The foreign direct investments (FDI) of USD 36.4 million were made to Georgia from Azerbaijan in 1H24. The volume of FDI from neighboring countries increased by 48.5% in 6M24.
In 2Q24, Azerbaijan ranked 4th among the investor countries by foreign direct investments with USD 23.7 million.
BMG was interested in which companies or sectors this money was invested in. According to Geostat, the largest amount of Azerbaijan investments were made in the transport and warehousing sector.
1. Transport and warehousing - $21.6 million;
2. Activities related to real estate - $2.6 million;
3. Construction - $1.2 million;
4. Manufacturing industry - $814 thousand;
5. Financial and insurance activities - $707 thousand;
The outflow of Azerbaijan investments has been observed in a number of sectors such as administrative and support services activities, wholesale and retail trade, HoReCa, and healthcare sectors.
TOP-5 Companies By Azerbaijan FDI:
1. LLC Welfar International
2. SOCAR Midstream Operations LLC
3. Pasha Development Georgia Ltd
4. Black Sea Terminal Ltd
5. Representation (branch) of the State Oil Company of the Republic of Azerbaijan in Georgia
Azerbaijan FDI in various sectors of the Georgian economy have been active since 2014, when more than $340 million were transferred to the country. Azerbaijan FDI were record-breaking in the following years 2015, 2016, 2017, 2018, amounting to $582 million, $555 million, $460 million and $246 million respectevly. However, in the following years, the money flows invested in the economy of Georgia from neighboring countries decreased. In 2023, the volume of Azerbaijan FDI amounted to USD 90.3 million.
