Georgia

Georgia is located in the western Transcaucasus on the eastern shore of the Black Sea. The government's focus on economic stability positions Georgia as a promising market for investment and business.

The official name of the country is Georgia. The state occupies an area of ​​69,789 km2 (119th in the world). The population is about 3,756,390 people (as of the beginning of 2025).

Citizens of more than 120 nationalities live in Georgia, including: Georgians (86.8%), Azerbaijanis (6.3%), Armenians (4.5%), Russians (0.7%). Confessional composition: the majority of believers are Orthodox Christians (84.9%). There are also Muslims (10.9%), adherents of the Armenian Apostolic Church (3.0%), Catholics (0.5%) and representatives of other faiths (0.7%).

The official language of Georgia is Georgian, along with it, in Georgia they also speak other languages ​​- Megrelian (in Megrelia), Svan and Laz.

According to the results of sociological surveys, 55% of the population in the country speaks Russian. These are mainly representatives of the older generation who received their education in Soviet schools. Young people prefer to learn English, German and French.

The official currency of the country is the lari.

Tbilisi (old name before 1936 Tiflis) is the capital and largest city of Georgia. The most important industrial, social and cultural center of the country, as well as a major transit hub for transnational energy and trade projects.

Batumi (until 1936 Batum) is a city and port in Georgia, located on the Black Sea coast. The capital of the Autonomous Republic of Adjara. Batumi is one of the most important cultural, economic and tourist centers of Georgia. During the Soviet era, large industrial enterprises were built in the city: an oil refinery, a machine-building plant (equipment for the tea industry), a shipyard, tea factories, and a citrus plant.

Currently, the major industrial facilities are: Batumi Port, Batumi Oil Terminal, Batumi Container Terminal. Light industry (footwear, clothing) is developed; tea and tobacco factories, a pharmaceutical factory, a coffee factory and others operate.

Kutaisi - one of the oldest cities in Georgia. The most important historical and economic center of Western Georgia. The third largest city in the country by population after Tbilisi and Batumi, but the second largest by area.

Rustavi is a city in the southeast of Georgia, located on the banks of the Kura River. There is a wagon-building holding company here, which includes an electric wagon repair plant, which is mainly engaged in wagon repair, a wagon-building company - a new enterprise focused on the construction of wagons, and the Rustavi Metallurgical Plant, which produces wagon parts. The city is also home to the largest automobile market in the Caucasus, which is a key point for the re-export of cars from Georgia to neighboring countries, as well as many enterprises for the repair, maintenance and tuning of cars.

Poti is a city in western Georgia. Today Poti is considered one of the main economically important regions of the country. The port of Poti is one of the largest ports in the Black Sea basin.

Administratively, the territory of Georgia includes 2 autonomous republics - Abkhazia and Adjara, 9 regions and a city equivalent to them - the capital Tbilisi. Regions and autonomous republics are subdivided into municipalities and cities equivalent to them of regional (republican) significance.

The territory of Georgia has been inhabited since ancient times. In the period from the 6th to the 2nd century BC, the Kingdom of Colchis, known to the ancient Greeks, existed in Western Georgia. Another famous ancient Georgian kingdom was the Iberian Kingdom.

In 608, a church schism occurred between the Georgian and Armenian churches. In the 15th century, Georgia was surrounded by the Muslim world and, being virtually isolated, fell into decline. The last king of the united Georgia was George VIII; later, Georgia disintegrated into the Kingdom of Kartli, the Kingdom of Kakheti, the Kingdom of Imereti, and Samtskhe-Saatabago.

In the 16th century, the territory of modern Georgia became an arena of confrontation between the Ottoman and Safavid empires. In 1597, Shah Abbas expelled the Turks from Georgia and the Caucasus, and in 1599 the Gori fortress was liberated from the Ottomans.

In the 18th century, the rulers of Georgia tried to fight for the revival of the country and its liberation from the rule of hostile Islamic powers. By this time, very close political, cultural and church ties with Russia were activated. Georgian rulers repeatedly appealed to the Russian government with a request for joint action against the Ottoman Empire and Iran. By the end of the 17th century, a Georgian party was formed in Moscow, which played a significant role in strengthening Russian-Georgian contacts.

