Georgia’s investment climate is facing a steep decline, according to Fady Asly, Chairman of the International Chamber of Commerce (ICC) Georgia, who warns that the country’s political instability is already deterring investors and could trigger a broader withdrawal of capital.
In a stark assessment, Asly claims that many local and foreign business leaders are now hesitant to invest further in Georgia, and some are preparing to withdraw their funds entirely.
“Businessmen who receive investment instructions from the Georgian Dream will probably continue to invest in Georgia,” said Asly. “However, any Georgian investor who has free choice and an ounce of common sense will not invest in Georgia in the current situation.”
Asly, a long-time critic of the ruling party’s policies, revealed that he himself ceased investing in Georgia in 2018, anticipating the current political trajectory.
“I stopped investing and doing business in Georgia in 2018 because I saw what would happen.”
Today, his concerns appear to be shared by many in the business community. Asly explains that entrepreneurs are increasingly viewing the domestic market as unstable and are beginning to prioritize the safety of their capital, even if it means moving it abroad.
“Many businessmen are very reluctant to invest more money in the country, and it is likely that many Georgian businessmen will take their money out of Georgia in order to protect it.”
Beyond economics, Asly delivered a sobering political assessment, lamenting Georgia’s current geopolitical orientation.
“Unfortunately, this is not a good time to be Georgian. This is not a good time to be a Georgian businessman. We have become an island of Russia in the Western ocean,” he said. “Even Azerbaijan and Armenia are leaning toward the West and keeping their distance from Russia. We are Russia's last bastion in the Caucasus.”
His comments come amid growing concern from international partners, local business leaders, and civil society groups over Georgia’s democratic backsliding and its potential impact on the country’s Euro-Atlantic aspirations.
