

GEORGIA - ONE OF THE MOST LIBERAL LABOR ENVIRONMENTS (3RD BEST

GLOBALLY), ACCORDING TO THE HERITAGE FOUNDATION, 2012

Source: MOF and Heritage Foundaton, 2012

GREATER LABOR FREEDOM

GEORGIA

FRONTIER MARKETS AVG


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Strong and Rising FDI Stimulates Economic Prosperity

Key Industries Benefit from FDI

Reinvestment 30% (2011)

Georgia has bilateral treaties on investment promotion and protection with the 32 countries

(negotiations launched with 24 countries)

FOREIGN DIRECT INVESTMENT

FDI BREAKDOWN BY SECTORS 2011FDI BREAKDOWN BY SECTORS 2011 FAVORABLE FDI/GDP RATIOFAVORABLE FDI/GDP RATIO

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TOURISM


INVESTMENT OPPORTUNITIES IN GEORGIA

MANUFACTURING

HYDRO POWER HUB

AGRICULTURE

REGIONAL SERVICE HUB

REGIONAL LOGISTICS CORRIDOR


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HYDRO POWER HUB

SIGNIFICANT HYDRO POWER POTENTIALSIGNIFICANT HYDRO POWER POTENTIAL Installed capacity of > 2,700 MW

Additional potential > 4,500 MW

Generation cost (0.06 USD) among the lowest in the region,

~50% lower than target market Turkey

EXPORT CAPACITYEXPORT CAPACITY The only net electricity exporter in the region, with rapidly growing consumption rates

Construction of 400 kV power transmission line from Georgia to Turkey to be

completed in 2013

OPPORTUNITIESOPPORTUNITIES Several large scale projects (> 100 MW)

~ 70 small/medium projects (< 100 MW)


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OVERVIEW OF GEORGIAS (HYDRO-) POWER SECTOR

Domestc: Demand growth and increasing share of renewables

requires an extension of hydropower generaton by around 65%

untl 2020

Export: Georgia is surrounded by countries with a projected

structural power deficit (e.g. Turkey, Russia South) or expensive

power generat

on, opening up a

ract

ve export opportunit

es

Power generaton accounts for 3% of GDP and ~ 1% of

employment but is of high strategic importance to Georgia

~ 10% of power producton are exported, but Georgia stll needs to

import power during winter

Georgia boosts significant and economically viable HPP potental

already today 75% of power generated via HPP (2,700 MW) 25%

via thermal (mainly gas)

All new HPPs operate in a liberalized market

Cost of hydropower generaton is very compettve in the region

FDI inflows amounted to USD 200 million in 2011 and are growing

65% of economically viable potental not yet exploited

Projects of up to USD 750 million have been concessioned to

investors from e.g. India, Turkey, Czech Republic and other countes.

Pipeline well filled with several large scale projects (100-702 MW)

as well as 70+ smaller projects

STRONG DEMANDSTRONG DEMANDGROWTH PROSPECTSGROWTH PROSPECTS

IMPORTANCE OFIMPORTANCE OFTHE SECTOR LOW INTHE SECTOR LOW INTERMS OF GDP ANDTERMS OF GDP ANDEMPLOYMENTEMPLOYMENT

POWER SECTOR WITHPOWER SECTOR WITHSTRONG FOCUS ONSTRONG FOCUS ONCOST COMPETITIVE HPPCOST COMPETITIVE HPP

LARGE PROJECTS HAVELARGE PROJECTS HAVEBEEN PLACED ANDBEEN PLACED ANDPIPELINE IS FILLEDPIPELINE IS FILLED


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GEORGIA SURROUNDED BY COUNTRIES WITH A STRUCTURAL

POWER DEFICIT OR EXPENSIVE POWER GENERATION

!!

