Former Economy Minister Giorgi Kobulia says the high share of reinvested earnings in Georgia’s foreign direct investment (FDI) structure reflects confidence among businesses already operating in the country, but also highlights the lack of new foreign capital inflows.
According to Kobulia, reinvestment is a key indicator of business confidence, as companies choose to retain profits in Georgia and invest in expansion rather than transfer the money abroad as dividends. He cited Bank of Georgia as an example, noting that reinvesting profits in the business signals trust in the country’s economic future.
However, Kobulia said the limited inflow of new capital may indicate weaker investor confidence, while acknowledging that geopolitical instability is also a major obstacle. Conflicts and tensions in the Middle East, Iran and Ukraine make the region appear riskier to foreign investors and complicate efforts to attract fresh investment.
Reinvested earnings accounted for 84.6% of Georgia’s total FDI in 2024 and 82.5% in 2025, exceeding 80% in both years. The figures show that foreign investment increasingly depends on profits generated by companies already operating in Georgia rather than new capital entering the economy.
