Georgia’s foreign direct investment (FDI) increased by 47.7% year-on-year to $271.2 million in the first quarter of 2026, according to preliminary data from Geostat. However, reinvested earnings remained the largest component of FDI inflows.
Economist Giorgi Khishtovani argues that the increase was driven by profit reinvestment, particularly in the financial sector, rather than by the arrival of new investors. He said the same companies and countries continue to dominate Georgia’s investment statistics.
According to Khishtovani, major investors such as Telasi and Magti continue to account for a significant share of inflows, while no new large-scale foreign investors have entered the market. He noted that sector and country rankings have remained largely unchanged for years due to the limited volume of new investment.
Khishtovani attributed the lack of new investors to concerns over governance, the rule of law, political stability, and Georgia’s stalled EU integration prospects. He said these factors have increased perceived risks for foreign businesses, making the country less attractive for long-term investment projects.
