In global business, investors look for locations that offer a business friendly environment comprising tax holidays, a robust infrastructure, a laissez-faire policy, trade concessions, and a near absence of red tape. Among the many global locations that more or less fit into the above criteria, the Republic of Georgia arguably measures well. Its strategic location as the gateway to both Europe and Asia makes it an important trade hub. Moreover, the country has ticked the right boxes in creating a conducive environment for business, which has been duly acknowledged by various international agencies like the World Bank and EU among others. Let us find out the sectors or industry verticals where you can set up a company in Georgia and be successful.
Sectors to invest in Georgia
Energy: The growing economy of Georgia and that of the neighbouring countries are witnessing rising electricity consumption. To cater to this demand, a company can invest in the energy sector, either by setting up power plants or distribution stations. In fact, the business friendly environment provided by Georgia shall allow the company to sell surplus power outside the region as well.
Manufacturing: Georgia offers a slew of incentives for businesses including a low rate of taxes, good infrastructure, favourable trade treaties with regional and global trade blocs making exports competitive, easy bank credit, a robust stock market, and the three free zones at Kutaisi, Tbilisi, and Poti. So, should any manufacturing company wants to invest in Georgia, it can leverage the above mentioned factors and stay ahead in the competition.
Agriculture and food processing: The country is home to 22 micro climates that allow the cultivation of various crops. Moreover, being a traditional agricultural country, Georgia offers a long harvesting season. Thus, any company interested to invest in the food processing sector or set up cold chains to store agriculture produce can find Georgia as a welcoming destination.
Business process outsourcing: The IT and ITES sector has become the real money spinner for a lot of companies and economies. Companies based in the developed countries are looking at cutting costs to stay competitive. They are doing this through business process outsourcing wherein non-core jobs are outsourced to countries having a low cost but skilled workforce. Georgia can become a hub of business process outsourcing given its slew of business friendly incentives and skilled workforce.
Hospitality and real estate: Georgia has become a hub for international tourists given its bio diversity, cultural centres, historical monuments, and festivals. In fact, the country boasts of around 12000 monuments of which, four are in the UNESCO’s World Heritage list. Thus, the country has a large potential for companies dealing with the hospitality and real estate sectors.
Logistics hub: The location of Georgia by the Black sea makes it a transit hub for international shipping, especially between the East and West. And thanks to the various trade treaties, Georgian exports are mostly exempted from paying customs and VAT, especially those emanating from the free zones. So, one can set up a company in Georgia, especially in the logistics domain and be counted.
Georgia offers global investors with an attractive and business friendly destination. The various sectors in the country, as discussed above, have a lot of potential for businesses to invest and achieve success.