1 Assuming current consumpton and supply paern

2 This does not even include countries with heavily subsidizedelectricity generaton (e.g. Azerbaijan, Kazakhstan)

Turkey expected to

have deficit of up

to 80-120 TWh by

2020, with seasonality of

its demand matching

Georgias supply

Russias Southern districts

will also experience a

structural defi

cit of up to40 TWh by 20201

In other markets,

Georgias hydropower

is very cost-compettve

compared to local tariffs2

STRUCTURAL DEFICIT BY 2020 NO DEFICIT, BUT CURRENT TARIFFS >

GEORGIAS GENERATION COSTAD HOC DEFICITS PROJECTED

NO DEFICIT, BUT SUBSIDIZED TARIFFS


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HYDROPOWER PIPELINE BOOSTS SEVERAL NEW MEGAPROJECTS

ABOVE 100 MW CAPACITY THAT ARE CURRENTLY OPEN FOR INVESTMENT

PROJECTPROJECT CAPACITYCAPACITY FORECAST INVEST.FORECAST INVEST.VOLUMEVOLUMEUSD MILLIONSUSD MILLIONS

READY TOREADY TOINVEST?INVEST?

HYDROPOWER PIPELINE ALSO BOOSTS ~70 SMALL/MEDIUM

PROJECTS (


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TOURISM

FAST GROWING SECTORFAST GROWING SECTOR Tourism contributes 6.7 % of GDP Number of visitors increased 38% in 2011 reaching 2.8 million and 56% in 2012 reaching 4.4 million Majority of visitors come from : Turkey (34.9%), Azerbaijan (21.2%), Armenia (20.5%), Russia (11.6%)

Europe (9.4 %)

Average duraton of stay - 9 days, the median visitor stays - 2days / Average spend of USD 330 Overall capacity of < 15,110 rooms Already operatng internatonal brand hotels - Sheraton, Radisson, Marriot, Holliday Inn, (under constructon -

Kempinski, Hillton) etc.

POTENTIALPOTENTIAL Youth Olympics in 2015 Free tourism zones summer resorts Availability of gambling business gaming is partally or completely banned in Russia, Ukraine, Azerbaijan,

Kazakhstan,Turkey, Israel, Iran, Iraq

8 natonal parks 2400 springs of mineral waters


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GEORGIA IS EXPECTING SIGNIFICANT GROWTH

TRAJECTORY IN TOURIST ARRIVALS

INTERNATIONAL ARRIVALSINTERNATIONAL ARRIVALS HAVE SEEN ~40% YEAR-ON-YEAR GROWTH

TOTAL INTERNATIONAL TOURIST ARRIVALS

NUMBEROF ARRIVALS INTO GEORGIA

IN E

0.61.0

1.11.3

1.5

2.0

2.8

4.4

5.5


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INTERNATIONAL LUXURY HOTEL CHAINS DOING WELL:

MOREARE COMING TO THE MARKET

VERBATIMS OF INTERNATIONAL HOTEL BRANDS IN GEORGIAVERBATIMS OF INTERNATIONAL HOTEL BRANDS IN GEORGIA UPCOMINGUPCOMINGINTERNATIONAL HOTELINTERNATIONAL HOTELBRANDS BEFORE 2015BRANDS BEFORE 2015LOCATION

BATUMI

TBILISI

BATUMI

TBILISI

BATUMI

TBILISI

We have seen 7-8% more guests in our hotels

every year. Business and leisure travelers are ourtwo biggest client group and they come from all

over the world. Best occupancy period is summer

from May to September

Alexander Kvaratskhelia

Marketng Manager

We have seen significant increases in occupancy

rate and financials since 2010. This year [2012] high

season has seen a very promising start. We have

advance reservatons booked for almost the whole

summer

Omer Subasi

General Manager

We are very optmistc as demand has been

increasing rapidly. Hotel occupancy hovers around

85%. Our guests come from all around the worldrepresentng various sectors including business,