In 1783, the Treaty of Georgievsk was signed - treaty on patronage and supreme power of the Russian Empire with the united eastern Georgian kingdom of Kartli-Kakheti (otherwise the Kartli-Kakheti Kingdom, Eastern Georgia), on its transition to the protectorate of Russia.

After the collapse of the Transcaucasian Democratic Federative Republic, on May 26, 1918, in Tiflis (Tbilisi) in the Vorontsov Palace, the independence of Georgia was proclaimed. From December 5, 1936, Georgia was part of the USSR as a union republic.

On October 28, 1990, the first multi-party parliamentary elections in the USSR were held in Georgia. As a result of the elections, the Supreme Council of the Georgian SSR was formed. The Parliament declared a transitional period until Georgia's independence was restored. On April 9, 1991, the Supreme Council adopted an act on the restoration of Georgia's independence, which declared the legal force of the Constitution of the Georgian Democratic Republic of 1921.

After the collapse of the USSR and the transformation of the Georgian SSR into modern Georgia, as a result of a series of armed conflicts (the South Ossetian War of 1991-1992, the war in Abkhazia of 1992-1993), two unrecognized states were formed that were not controlled by the Tbilisi government - Abkhazia and South Ossetia, laying claim to the territories of the former Abkhaz ASSR and the South Ossetian Autonomous Region, respectively. Georgia received international legal recognition by most countries in 1992, while Abkhazia and South Ossetia remained unrecognized for a long time.

Zviad Gamsakhurdia was the first democratically elected president after independence. In 1992, he was overthrown in a coup d'état, and Eduard Shevardnadze was soon elected president. Under his leadership, democratic reforms were carried out in Georgia.

After Saakashvili came to power in 2004, the Adjara crisis arose, as a result of which Adjara lost most of its autonomy, and by 2007 the last Russian troops were withdrawn from its territory. In August 2008, a war broke out between Georgia on one side and South Ossetia, Abkhazia and Russia on the other; After that, Russia and a limited number of other countries recognized Abkhazia and South Ossetia as sovereign independent states.

Georgia borders Russia to the east and north, Armenia and Turkey to the south, and Azerbaijan to the southeast. The country's Black Sea coastline is 308 km long. The southern slopes of the Greater Caucasus, through which the Roki Tunnel connects Georgia with Russia, serve as a natural northern border. To the south are the Lesser Caucasus and the Armenian Plateau. Due to their difficult geographic location, the mountains also isolate the northern region of Svaneti from the rest of Georgia.

Between these two great mountains lies the Colchis Plain. To the west, it is separated from the regions of Lower Kartli and Inner Kartli from north to south by the Likhi Mountains. Georgia's highest peak is Shkhara, height 5,068 m. The longest river is the Kura - 1,364 km. The largest lake is Paravani, the area of which is 37.5 km2. The deepest cave is Voronya, its depth is 2,190 m, also the deepest in the world.

In the northwest of the country, according to the constitution of Georgia, is the Abkhaz Autonomous Republic, in the southwest is the Adjara Autonomous Republic, in the north is the South Ossetia region. Abkhazia and South Ossetia are partially recognized states and are not under the control of Georgia.

Georgia's mineral resource potential is represented by 450 deposits of 27 types of minerals, the main ones being: high-quality manganese ores (Chiatura, reserves - 200 million tons, annual production - up to 6 million tons), coal (Tkibuli; reserves - 400 million tons), copper ores (Marneuli, reserves - 250 thousand tons), oil (Samgori, Patardzeuli, Ninotsminda, industrial reserves - 30 million tons).

Georgia has significant reserves of building materials: bentonite clay (17 million tons), dolomites, limestone (200 million tons), clay for cement production (75 million tons) and bricks (47 million m3), gypsum, talc, molding sand.

There are about 2 thousand registered fresh water sources in Georgia with a total annual flow rate of 250 billion liters, 22 mineral water deposits, including medicinal - "Borjomi", "Sairme", "Nabeglavi", "Zvare" and others, with a total flow rate of about 40 billion liters / year. Currently, fresh and mineral waters are exported to 24 countries.

The country's territory is a rich raw material base for the pharmaceutical industry. The country's recreational resources are unique in their characteristics - mountain and sea resorts.

Georgia's strategic geographical position between Europe and Asia is one of the main reasons for the diversity of its cultural features. Its vector, uniting the north, south, east and west, made the country an important trading point on the historic Silk Road. The flourishing trade along with Georgia's own rich resources finally formed the unity of cultures.

