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Georgian National Investment Agency 2013
INVESTMENT CLIMATE &INVESTMENT CLIMATE &OPPORTUNITIES IN GEORGIAOPPORTUNITIES IN GEORGIA
IVEST
E R
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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
PER CAPITA
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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
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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
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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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VEST
RGIA
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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IN
IN GE
%
%
%
%
%
!
%
"
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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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VEST
RGIA
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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IN
IN GE
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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
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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
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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]
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