sportmen and tourists

Oto Berishvili

Sales & Marketng Manager

HOTEL CHAIN HOTELIERS ASSESSMENT OF PERFORMANCE


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INVESTMENT OPPORTUNITIES IN TOURISM SECTOR

SUN-BEACHRESORTS

Expansion of

summer sun and

beach franchise

focusing on high-

end segment

All inclusive

summer resorts New master resort

development

Batumi

Anaklia

Kobulet

Other Black Sea

locatons

WINTER SKIRESORTS

Master development

ofwinter resortswith unique profile

equivalent to the

Alps

Government is

fully commiedto provision

of basic

infrastructure

Mesta

Gudauri

Bakuriani

Goderdzi

SUMMERMOUNTAINSRESORTS

Four season resort

value prepositon

Majestc

landscapesallowing

for a wide range

of summer

tourism actvites

such as trekking,

horse riding, bird

watching and river

racing

Mesta

Gudauri

Bakuriani

Goderdzi

Kazbegi

Other locatons

SPA RESORTS

Development of Spa

Resorts

Include hotels,

Differenttypes of Clinics,

fitness,Outdoor

actvites

Tskaltubo

Akhtala

Other locatons

REGIONALCASINO CITY

Development of

large-scale

integrated casino

complex to Serve

regional markets.

Include hotels,

casinoentertainment,

family Services

and shopping

Fiscal incentves

available

Batumi

Tbilisi

Other locatons

DESCRIPTION

POTENTIAL

LOCATION

www investngeorgia org 19


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Poti

Batumi

ArmeniaAzerbaijan

Russia

Turkey

BlackSea

Kutaisi

MRNRailway

Kulevi

Tbilisi

FIZFIZ

MANUFACTURING SECTOR

OVERVIEW:OVERVIEW: Manufacturing and industries account for around 14%

of GDP and ~ 5% of employment

Largest industries are food and beverages (3% of total

GDP) and metal products (2.5%)

Advantage to process goods - compettve cost of

power, labor and strategic locaton

2 Free Industrial Zones - In FIZ, businesses are

exempted from all tax charges except Personal

Income Tax

OPPORTUNITIES:OPPORTUNITIES: Large import overhang in goods that are usually

not traded extensively provides regional import

substtuton potental in food processing, constructon

materials, household gods etc

Georgias current advantages in terms of handling

large transshipmentfl

ows, business stability, lowcost of power generaton and existng raw materials/

intermediate products provide opportunites for

large industrial bets, like producton of iron and steel

products, aluminum etc

Mestia


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TRADE BALANCE IN GEORGIA AND IN THE REGION

IMPORT OVERHANG, USDIMPORT OVERHANG, USD mlnmln, 2011, 2011 TRANSPORTATIONTRANSPORTATIONCOSTCOST

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SEVERAL HIGHLY ATTRACTIVE IMPORT

SUBSTITUTION OPPORTUNITIES

Constructon

- Building

materials

Constructon

- Finishing

elements

Food

processing

Packaging

SECTOR PRODUCT GROUP PRODUCTSSECTOR PRODUCT GROUP PRODUCTS Artcles of cement and steel

Artcles of wood

Ceramic products

Glass & glassware

Furniture

Beverages and spirits

Preparatons of fruits and vegetables

Dairy and eggs

Meat

Plastc packaging

Paper packaging

Prefabs

Ready-mix concrete

Bricks

Finished art

cles of steel Plywood and laminated wood

Tiles

Sanitary ware

Windows

Glassware

Doors

Living furniture

Boling

Fruit juices

Jams

Vegetable oils

Milk

Cheese

Buer

Yogurt

Poultry/Beef/Pork/Lamb


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SEVERAL OPPORTUNITIES ARISING FROM GEORGIAS

TRANS-SHIPMENT FLOWS AND RESOURCES

OPPORTUNITY CURRENT ADVANTAGES TO BE LEVERAGED POTENTIAL FOR GEORGIAOPPORTUNITY CURRENT ADVANTAGES TO BE LEVERAGED POTENTIAL FOR GEORGIAALUMINIUMALUMINIUMINDUSTRYINDUSTRY

