Despite ongoing political and economic challenges, Georgia’s business sector is adapting to the changing environment, according to Ketevan Kvaratskhava, managing partner of law firm BLC. Speaking to BMGTV, she said businesses and capital continue to find ways to operate and develop, with uncertainty gradually giving way to greater stability.
Kvaratskhava said investor interest is coming from a diverse range of markets and is not limited to Asia. She noted continued activity in the financial sector, following new products offered by the National Bank to international players. Real estate and construction also remain active areas, continuing to contribute significantly to economic activity and wealth creation.
She also addressed foreign direct investment (FDI), which declined for the second consecutive quarter. Georgia attracted $750 million in FDI during the first six months of the year, a 21% decrease. Kvaratskhava said fluctuations in FDI are partly linked to the country’s reliance on several large-scale investment projects. The completion of a single $300–500 million project can have a significant impact on overall annual or quarterly figures.
According to Kvaratskhava, Georgia’s longer-term goal should be to create an investment environment that is less dependent on a handful of major deals. She pointed to the development of Georgia as a regional IT and technology hub as one possible model, where numerous small and medium-sized international projects from the US, Europe and other markets could contribute to more stable and diversified FDI flows.
