Former Minister of Economy Giorgi Kobulia says that one of the main challenges facing Georgia’s investment environment is its deteriorating relationship with the West. Speaking to BMG, Kobulia noted that strained ties with Western partners have a negative impact on investment flows from other countries as well.
According to him, foreign investors today perceive Georgia as a very high-risk country, especially Western investors. He argues that without proper steps from the government, the investment climate will continue to suffer. Kobulia believes that improving political relations with the West is essential for restoring investor confidence.
He explains that even non-Western investors hesitate to invest in countries that appear to be in conflict with Western institutions. Many global companies have major investments in the West, and they prefer to avoid countries that might create complications in their broader international operations.
Kobulia concludes that although not everything can be fixed immediately, the government must take concrete steps- particularly softening its rhetoric and balancing relations with Western partners- to mitigate the negative impact on Georgia’s investment prospects.