IRON AND STEELIRON AND STEELPRODUCTIONPRODUCTION

COPPERCOPPER

POLYMERS &POLYMERS &OTHER PLASTICSOTHER PLASTICS

Large transshipment flows of rawmaterials/input (Bauxite) and aluminium

cross Georgia to/from Tajikistan (largest

aluminium plant in Central Asia)

A lot of water recourses and largehydropower plants in the pipeline

Georgia mines Manganese ore

Georgia produces ferro alloys, largely forexport (USD ~250 mn)

Large imports of iron and steel products to

Georgia (USD ~300 mn) and neighboring

countries

Georgia and Armenia export copper ores,copper waste and scrap

Import overhang of copper products(alloys and final products e.g. wire, tubes,

pipes) amounts to USD ~200 mn in

the region

Import overhang of plastc productsamounts to 230 mn in Georgia and 8 bln in

the region

Georgia transships large flows ofpetroleum products

Value chain integraton- Producton of aluminium

- Producton of aluminium

products (fabricated or end

products)

Vertcal integraton of value chainby adding producton of iron and

steel and related end products

Regional import substtuton

Producton of copper alloysand end products (regional import

substtuton)

Plastcs and petrochemicalsproducton (regional import

substtuton for plastcs/rubber)



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AGRICULTURE

OVERVIEW:OVERVIEW: Over 21 micro-climates - a wide range of grain, vegetables, hard and

sof fruits, meat and dairy could be farmed

Agriculture accounts for 9% of GDP. It contributes ~53% ofemployment mostly in subsistence farming (average farm size of 1.22 ha)

Traditonally Georgia has strengths in wine, nuts, fruits which accountfor more than 60% of agriculture exports

The average gross monthly salary in the agricultural sector in Georgiais USD 220

OPPORTUNITIES:OPPORTUNITIES: Import substtuton opportunites - meat, dairy products, onions,

potatoes etc

Export opportunites - traditonal strong sub-sectors, like wine,walnuts, hazelnuts, sheep meat, etc

Productvity gain opportunites tomatoes, apples, cucumbers, stonefruits, citrus etc


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14 POTENTIAL PRIORITIES CROPS/LIVESTOCK

TO FOCUS DEVELOPMENT EFFORTS

HIGH POTENTIAL PROJECTS GEORGIAS COMPETITIVENESSHIGH POTENTIAL PROJECTS GEORGIAS COMPETITIVENESS

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REGIONAL COMPETITIVENESS AND POTENTIALS MAP

CROP POTENTIALS BY REGION

BASED ON REGIONAL SPECIALIZATION (NATURAL ENDOWMENTS,

CULTIVATION HISTORY), PRODUCTIVITY AND SEASONALITY

R


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REGIONAL LOGISTICS CORRIDOR

TRANS-CAUCASIAN ROUTETRANS-CAUCASIAN ROUTE Latent gateway between Europe and Central Asia

Around 80% of port cargo and 60% of freight rail are transits

TRANSPORT INFRASTRUCTURETRANSPORT INFRASTRUCTURE Rapidly developing road infrastructure

Ports are cost-compettve vs. alternatve routes

FDI inflows in the logistcs sector have primarily targetedtransport infrastructure

OPPORTUNITIESOPPORTUNITIES Deep-sea port with PanaMax vessel

Containerizaton and logistcal centers

Direct connecton with European and Central Asianrailway networks



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GEORGIAS TRANSPORT INFRASTRUCTURE

MODE OF TRANSPORTMODE OF TRANSPORT EXISTING INFRASTRUCTUREEXISTING INFRASTRUCTUREAND FLOWSAND FLOWS UPGRADESUPGRADES

RAILRAIL 1,500 km (90% electrified)