"A guest is a messenger of God" - says a Georgian proverb. Over the centuries, the Georgian people have developed their traditions of hospitality. Love and boundless respect for the guest, devotion to the host's duties, and the traditional feast were passed down from generation to generation. As a result, a high culture of hospitality was formed in Georgian culture. It is customary to spare no expense for the guest. According to Georgian folk poetry, hospitality is valued more than bravery, courage and skillful use of weapons. Georgian folklore idealizes a hospitable, generous host and condemns a stingy one.

At the same time, great attention is paid to the morality of the guest. The guest should be a reserved, modest and polite person. According to the Georgian tradition of hospitality, the guest took off his weapon at the entrance and handed it over to the host or the eldest in the family. With this highly moral behavior, the guest inspired trust, expressed loyalty and respect for the host. It meant coming to the family with good intentions, with peace and friendship. The tradition of saying "alaverdi" before a toast appeared in honor of the famous Georgian prince. If in Georgia this word is said to someone during a toast, that person is obliged to make a toast in return.

Georgian monumental architecture, world-famous polyphonic singing and traditional music, book miniatures, rich spiritual and secular literature, colorful folk dances and ballet, theater and cinema, jewelry, metal carving, ceramics and paintings - All this represents ancient Georgian culture in the best possible way.

The political structure of Georgia is a republic. The basic law of the country is the Constitution.

The head of state is the President. He is elected for a five-year term by open voting by the Electoral College of 300 electors, which includes all members of parliament and the highest representative bodies of local self-government.

The highest legislative body is the Parliament, consisting of 150 deputies (in the 2020 elections, 120 deputies were elected by the proportional system, 30 by the majoritarian system, since 2024 all deputies are elected by the proportional system).

The highest executive body is the government (consists of ten ministries and one office of the state minister), which is accountable only to the parliament.

The Constitutional Court is a judicial body of constitutional review and exercises judicial power in accordance with the constitutional procedure. The Supreme Court supervises legal proceedings in the courts of general jurisdiction.

Georgia is a member of such international organizations as the WTO, IBRD, IMF, GUAM, the Black Sea Economic Cooperation Organization.

The economy of Georgia is developing the following industries: food (including tea, canned fruit, wine-making sub-sectors; production of tung, fragrant essential oils, bottling of mineral waters, etc.), light, mechanical engineering, chemical, petrochemical and oil refining, ferrous metallurgy. Extraction of manganese ores, coal, non-ferrous metal ores, barite, etc.

Agricultural sectors: in the eastern part of Georgia, the leading role still belongs to viticulture, fruit growing is developed. Grain crops (wheat, corn, barley). Livestock farming is developed - meat and dairy cattle breeding, sheep breeding, pig farming, poultry farming. More than half of the enterprises are located in the cities of Tbilisi, Rustavi (Eastern Georgia) and Kutaisi (Western Georgia).

Today, the country's energy complex is being restored and electricity production is growing (Georgia has begun not only to restore its hydroelectric power plants, but also to build new ones, and today the country itself is able to supply electricity for export), as well as the development of promising oil fields in Eastern Georgia. New gas pipeline networks are being built in Kutaisi, Gori, Kaspi, Rustavi and others. The Baku-Tbilisi-Ceyhan pipeline passes through the country, the construction and operation of which is financed by the International Finance Corporation.

Georgia is an importer of food, energy, cars, machinery and transport equipment. Georgia exports mineral waters, wines, tea, citrus fruits, pipes, ferrous and non-ferrous metal alloys, textiles. In addition, it is engaged in the re-export of crude oil. The largest import partners are the EU countries, Russia, Turkey, the USA, and the largest export partners are Russia, Turkey, Azerbaijan and Armenia.

The Government of Georgia continues to pursue its chosen macroeconomic policy and implement a program of structural reforms in order to create more favorable conditions for economic growth.

Georgia, located at the crossroads of Western Asia and Eastern Europe, is a small but open market that benefits from international trade, tourism, and transportation. The country has undertaken major economic reforms since 1991, resulting in a relatively well-functioning and stable market economy.

