A new phase in the development of Tbilisi Free Zone (TFZ) was commenced in 2023. Following a change in ownership and management, the zone set three strategic priorities: active industrialization, diversification of business activity, and the creation of an infrastructure ecosystem enabling local and international companies to operate fully on-site.
From the outset, the new management’s vision was to gradually reduce sectoral concentration, including the concentration of activities related to the crypto industry and blockchain technologies, and to transform the zone into a diversified industrial and trade platform where traditional manufacturing, processing industries, warehousing and logistics, international trade, and high-tech projects could develop in parallel.
From Registered Companies to Real Industrial Operations
One of the key objectives of the new management was to increase the permanent physical and operational presence of companies at TFZ and intensify industrial activity on-site. Accordingly, the management shifted its focus from company registration alone to creating the infrastructure and services required for actual manufacturing and warehousing operations. The new concept is based on providing infrastructure, leasing, operational, and service solutions tailored to the needs of each investor.
Tbilisi Free Zone progressively introduced “Plug-and-Play” and “Build-to-Suit” models. Under this approach, the zone offers investors not only land or shell space, but manufacturing or warehousing facilities built to the requirements of a specific business, connected to utilities, and ready for operation. As a result, investors can reduce upfront capital expenditure, shorten project implementation timelines, and lower the administrative burden.
Like any other business environment, TFZ faces its own challenges. The crypto industry is part of the modern economy and includes many legitimate companies. However, as in other sectors, unscrupulous operators may also be present, while effective screening can be complex given the industry’s diversity. Tbilisi Free Zone continuously monitors the activities of registered companies across all business profiles and takes appropriate and timely action whenever suspicious or non-compliant activity is identified.
Up to GEL 20 Million Invested in Infrastructure
During the first three years, investment in the development of the zone’s infrastructure alone — a process that continued almost uninterrupted — reached nearly GEL 20 million.
The investments included:
- Construction of international-standard manufacturing and warehousing facilities
- Development of Build-to-Suit spaces tailored to tenant requirements
- Expansion of internal engineering and utility networks
- Integration of comprehensive administrative and operational services
- Improvements to transport and cargo-handling services
- Development of internal roads, parking areas, and monitoring systems.
This model differs significantly from conventional industrial real estate leasing. Today, Tbilisi Free Zone offers investors an integrated business environment in which infrastructure, administrative support, customs procedures, and day-to-day operational services are brought together within a single system.
Three Years in Numbers
As a result of the investments made, business activity at Tbilisi Free Zone increased significantly over the past three years:
- Construction of nearly 15 new manufacturing, warehousing, and administrative facilities was completed at TFZ
- The zone welcomed 12 new active businesses across a range of sectors
- 95% of the currently available space is now occupied
- More than GEL 50 million in additional foreign direct investment was attracted
- The geographic footprint of new companies also diversified, with businesses representing regional, European, and other international markets
- The zone’s cargo turnover nearly tripled
- Employment also nearly tripled, and several hundred people are now employed at Tbilisi Free Zone across its 17-hectare site.
Sectoral diversification targets were also achieved. Industries currently represented at TFZ include electronic components, aviation, automotive parts, food and beverage manufacturing, cosmetics and pharmaceuticals, plastics and other construction materials, among others.
Pharmaceutical Manufacturing and High-Standard Infrastructure
The next stage of Tbilisi Free Zone’s development is focused on attracting new high-value-added manufacturing projects.
Planned projects include the construction of an international-standard pharmaceutical manufacturing facility of approximately 5,000 sq. m, with construction scheduled to begin in 2026.
The new facility will strengthen the pharmaceutical hub already taking shape at TFZ and enable its gradual expansion from pharmaceutical logistics into larger-scale manufacturing and processing operations.
New Direction — AI Infrastructure and Data Centers
Alongside traditional industries, Tbilisi Free Zone is actively working to develop high-tech business activities.
One of the promising areas under consideration is the development of artificial intelligence (AI) infrastructure and cloud technologies. Projects of this type require high-capacity and stable power supply, fiber-optic connectivity, a secure site, robust technical infrastructure, and long-term operational predictability.
Continuous Development
The results of the past three years demonstrate that investments in infrastructure and service integration are already producing tangible results: manufacturing and warehousing capacity has increased, the sectoral profile has broadened, cargo turnover has grown, new jobs have been created, and the number of permanent business operations within the zone has increased.
Tbilisi Free Zone’s new development model is based on the balanced growth of manufacturing, logistics, trade, and technology rather than dependence on any single industry. This diversified approach is laying the foundation for TFZ to develop into a modern industrial and logistics platform offering international investors ready-to-use infrastructure, a favorable operating environment, and access to regional markets.