~7,000 rolling stock, 180 locosROADROAD 1,500 km internatonal road

+ 20,000 km internal and local roads

POTI SEAPORTPOTI SEAPORT 13 berths, 8-10m depth

Container and bulk (210k TEU)

Owned/operated by Maersk/RAKIABATUMI SEAPORTBATUMI SEAPORT 5 berths, 1 offshore mooring, 11m depth

90% petroleum/oil, 10% containers (44kTEU)

Operated by JSC KazTransOilKUHLEVI SEAPORTKUHLEVI SEAPORT Crude oil, petroleum, and lubricants

Owned/operated by State Oil CompanyAzerbaijan

TBILISI INTERNATIONAL AIRPORTTBILISI INTERNATIONAL AIRPORT ~1 mn passengers (capacity: 3 mn)

Serving 28 destnatonsBATUMI INTERNATIONAL AIRPORTBATUMI INTERNATIONAL AIRPORT 100,000 passengers

RAILRAIL BTK connecton to Turkey

Modernizaton

Tbilisi bypass

~2500 new rolling stockROADROAD East-West highway upgrade

POTI SEAPORTPOTI SEAPORT New container berth (2014)

DEEP-SEA PORTDEEP-SEA PORT Min. 2 berth of 20m depth

(PanaMax)

First phase: Dry bulk (10m tons)and containers (200k TEU)

USD 200 mn investmentvolume

KUTAISI INTERNATIONALKUTAISI INTERNATIONALAIRPORTAIRPORT Passenger, incl. low-cost

airlines

Currently under constructon

RR

Roa

d/Rail

Matme

Maritme

ArAir


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CARGO TURNOVER

TRANSIT FLOWS THROUGH THE CORRIDOR(MILLION TONS PER YEAR)

CENTRAL ASIACENTRAL ASIAKazakhstan

Uzbekistan

Tajikistan

Kirgizstan

Turkmenistan

CAUCASUS:CAUCASUS:Azerbaijan

Armenia

Europe+TurkeyEurope+TurkeySender - 2.6Sender - 2.6Destination - 4.1Destination - 4.1Total - 6.7Total - 6.7

Central Asia+CaucasusCentral Asia+CaucasusSender - 9.6Sender - 9.6Destination - 4.7Destination - 4.7Total - 14.3Total - 14.3

APPROXIMATELY 80% ARE TRANSIT FLOWSAPPROXIMATELY 80% ARE TRANSIT FLOWS



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ANNUAL CARGO FLOW OF CAUCASUS & CENTRAL ASIA

EXPORTEXPORT

EU 15%

IMPORTIMPORT

Other Regions 85%

EU 22%

Other Regions 78%

*Source : IGC TRACECA

Export Import Grand Total

TOTAL 255 ml. ton 68 ml. ton 323 ml. ton

EU 56 ml. ton 10 ml. ton 66 ml. ton

E

Other Region


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GEORGIA SERVES AS THE ENTRY GATE TO A LANDLOCKED

REGION BOOSTING SIGNIFICANT RESOURCE RESERVES

FOR

COMPARISON:

REGION REPRESENTS

ONLY ~1.6% OF

GLOBAL

POPULATION

F

COM ISO :COMPARISON:

REGION REPRESENTSREGIO REPRESENTS

ONLY ~1.6% OFO LY ~1.6 OF

ULOPULATIO



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GEORGIA IS IN AHIGHLY STRATEGIC

LOCATION FOR TRANSSHIPMENT

STRATEGIC LOCATION: IT SERVES AS AN ENTRY GATE TO THE CAUCASUS ANDSTRATEGIC LOCATION: IT SERVES AS AN ENTRY GATE TO THE CAUCASUS ANDCENTRAL ASIA AS WELL AS A STEPPING STONE TO THE REGIONCENTRAL ASIA AS WELL AS A STEPPING STONE TO THE REGION