In December 2023, the European Union granted Georgia candidate status and outlined nine steps the Georgian government must take to continue the accession process. Georgia is abandoning EU accession talks, postponing the matter until the end of 2028, Prime Minister Irakli Kobakhidze announced at a special briefing on the evening of November 28, 2024. He also announced that Tbilisi is refusing “any budget grants from the European Union” for the same period. According to the prime minister, by the end of 2028, Georgia will be “properly economically prepared” to join the EU in 2030. In the meantime, Kobakhidze assured, Tbilisi will continue to fulfill its obligations under the bilateral Association Agreement.

Bringing Georgia into line with EU law will entail structural reforms in many areas, including technical regulations and standards, competition law, public procurement, intellectual property rights, and sanitary and phytosanitary measures.

Georgia’s favorable business climate regularly ranks high in international rankings for transparency, competitiveness, and economic freedom. Fiscal and monetary policies are focused on low deficits, low inflation, and a floating real exchange rate. In 2023, the economy grew by 7.5%, while inflation fell to 0.4%, marking a return to more traditional economic drivers: tourism, increased exports, and strong foreign capital inflows. After three years of steady GDP growth, Georgia is expected to continue this trajectory.

Overall, the business and investment environment is favorable, and Georgia compares favorably with its regional peers. Transit and logistics are priority sectors as Georgia seeks to benefit from increased east-west trade along the Middle Corridor. The expanding Central Asian market has also led to a recent increase in freight traffic along the Middle Corridor, which connects Europe with Central Asian markets, and could be a source of long-term growth for Georgia, particularly through strategic infrastructure investments and regional cooperation.

Benefits of investing in Georgia:

• Various natural and cultural attractions and resorts. Georgia offers a rich selection of natural beauty and cultural heritage, including over 12,000 historical monuments and four UNESCO World Heritage Sites. In addition, Georgia plays an important role as a historic Silk Road corridor and an emerging medical and health tourism landscape.
• Well-connected and easily accessible location. Strategically located between Europe and Asia, Georgia boasts a modern transportation infrastructure. Additionally, Georgia’s liberal visa policy allows citizens of 98 countries visa-free entry, making it an accessible destination for tourists and businesses.
• One of the lowest taxes in the world. Georgia’s tax system is one of the most favorable in the world, with a low headline tax rate of 9.9%, no capital gains, wealth or inheritance taxes, and numerous business incentives. Companies benefit from a 0% tax on reinvested profits and a competitive 15% tax on distributed profits. A flat personal income tax rate of 20% further simplifies compliance.
• Stable and favorable business environment.Georgia is renowned for its transparency and regulatory effectiveness. Economic reforms such as the Association Agreement and DCFTA with the EU, as well as EU candidate status, underline its commitment to integration and development. Investment promotion agencies such as Enterprise Georgia and robust free trade agreements with key markets enhance Georgia’s attractiveness.

Georgia remains an attractive market among countries in the region. The government has increased its focus on infrastructure, energy, tourism and agriculture, and has received significant support from international donors. Materials, expertise and equipment, including medical equipment, for these sectors are in high demand.

Construction of roads, energy distribution infrastructure, water supply systems, hotels and office space is expanding across Georgia, providing opportunities for manufacturers of construction equipment and materials, as well as providers of architectural and engineering services. Infrastructure is the second largest expenditure item in the national budget.

With consumer purchasing power somewhat limited, they are mainly interested in processed foods, used cars and aftermarket accessories. The food industry has particular opportunities given Georgia’s agricultural potential. Agricultural machinery and production lines are also in great demand.

Georgia actively attracts foreign investment, offering various support programs:

• Georgian Investment Promotion and Export Potential Development Agency — is responsible for attracting foreign investment and supporting local businesses.
• Georgian Ministry of Economy and Sustainable Development — oversees economic policy and business support programs.
• Georgian National Bank — regulates the banking sector and ensures financial stability, which is important for investors.
• Georgian Investment Company — provides financing and support for startups and small businesses.
• Free Economic Zones (FEZs) — offer tax breaks and other benefits for investors.
• Georgian Businessmen Association — represents business interests and helps establish contacts between entrepreneurs.
• Small Business Support Center - offers consulting services and training for small and medium-sized enterprises.
• Georgian Stock Market Development Fund - promotes the development of capital investments and the investment climate.
• International Aid Programs - promote business development in Georgia.

These structures create a framework for supporting business and investment, providing access to financing, training and other resources for growth and development.