Political stability, favorable economic environment, low operating costs, availability of a skilled and competitive labor force, stable banking sector… It is not for nothing that Georgia is considered one of the most attractive investment destinations today. Add to this the fact that the cost of setting up a business here is much lower than in other European countries, which is a definite financial advantage. Moreover, setting up a business and opening a bank account in Georgia is done in less than a day! These are all reasons that have prompted major businessmen like John Dodelande to invest heavily in the country.
A very favorable business climate
Those wishing to invest in Georgia will find abundant investment opportunities and a very favorable economic climate for foreign investors. Indeed, the country began to introduce important political and economic reforms after the 2003 revolution and since then has enjoyed a business environment that is attracting more and more investors. In addition, Georgia boasts a highly competitive tax regime, simplified business legislation, low levels of corruption, and countless investment opportunities in many business areas.
That’s all well and good, but what’s the reality? In other words, what is Georgia’s actual ranking in terms of the overall business climate? Here is the answer in a few key points and figures:
- Georgia is 6th out of 190 countries in the World Bank’s “Doing Business” ranking;
- 16th out of 180 countries in the Heritage Foundation’s “Economic Freedom” ranking;
- 46th out of 180 countries in the Transparency International Corruption Index;
- 6th out of 118 countries in the Numbeo Crime Index.
Georgia: competitive advantages
Georgia has several competitive advantages that make it a good place to invest. Let’s start with its geographic position, which gives it a prime geostrategic location, since the pipelines transporting Caucasian oil to Europe all pass through its territory. Equally important, the country at the intersection of Europe and Asia has one of the lowest corporate tax rates and one of the highest literacy rates in the world. In addition, business registration procedures are extremely simplified, and the government, which is committed to attracting foreign investment, has put in place a series of measures to promote economic development:
- The privatization of state-owned enterprises;
- The active fight against corruption;
- The establishment of a principle of non-discrimination between Georgian and foreign entrepreneurs;
- Drastic streamlining of procedures for setting up a business;
- The reduction of corporate tax rates;
- Liberalization of the labor market.