LEVERAGING ITS LOCATION, GEORGIAS TRANSPORT ECONOMY CAN BENEFITLEVERAGING ITS LOCATION, GEORGIAS TRANSPORT ECONOMY CAN BENEFITFROM LARGE ADDRESSABLE TRANSIT FLOWS, GROWING ECONOMIES ANDFROM LARGE ADDRESSABLE TRANSIT FLOWS, GROWING ECONOMIES ANDLANDLOCKED RESOURCESLANDLOCKED RESOURCES

THE SHORTEST ROUTE BETWEEN EUROPE AND CAUCASUS/CENTRAL ASIATHE SHORTEST ROUTE BETWEEN EUROPE AND CAUCASUS/CENTRAL ASIA

GREAT POTENTIAL OF BETTER INTEGRATION AND DEVELOPMENTGREAT POTENTIAL OF BETTER INTEGRATION AND DEVELOPMENTOF THE REGIONOF THE REGION


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REGIONAL SERVICES HUB

Georgias service sector achieves leading ranks

among regional economies in terms of value

added and trade

Services have major share of FDI inflow of 45% in

2011 with USD 500 million:

OPPORTUNITY TO CAPITALIZE:OPPORTUNITY TO CAPITALIZE: Financial services/headquarters

Retail hub as the destnaton-of-choice

for shopping

Financial services have grown at 19% p.a. since

2009 and is the leading service sub-sector for FDI

aracton with 15% of total inflows in 2011

Consultancy services aracted 12% of total FDI

inflows in 2011

Wholesale/retail trade accounts for 40% of

service GDP, and strong FDI inflows rebound

at 48% p.a. since 2009

FDI inflows in healthcare/social work have

grown at 146% p.a. since 2007



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VEST

RGIA

OPPORTUNITY TO POSITION GEORGIA AS

A REGIONAL RETAIL DESTINATION

GEORGIA - REGIONAL RETAIL HUBGEORGIA - REGIONAL RETAIL HUB

Benefits of destnaton mega mall

development

Complement overall tourism strategy with

solid retail value propositon

Retail magnet for foreign tourists andaffluent local with longer duraton of

visit (1/2 to 1 day), higher share of wallet,

and repeated visits

Presence offlagship brands will drive retail

brand cluster growth

Tbilisi and Batumi as most potental locatons

Established tourist destnatons with 80%

of foreign tourist traffic in Georgia

Accessible with existng internatonal

airports and major transnatonal highway/railway

Solid retail, hospitality and other

supportng services infrastructure

Integraton with other tourism offerings

e.g. sun & beach, casino

Easier to drive investments

Vision is to develop mega malls in key locatons to transform Georgia - into the regional retail

hub leveraging high traffic of foreign tourists and strategic geography

BATUMI TBILISI


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IN

IN GE


GEORGIAN NATIONAL INVESTMENT AGENCY

State agency

- Promotng Georgia internatonally

- Supportng foreign investments and

investors before, during & aferinvestment process

One-stop-shop for investors

Moderator between Investors,

Government and

Local Companies

Mission -Attracting Greenfield and M&A Investments

INVESTORS

GOVERNMENT

GNIALOCAL

COMPANIES



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VEST

RGIA

INFORMATION General data

Stat

st

cs Sector Researches

COMMUNICATION Access to Government of Georgia at all levels

Local partners (Business Associatons, private companies)

ORGANIZATION OF SITE VISITS AND

ACCOMPANYING INVESTORS

AFTER CARE Legal advising

Supportng services

WHAT YOU CAN GET FROM GNIA


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INVESTIN GEORGI

GEORGIAN NATIONALGEORGIAN NATIONALINVESTMENT AGENCYINVESTMENT AGENCYwww.investingeorgia.orgwww.investingeorgia.org

E-mail: [email protected]

1-Investment Climate Opportunities in Georgia

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