Georgia is actively pursuing an economic strategy focused on fostering the development of small and medium-sized enterprises (SMEs) and strengthening investment ties with the United Arab Emirates (UAE). The nation aims to attract foreign direct investment (FDI) by showcasing its stable macroeconomic environment, competitive tax framework, and comprehensive network of free trade agreements.
The Georgian Ministry of Economy and Sustainable Development, led by Minister Natia Turnava, highlights the country’s dedication to creating an attractive business ecosystem. This includes maintaining a low tax burden and providing access to diverse markets through free trade agreements with entities such as the European Union, China, and the Commonwealth of Independent States. These initiatives are designed to position Georgia as a strategic gateway for international businesses.
A central pillar of Georgia’s economic vision is the robust support for its SME sector, which is recognized as vital to the national economy. The government has implemented various programs to facilitate SME growth, offering assistance in areas like access to finance, business consulting services, and specialized training. These measures are intended to enhance the competitiveness, innovation, and overall sustainability of Georgian SMEs, thereby contributing significantly to job creation and economic stability.
### Strengthening UAE-Georgia Economic Ties
During a recent official visit to the UAE, Minister Natia Turnava engaged in high-level discussions with Emirati counterparts, including Sultan bin Saeed Al Mansoori, UAE Minister of Economy, and Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade. The primary agenda of these meetings was to explore avenues for enhanced bilateral economic cooperation, with particular emphasis on potential negotiations for a free trade agreement. Both nations expressed a mutual interest in boosting trade volumes and investment flows, identifying shared opportunities for economic advancement.
The discussions in the UAE also focused on promoting various investment opportunities within Georgia’s key strategic sectors. These include the rapidly expanding tourism industry, logistics, energy production, and manufacturing. Georgia’s appeal as an investment destination is further amplified by its consistent tourism growth, its strategic geographical position for logistical hubs, and its potential in renewable energy. Investors were also informed about the advantages of operating within Georgian free industrial zones, which offer additional incentives for businesses.
The partnership with the UAE is considered instrumental for Georgia’s economic diversification and sustained growth. Beyond facilitating direct investment, this collaboration seeks to foster knowledge exchange, technology transfer, and the establishment of joint ventures that promise reciprocal benefits for both economies. Georgia’s proactive engagement with UAE investors underscores its commitment to global economic integration and the cultivation of strong international alliances.
Key Points
* Georgia’s economic growth was 3.8 per cent in 2019.
* Georgia’s economic growth was 7.8 per cent in 2018.
* Over 90 per cent of Georgian businesses are SMEs.
* There are approximately 250,000 SMEs in Georgia.
* SMEs contribute more than 70 per cent of employment in Georgia.
* SMEs account for 47 per cent of Georgia’s GDP.
* Georgia experiences double-digit tourism growth.
* Visitor numbers to Georgia show a 22 per cent annual increase.
* The number of tourists from the UAE to Georgia increased by 35 per cent in 2017.
* There has been a 17 per cent increase in the number of UAE companies operating in Georgia over the last five years.
* UAE direct investments in Georgia exceed 300 million USD.
* The year 2020 was mentioned as a target for boosting the economy.
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