Issue 5, 2017. October-November

   

INVESTMENT NEWS

Investor.ge provides a brief update on investments and changes in government policy that could impact the business environment. The information in this issue was taken from agenda.ge, a governmentsupported website, and other sources.


New Airport Arrivals' Terminal Opened
Georgian Prime Minister Giorgi Kvirikashvili opened the new, 12,000-square-meter arrivals terminal at Tbilisi Shota Rustaveli International Airport on September 26.
"Development of aviation has always been and remains as one of our main priorities, because the percise development of the air market, airports and navigation infrastructure, as well as increasing the inflow of tourists and new flight destinations, are the preconditions for the development of tourism in the country," Kvirikashvili said.
The new terminal will be able to serve four million people a year, according to the report. 42 air companies fly to 45 destinations from Tbilisi International Airport, agenda.ge said.

High-Speed Internet Installed in Georgia's Remote Tusheti Region
Twenty-four villages in Georgia's remote Tusheti region have high-speed internet access thanks to a $40,000 project implemented by the Tusheti Development Fund and the organization Internet Society, agenda.ge reported on September 12.
"The 'internetization' of the country, and especially of the regions, is one of the priority directions of the government. Today we already have high-speed internet in Tusheti, which will support the social-cultural development of the region and will meet the needs of tourists that visit Tusheti," Minister of Economy and Sustainable Development Giorgi Gakharia was quoted as saying.

Georgia's Airports See Uptick in Passengers
More passengers traveled through Georgia's three main airports in the first eight months of 2017 than compared to the same period last year, agenda.ge reported on September 8, citing statistics from the Georgian Civil Aviation Agency.
A total of 2.7 million passengers have passed through Tbilisi Shota Rustaveli International Airport, Batumi International Airport and Kutaisi David Aghmashenebeli International Airport in the first eight months of the year-a 47.92 percent increase compared to the same period last year, the report said.
Tbilisi Shota Rustaveli International Airport has seen the most passengers-slightly over 2 million, a 42.78 percent increase y/y. The biggest increase-82.59 percent-was recorded at Batumi International Airport. Batumi International Airport has experienced a 66.36 percent increase in passengers in the past eight months compared to the same period last year.
The report noted that smaller airports in Georgia have also seen more travelers this year: Queen Tamar Airport in Mestia, Svaneti region, has served 4,933 passengers, which was a 98.03 percent increase y/y, agenda.ge reported.

Over $300 million in FDI in the Second Quarter of 2017
Georgia received $346.6 million in foreign direct investment (FDI) in the second quarter of the year, agenda.ge reported on September 8, citing preliminary data from the National Statistics Office. The country attracted $445 million in the same period in 2016.
The top three countries for FDI in Georgia in the second quarter were:
Azerbaijan: $126.9 million (36 percent of all FDI)
The Netherlands: $42.9 million (12.4 percent of all FDI)
Turkey: $39.3 million (11.3 percent of all FDI)
The majority of the foreign investments (66.3 percent) were made in three sectors: transport and communications: $130 million (37.6 percent of FDI); construction: $70 million (20.2 percent of FDI); and hotels and restaurants: $29.3 million (8.4 percent of FDI).

Million-Lari Investment Planned in Kutaisi
Indian investors plan to invest 1.5 million lari in Kutaisi, the agenda.ge website reported on September 1.
The investors will build a five-story business and residential complex in Kutaisi, according to the report.
The project will be implemented with the support of the government's Produce in Georgia program and will be completed in September 2018, the report said, adding that 20 jobs will be created at the new complex.

Over a Million Visitors to Georgia in August 2017
Over a million people visited Georgia during the month of August 2017, agenda.ge reported on September 4.
Georgia's Ministry of Internal Affairs reported that 1,080,449 people arrived in the country in August, an increase of 27.4 percent compared to the same period last year.
Out of the total number of visitors, over half a million-573,368-were tourists, the report said, and 25.4 percent-274,878 people-were traveling through the country.
The highest number of visitors arrived from Armenia, followed by Russia, Azerbaijan, Turkey, Ukraine and Iran.

Georgia to Produce Jeans for Famous Brands
A new factory in Georgia's western Guria region will produce jeans for famous brands like Zara, Mango and Massimo Dutti, agenda.ge reported on September 1.
The factory, which will open in the town of Ozurgeti in 2018, is part of the government's Produce in Georgia program. An estimated 350 people will be employed, the report said, and the Turkish investor behind the project will invest 1.7 million lari.
The investor is part of the Turkish textile production network Baykanlar; no additional details were provided in the report.

Turkey, Russia and China are Georgia's Top Trade Partners
Turkey, Russia and China are Georgia's top trade partners in 2017, according to official statistics, agenda.ge reported on August 21. Georgia's trade turnover with European Union member states has increased 11 percent compared to the same period last year.
The report noted that smaller airports in Georgia have also seen more travelers this year: Queen Tamar Airport in Mestia, Svaneti region, has served 4,933 passengers, which was a 98.03 percent increase y/y, agenda.ge reported.

Over $300 million in FDI in the Second Quarter of 2017
Georgia received $346.6 million in foreign direct investment (FDI) in the second quarter of the year, agenda.ge reported on September 8, citing preliminary data from the National Statistics Office. The country attracted $445 million in the same period in 2016.
The top three countries for FDI in Georgia in the second quarter were:
- Azerbaijan: $126.9 million (36 percent of all FDI)
- The Netherlands: $42.9 million (12.4 percent of all FDI)
- Turkey: $39.3 million (11.3 percent of all FDI)
The majority of the foreign investments (66.3 percent) were made in three sectors: transport and communications: $130 million (37.6 percent of FDI); construction: $70 million (20.2 percent of FDI); and hotels and restaurants: $29.3 million (8.4 percent of FDI).

Million-Lari Investment Planned in Kutaisi
Indian investors plan to invest 1.5 million lari in Kutaisi, the agenda.ge website reported on September 1.
The investors will build a five-story business and residential complex in Kutaisi, according to the report.
The project will be implemented with the support of the government's Produce in Georgia program and will be completed in September 2018, the report said, adding that 20 jobs will be created at the new complex.

Over a Million Visitors to Georgia in August 2017
Over a million people visited Georgia during the month of August 2017, agenda.ge reported on September 4.
Georgia's Ministry of Internal Affairs reported that 1,080,449 people arrived in the country in August, an increase of 27.4 percent compared to the same period last year.
Out of the total number of visitors, over half a million-573,368-were tourists, the report said, and 25.4 percent-274,878 people-were traveling through the country.
The highest number of visitors arrived from Armenia, followed by Russia, Azerbaijan, Turkey, Ukraine and Iran.

Georgia to Produce Jeans for Famous Brands
A new factory in Georgia's western Guria region will produce jeans for famous brands like Zara, Mango and Massimo Dutti, agenda.ge reported on September 1.
The factory, which will open in the town of Ozurgeti in 2018, is part of the government's Produce in Georgia program. An estimated 350 people will be employed, the report said, and the Turkish investor behind the project will invest 1.7 million lari.
The investor is part of the Turkish textile production network Baykanlar; no additional details were provided in the report.

Turkey, Russia and China are Georgia's Top Trade Partners
Turkey, Russia and China are Georgia's top trade partners in 2017, according to official statistics, agenda.ge reported on August 21. Georgia's trade turnover with European Union member states has increased 11 percent compared to the same period last year.

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