Georgia and UAE Strengthen Economic Partnership
Georgia is making significant strides in enhancing its global connections, particularly with the United Arab Emirates (UAE). This partnership aims to bolster economic growth and digital connectivity, positioning Georgia as a strategic hub between Europe and Asia. Mariam Kvrivishvili, the Minister of Economy and Sustainable Development, emphasizes the nation’s commitment to infrastructure development, energy diversification, and regional connectivity.
Infrastructure Development Initiatives
At the core of Georgia’s development agenda are various infrastructure projects designed to improve both regional and international connectivity. Kvrivishvili highlights several key initiatives, including the Anaklia Deep Sea Port, the new Tbilisi Airport at Vasiani, and the modernization of the railway system. These projects aim to enhance transport efficiency and support economic growth.
Significant investments from UAE partners are already transforming Georgia’s landscape. For instance, Eagle Hills has pledged over $6 billion towards two major mixed-use developments in Tbilisi and Batumi. Additionally, the Abu Dhabi Ports Group is collaborating on the Tbilisi Dry Port, which became operational in June 2025, further enhancing logistical capabilities.
Energy Connectivity and Diversification
Energy connectivity is another critical focus area for Georgia. The Black Sea Submarine Electricity Cable is particularly noteworthy, as it aims to improve transit opportunities between the European Union and the South Caucasus. Kvrivishvili notes that this project will play a vital role in diversifying the EU’s energy sources, reinforcing Georgia’s strategic importance in the region.
Moreover, the UAE’s involvement in Georgia’s energy sector is exemplified by the partnership between Masdar and the Georgian Energy Development Fund, which supports the growth of solar energy initiatives in the country.
Economic Resilience and Growth
Georgia’s economy has shown remarkable resilience, achieving a growth rate of 9.4% in 2024. Following the pandemic, the country has emerged as one of the top performers in Europe and the region, with an average growth rate of 9.7% from 2021 to 2024. The beginning of 2025 has also been promising, with a recorded growth of 7.9% from January to August.
The government remains committed to structural reforms aimed at unlocking new investment opportunities and attracting high-quality investments. This includes enhancing productive capital accumulation to ensure long-term economic stability.
Investment Climate and Global Rankings
Georgia is increasingly recognized as a prime destination for global investment. According to the World Bank’s B-READY 2024 report, the country ranks first worldwide for business location, second for operational efficiency, and sixth in taxation. These rankings reflect the extensive reforms and progress made in recent years.
To sustain this positive trajectory, Georgia is simplifying administrative procedures, improving infrastructure, and expanding services for investors. The government is also deepening capital markets through venture capital and private equity initiatives. Incentives such as the FDI Grant Programme and the International Company Status, which offers reduced tax rates for IT firms, further enhance the investment climate.
Digital Transformation and Cooperation
As Georgia positions itself as a regional digital hub, the National Broadband Development Strategy is a key component of this vision. The strategy focuses on establishing data centers and submarine digital corridors across the Black Sea. Kvrivishvili encourages active collaboration between the UAE and Georgia to facilitate the exchange of digital traffic, thereby connecting Europe and Asia through Georgian territory.
Georgia’s favorable tax regime for IT companies, combined with a young and multilingual workforce, makes it an attractive partner for technology expansion in the region.
Conclusion
In summary, Georgia’s partnership with the UAE is paving the way for enhanced economic growth and digital connectivity. Through strategic infrastructure projects, energy diversification, and a commitment to improving the investment climate, Georgia is well-positioned to strengthen its role as a key player in the region. Continued collaboration with UAE institutions will further solidify these advancements and foster mutual growth.
FAQs
What are the main infrastructure projects in Georgia?
Georgia is focusing on several key infrastructure projects, including the Anaklia Deep Sea Port, the new Tbilisi Airport at Vasiani, and railway modernization efforts to enhance regional connectivity.
How is the UAE involved in Georgia’s energy sector?
The UAE, through Masdar and the Georgian Energy Development Fund, is actively supporting the development of solar energy initiatives in Georgia, contributing to the country’s energy diversification efforts.
What makes Georgia an attractive destination for investors?
Georgia ranks highly in global investment reports, offering a favorable business environment, operational efficiency, and tax incentives, particularly for IT firms, making it an appealing destination for foreign investments.
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