Georgia’s Investment Landscape: Stability, Growth, and Opportunities

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According to the report of the National Statistics Office of Georgia, the volume of foreign investments in the third quarter of the current year has more than doubled compared to the previous year. Economic experts in Georgia note that despite the tensions arising from parliamentary elections last year, local government elections this year, and ongoing protests on the country’s main avenues for over a year, the Georgian economy remains stable. This stability has contributed to the observed increase in foreign capital inflows. A key factor underlying this trend is the government’s declared “peace instead of war” policy. Experts also highlight that one of the main drivers of investment growth is the rise in reinvestment levels. The real estate sector has attracted the highest volume of investments, as property transactions and rising prices continue to appeal to foreign investors. The trend of increasing investments is expected to persist, driven by projects such as the $6.5 billion Arab investment, the construction of the Anaklia port, the planned new airport in 2026, and other infrastructure developments.

In the third quarter of 2025, the volume of foreign direct investment (FDI) in Georgia amounted to USD 533.2 million, which is twice the revised figure for the same quarter in 2024.

Foreign Direct Investment in Georgia by Quarter in 2025 (million USD):

Q1: 183.6
Q2: 580.1
Q3: 533.2

Equity capital accounted for USD 101.9 million, representing 19.1% of total FDI. Reinvestments amounted to USD 340.7 million, accounting for 63.9%, while debt instruments reached USD 90.6 million, corresponding to 17% of total FDI.

2015: Q1 343.4 | Q2 493.2 | Q3 531.1 | Q4 361.0
2016: Q1 392.4 | Q2 453.2 | Q3 509.0 | Q4 299.4
2017: Q1 415.3 | Q2 397.8 | Q3 637.2 | Q4 540.1
2018: Q1 337.5 | Q2 423.6 | Q3 371.5 | Q4 218.0
2019: Q1 323.8 | Q2 251.6 | Q3 408.8 | Q4 383.7
2020: Q1 182.8 | Q2 250.0 | Q3 299.2 | Q4 -135.9
2021: Q1 144.5 | Q2 336.3 | Q3 385.7 | Q4 398.4
2022: Q1 582.9 | Q2 394.8 | Q3 949.8 | Q4 296.7
2023: Q1 626.5 | Q2 544.9 | Q3 449.9 | Q4 307.2
2024: Q1 245.0 | Q2 659.0 | Q3 264.3 | Q4 401.0
2025: Q1 183.6 | Q2 580.1 | Q3 533.2 | Q4 -

The United States led the FDI inflow with USD 93.5 million, representing 17.5% of total investments. Spain and Türkiye followed, contributing USD 72.1 million (13.5%) and USD 70.0 million (13.1%), respectively. Together, these three countries accounted for 44.2% of total FDI.

Foreign Investments by Country in Q1-Q3 2025:

USA: Q1 49.2 | Q2 -0.6 | Q3 93.5
Spain: Q1 0.9 | Q2 0.9 | Q3 72.1
Türkiye: Q1 27.5 | Q2 54.0 | Q3 70.0
Azerbaijan: Q1 24.9 | Q2 23.6 | Q3 56.7
Malta: Q1 12.7 | Q2 33.8 | Q3 50.4
Netherlands: Q1 22.2 | Q2 23.7 | Q3 35.8
Germany: Q1 9.2 | Q2 15.6 | Q3 20.9
Denmark: Q1 2.3 | Q2 1.3 | Q3 20.8
Japan: Q1 -37.9 | Q2 -7.1 | Q3 19.9
Russia: Q1 17.2 | Q2 22.1 | Q3 17.5

Sectoral distribution of FDI in the third quarter of 2025 indicates that the majority of investments were directed toward real estate, transportation, water supply and waste management, manufacturing, information and communication, trade, construction, hospitality, arts, entertainment and recreation, as well as financial and insurance activities.

Among these, the real estate sector attracted the largest share of USD 91.7 million (17.2%), followed by transportation with USD 79.8 million (15.0%), and water supply and waste management with USD 71.5 million (13.4%). Together, the top three sectors accounted for 45.6% of total FDI.

Georgia prioritises attracting foreign capital

Georgian Prime Minister Irakli Kobakhidze stated that economic development is the government’s main objective, which entails improving citizens’ social conditions and strengthening the country’s position in foreign policy. The Prime Minister emphasised that increasing investments remains a priority, with expectations of further growth in the coming years.

Deputy Minister of Economy and Sustainable Development, Vakhtang Tsintsadze, noted that the rise in FDI reflects the robustness of Georgia’s investment and business environment. He highlighted that this positive trend underscores Georgia’s attractiveness to both foreign and domestic investors. Investments have been directed into sectors that directly influence the country’s economic growth. Furthermore, the government prioritises investments that facilitate knowledge and technology transfer, particularly those in high-value-added sectors, which are expected to accelerate medium-term economic growth.

During the Silk Road Forum in Tbilisi, at the investment panel titled “Georgia: The Crossroads of Investment,” Prime Minister Kobakhidze reiterated that Georgia offers one of the most attractive investment environments in the region. He emphasised the country’s commitment to strengthening its role as a reliable partner in the global economy and fostering public-private sector partnerships, thereby promoting stability, entrepreneurial opportunities, and long-term development.

The government attributes these achievements to Georgia’s high rankings in the World Bank’s indicators, as well as its access to markets with over 2.3 billion consumers, facilitated by free trade agreements with the European Union, China, the European Free Trade Association, the Commonwealth of Independent States, Türkiye, and other countries. Notably, Georgia was ranked 8th among more than 80 countries in the OECD’s “Index of Economies with No Regulatory Restrictions,” highlighting its status as one of the world’s most open economies for investment.

This year, Georgia successfully attracted the world-class construction corporation Eagle Hills, which plans to implement a $6.5 billion transformative project in the country. This strategic investment is expected to create thousands of high-income jobs, stimulate the development of related sectors, and further solidify Georgia’s position as a key investment hub in the region.

In conclusion, Georgia has demonstrated significant growth in foreign direct investment in 2025, reflecting the country’s economic stability and investor-friendly environment. The real estate, transportation, and infrastructure sectors have attracted the largest share of investments, while strategic projects like the Anaklia port and the Eagle Hills development are expected to further boost economic growth. Government policies promoting stability, reinvestment, and public-private partnerships have strengthened Georgia’s position as a key investment hub in the region. These trends indicate a promising outlook for continued foreign investment and sustainable economic development.

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