Former Deputy Economy Minister and “GeoCase” adviser Nikoloz Alavidze says the Eagle Hills initiative is not foreign direct investment but an ordinary real estate development project, and a problematic one from a financial and business standpoint. Speaking on TV-program Alaytics, he argued that the project does not meet the definition of FDI and warned that the government has effectively positioned itself as an entrepreneur and direct competitor to Georgia’s private developers, creating conflicts of interest in a sector that already accounts for nearly 20% of GDP.
Alavidze also described the project as financially loss-making, recalling that Eagle Hills founder Mohamed Alabbar publicly mentioned a $15 billion scope - far beyond the $6.5 billion later referenced - as a tactic similar to how venture capital funds attract attention. Based on standard financial-return models and available data, he said the project would remain unprofitable even over a 3–10-year horizon, with potential losses reaching $1–4 billion.
Because the state holds a 33% share in the partnership, Alavidze insists that citizens must know the origin and structure of the incoming capital, including how the first tranche was delivered and whether it came as debt or equity. He warned that some of the capital may circulate back out of the country, adding no real value to national income. For these reasons, he believes the project, in its current form, should be suspended, allowing the government to take a “tactical pause.”
Eagle Hills appeared in the list of Georgia’s top investors in Q4 2025, though the exact investment volume remains confidential. The Georgian government contributes land, 260 hectares in Gonio and 590 hectares near Tbilisi, while the developer is responsible for preparing the architectural plan and raising the required capital, estimated at $6.6 billion. The company, founded in April 2025, is ultimately owned by UAE-based billionaire Mohamed Alabbar.
