Foreign direct investment (FDI) in Georgia increasingly depends on reinvested profits, which accounted for 82.5% of total FDI in 2025, raising questions about the country’s ability to attract new foreign capital.
FDI amounted to $1.9 billion in 2025, down by 19% from $2.2 billion in 2022. Its share of GDP fell to 4.3% in 2025, following 4.7% in 2024 - the lowest levels in 14 years, excluding the pandemic period.
Former Economy Minister Giorgi Kobulia said reinvestment signals confidence among existing businesses, as companies choose to retain profits and expand operations in Georgia rather than distribute dividends abroad. However, the high share also highlights the limited inflow of new foreign capital.
Economist Rati Tsiklauri said attracting more investment should remain a priority for a developing economy like Georgia, emphasizing that FDI should be assessed relative to GDP rather than by its nominal value alone.
The financial sector attracted approximately one-third of Georgia’s total FDI in 2025, largely driven by the country’s two major banks listed on the London Stock Exchange.
