Issue 2, 2018. April-May


INVESTMENT NEWS 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, a government- supported website, and other sources.

Georgia Capital Plans $500 Million in Investments
Georgia Capital of BGEO Group will invest $500 million 'over the next few years' in the country, according to
Prime Minister Giorgi Kvirikashvili announced the deal, noting that $300 million of the promised investment has already been listed and traded on the Irish Stock Exchange as Eurobonds.
'It is very exciting that a new investment of $300 million will flow into the country's strategically important fields, such as tourism, energy and real estate. It is welcomed that a non-governmental non-financial Georgian company has listed Eurobonds and attracted $300 million,' Kvirikashvili said on March 14 at a presentation of investment plans of Georgia Capital.

Georgian Industrial Group to Buy KazTransGas Tbilisi
Georgian and Kazakh media have reported that Georgian Industrial Group plans to purchase KazTransGas Tbilisi for $40 million. Reports on the deal have been confirmed by Georgian Industrial Group, according to Georgia's Interpressnews agency.

Georgia, Saudi Arabia Sign Double Taxation Deal
Citizens from Georgia and Saudi Arabia are now protected by a new double taxation agreement, signed by two countries' governments on 15 March, reported the same day. The agreement was signed during Georgian Finance Minister Mamuka Bakhtadze's visit to Saudi Arabia. Georgia and Saudi Arabia are increasing economic cooperation by avoiding double taxation.
Double taxation is the levying of tax by two or more jurisdictions on the same declared income (income taxes), assets (capital taxes), or financial transaction (sales taxes). This double liability is often mitigated by tax treaties between countries, said.
Currently, Georgia has double taxation treaties with over 50 countries, said. Recent agreements have been signed with Moldova, Liechtenstein, Kyrgyzstan, South Korea and Iceland.

Ukrainian Airline YanAir Expands Service between
Batumi and Lviv
YanAir will provide new flights between Georgia's Black Sea resort town of Batumi to the western Ukrainian city of Lviv, starting on June 8, according to The flights will end on September 28, according to the Georgian Civil Aviation Agency.

Over 1 Million Domestic Travelers Documented in 4th Quarter 2017
Over a million Georgians over the age of 15 made trips within the country during the fourth quarter of 2017, reported on March 16, citing information from the country's official statistics body.
Georgians aged 31-50 travelled the most (331,000 people); in total, domestic travelers spent 129 million lari (about $57.73 million) while traveling within the country.
The capital of Tbilisi was the most visited destination.

MAQRO: AN INTERVIEW WITH ONE OF GEORGIA'S TOP INVESTORS spoke with MAQRO about the company's investments in Georgia and its plans for the future.

MAQRO is involved in the fastest growing sectors in the Georgian economy - construction, tourism and hospitality.

"MAQRO Group is one of Georgia's top five foreign investors. Operating from 2013 in different fields ranging from construction & development, hotels & accommodation, furniture manufacturing & retail, to the food business, MAQRO Group carries out all of its diverse activities with a single aim: to provide better living standards to the country and its visitors," Evgeny Nesterenko, the company's Chief Administrative Officer, told

He added that the company's vision is to "provide the most comprehensive service and be a leading company who will provide excellent services to new and current customers."

For MAQRO, this means giving people an opportunity to benefit from new ways of living, including making life more comfortable, valuable, integrated, pleasant and sustainable.

One of the company's major projects is the Green Diamond, a unique living area built on 70,000 square meters in Dighomi.

"The project gives you an opportunity to live close to nature, in a green environment, far from the hectic rhythm of the city. There will be 1772 apartments ranging from 34 to 250 square meters each (two to six rooms). Residential complex Green Diamond was launched in May 2016 and includes 3 stages, the first of which envisages building 731 units will be completed in May," Nesterenko said.

He added that Green Diamond offers a ROI of 12-14 percent in in eight years and interest-free loans are available with a 10 percent down payment.

Green Diamond is situated near the most popular clinics, Tbilisi Mall and Olympic facilities that host major international sporting events. In addition, High Technology University, which is set to be the largest in Europe, is scheduled to open nearby in 2020.

The complex will include three swimming pools, four outdoor sports areas, four playgrounds, four basketball courts, indoor sports facilities as well as a shopping area, a school and a kindergarten, he said.

"With the brand new project Green Diamond, MAQRO Construction promises a unique and luxurious life at affordable prices. The company is eager for customers to see the relationship between price and quality that the company offers as being the best alternative available," Nesterenko said.

MAQRO projects

MAQRO Construction - The main field of MAQRO Construction is building residential complexes. The company has already built a multifunctional residential complex,"Green Budapest", and launched a second grand scale project "Green Diamond". MAQRO Construction added value to the residential complexes with a green area, an indoor and an outdoor fitness center, a kindergarten, a school and commercial areas which have been designed to meet the requirements of modern life.

MAQRO Home - The first project the Furniture Factory Glorya in Batumi, Adjara region, was built in 2013. The company also opened its first furniture showroom, Bellissa, the same year. The company imports furniture and interior accessories too. MAQRO Home's expansion led to the opening a new world-wide homeware brand Madam Coco in May 2017.

MAQRO Tourism - Foreseeing a high demand for hotels in the country and spotting a gap in the hospitality market, MAQRO Tourism started cooperation with AccorHotels Group. Two brands have already been launched: Mercure Tbilisi Old Town in 2015 and Ibis Styles City Center in 2017.

MAQRO Food - The goal is to achieve differentiation and sustainable success within the café/restaurant industry and maintain employee and customer satisfaction at all times. Aim is to make sure that guests enjoy the freshest and most delicious food, made from scratch, in a warm and elegant atmosphere.
Dinehall Tbilisi, opened in 2016, is the first branch of the world's top fresh-casual café restaurants' chain, where you can eat well-prepared fresh and delicious meals in a fancy restaurant with friendly and hospitable service.