Prime Minister Irakli Kobakhidze announced that any potential investment disputes between the Georgian state and Eagle Hills will be resolved by the Zurich Arbitration Chamber. Speaking during an interpellation session in Parliament, Kobakhidze explained that while the project itself is implemented under Georgian law, dispute resolution procedures are governed by British law, a framework he described as consistent with international investment practice.
The clarification came in response to a question from Giorgi Sharashidze, an MP from the “Gakharia for Georgia” party, who expressed concern over Georgia’s significant exposure to arbitration risks. Sharashidze noted that the 2026 draft budget estimates 4.8 billion GEL in potential financial risks from ongoing international disputes, warning that the Eagle Hills contract could also lead to multimillion-dollar liabilities if the project fails.
Kobakhidze dismissed the concerns, reiterating that the legal structure aligns with global standards and that arbitration mechanisms are a routine part of large investment agreements. Earlier in the day, he also defended the decision to classify parts of the Eagle Hills investment agreement as a commercial secret, a practice he said has been applied to more than 1,500 economic agreements over the past decade to protect investor interests.
Eagle Hills Georgia was established in April 2025 and is owned by Eagle Hills Development Holdings Limited, a subsidiary of UAE-based Jaona Investment LLC founded by billionaire Mohammed Alabar. The state has allocated 260 hectares in Gonio and 590 hectares near Tbilisi for the project, while the investor is responsible for preparing the architectural plan and mobilizing an estimated $6.6 billion in capital to implement the development.
